Oct. 2, 2024

This paid Site Spotlight is sponsored by Bender Commercial Real Estate Services.

Grow your multifamily investment portfolio with multiple opportunities in the Mankato, Minnesota, market.

Bender Commercial Real Estate Services has several apartment properties available for investors in this popular college community.

“Mankato is a healthy market with very low unemployment and strong rental demand,” said Nick Gustafson, listing agent and responsible broker at Bender.

“We’re seeing students constantly looking for space, with five colleges and universities in the market.”

Properties listed include Southwood Flats, a 153-unit property comprised of 90 one-bedroom units and 63 two-bedroom units. The apartment complex is less than a half-mile from Minnesota State University.

“About two-thirds of units here have been upgraded in the last few years, including new decks,” Gustafson said. “The current ownership group has shown they can push the net operating income with rental increases because there’s such strong demand in the market.”

The other two properties are listed together and are next door to each other. Colony Court Apartments is a 120-unit property comprised of 20 one-bedroom units and 100 two-bedroom units. Hoover Estates Apartments, a 72-unit property, is comprised of three one-bedroom units, 51 two-bedroom units and 18 three-bedroom units.

“There are affordable-housing criteria in place at Colony Court, while Hoover Estates has exited the program,” Gustafson said.

“This collection of properties is a great opportunity for investors to quickly amass scale in a vibrant market.”

The properties are owned by Lake Norden-based Black Kanyon.

“Black Kanyon is a rapidly growing private-equity company that has an ownership stake in many different sectors, including multifamily and other commercial real estate, as well as aviation and manufacturing,” Gustafson said. “I really enjoy working with them, and we have additional deals we’re working on together.”

The listings also represent how Bender is “starting to take on significant real estate transactions in the region,” Gustafson continued. “We’re active in five states and see this as an avenue for strategic and organic growth.”

The market for real estate investment in the region “has dramatically matured, and our clients are maturing with the market,” he added. “Deals we wouldn’t have dreamed of 10 years ago are routine today.”

The improved interest rate environment also makes the timing more favorable for those considering new investment properties, Gustafson said.

“Not only did the Federal Reserve cut by 50 basis points, but we’re seeing major banks quoting extremely favorable interest rates on deals,” he said. “After just watching the environment the last couple years, they’re now aggressively saying yes. Deals that wouldn’t have penciled out six months ago now work.”

For information on the available Mankato properties, contact Nick Gustafson at 605-201-2809 or nick@benderco.com.