Published December 15, 2020 By: Brian Johnson.
Eden Prairie-based Interstate Development has paid $12.25 million for the 96-unit Kascade Place apartment building in Rochester, according to a certificate of real estate value made public this week.
Interstate, doing business as Kascade Multifamily LLC, acquired the 4-year-old building from Kascade Place LLC, an entity related to the Stencil Group of Sioux Falls, South Dakota. The price breaks down to $127,604 per unit.
The building, at 6520 Clarkia Drive NW, is about a 21-minute drive from the Rochester International Airport, according to the CoStar Group. The property’s market value is $10.3 million.
Completed in June 2016, Kascade Place features “modern designs, underground parking, sound-proofing between suites, spacious common areas, and energy-efficient materials and construction,” according to Stencil Group’s website.
The 77,000-square-foot building is 9.4% vacant, according to the CoStar Group. It offers one- and two-bedroom units ranging in size from 720 to 1,009 square feet, and monthly rents from $1,155 to $1,320.
A prolific developer in Rochester, Stencil Group has a portfolio that includes more than 620 apartment units in the Med City. Notable properties include the 192-unit The Pines project, completed in 2016, and the 164-unit Technology Park, completed in 2019.
By way of comparison, an entity related to Utah-based Peak Capital Partners paid $46.5 million this month for a 231-unit apartment complex in Eagan. The sale breaks down to $201,299 per unit.
Peak Capital Partners, doing business as PC Royal Oaks LLC, purchased the 263,340-square-foot property from Royal Oaks Apartments LLC, an entity of Bloomington-based Timberland Partners, according to a certificate of real estate value. As previously reported, Timberland Partners paid $34.95 million for the property in 2016.
In 2019, Bloomington-based Timberland paid $30.5 million for the 209-unit Eastwood Ridge Apartments at 3031 Towne Club Parkway SE in Rochester. That sale works out to $145,933 per unit. Schafer Richardson was the seller.
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