Chicago-based Redwood Capital Group, in a joint venture with an affiliate of global real estate investment management firm Heitman, has acquired a 375-unit garden-style multifamily community in the Minneapolis suburb of Eden Prairie.
The community, formerly called ReNew Eden Prairie, has been renamed Reserve Eden Prairie and will be managed by Redwood Residential, Redwood Capital Group’s fully integrated property management company. The five three-story buildings feature one-, two-, and three-bedroom units with an average size of 956 square feet. Community amenities include a standalone two-story clubhouse, one indoor and two outdoor swimming pools, a business center, a lounge with billiards, a dog park, a playground, and a package room. The 24-hour fitness center offers a CrossFit gym, an indoor basketball court, a racquetball court, a sauna, and a spa.
“Acquiring value-add properties in prime locations has been part of a two-prong strategy to our success and growth, which means Reserve Eden Prairie aligns perfectly with Redwood’s commitment to extend into engaging markets and strengthen our national portfolio of high-quality multifamily assets,” said Bill McDougall, managing director, investments, and head of acquisitions at Redwood Capital Group, a vertically integrated national real estate investment manager. “The improvements we have planned will make this already stellar property even more attractive to the increasing demographic of residents in this area in need of quality, updated rental housing.”
In keeping with the firm’s value-add strategy, plans are in place for multiple exterior, structural, mechanical, and amenity improvements through its in-house construction division. Renovations will include modernizing the clubhouse, updating the fitness center, and building a new dog park. The interiors will be refreshed with a higher level of finish, including granite or quartz countertops, stainless steel appliances, and vinyl plank flooring.
“Based on market research and the pure demand we are seeing from renters, all indicators point to a continued strong apartment market in highly desirable suburbs like Eden Prairie—and we don’t expect that to change anytime soon,” added David Carlson, managing partner and co-founder of Redwood Capital Group. “With our focus on suburban value-add and core-plus properties, coupled with our in-house Redwood Residential property management arm and our history of working in the area, we definitely bring some unique investment and management capabilities that will make this property stand out in the Minneapolis submarket.”
Redwood Capital Group is making its return to the Minneapolis suburbs. The firm has owned over 2,200 units in the market in the past decade, with the firm successfully exiting from its most recent investment, the 534-unit Hampshire Hill community in Bloomington, in January.
In addition, in alignment with the firm’s broader environmental, social, and governance initiatives, it has partnered with the National Forest Foundation and is committed to a series of tree plantings at the close of every acquisition. Following the Reserve Eden Prairie transaction, the firm will sponsor the planting of approximately 500 trees.
