An apartment building in Otsego, an exurban city along the northwestern edges of the seven-county metro, has sold for $16.05 million, according to a certificate of real estate value released last week.
The Parkview Grand was bought by TE Miller Development, an Eden Prairie-based company that owns several properties in the Twin Cities metro, from the architect and developer of the site, Kuepers Inc.
The apartment building is located at 15667 88th St. NE in Otsego, a stone's throw from the Highway 169 corridor. The property features 70 units, all with one or two bedrooms, which breaks down to about $229,285 per unit.
The building was approved for development in 2020 by the Otsego City Council, and according to the Kuepers' website, the site was completed in September 2021. According to its property tax valuations, the property's estimated market value is $12.46 million.
While the total price of the property does not place it high on the list for the most expensive multifamily transactions in the metro, the per-unit cost of $229,285 would. Also located in the west metro going for a similar per-unit cost was Creekside Apartments, a 204-unit property in Plymouth that sold last June for $46 million, or $228,500 per unit.
A listing for Apartments.com shows rent to be between $1,795 and $1,885 for a two-bedroom unit. There was no listing for a one-bedroom unit.
Finance & Commerce reached out to both TE Miller and Kuepers for this story, but did not hear back before time of publication. Colliers' Mox Gunderson, Dan Linnell, Adam Haydon and Devon Dvorak arranged the transaction.
According a press release from Colliers about the sale, the Parkview Grand is 96% occupied. Linnell, an executive vice president, said in the release that the property fielded offers from national and local investors alike.
"Otsego and other outer-ring suburbs are benefiting from the growth of Twin Cities suburbs, as many people seek apartment living farther out, in areas like Otsego," Linnell said.
The press release notes the northwest submarket is the "fastest-growing submarket" in the metro due to a surge in development and population growth in the area.
Linnell declined an interview on the sale, citing client wishes.
While it was owned by Kuepers, Prairie Lakes Management was the property manager for Parkview Grand. The building's amenity spread for the site featured a "movie theater room," a pool, a playground, a fitness room and a parking garage, as well as in-unit washers and dryers.
This is the 13th property TE Miller owns. Parkview Grand is one of 10 it owns in the Twin Cities metro. Two of the other three are in Florida, while the last is in Mankato.