Steady Performance in the Suburbs: Venue Apartments Deliver Reliable Returns

Anchored by a 19,000-square-foot ALDI store, Roers Companies’ Venue Apartments also features 134 market-rate homes, bringing amenity-rich living to the heart of Chanhassen’s downtown area. Venue’s location offers incredible convenience for residents to walk to shops and restaurants or utilize the Southwest Transit hub just steps from the property’s doors. This type of development was the first of its kind in the city of Chanhassen in over 20 years and was named a Top Project in 2019 by Finance & Commerce.

Roers Cos. saw value in this downtown Chanhassen location because of its adjacency to retail and the lack of rental volume in the area. Partnering with another developer to add an ALDI store added appeal to the property as well. 

Venue Apartments opened in September 2019 with more than 50% of the building pre-leased. The lease-up progressed well over the winter and spring months to stabilize in less than a year. Since opening, Venue has been able to maintain 95%+ occupancy and was 38% ahead of the budgeted net operating income (NOI). The cost for development was $40.5 million, equalling $302,239 per unit.      

As of 2023, Venue has distributed 87.5% cash on cash returns (CoC) to investors during the hold period during quarter 3. Fueled by Venue’s exceptional 87.5% CoC, Roers Cos. has strategically opted to retain the property, demonstrating its unwavering commitment to providing investors with unparalleled returns.

The funds Roers received in the Aldi sale were used to buy out United Properties, a former JV partner on this deal. This buyout increased all of Roers Companies’ investor’s ownership percentages by 25% in Venue Apartments, with the reduced total equity in the project.

To date, Roers Cos. has opted not to sell because annual operating distributions have been incredibly strong, and have heard from investors that they appreciate the continued annual income. Venue is seen as a true legacy asset in the Roers Companies portfolio. The project will have distributed over 75% of equity through operations by the end of 2023. As we reach our originally targeted hold period, Roers Asset Management team will continue to analyze offers as we receive them, and will transact when we feel can provide the best returns to the investor group.

Project Completion: September 2019

% Leased at Opening: 57%

Stabilization: 9 Months 

Project Cost: $40.5M

Today, Venue Apartments stands as a testament to the power of thoughtful development. It has not only redefined luxury living in Chanhassen, but has also contributed to the city’s growing reputation as a desirable place to live, work, and play. As new residents continue to call Venue Apartments home, the legacy of this development continues to unfold, shaping the future of Chanhassen.

To learn more about Roers Cos. properties and potential investment opportunities, please contact our investor relations team or visit our website.

Disclaimer:
NO OFFER OF SECURITIES; DISCLOSURE OF INTERESTS: Under no circumstances should any material enclosed herein be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of the confidential Private Placement Memorandum relating to the particular investment. Access to information about investments with projects undertaken by Roers Companies LLC, Roers Companies Project Holdings LLC, or any of their respective affiliates is limited to investors who either qualify as accredited investors within the meaning of the Securities Act of 1933, as amended, or those investors who are generally are sophisticated in financial matters, such that they are capable of evaluating the merits and risks of prospective investments. Investment outcomes vary. Past success does not guarantee future results.