Rochester Apartment Building Just Made History in Minnesota
You've no doubt driven past The Berkman Apartment building in Rochester many times. It's the 14-story tower containing 350 individual apartments located across from Mayo Clinic's St Marys Hospital, on the corner of 2nd St SW and 14th Ave SW.
According to The Berkman's website, it opened just two years ago in 2020 and has studios apartments available along with one, two and three-bedroom units. It also features walk-up townhomes (with ceiling heights reaching 9 feet tall!) as well as furnished units that are available for short-term stays.
The street-level of The Berkman also has 23,000 feet of commercial space available, which will soon be occupied by the Red Cow, a Minneapolis-based restaurant that is planning to open its location here in Rochester later this year.
And now, The Berkman (which is named for Daisy Louise Berkman Plummer, wife of Mayo Clinic pioneer, Dr. Henry Stanley Plummer, himself the namesake of Mayo's famous Plummer Building) just made real estate history in Minnesota.
According to the Minneapolis St. Paul Business Journal (MSPBJ), The Berkman was just sold for a whopping $187.6 million, which is likely the largest amount EVER paid for a single multifamily property in here in the Land of 10,000 Lakes. That's a LOT.
The sale works out to a record-breaking $536,000 per unit. That's more than double the average ($246,287) per-unit price of Class A apartments that sold last year...
A New York-based group (CBRE Investment Management) plunked down that nearly 188 million dollars to acquire The Berkman from Minneapolis-based Alatus and Kayne Anderson Real Estate, MSPBJ said.
I'm just going to guess that you (like me) has never written out a check for $187,600,000 like somebody at CBRE Investment Management just did. I'm also guessing that even former Vikings GM, Rick Spielman, hasn't written a check that large. Although his house in Eden Prairie IS pretty nice-- and it's for sale right now. Keep scrolling to check it out!