In the biggest Rochester real estate deal of 2020 so far, Minneapolis-based real estate investment and management firm is upping its investment in the Med City with the whopping $38.5 million acquisition of Preserve on Maine Apartments.
Timberland Partners Investments purchased the 205-unit, two-building community at 4010 Maine Ave SE on Thursday. It now owns six apartment complexes in Rochester with a total of 892 units.
"Rochester is a market where we have a strong presence, and we are confident in the long-term growth plans of the Mayo Clinic and the Rochester market overall," said Timberland acquisitions and finance specialist Mike Savides.
Timberland made a $10.6 million down payment in the deal. Olmsted County estimated the total market value for the two buildings and the property at $28.29 million for 2020-2021.
Prior to this, the largest Olmsted County real estate transaction of the year was the $18. 2 million purchase of The Brentwood Inn & Suites by an investor group called Agave Brentwood Hotel LLC in January.
Deerhorn Partners LLC, an offshoot of Harbor Bay Real Estate Advisors, sold the property. Harbor Bay of Illinois built the Preserve in 2015 as Rochester’s first “resort-style” apartment complex. It spent $1.8 million in two transactions to acquire the open land by the Shoppes on Maine commercial area.
Harbor Bay also partnered with Rochester’s Titan Development & Investments to build the new Hilton luxury hotel as well as buying the former Michael’s Restaurant site for future development in the downtown area.
Timberland, which owns and manages a portfolio of 80 communities in 15 states, is a big fan of Rochester. It also owns Timberland Heights, Summit Square, Jordan Creek And Mills and Eastwood Ridge.
“The Preserve on Maine is an excellent Class A apartment community located in a thriving real estate market,” stated Savides in the announcement of the deal. “The convenient location, combined with the high-end resident amenities, position this property to capitalize on the expected growth in the Rochester area in both the short and long term.”