Portfolio – District 600

Category: Uncategorized

(78 units + retail) – Minneapolis, MN

District 600 is a 78-unit Class A apartment complex being constructed in the urban North Loop neighborhood of downtown Minneapolis.  In addition to the apartments, the ground floor houses 4,464 of retail/commercial space and parking for 58 cars.

RSRC believes by opportunistically acquiring the Property via a pre-sale structure, we can build to a stabilized cap rate of 6.5% in year two of the investment hold without taking on construction risk, when this type of Class A asset in the North Loop currently trades in the 4.5% – 5.0% cap range (150bps – 200bps spread to current cap rates).

The property consists of a six-story elevator building clad in brick and metal to mimic the surrounding warehouses.  There is a community room along with a rooftop common area on the top floor of the property.  Other amenities include a fitness center and onsite management office.   Of the 78 units, 69 are one-bedroom floor plans and nine are two-bedroom.  Average size of the apartments is 737 square feet.  Unit finishes include stainless steel appliances, granite stone counters, vinyl plank flooring and front load washer/dryers.

Project Capitalization / Loan (LTV): $ 17,050,000 / $13,100,000 (77%)
Structure: Pre-sale Structure
Acquisition Date: July – 2016