The Hampshire Hills Apartments, a 534-unit complex in Bloomington, has changed hands for $46.5 million, sale documents filed recently in the Hennepin County Assessor's office show.
The sale, which closed earlier this month, is the latest sign of activity in the apartment sector, which continues to do better nationally than other commercial real estate sectors coming out of the recession. Apartments are generally considered a more stable real estate investment than offices or shopping centers, and they've been a relatively hot commodity as investors -- private, institutional and real estate investment trusts (REITs) alike -- hunt for bargains. With the housing collapse and slow economy, the market for rentals is expected to remain strong.
Deutsche Bank AG's real estate investment management business, RREEF LLC, sold Hampshire Hills for one of its institutional clients, said RREEF spokeswoman Mayura Hooper. She said the buyer was Chicago-based Westdale Investment Partners LLC.
The sale price works out to $87,079 per unit, roughly in line with the selling prices of large apartment building that changed hands in the Twin Cities suburbs last year.
Ten apartment buildings sold in the Twin Cities last year -- not including senior housing -- for a total of $210.3 million, according to data from Cassidy Turley's local office, which tracks apartments with 75 or more units. The average per-unit sale price was $92,377.
Julie Lux, an associate vice president at Cassidy Turley, said the multifamily market has started the year on a good footing.
"We've got several projects under construction, vacancy rates are stabilized for the most part, and many owners are projecting at least 3 percent rent increases for 2011," Lux said.
Jennifer Bjorhus • 612-673-4683