National investors are lining up to buy Twin Cities apartment buildings, and a pair of local developers hope to get in on the action.
Curt Gunsbury and Robb Miller are hoping to find a buyer for a trio of Minneapolis apartment buildings, including two in the North Loop and one near the University of Minnesota campus.
With 455 apartments, all developed by Gunsbury and Miller, the portfolio could be the biggest apartment deal of the year for the city.
The offering includes:
• Solhavn at 815 N. 2nd St. in the North Loop, with 137 units.
• Soltva at 701 N. 2nd St., with 100 units.
• 7West at 1800 Washington Av. S., with 218 units and known as the site of the former Grandma’s Saloon & Grill.
The portfolio was listed with Keith Collins, Abe Appert and Laura Hanneman of CBRE.
Gunsbury, owner of Solhem Cos. and Miller of TE Miller Development, declined to comment about their motivation for selling. Consistent with CBRE protocol, the listing price hasn’t been made public. Appert said the deal isn’t likely to set a record per-unit price even though the buildings are in prime locations and have the kinds of finishes and amenities that are coveted by today’s renters.
“They nailed it,” Appert said of the developers’ execution of the project.
Apartment buildings in the Twin Cities have been fetching record prices, and 2014 was a great year on many levels for apartment sellers, including the number of transactions and dollar volume. “There’s just a lot of money out there trying to find a home in multifamily assets,” Appert said. Last year, there were more than $900 million in sales, and so far this year sales have exceeded $500 million.
Gunsbury and Miller developed all three buildings and have partnered on several Twin Cities-area projects.
Most recently, they proposed building 602 North First, a high-end, 30-unit boutique condominium building just a few blocks from the Mississippi River in the North Loop neighborhood. Plans called for units ranging from 1,700 to more than 3,000 square feet priced from $700,000 to about $3.3 million. After a few months of trying to sell the units, they scrapped the condo plans in favor a luxury apartment building.