JLL Capital Markets announced today that it has closed the $34 million sale of Red44, a 159-unit multi-housing community in Rochester, Minnesota.
JLL marketed the property on behalf of the seller, Roers Investments, Reuter Walton Development & North Bay Companies. Regency Multi-Family based out of Champaign, Illinois acquired the property.
Red44 was developed using a private-funding model whereby high-net-worth individuals from the region invested in the project, so proceeds from the sale will remain in the area.
Built in 2017, Red44 comprises studio, one- and two-bedroom units averaging 850 square feet. The apartments feature central air-conditioning, in-unit washers and dryers, large walk-in closets, a patio or balcony, built-in microwaves and dishwashers and quiet-wall technology. The community offers residents a pool; rooftop lounge; patio area with grills; clubhouse; heated underground parking; electric car charging stations; bike racks; a fitness and wellness center; dog run and washing station; access to riverfront nature and bike trails; and complimentary Mayo Clinic shuttle.
Located at 839 16th St. SW, Red44 delivers immediate access to State Highway 52, which provides efficient commutes to top employers – Mayo Clinic and the Olmsted Medical Center – all within a 10-minute drive from the property. Downtown Rochester and Rochester International Airport are also within proximity to the property. Nearby local amenities include Trader Joe’s Grocery, Barnes & Noble, Orange Theory Fitness, Hy-Vee Grocery, T.J.Maxx and HomeGoods, Starbucks and Scheel’s.
The JLL Capital Markets investment advisory team representing the seller included Senior Director Mox Gunderson, Director Adam Haydon and Senior Directors Dan Linnell and Josh Talberg.
“Red44 received over 15 offers from across the country, ultimately trading for a new price per unit record for Rochester,” said Gunderson. “Tertiary markets have seen minimal slowdown over the last 16 months, and Rochester — in particular — is in the midst of an incredible growth story with the Mayo Clinic, Destination Medical Center. The Buyer is purchasing a trophy asset with proven growth potential.”
