CATEGORIES | Debt | Equity | Financial Advisory | Investments | Multifamily | Student Housing
FIDES Investment, LLC (“FIDES”) announces the sale of the “Eat Street” Brownstone apartments, a collection of three buildings totaling 20 units located in the Whittier neighborhood of Minneapolis. FIDES joint ventured with CPM and a privately held investment firm. The properties were purchased in October 2015. The sale price equated to $120,000/unit and a property-level IRR of 18%. “The strategy was to buy this off-market investment at a below market price in an up and coming neighborhood. The neighborhood is home to the Minneapolis Institute of Art, Minneapolis College of Art and Design, and the Children’s Theatre. Only a few blocks to the West is Nicollet Avenue which is known as Eat Street due to the many diverse restaurants, coffee shops, and Asian markets. During the two years of our ownership, the area has witnessed accelerating investment in terms of housing and restaurants. Capital was invested in the building exteriors and a few units that required improvements. Total revenues increased approximately 22% from takeover to disposition. The steady development of this neighborhood along with its close proximity to downtown Minneapolis were the key drivers of this investment,” said Gregg Handrich of FIDES. FIDES oversaw the acquisition, renovation, asset management and sale process.