Twin Cities Community Trades

The Doran Group, an Eden Prairie, Minn.-based real estate development firm, has sold 610 West Apartments, a Class A multifamily property in the Twin Cities community of Brooklyn Park, Minn. Spyglass Capital Partners purchased the 480-unit property.

JLL Capital Markets represented the seller and secured acquisition financing on behalf of Spyglass Capital Partners. The Fannie Mae loan will be serviced by JLL Real Estate Capital, LLC.

JLL’s Investment and Sales Advisory team was led by Managing Director Josh Talberg and Director Joseph Peris, who represented the seller. Managing Director Scott Loving, Senior Managing Director Ken Dayton and Senior Director Pat McMullen secured the acquisition financing.

Talberg said in prepared remarks that the community generated significant interest from institutional and private investors, with more than $1 billion in capital competing for the property. He cited the best-in-class property and its location in one of the strongest-performing markets in the region as factors driving the interest.

In October, Turner Impact Capital purchased a 147-unit community in Minneapolis, sold by Saturday Properties. A JLL Capital Markets team, led by Talberg, acted on behalf of the seller and procured the buyer on this transaction as well.

Property details

Evan Doran, president and CEO of The Doran Group, noted that 610 West Apartments was the family’s second multifamily project that it designed, developed and managed. He said the firm plans to expand both regionally and into additional states as well as new categories including active adult and built-to-rent properties.

Built between 2016 and 2018, the four-building property is located in the 610 Corridor at 6717 Oak Grove Parkway, about 15 miles northwest of downtown Minneapolis. The community is near Target’s 333-acre northern campus and also has proximity to the Boston Scientific and Medtronic campuses. It’s location is within Medical Alley, a globally recognized hub for health technology innovation.

The Doran Group secured a $48.5 million permanent loan from TIAA Insurance Co. in January 2019 for the community. The family-run company had initially received a construction loan package totaling $47.1 million in July 2015 from Associated Bank, Johnson Bank and Bank Mutual, according to Yardi Matrix data.

The property was 96 percent occupied at the time of the sale. The units range in size from 643 to 1,613 square feet with an average of 1,003 square feet. Rents range from $1,790 to $2,959, with an average of $1,900, according to Yardi Matrix.

The apartments feature stainless steel appliances, granite countertops, tile backsplashes, custom cabinetry and wood-looking flooring. All units have washers and dryers and select apartments have private balconies or patios and fireplaces.

Community amenities include three swimming pools, two courtyards, a 22,000-square-foot clubhouse, a fitness center and sauna, a golf simulator and heated underground parking that connects all buildings.