Source: Investors Real Estate Trust / #Apartments #Multifamily
ROCHESTER, MN - Investors Real Estate Trust, a self-administered, equity real estate investment trust investing in income-producing properties located primarily in the upper Midwest, announced the acquisition of a 393-unit luxury townhome portfolio in Rochester, Minnesota for $72.5 million and the disposition of a student housing portfolio located in St. Cloud, Minnesota for $5.6 million.
"The acquisition of this multifamily portfolio is a strong addition to our platform and solidifies our presence as the largest apartment owner and operator in the Rochester market," said Tim Mihalick, President and Chief Executive Officer of the Company. "Rochester is a growing market with strong fundamentals and a healthy, diversified economic base, including the world-renowned Mayo Clinic, and we believe this acquisition creates the opportunity to generate attractive returns over time. This acquisition, coupled with the sale of non-core student housing assets, continues the evolution of our portfolio and demonstrates our ability to efficiently recycle capital into higher-quality institutional properties as we look to create long-term shareholder value."
The townhome portfolio consists of four multifamily communities with a central leasing and management office and a community building and has a total of 393 two- and three-bedroom units. The properties were originally built between 1990 and 2010. Avalon Cove at 3202 Avalon Cove Lane NW is a 187-unit property which features contemporary-designed townhomes, serene lake views and upscale amenities. Cascade Shores at 144 Beach Lake Road SW is a 90-unit property with high end finishes and located adjacent to Cascade Lake Park. Crystal Bay at 2450 Crystal Bay Court SW is a 76-unit property with expansive floor plans and surrounded by serene lakes and wooded areas. French Creek at 2000 Chardonnay Lane NW is a 40-unit property offering affordable and centrally-located townhomes with shopping and dining options in close vicinity.
With the addition of these townhomes, the Company now owns 1,773 units within the Rochester market. Rochester is the second largest MSA in Minnesota, with a population of approximately 212,000. The largest private employers in the MSA include the Mayo Clinic and IBM.
Additionally, the Company sold a student housing portfolio, consisting of eight buildings comprising 391 units, located in St. Cloud, Minnesota, for $5.6 million.