Developer buys rest of a downtown Rochester block for $4.5 million
North Rock Real Estate purchased six parcels in downtown Rochester, which include the 20-unit Regency Apartment complex and five other rental properties, for a combined $4.5 million on Jan. 17, 2023.
ROCHESTER — A local developer recently purchased the rest of a downtown Rochester block for $4.5 million, after buying the other half in 2022 for a future hotel.
Firms related to North Rock Real Estate purchased six parcels at Second Street Northwest and Sixth Avenue, which include the 20-unit Regency Apartment complex and five other rental properties, on Jan. 17, 2023.
Northrock is led by Jeff Brown Jr., Mike Zirbes and Colin Nash with offices in Rochester and Excelsior, Minnesota. It has spearheaded a number of development projects in Rochester, including the Mayowood Commons area anchored by the Home2 Suites by Hilton hotel and the Red44 apartments , the T owneplace Suites by Marriott hotel on Second Street and an office complex on West Circle Drive among other others.
This latest real estate acquisition included buildings at 513 Second St. NW, 202 Sixth Ave. NW, 210 Sixth Ave. NW, 526 Third St. NW, 522 Third St. NW and 516 Third St. NW. The deal was done in two transactions of $3.11 million and $1.42 million.
Rochester-based Storm Properties, LLC, led by Greg Storm, sold the six parcels this month. They account for the east half of that block.
Storm Properties also sold five properties on the corner of Fifth Avenue and Second Street NW — 209 and 215 Fifth Ave. NW, and 509, 503 and 507 Second St. NW in Rochester — to Northrock for $2.75 million in September. That’s the west half of that block.
Northrock plans to build a Hampton Inn and Suites hotel on the corner of Fifth Avenue and Second Street Northwest. The project has been approved and construction could start this year.
While Northrock plans to use the west half of the block for the Hampton Inn project, nothing is in the works for the east half.
“We bought that property (the east half with Regency Apartments) for future development, but nothing is imminent. It's just basically land that we really like and think is a good opportunity for a lot of different types of uses,” explained Brown. “The West half was always something we intended to buy. The latest transaction for the east half represents our interest in that particular block and having property for future projects that are close to Mayo Clinic and in the downtown area.”
The Regency Apartments and the east side properties will continue to operate as rental properties in the near future, he added.