Dealmaker: JLL Acquires Minnesota Apartments for $66M

JLL Income Property Trust, Chicago, acquired The Penfield, a 254-unit transit-oriented apartment community with ground-floor commercial space in St. Paul, Minn., for $65.5 million.

The Minneapolis Star-Tribune reported the city of St. Paul acquired and redeveloped the Penfield after private development plans fell through due to the recession. The city cleared $8.7 million on the transaction, the newspaper reported.

The Class A property is in downtown St. Paul, the Midwest’s strongest apartment market, said JLL Income Property Trust President and CEO Allan Swaringen. He noted limited new apartment supply coming online and a 3.1 percent submarket apartment vacancy rate. 

The real estate investment trust said downtown St. Paul recently achieved a “critical mass” of amenities and residential population that attracts Millennials. More than 30 percent of the submarket’s population falls between 20 and 34 years old. Recently constructed amenities include the new Green Line light rail, a new concert hall and a minor league baseball park. 

“This investment represents a continuation of our core apartment investment strategy to acquire properties in strong urban in-fill locations that appeal to millennial renters,” Swaringen said. “This is our third investment in the multifamily property sector this year, bringing our apartment allocation to $400 million in gross assets and 20 percent of our overall investment portfolio.”

A Lunds & Byerlys grocery store with a long-term lease occupies the commercial space, Swaringen said.