Editor’s note: “Just Sold” is a Finance & Commerce feature based on the newest certificates of real estate value filed with the Minnesota Department of Revenue for commercial sales throughout Minnesota and reports of sales across the country involving local parties. Research includes company and broker documents, online real estate listings, F&C archives, Catylist and other research.
The third time proved the charm in getting to the successful closing of the $4.035 million sale of the Sunset Apartments, a 36-unit property built in 1969 at 26-30 Sunset Drive in Champlin.
Ridgeview Sunset Drive LLC, an entity of Minneapolis-based Ridgeview Property Group, closed Dec. 18 on the acquisition from C&I Investments in Champlin, which has owned them for 25 years.
The price works out to $112,083 per unit. The average sale price per unit for apartments in the Twin Cities metro area is $154,111, according to the Finance & Commerce Apartment Sales Tracker at finance-commerce.com. The tracker has recorded the sale of 91,784 apartment units since Aug. 31, 2011.
The property’s convoluted story began when Steve Michel, Heidi Addo, Pete Michel, Phil Reesnes, and Jesse Thurston of Michel Commercial marketed the companion buildings as part of a larger portfolio. When the pair generated 14 offers, the brokers moved ahead with a separate sale, Michel said in an announcement of the sale. Michel added that the demand highlights Champlin’s reputation as one of the most supply-constrained submarkets in the Twin Cities.
Despite the interest, only three bidders got close to the finish line. One withdrew after a family tragedy, another when he concluded the capital needs were too expensive.
After losing in the first two rounds, bidder Ben Michel secured the property during the third round of “Best & Final” offers by presenting an aggressive and competitive bid against the remaining buyers, according to the announcement. He felt the high vacancy rate (50%) and financing hurdles were outweighed by the property’s potential and his experience.
Ben Michel, a former broker with Michel Commercial, transitioned from brokerage to acquisition of investment property four years ago, founding Ridgeview Property Group. The firm specializes in acquiring well-located multifamily properties in the Twin Cities, with a focus on value-add opportunities,
Ridgeview Property Group currently owns five multifamily properties valued at approximately $24 million. Ben Michel said in the announcement that he and his team plan to expand their portfolio through additional value-add acquisitions and ground-up development projects.
Michel Commercial was established by Steve Michel in 1987 and has sold over $2.4 billion worth of apartment properties.
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