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| Knollwood Towers West at 1010 Lake St. NE in Hopkins was the highest dollar sale in a spate of multifamily purchases by entities tied to two Irvine, California-based Investment Property Group and Sage Apartment Communities. |
Business enterprises with ties to Irvine, California-based Investment Property Group went on a $90.5 million apartment buying binge for half a dozen properties in the western suburbs of Minneapolis.
The purchases represent a beefed-up Midwest market presence for IPG and its property management arm, Sage Apartment Communities, with holdings concentrated in the western U.S., according to the firms’ websites.
“Sage has been looking to expand into the Minneapolis market for quite some time, and these acquisitions presented the perfect opportunity for us to enter into the conventional multifamily market there,” said Amber Monte, president of IPG and Sage, in an email.
Prior to the purchases, IPG/Sage owned only one property in Minnesota, the Parkview Apartments in Minneapolis, which it bought in October 2011, according to Hennepin County records. Sage also operates Eastridge Estate in Rochester.
According to sales documents on file with the state of Minnesota, the buying began on Sept. 27, when a limited liability corporation linked to IPG and Sage paid $16.5 million for Wayzata Woods apartments, a 107-unit apartment development at 230-240 Central Ave. N. in Wayzata, Minnesota. The seller was St. Louis Park, Minnesota-based Asset Management Group.
The next day, another LLC tied to IPG/Sage followed up with an even bigger purchase: A $74 million deal for a five-property, 636-unit apartment portfolio in Hopkins, Minnesota, long held by private investor Woody Ginkel. The properties were built in the 1960s, 1970s and 1980s, and range in height from four to seven stories.
When contacted last week, Ginkel declined to comment. Asset Management Group could not be immediately reached for comment.
The portfolio includes:
-Knollwood Towers West, at 1010 Lake St. NE in Hopkins. A seven-story structure built in 1970 with 187 units ranging from studios to two bedrooms, the average unit size is 657 square feet. The property includes a tennis court, fitness center and playground. Purchase price: $22.5 million.
-Knollwood Towers East, at 320 Blake Road N. in Hopkins. A 129-unit, six-story structure built in 1969, the building has a mix of studio and one-bedroom apartments, which average about 519 square feet. Purchase price: $14.2 million.
-Central Park Manor, at 1510 Main St. in Hopkins. A 109-unit, four-story structure built in 1980, Central Park has one- and two-bedroom units averaging 674 square feet in size. Amenities include a basketball court, tennis court, volleyball court, business center, fitness center and playground. Purchase price: $13.7 million.
-Cambridge Towers, at 1301 Cambridge St. in Hopkins. A 110-unit, seven-story structure built in 1975. Cambridge Towers’ apartments range from studios to two-bedroom units, with an average unit size of 637 square feet. Amenities include a lounge, fitness center and sundeck. Purchase price: $13 million.
-Creek Point Apartments, two buildings at 1045 and 1050 Hiawatha Ave. in Hopkins. The four-story structures were built in 1984 and have a total of 101 units ranging from studios to two-bedrooms, with average unit sizes of 767 square feet. Purchase price: $10.6 million.
Like the Ginkel properties, Wayzata Woods has ample apartments and lots of amenities. It was built in 1965 and consists of two three-story buildings with 107 apartments ranging from one- to three-bedroom units. An average unit covers 904 square feet, and residents have access to a concierge, fitness center sundeck, and pool.
