$9.05 Million Sale of Vintage Apartments in Loring Park, Minneapolis

September 2017

FIDES Investment, LLC (“FIDES”) announces the sale of Loring Grove apartments, a value-add vintage property totaling 64 units located in the highly desirable Loring Park neighborhood of downtown Minneapolis.  FIDES joint ventured with CPM and a privately held investment firm.  The properties were purchased in September 2014.  The sale price equated to $141,500/unit.  The property level return equated to an 18% IRR and a 1.6x multiple. “The plan was to improve the lobby/common area areas, upgrade unit kitchens, and capitalize on the off-street parking that had not been marketed effectively by the prior owner and was being rented at rates that were well below market. Approximately 35% of the unit interiors were upgraded and the property was rebranded with a heavy emphasis on the 62 off-street parking spaces which are a tremendous competitive advantage in this congested downtown location. Total revenues increased approximately 38% from takeover to disposition.  Parking revenues tripled over the three-year period. The proximity to downtown Minneapolis and abundance of parking were key drivers for this investment,” said Gregg Handrich of FIDES.  FIDES oversaw the acquisition, renovation, asset management and sale process.

$4.03 Million Sale of Mid-Rise Apartments, South Minneapolis

September 2017

FIDES Investment, LLC (“FIDES”) announces the sale of Fulton Terrace apartments, a 7-story value-add property totaling 26 units located south of Linden Hills in close proximity to Edina. FIDES joint ventured with CPM and a privately held investment firm.  The properties were purchased in September 2014. The sale price equated to $155,000/unit.  The average property level return equated to a 20% IRR and a 1.7x multiple. “The strategy was to improve the facade and main lobby to call attention to the front of property which is situated on a highly-visible, high-traffic street.  Approximately 1/3 of the unit interiors were upgraded and the property was rebranded with a heavy emphasis on the underground parking amenity. Total revenues increased approximately 36% from takeover to disposition. The highly visible location, lack of competition and underground parking were key components to the success of this investment,” said Gregg Handrich of FIDES.  FIDES oversaw the acquisition, renovation, asset management and sale process.