Minneapolis, MN
Minneapolis Luxury Rental Complex Sells for Record $120 Million
A luxury rental complex in Minneapolis’ Marcy Holmes neighborhood has changed hands for $120 million, marking the highest-priced multifamily property sale in the Twin Cities for 2023.
The Expo, a 369-unit complex, was purchased by Bigos Management Inc. based in Golden Valley and Oak Grove Capital Inc. from St. Paul, the Minneapolis/St. Paul
Business Journal reported.
The seller was a joint venture between Twin Cities developers Gary Holmes and the late Kelly Doran.
The sale beats other notable multifamily property deals of 2023 in the Twin Cities region.
Weidner Apartment Homes, headquartered in Kirkland, Washington, made significant investments, including a $111 million acquisition of a portfolio of Uptown Minneapolis apartment buildings, a $70 million purchase of Nic on 5th in downtown Minneapolis, and a $50 million deal for LPM Apartments near Loring Park. Additionally, Arrive Minnetonka, a 435-unit apartment community in a western suburb, fetched $89 million when it was sold in November to San Francisco-based FPA Multifamily.
The Expo property — including parcels at 200 University Ave. SE., 215 Second St., 223 Third Ave. SE, and 229 Second St. SE — has an estimated market value of $130 million for tax purposes.
The complex features 369 residential units across a tower and a six-story mid-rise building, along with 12 street-level townhomes and over 3,300 square feet of commercial space. Amenities include a rooftop terrace with a heated pool, private movie theater, hot tub, game room, and a rooftop dog park.
The sale equates to about $325,200 per unit.
Bigos Management Inc. has a track record of significant acquisitions, including the $14.75 million purchase of District 600, a 78-unit North Loop apartment building, in 2021, and the $55 million acquisition of Central Park West, a 199-unit St. Louis Park apartment building.
Representatives from CBRE, including Keith Collins, Ted Abramson, and Abe Appert, represented the seller.
— Ted Glanzer
Minneapolis, MN
Minneapolis Blanketed With Snow Overnight
Minneapolis, MN
Former Minneapolis teacher and coach sentenced to life in prison for sexually assaulting children
A former Minneapolis teacher and coach was sentenced to life in prison Tuesday in connection with 12 counts of rape and sexual assault of victims under 13 years old.
Aaron James Hjermstad, 46, pleaded guilty in September to 12 counts of first-degree criminal sexual conduct involving victims under 13 years that took place between 2013 and 2021.
In addition to being sentenced to life in prison with the possibility of parole after 30 years, Hjermstad must register as a predatory offender and will be on lifetime conditional release if he is ever paroled.
“My thoughts today are solely with the many victims in this case. What they endured as children is nothing short of horrifying,” Hennepin County Attorney Mary Moriarty said. “Mr. Hjermstad is being held accountable, and a sentence of this length removes the possibility of further harm at his hands for decades to come.”
The attorney’s office said Hjermstad had coached many of the children or one of their family members. Hjermstad worked as a physical education and health teacher at The Mastery School and a basketball coach at Hospitality House Youth Development and Harvest Best Academy.
At the time he was charged, he’d already been convicted for similar assaults against 3 other victims, but he fled the state before he was sentenced.
In December 2021 he was caught in Idaho during a traffic stop. Law enforcement officials found thousands of videos showing him assaulting children. Some of the videos were taken at his Brooklyn Center home including footage with the 12 victims which led to the additional charges.
Minneapolis, MN
Minneapolis rent price-fixing lawsuit settlement proposed by DOJ
DOJ says companies schemed to keep rent high
The U.S. Department of Justice is accusing major property management companies of conspiring to keep rent prices high with anti-competitive practices. FOX 9’s Mike Manzoni has the full story.
MINNEAPOLIS (FOX 9) – The Department of Justice (DOJ) has proposed a settlement with RealPage, the company that created an algorithm used by several major landlords accused in a rent price-fixing scheme, including four that operate in the Twin Cities, that would resolve a lawsuit brought earlier this year.
Justice Department proposal
What we know:
Under the proposal, RealPage would agree to limit the data it uses for its algorithm and modeling.
If accepted, RealPage would no longer be able to use real-time, nonpublic data to set rental prices nor train AI or algorithms on leases that are less than 12 months old.
RealPage would also be restricted from sending surveys landlords to get private pricing information.
As part of the agreement, RealPage also agrees to cooperate with the Justice Department in its lawsuit against other major landlords.
What they’re saying:
In a press release, the Justice Department says the agreement will help “restore free market competition in rental markets.”
“Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division in a provided statement.
Ongoing lawsuit against landlords
The backstory:
Earlier this year, the DOJ sued six of the nation’s largest landlords, including Greystar Real Estate Partners, Cushman & Wakefield, Willow Bridge Property Company and Cortland Management, which operate in the Twin Cities.
The landlords were accused of using the RealPage algorithms and by sharing data with each other to drive up rental prices in Minneapolis and elsewhere.
“The idea is that landlords are conspiring to keep rents high for renters rather than allowing the market to normally set them to a rate that’s reasonable,” Julia Zwak, an attorney at Mid-Minnesota Legal Aid, told FOX 9 in January. “They’re getting information that normally competitors in the market wouldn’t be sharing with one another.”
After news of the lawsuit became public, the Minneapolis City Council passed an ordinance banning algorithmic rental price fixing.
Settlements reached:
After FOX 9 became aware of the lawsuit in January, Cortland Management announced it had reached a settlement with the Justice Department to stop using the pricing algorithms.
Last week, Attorney General Keith Ellison, who is involved in the lawsuit on behalf of Minnesota, also announced last week a settlement with the nation’s largest landlord Greystar. Greystar, which owns 950,000 rental units across the country including thousands in Minnesota, agreed to pay $7 million and stop using anti-competitive pricing algorithms to set rental prices.
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