Just Sold: Hornig pays $17.4M for Uptown apartment portfolio.


Byline: Anne Bretts

Editor's note: "Just Sold" is a Finance & Commerce feature based on certificates of real estate value recently filed for commercial transactions and significant residential transactions in Twin Cities counties. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State's Office, company documents, online real estate listings, F&C archives, CoStar and other research. Some purchase prices and per-unit calculations have been rounded. Full prices are available on the CRVs posted here.

Minneapolis-based Hornig Cos., which has a portfolio of 4,300 apartments in Minnesota and elsewhere, has paid a longtime local owner $17.4 million for 115 units in seven buildings in the city's Uptown neighborhood.

Entities related to Hornig closed Oct. 1 on the purchases from Lauren Co. LLC, an entity related to St. Louis Park-based Sidal Realty Co., which owns and manages properties in St. Louis Park, Hopkins, Minnetonka, Eden Prairie and Falcon Heights.

The total price works out to a healthy $151,304 per unit. The average for apartments in the Twin Cities metro area is $135,390, according to the Finance & Commerce Apartment Sales Tracker at finance-commerce.com. The tracker has recorded the sale of 56,037 apartment units since Aug. 31, 2011.

"We'll be lucky if we break even on them," said Dave Hornig, chief manager of the family-owned company. He and Barb Hornig, his wife, manage investments and properties for the large family of investors. Prices are making it hard to find short-term profits, he said. The key will be to hold them for the long term, which fits the family's investment strategy.

Healthy rent growth has pushed prices up, said Ted Bickel of the Minnetonka office of Colliers International. Bickel and colleagues Jeff Budish and Lauren Panzer represented the seller. Bickel noted that the seller was rotating out of some older investments to acquire newer ones. The portfolio drew a strong response from local and national buyers. Several bid on the whole portfolio, and nearly 20 bid on individual properties.

The addresses of the properties and their current and last sale prices (where available) include:

1785 Bryant Ave. S., 26 units, $4,898,339; $975,000 in 1995.

4610 Bryant Ave. S., 17 units, N/A; $585,000 in 2004.

2601-2605 Fremont Ave., 26 units in two buildings, $3,933,913.04; $1,751,900 in 2004.

3247 Lyndale Ave. S., 15 units, $2,269,565.22; N/A in 1993.

3201 Girard Ave, Minneapolis, 17...

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