SRRT Lee, LLC has purchased Lee Lofts Apartments, a 24-unit multifamily complex in Minneapolis’ Warehouse District for $3.25 million. CBRE Capital Markets’ Debt & Structured Finance arranged $2.2 million in long-term acquisition financing for the property.
Lee Lofts was purchased from Harmony Lofts, LLC, a long-term owner through an UPREIT transaction.
Ben Bastian, Joel Torborg and Mark Roos of CBRE’s Minneapolis office represented the borrower, SRRT Lee, LLC.
The financing was obtained through Freddie Mac’s Small Balance Loan Program and offers several attractive features: 10-year fixed interest rate in the low 4.00s, 65 percent loan-to-value, five years of interest-only payments, a 30-year amortization following the interest-only portion, non-recourse, low closing costs, and is fully assumable.
Located in the warehouse district of downtown Minneapolis at 280 N. Second Ave., Lee Lofts is in close proximity to the central business district, North Loop dining and entertainment, Target Field, the Mississippi River and a light rail station. The property features oversized loft-style units with 14-foot ceilings catering to the young professionals and empty nesters flocking to downtown.
Lee Lofts was originally built in 1906 and converted to loft-style apartments in the 1960’s. The seller of the property also completed a full renovation of the property in 2015, which includes new stainless-steel appliances, quartz island countertops, new lighting fixtures and new windows. The property has historically operated at or near full occupancy, and was 96 percent occupied at the time of closing.