RK Property Holdings has acquired Concierge, a 698-unit apartment community in the Richfield suburb of Minneapolis, for $95.1 million. The seller, a joint venture between MLG Capital and Soderberg Apartment Specialists, acquired the asset—formerly known as Crossroads at Penn for—approximately $41 million in September 2015 and embarked on an extensive upgrade of the property.
“We made a significant commitment to re-energize Concierge over the last three years of ownership, performing a major renovation which fully updated all 698 units,” Andrew Bruce, MLG Capital’s executive vice president and principal, said. “We also focused on adding a superior amenity package including a state-of-the-art fitness center, theater, golf simulator, dog park, rock climbing wall, convenience store and new leasing office at the property.”
At the time, each unit was upgraded with a full interior renovation that included the addition of granite counter tops, stainless steel appliances, new cabinetry and new flooring.
“Not only did this investment re-energize the community in which it is located, our family of investors realized phenomenal overall returns,” Bruce said. “MLG generally seeks to exit investments after improving and/or stabilizing assets so that we can continue our pursuit of new value-added investment opportunities from our deep nationwide sourcing network. Our competitive advantage is proprietary deal flow and we are actively seeking similar opportunities.”
Located at 7600 Penn Ave. S., the property is the third-largest market rate apartment community within the Minneapolis-St. Paul market. Concierge is situated on the border of Edina, Bloomington, and Richfield, with great access via Interstate 494. It is close by the Minneapolis–St. Paul airport, the Mall of America, and large regional employers such as Toro and Best Buy.
In a little more than 30 years, MLG Capital has made investments in 18 million square feet of total space across the United States, inclusive of more than 12,900 apartment units, with exited and estimated current value exceeding $1.6 billion.
In November, MLG Capital teamed with Continental Realty Advisors on the acquisition of Tempe Metro, a 408-unit community in Tempe, Ariz., for $53.5 million.
Image courtesy of MLG Capital