FPA Multifamily Acquires Historic Minneapolis Apartments – Multifamily Real Estate News
FPA Multifamily purchased the Gaar Scott Historic Lofts, a historic loft-style property located at 614 N. First St. in Minneapolis, Minnesota. FPA acquired the community from former owner Gaar Scott Limited Partnership. Of them JLL Capital Markets represented both buyer and seller in the transaction, securing a three-year fixed rate loan for the purchase by North American Banking Corporation.
The Gaar Scott Historic Lofts were built as warehouses in 1885 and converted to apartments in 2001, subsidized in part by historic tax credits. The property offers standard and value-added one-bedroom loft-style units averaging 900 square feet. Apartments feature open floor plans with exposed brickwork and wood beams that hint at the building’s past, in addition to industrial kitchens and in-unit laundry machines. Community facilities include a community hall, fitness center and parking garage. Located in the heart of the city’s Warehouse District, the community is located along the Mississippi River and within walking distance of downtown Minneapolis, close to many of the city’s restaurants, shopping, and entertainment.
The JLL team representing the vendor was led by Managing Director Adam Haydon and Managing Directors Dan Linnell, Mox Gunderson and Josh Talberg. Senior Managing Director Matthew Lawton, Managing Director Scott Loving and Director Britta Lund acted on behalf of the seller.
The twin towns are shrinking
Twin Cities remains a strong Midwestern multi-family market as the city saw $923 million in transactions over the past year, according to a September 2022 Yardi Matrix report. Despite strong demand, market rent growth has increased by 0.3% and the supply of available space has lagged, in part due to labor and supply shortages. As of July, 4,188 units had been delivered – with just 257 under construction – an order of magnitude lower than the 5,207 units delivered last year, according to report data.
Other recent headlines in Twin Cities include Thompson Thrift’s development of The Meridian at CityPlace, a 91-unit luxury townhouse community, as well as CEDARst’s $170 million landing for the Duffey development. 2.0, a 358-unit mixed-use community.