A 453-unit apartment complex in Woodbury has changed hands for $124 million, amid falling apartment vacancy rates in the Twin Cities. Chicago-based Waterton acquired City Walk at Woodbury, a sprawling residential and retail development at 10225 City Walk Drive, from The Connor Group, which had owned the property since 2019.
A Sizable Jump From the Last Sale
Waterton announced the deal on September 25, confirming it had acquired the rental community in Woodbury, an eastern suburb of St. Paul, according to Waterton. The $124 million price tag marks a significant increase from the $107 million The Connor Group paid for the complex in 2019, according to Woodbury NewsNet. That works out to roughly $274,000 per unit, the outlet reports, in line with other recent Twin Cities apartment sales.
The property itself spans two four-story residential buildings with heated indoor parking garages, a clubhouse and 24,000 square feet of retail space, per the same Waterton announcement. City Walk at Woodbury was built in phases in 2005 and 2011 and offers one-, two- and three-bedroom floor plans, the company notes. CBRE arranged the transaction, with the firm's Keith Collins, Abe Appert and Ted Abramson representing the seller, according to CBRE.
Renovations Planned Across the Property
Waterton plans a targeted value-add program touching residences, hallways, common areas, landscaping and mechanical systems, the company's announcement states. Updates could range from refreshed cabinets, hardware and lighting fixtures to new appliances, countertops, plumbing fixtures, flooring and paint as needed, according to ConnectCRE. Waterton, a national real estate investor and operator based in Chicago, reported approximately $10.0 billion in real estate assets as of June 30, per its own figures.
Why Buyers Are Circling Twin Cities Apartments
The acquisition lands amid a competitive stretch for Twin Cities multifamily real estate. Twin Cities apartment vacancy fell to 6.1% in the second quarter, down from 6.7% in the first quarter, while multifamily inventory is expected to grow by just 1.9%, according to Finance & Commerce. St. Paul leads the metro in upcoming apartment deliveries, with 1,599 units permitted, ahead of Chanhassen's 722 units, the outlet reports.
CBRE's Appert has said his team fielded an average of eight bids for every building sold in the region, per a separate Finance & Commerce report.
Other recent Twin Cities multifamily sales illustrate the range of pricing in the market. The Hill, a 2020-built Class A property in St. Paul, sold for about $47.4 million, or roughly $292,284 per unit, in the first quarter, according to Finance & Commerce. Smaller Class B transactions in the second quarter included Boulders Senior Living for $15.3 million, Arden Flats for $11.5 million and Oak Ridge Lofts for $4.6 million, the outlet reports.
CoStar reported the City Walk at Woodbury deal in its coverage of commercial real estate transactions.
