A townhome complex in a quiet neighborhood has recently been sold for just over $10 million. The purchase was confirmed through a certificate of real estate value. The complex is located in Maple Grove and consists of six buildings, originally built in 1996. With a total of 48 units, the cost per unit comes out to about $213,000.
Details of the Complex
The townhomes, known for their spacious living arrangements, include 16 units with two bedrooms and 32 units with three bedrooms. Each unit also has one and a half bathrooms, making them attractive to renters looking for a bit more space. In 2014, the complex underwent renovations to update its features, ensuring the property remains modern and appealing.
New Ownership and Investment Strategy
The new owner of the complex specializes in multifamily investments. This group has previously invested in properties across other states, including Missouri and Texas. However, this purchase marks their third investment in Minnesota, following earlier purchases of apartment buildings in Rochester. Their focus is on acquiring and managing older multifamily housing that typically appeals to working-class families.
Rising Property Values in Maple Grove
Interestingly, the sale price is significantly higher than the property’s assessed value by Hennepin County, which placed the value at $8 million in 2022. The previous owner had bought the complex for around $7.6 million in 2020, making this recent sale a substantial profit for them. Rent for these townhomes varies between $1,895 and $2,295, making them relatively affordable for families and seniors looking for rental options.
Future Townhome Developments
Maple Grove is expected to see more townhome development shortly. Another entity has purchased land for $4.25 million to build 155 rental townhomes, further boosting the area’s housing options. In addition, other developers are planning to add more townhome communities, with a focus on build-to-rent properties that cater to growing demand in the area.
The ongoing development of townhomes reflects the growing interest in rental communities, particularly for those transitioning into or out of homeownership. This trend is likely to continue as Maple Grove and surrounding areas experience more growth and demand for housing options.