Just Sold: Condo comeback? New owner lists units in Madison Lofts
Posted: 7:10 am Wed, April 17, 2013
By Anne Bretts
Editor’s note: “Just Sold” is a Finance & Commerce feature based on certificates of real estate value (CRVs) recently filed for commercial transactions and significant residential transactions in Hennepin, Ramsey and Anoka counties as well as in counties using the state’s eCRV system. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State’s office, company documents, online real estate listings, F&C archives, CoStar and other research.
1701 Madison St. NE, Minneapolis
A Wisconsin mortgage company is testing the long-dormant Minneapolis condo market, listing for sale three of 17 rental condominiums it recently acquired for $1.65 million. The condos are in the 46-unit Madison Lofts at 1701 Madison St. NE., a former industrial building that was redeveloped in 2006 into condos by Steve Minn and his company, Lupe Development Partners.
Lupe paid $3.5 million for the building on the site in 2004. Presidents Lofts LLC, an entity related to Lupe, sold 28 units before the condo market stalled. Minn also moved Lupe’s offices from Bloomington to the Madison Lofts building, where the business still operates.
The developer also attempted a rent-to-own approach. The units were rented, but the renters didn’t convert to buyers.
In the current deal, MSP Holdings LLC, an entity of Kenosha-based Gateway Mortgage Corp., paid $1.65 million for 17 units and 34 parking slots it acquired from Dearborn Street Holdings LLC-Series 16 M&I, an entity of BMO Harris Bank in Chicago.
BMO Harris acquired the loan when parent company Bank of Montreal acquired Wisconsin-based M&I Bank.
Kevin Deaton, vice president at Gateway, said BMO received the units in a deed in lieu of foreclosure, which meant Gateway was able to buy the units at low prices and have the ability to generate revenue from the financing. That combination made the property an attractive investment, he said.
Minn said Tuesday that his company sold the units to Dearborn Street Holdings and managed the units for the bank until the current sale.
“We’re not focused on the condo business anymore,” Minn said, noting that his core business is development, particularly in apartments. “It’s the right time to move on.”
Minn’s current projects include:
- The proposed $60 million Mill City Quarter, which will offer 300 affordable senior apartments on a 2.5-acre site at 300 S. Second St. in Minneapolis.
- The 91-unit Stone Arch Apartments II is under construction at 601 Main St. SE in Minneapolis.
- The Cluster, a 12-unit student apartment project at 1011 Fourth St. SE, both in Minneapolis.
Deaton said the plan is to put the units on the market with seller financing available.
Mike Seebinger of Downtown Resource Group in Minneapolis, which is listing the condos, is excited about the new owner’s approach.
“The original developer (Minn) did a great job with the building, but it was just bad timing,” Seebinger said.
The timing has improved since the mid-2000s.
“The condo market downtown has been incredible this year,” he said. “There’s really not a lot of inventory right now, and so prices have been picking up.”
The new Madison Lofts listings range from a two-bedroom, two-bath unit for $199,900 to a live-work two-bedroom unit with 1,435 square feet of space and two parking stalls for $239,900.
Purchase price: $1.65 million
Average price per unit: N/A
Property ID: The 17 property IDs are available with the CRV below
Date of deed: 3-26-13
ECRV released: 4-8-13