listen to this articleA luxury apartment complex in southwest Minneapolis went up for sale earlier this month, giving potential Minneapolis real estate buyers a lakefront opportunity.
The property, The Beach Club Residences, located across the street from Bude Makaska, went on the market last week, according to a listing from Colliers, the company selling the property.
The property is located at 2900 Thomas Avenue S. in Minneapolis, near the city’s border with St. Louis Park. The property is owned by Denver-based company Apartment Income REIT (AIR) and was built a little less than a century ago, with construction first starting in 1928.
Colliers executive vice president Mox Gunderson said in a LinkedIn post that the “iconic” property’s 332 units are at 98% occupancy.
“With some of the highest average rents in the city, this may just be the best investment opportunity in the country,” Gunderson said in the post.
According to a list of apartments on the Beach Club’s website, the cheapest option for a one-bedroom unit is around $1,830, while a penthouse apartment can cost more than $6,500.
The property has units ranging from 1,100 square feet to 3,300 square feet, with studios measuring approximately 530 square feet, according to the Colliers property listing.
The property is estimated to be worth more than $86 million, so if this property were to sell at its estimated tax value in Hennepin County, it would likely become the top multifamily sale in the seven-county metro. Most of this year’s top deals have stayed around the $50 million mark, but a handful of properties have price tags around $75 million. The Colliers listing does not include a price.
Facilities include indoor and outdoor pools, tennis courts, racquetball courts, event space, and a fitness center. Colliers’ listing states that a light rail station is expected to be built two blocks from the beach club in 2027.
This property was previously known as Calhoun Beach Club Residences, but the first part of the name was dropped in 2020. The apartment overlooks Bde Makaska, which was renamed in 2017.
The Colliers listing also notes that there is an opportunity to add value to the property.
“The Beach Club is available as a core opportunity with strong incoming cash flow, offering investors clear value-added income potential,” the listed company said.
The property is located near uptown, and has recently seen a number of multifamily transactions, including two different apartment buildings, Blue Apartments and Lime Apartments, totaling 413 units. Apartments” were sold for a total of $80 million. It was purchased by Widener Apartment Homes.
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