Reuter Walton buys in Uptown, sells in Loring.

Byline: William Morris

Reuter Walton Cos. is finishing 2018 with the acquisition of its newest development site, the sale of a recently completed project, and a massive apartment project under construction.

A month into building a 231-unit complex near the Minneapolis Convention Center, the Minneapolis-based developer is already moving ahead on another apartment project. Reuter Walton paid $6.58 million on Dec. 17 for the 0.8-acre site of a former Arby's restaurant at 1116 Lake St. W. in Minneapolis' Uptown neighborhood, according to a certificate of real estate value recently made public.

The company plans to start construction in January of a 175-unit mixed-use apartment building, which will sit at the northeast quadrant of Lake Street and Fremont Avenue.

The seller was Eden Prairie-based Supervalu Inc. The Arby's restaurant closed more than a year ago, said Reuter Walton developer Kyle Brasser. The yet-unnamed, $45 million apartment building will open in mid-2020.

The purchase price works out to $8.2 million per acre. Reuter Walton based its offer in an appraisal of the property, Brasser said in an interview. Hennepin County values the property at $1.45 million for tax purposes.

"We arrived at what was supportable," Brasser said of the price.

The future apartment building will include about 5,500 square feet of retail space. No leases have been signed for the space, Brasser said.

Apartments in the six-story building will lease for an average of $1,700 to $1,800 per month, he said.

Reuter Walton is currently building its 1400 Loring apartment project on a 1.23-acre portion of a downtown block at the southwest corner of 14th Street West and Nicollet Avenue in Minneapolis. The $56 million project replaces seven older buildings that housed several restaurants, a day care, a theater and other retail storefronts.

Reuter Walton recently got one indication of interest in apartments in that area, which is three blocks east of Loring Park. The company sold the 75-unit Harlo apartments for $17.85 million around the corner from 1400 Loring at 18 W. 15th St. on Aug. 16, according to a certificate of real estate value.

CPM Cos. developed the building, but Reuter Walton handled the sale, Brasser said. CPM ceased developing new projects in 2017. Reuter Walton Development principal Nick Walton is one of two partners who formed CPM.

The buyer in the off-market deal was St. Louis Park-based Sidal Realty.

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