Rochester, MN (May 8th, 2023) – Hamilton Real Estate Group (HREG) of Rochester and SRS Real Estate Partners’ National Net Lease Group (NNLG) announced it has completed the $26.9 million sale of Residence at Discovery Square, a mixed-use project located at 511 3rd Avenue SW in Rochester, MN. Built in 2018, the seven-story, 174,020-square-foot (sf) mixed-use property includes 11,831-sf of ground floor retail space and 138 multifamily units.
HREG’s Vice President Chad Behnken as well as SRS NNLG’s Vice Presidents Frank Rogers and Michael Carter represented the seller, a Rochester, MN-based investor. The buyer, Rochester, MN-based Black Swan Real Estate, is managed by Nick Stageberg who was procured from the collaboration’s marketing efforts. The purchase price represents the highest recording purchase price for a multi-family project recorded in the state of Minnesota in 2023.
“Residence at Discovery Square was a very complicated deal to execute during this market and interest rate environment. With a strong commitment from both the seller and buyer, we were able to strategically secure lending approval from the banks who were involved throughout the deal process,” said Rogers.
Behnken added, “We were able to negotiate deal terms that were not only attractive to the seller, but also alleviated some challenges for the buyer to ultimately approve purchasing terms that made sense for all parties involved to find the closing table.”
“It was a creative deal story that took a great deal of patience and teamwork from both the Buyer and Seller that ultimately led to a successful transaction for both sides,” concluded Carter.
Residence at Discovery Square is currently approximately 95% occupied. The asset is part of Discovery Square, a 16-block sub-district built in collaboration with the Mayo Clinic in an urban life science hub. The property is one block from the five million-sf Soldiers Memorial Field Park, which features a golf course, tennis court, swimming pool, among other amenities. It is also near multiple shopping centers, including Crossroads Shopping Center and Apache Mall.