Source: JLL Income Property Trust / #Apartments #Multifamily
ST PAUL, MN - JLL Income Property Trust, an institutionally managed, daily valued perpetual life REIT, announced the acquisition of The Penfield, a 254-unit, award-winning, transit-oriented, apartment complex that includes a ground-floor commercial space that is leased to a premier local grocer on a long-term basis. The Class-A property is located in the heart of downtown Saint Paul, Minnesota, the Midwest's strongest apartment market. The purchase price was approximately $65.5 million.
Minneapolis-Saint Paul is home to 2.9 million residents and boasts one of the strongest job markets in the country with an unemployment rate of 2.9 percent, ranking first among the 50 largest metropolitan areas in the nation. The area is home to sixteen Fortune 500 companies (the most per capita in the U.S.), and ranks as the 4th most educated and 4th highest median income in the nation. In addition to the area's strong job market, downtown Saint Paul has achieved a critical mass of amenities and residential population that is rapidly accelerating the growth of each making it a Millennial Magnet location in which over 30% of the population is between 20 and 34 years old. Recently constructed urban amenities include the new Green Line light rail, a new concert hall, and a minor league baseball park. Downtown Saint Paul now boasts a 95 out of 100 Walk Score, walkscore.com's proprietary ranking of a property's desirability based on its proximate location to retail, restaurant, and employment amenities.
"The Penfield is one of the finest quality apartment complexes in the downtown Saint Paul area," commented Allan Swaringen, President and CEO of JLL Income Property Trust. "Limited new supply and a submarket apartment vacancy rate of 3.1 percent coupled with The Penfield's high quality design, walkable location, and access to employment and entertainment amenities make it an attractive addition to our portfolio."
"This investment represents a continuation of our core apartment investment strategy to acquire properties in strong urban in-fill locations that appeal to millennial renters. This is our third investment in the multifamily property sector this year, bringing our apartment allocation to $400 million in gross assets and 20 percent of our overall investment portfolio," Swaringen added.