Reuter Walton Development and Roers Cos. closed on their sale of 93-unit N&E Apartments today to Summit Townhome Investors, LLC. The transaction comes just two months after the new Northeast Minneapolis apartment building opened its doors to the first residents on March 27.
The community located at 13th Avenue Northeast opened at over 50 percent preleased — well ahead of its budgeted leasing schedule. That success enabled the parties involved to complete the sale earlier than initially planned. The $22.9 million sale was handled by Colliers and represents a 44% cash-on-cash return for its investors.
Swift lease-ups and sales are nothing new to the buyers and sellers involved in the N&E sale, all of whom experienced similar success during the lease-up and sale of neighboring 100-unit Mezzo Apartments last year. Mezzo reached 90% leased within five months of opening and sold for $24.6 million — a 45% return for that project’s investors.
“It’s bittersweet to close on the final sale,” said Reuter Walton Development Owner Nick Walton. “This all started when I negotiated purchase terms to by the Dusty’s land in the Spring of 2016. Fast forward four years, and we’ve created a beautiful pair of buildings that bring just over 200 homes to a wonderful Minneapolis neighborhood. We’re very proud of what we’ve done on this block.”
The N&E sale comes just 14 months after Mezzo Apartments sold to Dan Gustafson of Summit Townhome Investors, LLC in April 2019. The new owner planned to purchase the pair of multifamily properties early in the development process, and the successful lease-ups of both communities helped expedite the sales.
Despite the challenges of adapting to virtual leasing tours and contactless move-in plans during the final weeks before opening the new building, N&E — and Mezzo Apartments next door — maintained the steady demand developers anticipate when developing new communities in the hot Northeast Minneapolis market. Today, 62 of the 93 units at N&E are leased (67%).
N&E apartments are bright and modern with quartz countertops, large windows and in-unit laundry. Other amenities include a fitness center, pet spa, bike room and spacious lobby lounge. Its rooftop deck offers panoramic views of downtown Minneapolis and the Mississippi River. Apartments range from studios of less than 500 square feet to two bedrooms sized over 1,000 square feet. The ground floor offers 3,500 square feet of retail space, with an average rent per square foot of $2.33.
“We have local individual investors as partners in this project, so it is rewarding to complete this sale,” said Roers Cos. Owner Brian Roers. “With all the economic and stock market instability, this transaction completes what we set out to do three years ago. We are excited about the new owners and their tradition of providing great housing to the people in our community.”
The following organizations were involved in the development, management, lease-up and sale of N&E Apartments.
- Construction: IRONMARK Building Company
- Developer & Owners: Reuter Walton Development & Roers Companies (partnership)
- Architect: DJR Architecture
- Interior Designer: Sage Interiors
- Property Management: Core Living
Explore N&E Apartments
Interactive virtual tours: nandeapts.com/virtual-tour