crossroads apartments -...

CROSSROADS APARTMENTSSAINT PAUL, MINNESOTA

Offering Memorandum

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of

interest in the subject property. The information contained herein is not a substitute for a thorough due diligence

investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with

respect to the income or expenses for the subject property, the future projected financial performance of the

property, the size and square footage of the property and improvements, the presence or absence of contaminating

substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the

improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or

intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure

has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not

verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding

these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the

information provided. All potential buyers must take appropriate measures to verify all of the information set forth

herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016

Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply

affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or

subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for

the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CROSSROADS APARTMENTS

Saint Paul, MN

ACT ID X0510343

www.MFInvestmentBrokerage.com

1350 Lagoon Avenue, Suite 840, Minneapolis, Minnesota 55408

Phone: 952-852-9700 | Fax: 952-852-9710

Dan LinnellVice President of InvestmentsDirector National Multi Housing [email protected] #: 40211216

Mox GundersonAssociate Vice President of InvestmentsDirector National Multi Housing [email protected] #: 40237387

Josh TalbergSenior AssociateMember National Multi Housing [email protected] #: 40124349

Chris CollinsAssociateNational Multi Housing [email protected] #: 40336144

Adam HaydonAssociateNational Multi Housing [email protected] #: 40322843

Evan MillerAssociateNational Multi Housing [email protected] #: 40325439

Abe RobertsSales Intern Program / AssociateNational Multi Housing [email protected] #: 40445509

Pat RileySenior Data [email protected] #: 40418685

Charlie GrandeFinancial [email protected]

Holli TaffDirector of Marketing and [email protected] #: 20213334

Jake FrishmanIntern | Data [email protected]

G U N D E R S O N L I N N E L L T A L B E R G

PROPERTY NAME

MARKETING TEAM


EXECUTIVE SUMMARYOFFERING PROCEDURE

4

Gunderson Linnell Talberg Group of Marcus & Millichap is pleased to offer for sale Crossroads Apartments comprising of three apartment

buildings totaling 51-units located in Lauderdale (Saint Paul), Minnesota.

Price: MARKET BID

Interest Offered:

Fee simple interest in Crossroads Apartments, a 51-unit apartment community located at 1634 Eustis Street, 1642 Eustis Street and 2400

Larpenteur Avenue, Lauderdale (Saint Paul), Minnesota 55108.

Offering Procedures:

Purchasers wishing to make an offer should submit:

• Letter of Intent (template available upon request)

• Proof of Funds and Banking References

• Resume (which includes a list of other investment real estate owned now or in the past)

At the time the Owners select a Purchaser, they will have considered a number of factors including: price, contingency time frame(s), track

record and the perceived ability of potential purchasers to complete the contemplated transaction. Therefore, interested purchasers are

encouraged to submit as much of the above as possible with the Letter of Intent.

All communication, inquiries and requests, including property tours, should be addressed to the Marcus & Millichap listing agents. Do not

directly contact the Owners or anyone at the property.

Tour Schedule:

• Tuesday, August 2nd

• Thursday, August 4th

• Tuesday, August 9th

• Thursday, August 11th

• Tuesday, August 16th

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photos

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

Growth Rate Projections

Cash Flow

MARKET COMPARABLES 03Comparables

Rent Comparables

MARKET OVERVIEW 04Market Analysis

Demographic Analysis



6

INVESTMENT

OVERVIEW


#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Energy Management 20,000

Honeywell 8,000

ITS Information Technology 5,000

Minnesota Department of Transportation 4,810

Hennepin County 4,776

Hennepin Healthcare System Inc 4,500

Regents of The University of Minnesota 4,252

Wells Fargo 4,000

UPS 3,508

Fairveiw University Medical Center 3,000

Community Health Department 2,800

Smiths Medical MD Inc 2,580

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2015 Estimate Pop 10,072 132,630 456,369

2010 Census Pop 9,629 124,529 431,196

2015 Estimate HH 3,954 56,326 192,232

2010 Census HH 3,730 52,450 180,190

Median HH Income $59,793 $43,775 $44,964

Per Capita Income $31,658 $29,511 $29,364

Average HH Income $78,966 $66,544 $67,683

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

3 Studio 430

48 1 Bed/ 1 Bath 550

51 Total 27,690

VITAL DATA

Price MARKET BID

Interest Rate / Amortization 3.62% / 30 Years

Net Operating Income Time 0: $202,144

Year 1: $240,391

Number of Units 51

Rentable Square Feet 27,690

Year Built 1959 | 1959 | 1960

7

Minneapolis Skyline View From Select Top Floor Units


#

OFFERING SUMMARY

Located Close to University of Minnesota's Minneapolis and Saint Paul Campuses

Value-Add Opportunity with Rent Increases; Seller Has Owned for Over 20 Years

Year 0 NOI: $202,144 | Year 1 NOI: $240,391

Strategic Property Renovations Could Yield an Increase of Rents to $775 for Studio Units and

$825 for One-Bedroom Units

Strong Historical Occupancy in Core Location

INVESTMENT HIGHLIGHTS

Crossroads Apartments, offered for sale for the first time in over 20 years, is located directly between both University of Minnesota’s Saint

Paul campus and Minneapolis campus. This rare opportunity, with immediate upside via rent increases, should fill the desire for investors

seeking a core asset in the heart of one of the strongest performing markets in the entire nation.

Crossroads offers an initial Net Operating Income (NOI) of $202,144 (Year 0). With a new marketing strategy and strategic in-building

upgrades along with in- unit upgrades, the new owner should achieve rent increases for one-bedroom units and achieve an NOI over

$240,000 in Year 1. This long-term hold is sure to offer years of consistent occupancy.

Crossroads is subject to a Land Use Restriction Agreement which originated from the Resolution Trust Organization (RTC) dating back to

1995 and entered into by its current owner. These requirements expire 40 years from their original commencement in 1995, or, 2035. These

restrictions require that the owner rent 13 apartment units to tenants earning less than 50 percent of the average median income and 13

apartment units to tenants making less than 80 percent of the average median income.

Crossroads Apartments offers an investor the opportunity to step into a stabilized asset and take advantage of today's historically low

interest rates and long-term debt. A prospective purchaser may consider two very lucrative opportunities. The first is achieved through

simply operating the asset in its current form while placing more emphasis on marketing and advertising, adjusting renewals and new

residents to market rent, enhancing the going-in cash on cash return. The second is achieved through upgrades to select units and common

areas, which should generate further upside through average rent increases.

INVESTMENT OVERVIEW

8


#

OFFERING SUMMARY

PROPERTY OVERVIEW

Crossroads Apartments is conveniently located five minutes from the University of

Minnesota Saint Paul campus and only 10 minutes from downtown Saint Paul with easy

access to transit services. Other notable amenities close by: Luther Seminary, Minnesota

State Fair Grounds, Lee Bolstad Golf Course, Midland Hills Country Club, Interstate 35W and

Highway 280.

Consisting of three neighboring 17-unit brick buildings, comprised of entirely one-bedroom

apartments, these units experience and attract longer-term tenants with the current below-

market rent structure.

Built in 1959, these three buildings have owned on-site laundry equipment in each building

and a surface parking lot. Some select units have specific and unique upgrades including

updated cabinetry, laminate hardwood floor coverings and updated carpet. Many bathrooms

feature the original ceramic tile with upgraded pedestal sinks.

9

Owned On-Site Laundry Facilities

Common Area Amenities

Paved Off-Street Parking

Select Units Have Downtown Minneapolis

Skyline Views

Unit Amenities

Balconies on Select Units

Select Units Feature Upgraded Cabinetry,

Flooring, Some Bath Updating


#

PROPERTY PHOTOS

PROPERTY SUMMARY

10


#

PROPERTY SUMMARY

OFFERING SUMMARY

THE OFFERING

Property Crossroads Apartments

Property Address 1634 Eustis Street, Saint Paul,MN

Assessor’s Parcel Number 20-29-23-21-00

Zoning Multifamily

SITE DESCRIPTION

Number of Units 51

Number of Buildings 3

Number of Stories 3

Year Built/Renovated 1959 | 1959 | 1960

Rentable Square Feet 27,690

Type of Ownership Fee Simple

Parking Paved Lot | Off Street

Landscaping Mature

Topography Level

UTILITIES

Water Owner

Phone Tenant

Electric Owner

Gas Owner

CONSTRUCTION

Foundation Concrete Block

Framing Wood

Exterior Brick

Parking Surface Asphalt

Roof Flat

MECHANICAL

HVAC Gas Boiler

Wiring Standard

Fire Protection Alarm

11

PROPOSED FINANCING

First Trust Deed

Loan Amount MARKET BID

Interest Rate 3.62%

Amortization 30 Years

REGIONAL MAP


12

LOCAL MAP


13

AERIAL PHOTO


14


#

PROPERTY SUMMARY

15

University of MinnesotaMinneapolis Campus

University of MinnesotaSaint Paul Campus

Snellin

g Aven

ue

Hennepin Avenue

Saint Anthony Park Neighborhood

Dinkytown

Nicollet IslandComo

Neighborhood

Downtown Minneapolis


Northeast Minneapolis Arts

District

Prospect Park Neighborhood

Warehouse District

Snellin

g Aven

ue

Larpenteur Avenue: VPD 14,000

Veh

icles Pe

r Day: 4

6,5

00


16

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

17

# of Avg Sq Rental Average Average Monthly Average Average Monthly

Unit Type Units Feet Range Rent Rent / SF Income Rent Rent / SF Income

Studio 3 430 640 - 665 $648 $1.51 $1,945 $758 $1.76 $2,274

1 Bed/ 1 Bath 48 550 640 - 740 $691 $1.26 $33,150 $822 $1.50 $39,470

Totals/Weighted Averages 51 543 $688 $1.27 $35,095 $819 $1.51 $41,744

Gross Annualized Rents $421,140 $500,928

Scheduled Potential

1 Bed/ 1 Bath

94%

Studio

6%

Unit Distribution

FINANCIAL ANALYSIS


RENT ROLL DETAIL

18

Current Current Scheduled Scheduled Potential Potential

Square Rent / Rent / SF/ Rent / Rent / SF/ Rent / Rent/ SF/

Unit Unit Type Feet Month Month Month Month Month Month

01 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $812 $1.48

02 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

03 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

04 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

05 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $812 $1.48

06 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

07 1 Bed/ 1 Bath 550 $715 $1.30 $715 $1.30 $825 $1.50

08 1 Bed/ 1 Bath 550 $705 $1.28 $705 $1.28 $825 $1.50

09 1 Bed/ 1 Bath 550 $720 $1.31 $720 $1.31 $825 $1.50

10 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

11 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

12 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $812 $1.48

13 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $812 $1.48

14 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

15 Studio 430 $640 $1.49 $640 $1.49 $758 $1.76

16 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

17 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

a01 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a02 1 Bed/ 1 Bath 550 $740 $1.35 $740 $1.35 $825 $1.50

a03 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a04 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a05 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a06 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a07 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $825 $1.50

a08 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

a09 1 Bed/ 1 Bath 550 $705 $1.28 $705 $1.28 $825 $1.50

a10 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

a11 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $825 $1.50

a12 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $825 $1.50

a13 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

a14 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

a15 Studio 430 $640 $1.49 $640 $1.49 $758 $1.76

a16 1 Bed/ 1 Bath 550 $665 $1.21 $665 $1.21 $825 $1.50

a17 1 Bed/ 1 Bath 550 $665 $1.21 $665 $1.21 $825 $1.50

b01 1 Bed/ 1 Bath 550 $715 $1.30 $715 $1.30 $825 $1.50

b02 1 Bed/ 1 Bath 550 $685 $1.25 $685 $1.25 $825 $1.50

b03 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b04 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b05 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b06 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b07 1 Bed/ 1 Bath 550 $715 $1.30 $715 $1.30 $825 $1.50

b08 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b09 1 Bed/ 1 Bath 550 $700 $1.27 $700 $1.27 $825 $1.50

b10 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b11 1 Bed/ 1 Bath 550 $715 $1.30 $715 $1.30 $825 $1.50

b12 1 Bed/ 1 Bath 550 $695 $1.26 $695 $1.26 $825 $1.50

b13 1 Bed/ 1 Bath 550 $665 $1.21 $665 $1.21 $825 $1.50

b14 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

b15 Studio 430 $665 $1.55 $665 $1.55 $758 $1.76

b16 1 Bed/ 1 Bath 550 $675 $1.23 $675 $1.23 $825 $1.50

b17 1 Bed/ 1 Bath 550 $640 $1.16 $640 $1.16 $825 $1.50

Total 27,690 $35,095 $1.27 $35,095 $1.27 $41,744 $1.51

* Rent levels at $812 and $758 are based off M FHA for pro jects placed in service before January 1st, 2009

FINANCIAL ANALYSIS


OPERATING STATEMENT

19

Income 2014 2015 Time 0 Year 1 Notes Per Unit Per SF

Gross Potential Rent 392,436 421,611 500,928 500,928 [1] 9,822 18.09

Loss / Gain to Lease (79,788) 15.9% (5,009) 1.0% [2] (98) (0.18)

Gross Scheduled Rent 392,436 421,611 421,140 495,919 [3] 9,724 17.91

Physical Vacancy (6,317) 1.50% (19,837) 4.0% (389) (0.72)

Economic Vacancy

Bad Debt (1,053) 0.25% (2,480) 0.5% (49) (0.09)

Concession (1,053) 0.25% (2,480) 0.5% (49) (0.09)

Total Vacancy ($8,423) 2.0% ($24,796) 5.0% [4] ($486) ($1)

Economic Occupancy 98.00% 95.00%

Effective Rental Income 392,436 421,611 412,717 471,123 9,238 17.01

Other Income

Laundry Income 2,428 3,509 3,509 3,614 [5] 71 0.13

Other Income 1,267 1,465 1,465 1,509 [6] 30 0.05

Total Other Income $3,695 $4,973 $4,973 $5,123 $100 $0.18

Effective Gross Income $396,131 $426,584 $417,691 $476,245 $9,338 $17.20

Expenses 2014 2015 Time 0 Year 1 Notes Per Unit Per SF

Real Estate Taxes 47,578 47,406 48,882 62,271 [7] 1,221 2.25

Insurance 14,825 21,003 21,003 21,634 [8] 424 0.78

Electric 20,144 18,221 18,221 18,767 [9] 368 0.68

Water & Sewer 14,468 13,796 13,796 14,210 [10] 279 0.51

Waste Removal 4,057 4,276 4,276 4,404 [11] 86 0.16

Maintenance & Repairs 60,373 40,364 20,400 21,012 [12] 412 0.76

Cleaning & Supplies 11,884 9,384 9,384 9,666 [13] 190 0.35

Contract Services 7,376 6,037 6,037 6,218 [14] 122 0.22

Lawn & Snow 2,448 1,200 7,650 7,880 [15] 155 0.28

Payroll Expense 84,711 61,869 25,500 26,265 [16] 515 0.95

Legal & Accounting 3,040 3,524 3,524 3,630 [17] 71 0.13

Advertising & Promotion 1,996 419 419 431 [18] 8 0.02

Administrative 3,140 2,820 2,820 2,905 [19] 57 0.10

Management Fee 20,344 21,447 20,885 23,812 [20] 467 0.86

Total Expenses $296,384 $251,765 $202,796 $223,104 $4,375 $8.06

Expenses as % of EGI 74.8% 59.0% 48.6% 46.8%

Operating Reserves 12,750 12,750 [21] $250 $0.46

Net Operating Income $99,747 $174,819 $202,144 $240,391 $4,714 $8.68

Notes and assumptions to the above analysis are on the following page.

FINANCIAL ANALYSIS


NOTES

20

Notes to Operating Statement

Name Time 0 Year 1

[1] Gross Potential Rent

[2] Loss / Gain to Lease

[3] Gross Scheduled Rent

[4] Total Vacancy

[5] Laundry Income

[6] Other Income

[7] Real Estate Taxes

[8] Insurance

[9] Electric

[10] Water & Sewer

[11] Waste Removal

[12] Maintenance & Repairs

[13] Cleaning & Supplies

[14] Contract Services

[15] Lawn & Snow

[16] Payroll Expense

[17] Legal & Accounting

[18] Advertising & Promotion

[19] Administrative

[20] Management Fee

[21] Operating Reserves Based on broker estimate of $250 per unit

3 percent increase from the Time 0 amount




Management Fee estimated at 5 percent of Effective Gross Income (EGI)







Estimated using 90 percent of listed value and 2016 Ramsey County tax rates and special

assessment




Reflects potential rents annualized as of the May 2016 Rent Roll Report

Estimated Loss to Lease of 1 percent of Gross Potential Rent

Gross Potential Rent less Loss to Lease

Projects a Total Vacancy of 5 percent; based on historical annual performance, market conditions

and current leasing efforts


Based on broker estimate of $150 per unit

Based on actual f igure from the 2015 Profit & Loss statement


Management Fee estimated at 5 percent of Effective Gross Income (EGI)





Reflects potential rents annualized as of the May 2016 Rent Roll Report

Determined by Gross Scheduled Rent less Gross Potential Rent

Reflects scheduled rents annualized as of the May 2016 Rent Roll Report.

Projects a Total Vacancy of 2 percent; based on historical annual performance, market

conditions and current leasing efforts



Based on Actual Taxes Payable 2016 according to the Ramsey County Treasurer








21

MARKET

COMPARABLES

8


SALES COMPARABLES MAP

22


(SUBJECT)

Grant Street Commons

The Alden

1707 Lindig Street

Dover Apartments

Minnehaha Apartments

Van Cleve Court

Coze Flats

SALES COMPARABLES

1

2

3

4

5

7

6

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


23

SALES COMPARABLES

rentpropertyname1


673 VISTA ISLE DRIVE

673 VISTA ISLE DRIVE, SUNRISE, FL, 33325


1634 EUSTIS STREET, SAINT PAUL, MN, 55108

Units Unit Type

Offering Price: MARKET BID 3 Studio

Total No. of Units: 51 48 1 Bed 1 Bath

Year Built: 1959

Underwriting Criteria

Income $417,691 Expenses $215,546

NOI $202,144 Expenses/SF $7.78

Vacancy ($8,423) Expenses/Unit $4,226

515 EAST GRANT STREET, MINNEAPOLIS, MN, 55404

Units Unit Type

Close Of Escrow: 12/30/2014 9 Studio 1 Bath

Sales Price: $8,484,000 65 1 Bdr 1 Bath

Price/Unit: $101,000 10 2 Bdr 1 Bath

Price/SF: $137.00

Cap Rate: 4.38%

GRM: 8.99

Total No. of Units: 84

Year Built: 1984

GRANT STREET COMMONS

1

1201 HAWTHORNE AVENUE W, MINNEAPOLIS, MN, 55403

THE ALDEN

Units Unit Type



Price/Unit: $82,857 2 Office

Price/SF: $161.00

Cap Rate: 3.54%

GRM: 8.76


Year Built: 1925

2

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


24

SALES COMPARABLES

Units Unit Type

Close Of Escrow: 4/7/2015 2 2 Bdr 1 Bath


Price/Unit: $108,333

Price/SF: $100.00

Cap Rate: 6.09%

GRM: 8.65


Year Built: 1965

1707 LINDIG STREET

3

1707 LINDIG STREET, FALCON HEIGHTS, MN, 55113 515-527 5TH AVENUE SE, MINNEAPOLIS, MN, 55414

Units Unit Type


Sales Price: $3,500,000

Price/Unit: $194,444

Price/SF: $195.00


Year Built: 1899

DOVER APARTMENTS

4

1605 MINNEHAHA AVENUE W, SAINT PAUL, MN, 55104

MINNEHAHA APARTMENTS

Units Unit Type



Price/Unit: $85,000

Price/SF: $103.00

Cap Rate: 5.75%


Year Built: 1967

5

PROPERTY NAME

MARKETING TEAM


COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


25

SALES COMPARABLES

Units Unit Type




Price/SF: $345.00


Year Built: 1962

VAN CLEVE COURT

6

986 15TH AVENUE SE, MINNEAPOLIS, MN, 55414 628 UNIVERSITY AVENUE SE, MINNEAPOLIS, MN, 55414

Units Unit Type




Price/SF: $261.00

Cap Rate: 5.00%


Year Built: 2014

COZE FLATS

7

8


RENT COMPARABLES MAP


(SUBJECT)

Elmwood Apartments

Rose Hill Apartments

Lauderdale Hollows

Park 24 Apartments

Raymond at Carleton Place

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

26

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES


1634 EUSTIS ST, SAINT PAUL, MN, 55108





27

YEAR BUILT: 1959


1634 EUSTIS STREET, SAINT PAUL, MN, 55108

Unit Type Units SF Rent Rent/SF

Studio 3 430 $648.33 $1.51

1 Bed 1 Bath 48 550 $690.63 $1.26

Total/Avg. 51 490 $669.48 $1.38

ELMWOOD APARTMENTS1100 COMO AVENUE SE, MINNEAPOLIS, MN, 55414

OCCUPANCY: 100% | YEAR BUILT: 1961

1


1 Bdr 1 Bath 24 750 $825 $1.10

Total/Avg. 24 750 $825.00 $1.10

CONCESSIONS

The landlord is responsible for water, sewer, heat, gas and trash. The

tenant is responsible for electric.

ROSE HILL APARTMENTS1631 CARL STREET, LAUDERDALE, MN, 55108

2


Studio 2 500 $610-$620 $1.23

1 Bdr 1 Bath 53 614 $660-$800 $1.19

2 Bdr 1 Bath 51 783 $830-$950 $1.14

Total/Avg. 106 632 $745.00 $1.19

YEAR BUILT: 1962

COMMENT COMMENT COMMENT

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

LAUDERDALE HOLLOWS

1622 CARL ST, SAINT PAUL, MN, 55108

LAUDERDALE HOLLOWS


LAUDERDALE HOLLOWS


28

LAUDERDALE HOLLOWS1622 CARL STREET, SAINT PAUL, MN, 55108

YEAR BUILT: 1968

3


1 Bdr 1 Bath 52 728 $740-$750 $1.03

2 Bdr 1 Bath 78 978-1,028 $870-$925 $0.90

Total/Avg. 130 866 $821.25 $0.97

CONCESSIONS

The landlord is responsible for water, sewer, heat, gas and trash. The

tenant is responsible for electric.

PARK 24 APARTMENTS2301 COMO AVENUE, SAINT PAUL, MN, 55108

YEAR BUILT: 2016

4


1 Bdr 1 Bath 9 720-885 $1,425-$1,800 $2.01

2 Bdr 2 Bath 16 1,005-1,245 $1,950-$2,450 $1.96

Total/Avg. 25 964 $1,906.25 $1.99

AMENITIES

Washer and dryer in each unit. Deck or patio in each unit

PETS

Pets allowed

COMMENT COMMENT COMMENT

RAYMOND AT CARLETON PLACE2326 TERRITORIAL ROAD, SAINT PAUL, MN, 55114

5


1 Bdr 1 Bath 79 375-528 $800-$1,000 $2.00

Total/Avg. 79 452 $900.00 $2.00

YEAR BUILT: PROPOSED FOR 2017

CONCESSIONS

The property will include 55 parking stalls, including 35 underground stalls

AMENITIES

This proposed project to offer 70-80 units; unit mix to be determined


29

MARKET

OVERVIEW

MARKET OVERVIEW

Minneapolis-St. Paul-Bloomington Metro

Market Highlights

High median household income

The median household income is well above the national average.

Attractive business and living environment

Companies are attracted to the region’s high level of education and strong

work ethic.

Concentration of large-scale firms

Minneapolis-St. Paul is home to 16 Fortune 500 firms, including Target,

UnitedHealth Group, 3M and General Mills.

An abundance of higher education

There are more than 20 colleges and universities in the Twin Cities.

MINNEAPOLIS-ST. PAUL

The Minneapolis-St. Paul metro is situated in the southeastern portion of

central Minnesota and extends into western Wisconsin. Nearly 1,000 of

Minnesota’s 10,000 lakes are located within the metro, along with the

Mississippi, Minnesota and St. Croix rivers. The Twin Cities of Minneapolis and

St. Paul straddle the Mississippi River, with Minneapolis located upstream

from St. Paul. The metro covers 6,364 square miles of fertile soil atop

limestone and sandstone and includes 13 counties, two of which are in

Wisconsin.

Geography


30

MARKET OVERVIEW

Minneapolis-St. Paul metro is the largest metropolitan area in the state of Minnesota and is served by the

Minneapolis-St. Paul International Airport and six reliever airports.

Two major freeway systems run through the region: Interstate 94 and Interstate 35. I-35 splits into I-35E, which

runs through St. Paul, and I-35W, which passes through Minneapolis. Two beltline freeways, Interstates 494

and 694, facilitate travel around the suburbs, and Interstate 394 runs east to west from I-94 to I-494.

Metro Transit operates bus, commuter rail and light-rail systems throughout the metro, and some suburban

cities have their own bus systems. The METRO Blue Line runs along Hiawatha Avenue, connecting downtown

Minneapolis with the airport and Mall of America, while the Green line links Minneapolis with the University of

Minnesota and Downtown St. Paul. The Northstar commuter line services the northern suburbs.

Infrastructure

The Minneapolis-St. Paul Metro is:

75 miles from Rochester

300 miles from Milwaukee

400 miles from Chicago

600 miles from Indianapolis

Airports

Minneapolis-St. Paul International Airport

Six reliever airports

Major Roadways

Interstates 35W, 35E, 94, 394, 494 and 694

Rail

Freight – BNSF and Union Pacific

Passenger – Amtrak

Commuter – Northstar and METRO light rail

The 13-county Minneapolis-St. Paul-Bloomington metro contains more than 200 municipalities and registers a

population of more than 3.5 million. The Twin Cities metro area encompasses the seven core counties of the

region, the largest being Hennepin County. Minneapolis is the most populated city in the state, with 404,400

citizens, followed by St. Paul, the capital city, with 298,500 residents.

Metro

Largest Cities in Metro by Population

Minneapolis 404,400

St. Paul 298,500

Bloomington 86,700

Brooklyn Park 80,500

Plymouth 76,000

Maple Grove 67,700

* Forecast

Sources: Marcus & Millichap Research Services; U.S. Census

Bureau; Experian



31

MARKET OVERVIEW

The metro has a diverse economic base and is home to 16 Fortune 500

companies. The local GMP will increase by an estimated 3.4 percent this year.

The Twin Cities are involved in all aspects of the food delivery system, from initial

production to final sale. Similar to many other Midwestern cities, the metro has a

strong manufacturing base, encompassing both traditional industry and high-tech

manufacturing. Relative to other areas, the metro has a large concentration of

technology companies. Many are biomedical firms developed from research at

the University of Minnesota and the Mayo Clinic, located 75 miles south of the

metro in Rochester. Google has established a tech hub in Minneapolis to help

foster and nurture startups. The region is also the base of a number of major

retailers, including Select Comfort, Target and Best Buy.

Minneapolis houses the Ninth Federal Reserve District, which services

Minnesota, the Dakotas, Montana and portions of Michigan and Wisconsin. A

number of financial and insurance institutions are also headquartered or have

significant operations locally.

An ability to handle air, land, river and sea transportation ranks the metro among

the top in the nation for its logistics infrastructure. Its location in the upper

Midwest has made the Twin Cities a hub for motor freight companies. Barge lines

operate on the Mississippi, Minnesota and St. Croix rivers, transporting

agricultural goods to the world via the Mississippi. Minneapolis is only 150 miles

from the Port of Duluth, which connects to the Atlantic Ocean through the Great

Lakes/St. Lawrence Seaway System.

Economy

* Forecast

Sources: Marcus & Millichap Research Services; Bureau of Economic

Analysis; Moody’s Analytics; U.S. Census Bureau; Fortune



32

MARKET OVERVIEW

Skilled employees, quality of life and a diverse economy allow for a stable job base. The metro boasts a well-

educated labor pool, with approximately 94 percent of the population age 25 and older attaining a high-

school diploma. It also ranks highly for its percentage of population age 25 and older with at least a

bachelor’s degree, at 38 percent. There are more than 20 institutions of higher learning in the metro, providing

education and training to keep the local labor force among the most skilled in the country. The local economy

is supported by 1.9 million jobs in a wide range of sectors. Over the next five years, employment in the metro

is expected to grow by 1.2 percent annually, slightly lower than the U.S. average.

Once dominated by agriculture and manufacturing, the local economy is now driven by the trade,

transportation and utilities sector, which employs approximately 347,000 people, or 18 percent of the

workforce. A significant portion of these jobs are provided by the many retailers in the area as well as

Minneapolis-St. Paul International Airport. The airport is the home of Sun Country Airlines as well as a

regional hub for Delta Airlines, which continues to expand its average daily flights. This segment is forecast to

increase 0.4 percent annually over the next five years.

Another 16 percent, or 317,100 jobs, in the metro are in the education and health services sector, which is

expected to expand by 2.1 percent annually through 2020. The professional and business services sector

also provides 16 percent of the workforce, or 314,300 jobs, and will record growth at 2.7 percent annually

during this time.

Labor

* Forecast

Sources: Marcus & Millichap Research Services; BLS; Moody’s

Analytics



33

MARKET OVERVIEW

Large employers in the Twin Cities area include the state of Minnesota, the U.S. government and the University of Minnesota. Other major employers fall within the banking,

financial services, technology and healthcare sectors.

Wells Fargo, Ameriprise Financial and US Bank drive the banking and financial services sector, while Allina Health System, Fairview Health Services and United Health

Group Inc. are key players in the growing healthcare industry.

Technology companies such as 3M, St. Jude Medical and Medtronic maintain large presences in the region. Best Buy and Target have significant workforces in the retail

sector, as both have headquarters here.

The Mall of America, located in Bloomington, is one of the most popular tourist destinations in the nation, with roughly 40 million visitors annually, making its local economic

impact significant. The mall employs more than 11,000 year-round workers and generates nearly $2 billion annually in economic activity for the state. Work will be

completed this year on a $325 million expansion of the mall, which will provide 50 to 75 new shops and restaurants as well as 180,000 square feet of office space and a

342-room JW Marriott hotel.

Employers

Major Employers

Target Corp.

University of Minnesota

Allina Health System

Fairview Health Services

Best Buy Co. Inc.

Wells Fargo Minnesota

3M Co.

United Health Group Inc.

Health Partners

U.S. Bancorp

* Forecast

Sources: Marcus & Millichap Research Services; Moody’s

Analytics; BLS



34

MARKET OVERVIEW

Population growth in the metro has exceeded the national level since 1990 and will continue to do so over the next five years. Gains are expected to register 0.9 percent

annually through 2020. High-growth areas typically fall outside of the urban core; however, new apartment and condo developments recently completed and planned in the

central cities will likely boost the populations in both Minneapolis and St. Paul in the upcoming years.

Robust growth in the metro has been supported by an expanding population of well-educated and highly skilled young professionals. The region is home to the University

of Minnesota, which has one of largest student populations in the United States at 50,700. Many of the graduates remain in the area, employed by large corporations

headquartered in the region. More than 38 percent of residents have attained at least a bachelor’s degree, compared with just 29 percent for the country. The highly skilled

workforce has helped raise the median household income to nearly $70,500 annually, well above the national median.

Above-average household incomes have enabled more than 70 percent of residents in the metro to own their own home, which is higher than the U.S. rate at 64 percent.

Home prices will rise faster than household incomes during the next five years; the median price is approaching $224,900.

Demographics


* Forecast

Sources: Marcus & Millichap Research Services; AGS; Experian;

Moody’s Analytics; U.S. Census Bureau


35

MARKET OVERVIEW

The vibrant metro area is the entertainment and cultural center of the upper Midwest. Scenery in the metro includes contemporary skylines, historic architecture and

greenways of parks, lakes and the Mississippi, St. Croix and Minnesota rivers. Outdoor venues include the Como Park Zoo, Marjorie McNeely Conservatory, the Minnesota

Zoo, the Minnesota Landscape Arboretum and a number of ski runs and golf courses.

The region is home to many professional sports teams, including the Minnesota Vikings, the Minnesota Twins, the Minnesota Timberwolves, the Minnesota Wild and the

Minnesota United. College sports are also enjoyed at the University of Minnesota Twin Cities campus. The Vikings new facility (US Bank Stadium) will be completed in time

for the 2016 football season. The metro is scheduled to host Super Bowl 52 in 2018 and the Men's NCAA Final Four in 2019.

The Twin Cities are noted for their array of theaters, orchestras, art museums and gardens. These include the Walker Art Center, Hennepin County Library, the Guthrie

Theater and the Minneapolis Institute of Arts. The region has more than 100 theater venues, making it the third-largest theater market in the country. Arts education is also

strong in the area, supported by the Minneapolis College of Arts and Design, the Children’s Theatre Company, MacPhail Center for the Arts, Perpich Center for Arts

Education and a variety of education programs at local museums.

Quality of Life



* Forecast

Sources: Marcus & Millichap Research Services; National

Association of Realtors; Moody’s Analytics; U.S. Census Bureau

36

MARKET OVERVIEW

2016 Multifamily Forecast

Construction: Following the delivery of

4,600 apartments last year, 4,000 units

are expected to be completed in 2016.

This total will include 700 affordable

and 300 senior units. Construction will

be widespread with nearly all of the

metro’s submarkets receiving new

rentals.

Vacancy: The vacancy rate will remainbelow 3 percent for the thirdconsecutive year, ending 2016 at 2.9percent as tenant demand keeps pacewith deliveries. Last year, vacancy alsoregistered 2.9 percent on netabsorption of nearly 3,900 units.

Rents: Tight vacancy will continue tofoster rent growth. After a 4.8 percentclimb was registered last year, effectiverents will soar 5.7 percent to an averageof $1,161 per month in 2016, anincrease of 18.5 percent in the last fiveyears.

Employment: Approximately 31,900

jobs were created in 2015, led by

strong growth in the healthcare

industry. Employers will step up the

pace of hiring this year with staffs

increasing by 35,000 workers

metrowide, a 1.8 percent rise.


37

Healthy Apartment Market Keeps Headwinds at Bay

1.8%

increase

in total

employment

units

will be

completed

4,000

basis point

increase in

vacancy

0

5.7%

increase

in effective

rents

MINNEAPOLIS-ST. PAUL METRO AREA

A highly skilled labor force and a notable quality of life attract employers and workers to

the Twin Cities metro, underpinning the demand for apartments. The region has gained

more than 435,100 residents in the past five years, many coming for job opportunities.

Employment has been relatively steady, keeping the unemployment rate among the lowest in

the nation. The need for housing has activated developers and more than 18,300 units were

completed in the same five-year period. Construction has been concentrated near the

downtown cores, but as vacancy in many suburbs hovers below the traditional replacement

level, building is spreading throughout the region. Rising construction costs, however, could

hinder some larger projects from moving forward in the quarters ahead. This is most likely near

the cores and submarkets such as Uptown/St. Louis Park where a wave of new inventory

leasing up has pushed vacancy higher. Rising rents, particularly near Downtown Minneapolis

and St. Paul, could drive some tenants farther from the core into more affordable rentals, while

others may consider homeownership.

Capital continues to flow into the Minneapolis-St. Paul metro, providing a robust bidding

environment as buyers outnumber available listings. With investors plentiful and average

prices nearly doubling since the cyclical trough in 2009, owners without a long-term hold

strategy may find this an opportune time to list. Exchange buyers are active; some are selling

assets in larger cities and seeking steady cash flows in quality properties in this relatively stable

Midwest metro. Private local investors have also stepped up purchasing, focusing mainly on

value-add opportunities. As a result, older Class B/C buildings under $5 million are in demand

at initial yields that are typically in the 7 percent span. New construction is also providing buying

opportunities at the top end of the market. Properties in the lease-up period can trade at a sub-

five cap rate and are generally in the 5 percent area if stabilized.

MARKET OVERVIEW

Economy

Housing and Demographics

** Trailing 12 months through 1Q

Sources: Marcus & Millichap Research Services; Economy.com; NAR

* Forecast

Sources: Marcus & Millichap Research Services; Bureau of Labor

Statistics; Economy.com


38


Job opportunities are attracting new residents to the region. In the last four quarters, the population has grown by

nearly 35,000 people, nearly 10 percent of which are in the prime renter cohort of ages 20 to 34. These gains

should spawn demand for apartments.

The monthly rent on an apartment built since 2000 is $270 more than the mortgage payment for a median-priced

home in the metro, using traditional financing and assuming 20 percent down with taxes and insurance included.

This difference will likely motivate some tenants to consider homeownership this year.

The median income in the metro rose 0.5 percent to $70,500 per year in the last 12 months, which is $15,000 more

than is needed to qualify for a mortgage on a median-priced home. The median home price, however, jumped 3.7

percent to $232,500 during the same period, making homeownership less attainable for some renters.

Outlook: A 20.5 percent surge in single-family home completions and an 8.3 percent rise in home sales during the

past four quarters may indicate that motivation to purchase a home is rising. Tenants who lack the funds for a

downpayment, prefer luxury amenities or choose to live in urban neighborhoods where housing prices are far

above the metro average will likely remain in the renter pool longer.

During the first quarter of 2016, employers created 10,300 positions, raising the 12-month total to 33,000

slots, a 1.7 percent gain. One year earlier, 39,000 new workers were hired.

The largest staff increases were among healthcare firms. This segment generated nearly 9,400 jobs in the 12-

month period. It was followed by the leisure and hospitality sector with roughly 4,600 people as new hotels

and restaurants opened. Expansion in this sector bodes well for the apartment market as many of these

employees are likely to rent.

The added jobs kept the unemployment rate in March at 3.4 percent. This is the eighth consecutive quarter

the rate has remained below 4 percent.

Outlook: After 31,900 jobs were created in 2015, employers will increase the pace of hiring this year,

expanding headcounts by 35,000 additional workers metrowide, a 1.8 percent rise.

MARKET OVERVIEW

Construction

Vacancy

* Forecast

Sources: Marcus & Millichap Research Services; MPF Research

* Forecast




39

The slowest pace of deliveries in six months lowered the vacancy rate 30 basis points year over year in the

first quarter to 2.6 percent. This is the ninth consecutive quarter with the rate below 3 percent even though

11,100 apartments have been delivered during that time.

By submarket, the tightest vacancy in March was found in Anoka County at 1.3 percent, down 100 basis

points over the last four quarters, despite the delivery of 320 units during this period. The second-lowest

average effective rent metrowide, at $957 per month, attracts renters to the submarket.

Vacancy is especially low in properties constructed before 1970 and during the 1990s at 1.7 and 1.8 percent,

respectively. The rate in the latter dropped 140 basis points during the last 12 months as more affordable

rents than are available in newer units drew tenants to this vintage.

Outlook: Tenant demand for apartments will keep pace with construction, resulting in the vacancy rate

remaining below 3 percent. Vacancy will end 2016 at 2.9 percent, mirroring last year’s rate.

Developers finalized 671 apartments during the first three months of 2016, bringing the year-over-year total to

4,650 units. This total includes 850 affordable, 660 student and 650 senior apartments. In the previous 12

months, 5,500 rentals were brought into service.

Construction activity is slowly descending from the 2014 peak. There are approximately 4,900 apartments

underway with completions expected through the end of 2017. In addition, roughly 9,300 units have been

proposed.

The A-Mill Artist Lofts was the largest apartment project completed in the opening quarter of 2016. The

former Pillsbury flour mill complex on S.E. Main Street in Minneapolis has been converted into 251 affordable

rentals for working artists and is fully occupied.

Outlook: In 2016, apartment inventory will expand by 1.5 percent with the addition of 4,000 rentals.

Construction will be widespread with nearly all of the metro’s submarkets receiving new units.

MARKET OVERVIEW

Rents

Sales Trends

** Trailing 12 months through 1Q

Sources: Marcus & Millichap Research Services; CoStar Group, Inc.;

Real Capital Analytics

* Forecast




40

Sales activity has been limited only by the availability of listings amid robust investor interest. During the last

four quarters, transaction flow rose 10 percent following a 38 percent jump in the previous 12 months. Buyers

focused on properties in the neighborhoods surrounding downtown St. Paul and in the Uptown/West

Calhoun/Bryn Mawr area.

Increased investor competition drove the price up 18 percent to an average of $126,500 per unit over the last

four quarters. Assets in the city of St. Paul traded below the metro average at $96,100 per door as mainly

older Class C buildings changed hands during this period.

Stabilized Class A properties are typically listed in the low- to mid-5 percent area with Class C assets trading

100 basis points higher. Intense competition for quality value-add buildings can result in cap rates dropping

below 5 percent.

Outlook: Strong tenant demand for older properties will continue to attract investors to Class C assets with

below market rents. Buildings that can be quickly upgraded and have rents adjusted higher will especially be

desired.

Effective rent jumped 5.7 percent to an average of $1,121 per month in the last 12-month period, this was the

largest annual increase since 2008. Rent climbed 4.0 percent one year earlier.

Among submarkets, the greatest effective rent growth was registered in Central St. Paul at 8.5 percent to $1,230

per month in the last four quarters. Vacancy here at 2.9 percent rests slightly above the metro average. The highest

average rents metrowide are found in the Downtown Minneapolis/University submarket at $1,458 per month, up

4.0 percent during the last 12 months.

By vintage, the most substantial rent growth in the annual period ending in March was in apartments built before

1970. Here, effective rents climbed 7.5 percent to an average of $904 per month, although they remain the most

affordable among the age tranches.

Outlook: Tight vacancy will continue to foster rent growth this year. The average effective rent will soar 5.7 percent

to $1,161 per month, up 18.5 percent in the last five years.

MARKET OVERVIEW

Capital Markets

Local Highlights


41

The U.S. economy is resuming its steady pace of growth following an extended period of financial market volatility to start the year. Recent reports have highlighted a stable

consumer environment, particularly as the labor market continues to improve. Advancement in commodity prices has reduced strain in the sector, helping oil-related

economies bounce back. Meanwhile, commercial credit availability remains robust, prompting a positive outlook over the coming months.

Developer activity remains robust, with deliveries for 2016 expected to top 285,000 units, the most new apartments delivered in a year since the 1980s. Lenders have begun

to more closely monitor development activity and are now tightening funding for new projects in markets they believe face overdevelopment risk. With builder activity

concentrated in just 10 major metros nationally, those markets are receiving the greatest scrutiny. Lenders will likely continue evaluating each project carefully, which will

benefit the sector by reducing risks of overdevelopment.

The capital markets environment continues to be highly competitive, with Fannie Mae and Freddie Mac underwriting loans up to 10 years with maximum leverage of 80

percent. Pricing will typically reside between the high-3 percent range to the low-4 percent range, depending on deal size. Portfolio lenders will also price in this range but will

typically require loan-to-value ratios closer to 65 percent. Floating bridge loans and financing for repositionings are typically underwritten with loan-to-value ratios above 80

percent, while pricing at 250 basis points above Libor for recourse and extending to 450 basis points above Libor for non-recourse deals.

As rents rise, apartment affordability is becoming an issue. This year, developers will bring 700 affordable units into service throughout four of the metro’s 14 submarkets.

Downtown Minneapolis/University will receive the highest portion with 285 rentals followed by West St. Paul with 214. The remainder are in North Minneapolis and Eden

Prairie/Shakopee/Chaska. The largest affordable project is A-Mill Artist Lofts in Minneapolis with 251 apartments.

The Trust for Public Land recently ranked Minneapolis and St. Paul as top in the nation for the best urban park systems among big cities. This designation and the resulting

publicity should call attention to the Twin Cities high quality of life and assist in attracting residents to the area.

Fresh Thyme grocery is increasing its expansion plans in the metro. The company expects to debut 12 to 16 stores in the region. Lucky’s and Hy-Vee are other grocers

seeking sites in the region. Hy-Vee is not only adding big-box grocery stores, but the firm is also scouting for sites to open a number of small stores with gas pumps. The

10,000- to 15,000-square-foot facilities are expected to offer groceries and prepared food. The added retail jobs should benefit apartments nearby.

Condo construction is proliferating. One of the largest projects opening this year is Portland Tower in Minneapolis. The 17-story tower will offer 110 for-sale units, which could

compete with nearby luxury apartments.


PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2015 Experian

Created on July 2016

POPULATION 1 Miles 3 Miles 5 Miles

2020 Projection

Total Population 10,150 135,386 462,526

2015 Estimate


2010 Census


2000 Census


Daytime Population

2015 Estimate 21,987 280,176 730,071

HOUSEHOLDS 1 Miles 3 Miles 5 Miles

2020 Projection

Total Households 3,998 57,781 196,156

2015 Estimate


Average (Mean) Household Size 2.33 2.15 2.21

2010 Census


2000 Census


Growth 2015-2020 1.11% 2.58% 2.04%

HOUSING UNITS 1 Miles 3 Miles 5 Miles

Occupied Units

2020 Projection 3,998 57,781 196,156

2015 Estimate 4,028 57,852 200,622

Owner Occupied 2,001 23,848 87,929

Renter Occupied 1,953 32,479 104,303

Vacant 74 1,526 8,390

Persons In Units

2015 Estimate Total Occupied Units 3,954 56,326 192,232

1 Person Units 29.34% 38.87% 40.27%

2 Person Units 36.24% 32.72% 30.53%

3 Person Units 16.26% 13.03% 12.37%

4 Person Units 11.66% 9.66% 9.01%

5 Person Units 4.68% 3.55% 4.08%

6+ Person Units 1.85% 2.17% 3.75%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles

2015 Estimate

$200,000 or More 3.72% 3.59% 3.6%

$150,000 - $199,000 7.02% 4.37% 4.1%

$100,000 - $149,000 14.14% 11.03% 11.14%

$75,000 - $99,999 12.75% 10.53% 10.91%

$50,000 - $74,999 18.87% 15.76% 16.27%

$35,000 - $49,999 11.82% 12.54% 13.27%

$25,000 - $34,999 10.09% 9.76% 10.78%

$15,000 - $24,999 9.53% 12.58% 12.2%

Under $15,000 12.07% 19.82% 17.7%

Average Household Income $78,966 $66,544 $67,683

Median Household Income $59,793 $43,775 $44,964

Per Capita Income $31,658 $29,511 $29,364

POPULATION PROFILE 1 Miles 3 Miles 5 Miles

Population By Age

2015 Estimate Total Population 10,072 132,630 456,369

Under 20 21.39% 22.11% 23.83%

20 to 34 Years 37.76% 38.19% 32.29%

35 to 39 Years 5.85% 5.64% 6.68%

40 to 49 Years 8.77% 9.48% 11.22%

50 to 64 Years 15.13% 14.7% 15.92%

Age 65+ 11.11% 9.86% 10.06%

Median Age 30.00 28.97 31.62

Population 25+ by Education Level

2015 Estimate Population Age 25+ 6,281 79,027 294,608

Elementary (0-8) 0.91% 2.29% 3.42%

Some High School (9-11) 2.28% 3.65% 5.51%

High School Graduate (12) 9.89% 17.94% 20.34%

Some College (13-15) 13.31% 18.31% 18.72%

Associate Degree Only 4.58% 6.23% 6.65%

Bachelors Degree Only 27.82% 27.79% 25.72%

Graduate Degree 39.51% 21.77% 17.44%

Population by Gender

2015 Estimate Total Population 10,072 132,630 456,369

Male Population 50.4% 50.1% 49.92%

Female Population 49.6% 49.9% 50.08%

42

Income

In 2015, the median household income for your selected geography is

$59,793, compare this to the US average which is currently $54,148.

The median household income for your area has changed by 27.54%

since 2000. It is estimated that the median household income in your

area will be $67,814 five years from now, which represents a change

of 13.41% from the current year.

The current year per capita income in your area is $31,658, compare

this to the US average, which is $29,638. The current year average

household income in your area is $78,966, compare this to the US

average which is $77,468.

Population

In 2015, the population in your selected geography is 10,072. The

population has changed by 4.49% since 2000. It is estimated that the

population in your area will be 10,150.00 five years from now, which

represents a change of 0.77% from the current year. The current

population is 50.4% male and 49.6% female. The median age of the

population in your area is 30.00, compare this to the US average

which is 37.55. The population density in your area is 3,197.48 people

per square mile.

Households

There are currently 3,954 households in your selected geography. The

number of households has changed by 4.52% since 2000. It is

estimated that the number of households in your area will be 3,998

five years from now, which represents a change of 1.11% from the

current year. The average household size in your area is 2.33 persons.

Employment

In 2015, there are 10,433 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

76.30% of employees are employed in white-collar occupations in

this geography, and 22.57% are employed in blue-collar occupations.

In 2015, unemployment in this area is 2.83%. In 2000, the average

time traveled to work was 22.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

75.12% White, 4.46% Black, 0.05% Native American and 15.68%

Asian/Pacific Islander. Compare these to US averages which are:

70.98% White, 12.77% Black, 0.19% Native American and 5.25%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 3.1% of the current year

population in your selected area. Compare this to the US average of

17.53%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $218,338 in 2015,

compare this to the US average of $185,104. In 2000, there were

2,091 owner occupied housing units in your area and there were

1,692 renter occupied housing units in your area. The median rent at

the time was $518.

Source: © 2015 Experian

DEMOGRAPHICS

43

www.MFInvestmentBrokerage.com

Mox GundersonAssociate Vice President Investments

Director - National Multi Housing Group

Minneapolis Office

Tel: (952) 852-9713

Fax: (952) 852-9710

[email protected]

Licenses: MN 40237387, ND 8586

Dan LinnellVice President Investments

Director - National Multi Housing Group

Minneapolis Office

Tel: (952) 852-9770

Fax: (952) 852-9710

[email protected]

License: MN 40211216

Josh TalbergSenior Associate

Member - National Multi Housing Group

Minneapolis Office

Tel: (952) 852-9769

Fax: (952) 852-9710

[email protected]

License: MN 40124349

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