By Clare Kennedy - CoStar
April 27, 2018
Chicago-based Maven Real Estate Partners has purchased the 105-unit Normandale Lake Estates apartment complex in Bloomington, MN.
Maven paid $10.5 million, or $100,000 per unit, for the cluster of three buildings at 5277 W. 82nd St., located just off the junction between Highway 100 and Interstate 494.
The seller is an entity related to St. Louis Park-based Neupoint Management Solutions that has held the property since 1994, when it purchased the site for $3.8 million, according to public records. The entity is controlled by James Farrell and Myron Striker, according to the warranty deed transferring ownership.
The property was assessed at $10 million for taxes payable in 2019, according to Hennepin County records.
Normandale Lake Estates was built in 1964. The complex has one- and two-bedroom apartments ranging from 750 to 900 square feet in size, according to Neupoint’s marketing materials. It also has an outdoor pool, patio, grilling area, dog park and free DVD library. Asking rents range from $845 to $987 per month.
Colliers broker Ted Bickel was part of the team that represented the seller. Colliers quietly began shopping the complex last fall, he said, adding that it was unpriced at the time. Interest was strong, and by Christmas the property was under contract.
"It's a bread-and-butter, value-add deal and a lot of people are looking for that right now," Bickel said on Friday. "We had regional and in-state interest for the most part."
Executives at Maven could not be reached for comment. However, Bickel said the new owners plan to begin a sweeping renovation of the property this spring.
The company has taken out a $10.1 million construction loan provided by St. Paul-based Bremer Bank, according to a mortgage agreement dated this past Monday.