A $1.7 million land deal sets stage for $22 million expansion of a Med City apartment complex
On March 2, Real Estate Equities, which developed the first phase of Technology Park Apartments with Nate Stencil and the Greater Minnesota Housing Fund in 2019, paid $1.7 million for 3.6 acres adjacent to the complex at 2712 Commerce Drive NW. The plan is to add 140 more apartments.
ROCHESTER – A $1.7 million land purchase by the St. Paul housing firm clears the way for a $22 million expansion of a northwest Rochester apartment complex.
On March 2, Real Estate Equities, which developed the first phase of Technology Park Apartments with Nate Stencil and the Greater Minnesota Housing Fund in 2019, purchased 3.6 acres adjacent to the complex at 2712 Commerce Drive NW.
The plan is to build a second phase and add 140 mixed-income housing units to Technology Park’s existing 164 units. The second phase is expected to break ground this month with the goal being completed by July 2023.
“Phase I of the project provided much needed housing to the northwest side of Rochester and has maintained an occupancy of 95% or higher since it was completed,” stated Patrick Ostrom, Real Estate Equities’ managing development partner in an announcement about the project.
Real Estate Equities purchased the land for the expansion from JVNS LLC, a South Dakota firm led by Nate Stencil. Stencil,a developer who has built several Rochester apartment complexes, is also the general contractor for the project.
Olmsted County estimated the total market value of the open land at $1.09 million for 2021-2022.
Like the first phase, the Greater Minnesota Housing Fund is also involved with this expansion.
“This strong partnership and financing model allowed us to get Phase II of this project underway,” stated Ostrom in the announcement.
Real Estate Equities manages/owns a portfolio of more than 3,800 units in Minnesota, Wisconsin, Indiana, and Arizona.
Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to email@example.com or via Twitter to @whereskiger . You can call him at 507-285-7798.