The owners of the Metropoint office complex in St. Louis Park jumped into the Twin Cities' multifamily market Wednesday with the purchase of two Burnsville apartment complexes.
Philadelphia-based Equus Capital Partners Ltd. bought the 588-unit portfolio of the Atrium and Trailway Pond Apartments from Henderson Global Investors’ CASA Partners III LP for an undisclosed sum -- the first apartment portfolio purchase in the Twin Cities in the past seven years.
Equus already owns and operates the 920,000-square-foot Metropoint as well as the 540,000-square-foot Grand Oak office park in Eagan. Now the firm says it will spend $4.5 million to renovate apartments and common areas at both Atrium and Trailway Pond.
“The transaction provided us with the opportunity to acquire two well-located multifamily communities in Burnsville, a desirable suburb of Minneapolis,” Brant Glomb, vice president of Equus, said in a statement issued Wednesday along with the Minneapolis office of CBRE, which represented London-based Henderson in the transaction.
CBRE’s Minneapolis Debt & Structured Finance team of Joel Torborg, Murray Kornberg, and Scott Larson assisted with the debt placement transaction. The financing was made through a national bank and equated to a 75 percent loan-to-value on a non-recourse basis.
Henderson said it remains committed booming Minnesota multifamily market.
“While Henderson’s funds continue to maintain a significant multifamily ownership presence in the Twin Cities, the sale of these two assets provided an opportunity to successfully return capital to our investors after an approximate nine-year holding period,” said Brian Eby, Henderson’s director of transactions and financing.