Equus Capital Partners, Ltd., one of the nation’s leading private equity fund managers, announced today the sale of Madison Atrium and Madison Trailways in Burnsville, MN. The 588-unit apartment portfolio was sold to San Francisco-based FPA Multifamily, LLC for $72,500,000.
At the time of the sale the portfolio was 95 percent occupied.An affiliate of Equus acquired the portfolio in 2014 from Henderson Global Investors, (now TIAA-CREF). The transaction was originally made on behalf of BPG Investment Partnership IX, L.P., a $310 million private equity fund managed by Equus. Upon acquisition Equus launched a programmatic upgrade of the 25-year old unit interiors and select amenity areas. Equus had successfully renovated 320 units, or 55% of the overall total, before opting to market the properties for sale.
“The market’s favorable response to our renovation program resulted in rent growth that exceeded our initial expectations,” commented Greg Curci, Vice President of Equus, who was responsible for overseeing the disposition for the firm. “Accelerated demand for proven value-add investments presented us with the opportunity to exit the investment earlier than we had originally anticipated without compromising our investors’ returns.”
The two communities are located 4 miles from each other along Interstate-35W in Burnsville, MN, and are conveniently located approximately 20 minutes south of both downtown Minneapolis and St. Paul. Both communities benefit from an abundance of nearby retail and dining amenities, as well as proximity to major employers throughout the Twin Cities MSA. Madison Atrium is comprised of 348 units and was built in 1986, while Madison Trailways contains 240 units and was completed in 1988.
Each community offers residents a robust amenity package including a pool, fitness center, outdoor grilling areas with fire pits, as well as basketball and tennis courts. Floorplans across the portfolio range from 443 square foot studios up to 1,300 square foot three bedroom units.
The Seller was represented by Keith Collins and Abe Appert of CBRE.
About Equus Capital Partners, Ltd.
Equus Capital Partners is one of the nation’s leading private equity real estate fund managers. Equus’ portfolio consists of more than 17 million square-feet of office, retail, and industrial properties and over 10,000 apartment units across 46 communities located throughout the United States. The firm is headquartered in the Philadelphia area with regional offices in Chicago, Los Angeles, Washington D.C., Boston, Atlanta, and Raleigh-Durham. For additional information, please visit the company’s website at www.equuspartners.com.
