Kayne Anderson Real Estate and Alatus Announce the Sale of Luxury Single-Asset Multifamily Property in Minnesota
The sale of The Berkman, a 350-unit multifamily community in Rochester, Minnesota, to CBRE Investment Management was announced by Kayne Anderson Real Estate and Alatus. The property, strategically located near the Mayo Clinic, offers numerous amenities and sustainable features, including efficient electric heat pumps and low-flow plumbing. The sale highlights the property's strong demographic fundamentals and its appeal to the medical and educational sectors. The transaction showcases both companies' commitment to ESG standards and community revitalization. Total management assets for KA Real Estate stand at $14 billion.
- The Berkman is situated near the highly regarded Mayo Clinic, enhancing its value due to strong demand from healthcare professionals.
- The development features significant environmental and social benefits, including water usage efficiencies over 60% and sustainable construction materials.
- The community offers extensive amenities, attracting potential tenants looking for high-quality living conditions.
- None.
Sale of 350-Unit Multifamily Community Known as The Berkman Located in Rochester, Minnesota, to CBRE Investment Management
ROCHESTER, Minn., April 12, 2022 /PRNewswire/ -- Kayne Anderson Real Estate ("KA Real Estate"), the real estate private equity arm of Kayne Anderson Capital Advisors, L.P., and Alatus, LLC ("Alatus"), announced today that they have closed the sale of The Berkman, a 350-unit, Class A, multifamily community in Rochester, Minnesota, to CBRE Investment Management, which made the investment on behalf of one of its separate account clients.
Located at 217 14th Ave S.W., The Berkman sits across the street from the Mayo Clinic's Saint Marys Campus, the nation's largest intensive care unit, and is less than one mile from the Mayo Clinic's downtown campus. According to Newsweek, Rochester's Mayo Clinic is currently ranked as the best hospital in the world. The community is a three-minute drive from Downtown Rochester's shops, salons, restaurants, breweries and employers and a five-minute drive from the Apache Mall. Additionally, the property is a 10-minute drive from Rochester International Airport and just over a one-hour drive from Minneapolis and St. Paul.
Both KA Real Estate and Alatus maintain a successful track record and forward-thinking approach to real estate and are committed to prioritizing and incorporating environmental, social and governance ("ESG") standards into their businesses. KA Real Estate and Alatus made significant investments that directly provide environmental and social benefits to the property and the local community, including installations of efficient electric heat pump technology and low-flow plumbing fixtures which create water usage efficiencies of more than
The Berkman offers studios, one-, two- and three-bedroom units, along with six walk-up townhomes. Units feature nine-foot ceilings, oversized windows, stainless steel appliances, quartz countertops and full-size washers and dryers. Community amenities include a rooftop entertainment lounge, a rooftop pet lawn and spa, an outdoor pool with a sundeck, a clubroom, a sports suite with a golf simulator, a library with private studies, a fireplace-equipped television lounge and a fitness center. The property also includes 23,494 square feet of commercial space.
"We are so proud to be a part of this best-in-class sustainable development with Alatus that has been carefully curated with innovative design utilizing repurposed materials and amenity-rich common spaces for our tenants to enjoy," said David Selznick, Chief Investment Officer, KA Real Estate. "Our objective was to provide an ESG-oriented community to support the Mayo Clinic's staff, patients and overall Rochester resident base and we are thrilled to have accomplished that with The Berkman, which has outperformed in every way."
"Alatus set out on a mission to deliver a transformational project that served the community of Rochester and the Mayo Clinic," said Robert Lux, CEO, Alatus. "Thanks to the vision and dedication of our team and the strong partnership with the City of Rochester and the Destination Medical Center, I can confidently say that we achieved our goal in producing a landmark asset for the community."
Benjamin Green, Managing Director, Residential Transactions, at CBRE Investment Management, added: "The Berkman represented an opportunity to invest in a top-of-the-line residential asset that features a rare level of amenities and benefits for Downtown Rochester residents. We believe that this asset's proximity to the area's elite base of education, research and world-renowned medical institutions, combined with strong demographic fundamentals, will position this property as a quality asset that will capitalize on durable demand from 'Eds and Meds'."
JLL Capital Markets represented the sellers. Their Sales and Advisory team was led by Managing Directors Mox Gunderson, Josh Talberg and Dan Linnell, Senior Director Adam Haydon, Executive Managing Directors Matthew Lawton and Jon Geanakos and Senior Managing Director Jim Curtin.
About Kayne Anderson Real Estate
Kayne Anderson Real Estate ("KA Real Estate") is a leading real estate private equity investor in medical office, seniors housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages
About Alatus, LLC
Alatus was founded in 2005 with the goal of revitalizing communities through transformative real estate development. Through numerous, award-winning urban and suburban developments, the Alatus team brings more than 30 years of real estate planning, design, and construction experience to each project and proudly partners with clients and communities throughout the Upper Midwest. Alatus has participated in the development of some of the most influential residential properties in downtown Minneapolis including The Carlyle Condominiums and Grant Park Condominiums.
Their track record in producing first-class projects is proven by the success and longevity demonstrated in their portfolio. Alatus listens closely to local residents, stakeholders and cities to develop transformational projects that will enhance and revitalize the neighborhoods they are part of, and they leverage their extensive industry experience and prowess to deliver exemplary results. Alatus was recently named one of the most innovative development companies in Minnesota and its most recently delivered project in Rochester, MN – Berkman Apartments – won numerous awards for best in class and state in addition to its recognition for environmental sustainability. The project represents the embodiment of the culture, community, and process that Alatus strives for in each project within every new community.
About CBRE Investment Management
CBRE Investment Management is a leading global real assets investment management firm with
CBRE Investment Management is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm (based on 2021 revenue). CBRE has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE Investment Management harnesses CBRE's data and market insights, investment sourcing and other resources for the benefit of its clients. For more information, please visit www.cbreim.com.
*Assets under management (AUM) refers to the fair market value of real assets-related investments with respect to which CBRE Investment Management provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real assets-related loans. This AUM is intended principally to reflect the extent of CBRE Investment Management's presence in the global real assets market, and its calculation of AUM may differ from the calculations of other asset managers and from its calculation of regulatory assets under management for purposes of certain regulatory filings.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of
Contact
Kayne Anderson Real Estate
Jon Keehner / Woomi Yun / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449
CBRE
Pam Barnett, Senior Director, Corporate Communications
pam.barnett@cbreim.com
JLL
Jenna Sharp, JLL Associate, Public Relations
+214.394.3356
Jenna.Sharp@am.jll.com
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SOURCE Kayne Anderson Real Estate
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