A fallow building site on the edge of the University of Minnesota has a new owner.

Richfield-based Cornerstone Group sold a 2.4-acre site at 2901 4th St. SE. in Minneapolis to an entity related to Prospect Park Properties for $5.05 million, according to a certificate of real estate value filed recently.

Through its 29th Avenue Associates LLC, Cornerstone bought the property in late 2012 for $3.2 million and planned to build an apartment complex of up to 200 units on it. Prospect Park’s Jeff Barnhart said that its plans for the site are building off what Cornerstone had proposed. Prospect Park is working with Tushie Montgomery Architects.

The 2901 4th St. SE. site is in the heart of a once-industrial area that has been the subject of intense planning and redevelopment. The focus is a two-block stretch of 4th Street SE. called “Green Fourth,” which is slated to become a tree-lined corridor with several innovative features including a stormwater management system, urban gardens and pervious pavers to absorb runoff and rainwater.

“I’m happy someone can step in and execute the ideas we had,” Cornerstone President Colleen Carey said. “They’re willing to do all the things we wanted to do for that neighborhood ... they’re creating a green neighborhood that’s going to be unique.”

Barnhart and the principals at Prospect Park are deeply familiar with the area. The firm recently sold a nearly three-acre site at 2929 University Av. SE. to Chicago-based Harlem Irving Cos. for just shy of $11 million. That’s where Harlem Irving is now developing a 15-story, 258-unit rental apartment complex called Rise, which will include a Fresh Thyme grocery store. That site is across from the one just acquired from the Cornerstone Group.

“We think this area is on the verge of becoming a very cool destination,” Barnhart said. The 2901 4th St. SE. purchase was a part of a 1031 exchange involving the sale of the 2929 University site.

Ryan Sailer, vice president of development for Timberland Partners, said that in addition to developing the property for Prospect Park Properties, his firm will act as property manager.