Search
 

Despite Softer Rentals, Apartments Attract Investors

MINNEAPOLIS-"Apartments are still the darling of investors," says a Colliers Turley Martin Tucker report, with cap rates for newer projects in the low 7% range.

By Jim McCartney | Updated on February 12, 2004

MINNEAPOLIS-Despite a softness in the Twin Cities apartment market due to a boom in supply and a continuing trend toward home ownership, the market has still proven attractive to investors, according to a recent report from Colliers Turley Martin Tucker. The report says that capitalization rates for newer projects are in the low 7% range, and move up to 8% for projects from 10 years old to 15 years old.

“Apartments are still the darling of investors,” says the report. The report also goes on to describe a range of apartment complex sales in the last year.

Topping the list were: Calhoun Plaza, the 109-unit complex in Minneapolis, sold for $115,138 per unit; Vinings at Woodbury, a 224-unit complex in Woodbury, sold for $112,054 per unit; and Vicksburg Village, a 334-unit complex in Plymouth, sold for $100,000 per unit.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.