New multi-housing community near Minneapolis sells for $59M

MINNEAPOLIS, July 22, 2021 – JLL Capital Markets announced today that it has closed the $59 million sale of and arranged $44.25 million in acquisition financing for The Cielo Apartments, a 269-unit, multi-housing community in the Minneapolis suburb of Fridley, Minnesota.

JLL marketed the property on behalf of the seller, Trident Development. Peak Capital Partners acquired the property. Additionally, JLL worked on behalf of the new owner to secure the seven-year loan through Freddie Mac. The loan will be serviced by JLL Real Estate Capital, LLC, a Freddie Mac Optigo℠ lender.

The Cielo Apartments comprises studio, one-, two- and three-bedroom units ranging from 586 to 1,345 square feet. The apartments feature granite or quartz countertops, modern appliances, undermount sinks and kitchen islands. The community amenities include a fitness center, game room, community room and lounges, study area and media rooms, walking paths, grilling stations and heated parking. Additionally, the property offers residents 24-hour maintenance, on-site management, managed parcel storage system and secured parking.

Located at 6051 University Ave., The Cielo Apartments are just 10 minutes north of downtown Minneapolis, providing connectivity to some of the Twin Cities biggest employers, including Medtronic, Boston Scientific and Mercy Hospital. Residents have easy access to nearby transportation options such as Northstar Station, Metro Transit buses and Interstates 94 and 694.

The JLL Capital Markets Investment Sales Advisory team representing the seller included Senior Director Dan Linnell, Senior Director Mox Gunderson, Senior Director Josh Talberg and Director Adam Haydon.

The JLL Capital Markets Debt Placement team representing the borrower was led by Managing Director Matt Steffen and Senior Director Brock Yaffe.

“Trident Development began building Cielo Apartments in 2015, delivering its first phase in 2016, second phase in 2017 and its final phase in 2019 for a total of 269 units,” Linnell said. “Their team identified the underserved need for new housing in Fridley after building a seniors housing project nearby. Cielo was the first market-rate apartment building built in Fridley in over 20 years.

“It experienced a robust lease-up across all three phases,” he continued. “Demand remains strong in Fridley for new housing, as evidenced by two more recent new multi-housing developments nearby. Peak Capital Partners looks forward to continued success with the property and serving the Fridley market as part of their growing Twin Cities portfolio.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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