Roers Companies sold its 255-unit Beyond Apartments in Woodbury on Friday, March 11 to Milwaukee-based MLG for $65.16 million — just six months after the first residents moved into the newly constructed building at 455 Karen Dr.
The timing of the sale is earlier than typical for multifamily sales as the property is still in lease-up. In other words, Beyond Apartments has not yet achieved “stabilization” or reached 95% occupancy. However, the leasing velocity in the high-demand suburb and rents achieved by Roers Cos. and management company Core Living propelled the buyer to get in early.
On move-in day in September 2021, the property had 133 of its 255 units leased, or 53%. Today, Beyond Apartments is 76% occupied and more than 81% leased.
Beyond Apartments totals more than 315,000 sq. ft. across two buildings with studio through three-bedroom apartments that range from 482 sq. ft. to 1,472 sq. ft. Amenities abound with an outdoor pool, firepit, rooftop deck, work-from-home lounge, golf simulator, community room and café, fitness center, kids’ playroom, rooftop lounge and heated underground parking. Within each of the apartments, renters enjoy gas stovetops, granite countertops, and modern matte-black fixtures.
“Our team is really proud to have created this premier apartment community in one of the fastest-growing suburbs — the city of Woodbury,” says Jeff Koch, principal partner at Roers Cos. who led the site’s development efforts. “There are so many amenities for residents to enjoy and share with family and friends.”
In general, Roers Cos. says they prefer a longer-term hold for their properties. The company relies on private investors to fund most of its projects, and the annual returns are part of the draw for many of those individuals.
“Of course, there are a number of factors we consider before selling a property, and the impact for our investors is at the top of that list,” says Kent Roers, owner and co-founder of Roers Cos. “This sale was too attractive to pass up as we grow our development pipeline.”
The proceeds from the sale will help the firm reinvest in new projects. The company set a goal to close 24 new deals in 2022 to expand the Roers Cos. footprint into a number of high-growth markets nationwide. This will include a mix of market-rate apartments, similar to Beyond, and affordable housing.
“We are excited to bring new, quality projects to markets where housing demand is far outpacing supply. The Beyond Apartments sale helps propel the affordable side of our business in particular since that’s where the bulk of our development pipeline sits,” says Koch.