Rochester, MN (May 2, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) and Hamilton Real Estate Group of Rochester, MN announced today 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.
SRS NNLG’s Vice Presidents Frank Rogers and Michael Carter as well as Chad Behnken, Vice President with Hamilton Real Estate, Inc. 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 paid for a multifamily 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.”
“This 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.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.9 billion in deal volume comprised of 760 transactions in 48 states. SRS currently has in excess of 445 properties actively on the market with a market value surpassing $2.2 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2022, the group completed more than 705 sales across 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.