MINNEAPOLIS, MN - Calvera Partners, a California based private real estate investment firm, acquired Grant Street Commons, an 85-unit, 8-story, apartment building located at 515 E. Grant Street in downtown Minneapolis, MN for $11.375 million ($133,800/unit). The property is in an emerging downtown Minneapolis neighborhood, and walking distance to the new Minnesota Vikings stadium, light rail transit, and major downtown employers, with great freeway access. The deal is the first in Calvera’s national expansion into emerging urban markets.
Calvera improves each community in its portfolio with a rebranding and repositioning strategy that is unique to each asset and draws inspiration from the boutique hotel industry. Calvera will give Grant Street Commons a new, unique design/brand and will implement strategic physical improvements to the common areas and unit interiors to provide its community members with a more modern experience while still providing a value relative to recently built apartment buildings in the downtown market.
“We’re looking forward to rebranding and repositioning the property to better compete in the dynamic downtown market,” said Brian Milovich, Managing Principal at Calvera Partners. “This won't be a cookie cutter renovation. The design and brand will be authentic and bring this 1980s building into 2017 and beyond. We're going to provide an outstanding value-oriented product that brings positive attention to the neighborhood.”
In addition to its demographic makeup and desirable urban living, Minneapolis-St. Paul is attractive to investors. Major city attractions include Target Field, US Bank Stadium, five art museums, the award-winning Guthrie Theatre, 49 regional parks and park reserves, The Mall of America and the nearly 50,000 student population at the University of Minnesota. According to a recent New York Times article, the city had the third highest increase in density, just behind Chicago and Seattle, from 2010-2016 out of the 51 metros with more than 1 million people in the country.
“We chose Minneapolis as our first city outside of California because we think the Twin Cities is still a well-kept secret across the country,” said Milovich. “It is densely populated, showing steady growth, has major attractions and large businesses, and most importantly, a desire for urban living. The city and developers alike have invested millions of dollars in East Town. We can see that progress heading south on Portland Avenue and want to be part of that evolution.”
This is Calvera’s first acquisition outside of the San Francisco Bay Area and the first acquisition in its fully-discretionary real estate investment fund. Concurrent with the acquisition, Calvera is opening an office in the Twin Cities and seeking additional investments in the Minneapolis-St. Paul metro area, in addition to other markets across the country.