Two University of Minnesota area apartments have changed ownership in the past month, selling for tens of millions of dollars.
The 44 North apartments in Prospect Park sold to Harrison Street real estate, a Chicago-based company, for more than $58 million in early November. The Radius apartments sold for more than $76 million to Chicago-based Heitman, LLC and Timberline Real Estate Ventures, LLC last month. A change in ownership for the two campus apartments is not expected to bring any changes for current residents and management.
The 772-bed Radius apartments, which opened in 2013, will continue to be managed by the University of Minnesota, said University spokesperson Lacey Nygard. A master lease between the University and Radius was agreed on in 2017 and will last 5 years.
The 595-bed 44 North apartment building is currently managed by Peak Campus, a student-housing management company, said Samantha Teller, the senior property manager. Peak Campus has worked with Harrison Street on other projects and has managed 44 North since 2016.
Harrison Street owns several properties around the campus area, including The Station on Washington and The Pavilion on Berry apartments.
Because the management has not changed, Teller said, there will be no changes in current leases, rent or the daily operations of the building.
“So, truly it’s just that the owner has changed, but as the management company, our day-to-day operations remain the same and our office staff stays the same,” Teller said, adding that any changes will be seen on the back end of the apartment operations. “So, from a resident perspective, there’s nothing that will change for them.”
John Kari, chair of the Prospect Park 2020 board, said the recent sale of 44 North shows that there is a strong market for housing in Prospect Park.
“And it probably means that the market is strong and [there] will continue to be additional housing,” Kari said. “I think it reflects the strength of the housing market and the value that housing has in this area.”
