CATEGORIES | Debt | Equity | Financial Advisory | Investments | Multifamily | Student Housing
FIDES Investment, LLC (“FIDES”) announces the sale of Loring Grove apartments, a value-add vintage property totaling 64 units located in the highly desirable Loring Park neighborhood of downtown Minneapolis. FIDES joint ventured with CPM and a privately held investment firm. The properties were purchased in September 2014. The sale price equated to $141,500/unit. The property level return equated to an 18% IRR and a 1.6x multiple. “The plan was to improve the lobby/common area areas, upgrade unit kitchens, and capitalize on the off-street parking that had not been marketed effectively by the prior owner and was being rented at rates that were well below market. Approximately 35% of the unit interiors were upgraded and the property was rebranded with a heavy emphasis on the 62 off-street parking spaces which are a tremendous competitive advantage in this congested downtown location. Total revenues increased approximately 38% from takeover to disposition. Parking revenues tripled over the three-year period. The proximity to downtown Minneapolis and abundance of parking were key drivers for this investment,” said Gregg Handrich of FIDES. FIDES oversaw the acquisition, renovation, asset management and sale process.