Madison Trailways in Burnsville, MN, a town that has become a popular bedroom community for the Twin Cities.
MINNEAPOLIS—Equus Capital Partners, Ltd., a Philadelphia-based private equity fund manager, has just sold Madison Atrium and Madison Trailways in Burnsville, MN, a suburb just south of Minneapolis. San Francisco-based FPA Multifamily, LLC bought the 588-unit apartment portfolio for $72.5 million.
In some ways, the sale was a bit of a surprise, as Equus purchased the value-add portfolio just two years ago and had finished renovations on about half the units. But the demand for apartment properties in this booming region, which has one of the lowest unemployment rates in the nation, was so robust that Equus officials realized they could get a great return even though the renovations were not complete.
“We typically underwrite a five-year hold period,” Greg Curci, vice president of Equus, tells GlobeSt.com. But they also noticed that rental rates in the towns near Burnsville were increasing at a rapid clip, and residents had begun looking for other options. “We were in the draft of that.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
