A Minnetonka apartment building sold for $89 million in cash
After nearly five months on the market, an Irvine, Calif.-based real estate company purchased the apartment building, now known as Arrive Minnetonka, on Oct. 31, according to a recent affidavit of the property’s value.
The building’s price was $89 million, paid in cash by a company with the same address as Trinity Property Consultants. This group, in turn, is owned by FPA Multifamily in San Francisco. A representative from FPA Multifamily declined a request for comment from Finance & Commerce.
The three-story apartment building, formerly known as The Gates at Carlson Center, is located at 300 Carlson Parkway in Minnetonka. With 435 units, the unit cost is just under $204,600.
The seller of the property is RREEF America II CORP, a real estate fund owned by DWS Group. A representative of the group was not available for comment when contacted.
Trinity Property Consulting does not list Arrive Minnetonka apartments on its website alongside its other apartments in the Twin Cities metro. However, some third-party apartment listing websites, such as Apartments.com, have the company in the owner’s name.
Trinity owns eight other apartment buildings in the Twin Cities metro, many of which include the “Arrive” brand in their names, such as Arrive 4301 in Park Glen; Arrive Eden Prairie and Arrive Watertower Luxury Apartments, both in Eden Prairie; And access to Loring Park in Minneapolis.
According to ownership information from Hennepin County, the apartment building was built in 1990 and sold to RREEF in 2006 for $48.8 million. The county estimated its value at more than $87 million in 2022.
The apartment sale comes at a time when third-quarter residential real estate reports are said to be strong and healthy. In an interview with Finance & Commerce, Minnesota Multiple Housing Association President Cecil Smith called renting “the smart financial choice.”
“All the recent analysis that’s starting to come out nationally suggests that renting is the smart choice for housing right now,” Smith said. “Much cheaper than buying a house.”
According to a report by Marquette Advisors in the third quarter of 2023, Minnetonka saw a vacancy rate of 4.2%, which matches the average vacancy rate in the Twin Cities metro area.
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