Milwaukee-based multi-family housing development firm Mandel Group Inc. has entered the Twin Cities market with its purchase of Lemay Lake Apartments, a 282-unit market-rate apartment complex in Eagan, Minn.
The sale price was not disclosed.
The acquisition was completed by Lemay Lake Equity LLC, an affiliate of Mandel Group.
The apartment complex was sold by OLY-IDA Lemay Lake LLC. Keith Collins, Abe Appert and Laura Hanneman of CBRE brokered the deal for the seller.
“We expect to accelerate our efforts to identify additional, appropriate multifamily properties in the Twin Cities,” said Barry Mandel, president and chief executive officer of Mandel Group. “These types of acquisitions allow us to diversify our asset base to include select Midwestern markets, and provide our investors with opportunities in markets with which they have familiarity and a high level of comfort.”
Lemay Lake Apartments is comprised of three, three-story buildings on the shores of Lemay Lake, a 34-acre lake in central Eagan, Minn. Occupancy of the apartments was 97 percent as of the date of closing, according to Mandel Group.
“The property appealed to us because of the strong economic metrics of the Eagan submarket,” said Jason Babcock, senior acquisitions manager for Mandel Group. “Besides being a solid property with value-add upside potential, the accessibility of jobs, shopping, entertainment, public services and institutions is superior. Overall, the Twin Cities metro market displays the right characteristics to drive the success of apartment assets.”
Financing for the purchase was secured by Mandel Group through Walker & Dunlop Inc. James M. Cope, senior vice president of Walker & Dunlop, originated mortgage financing in conjunction with the purchase.