Description

Jones Lang LaSalle Americas, Inc. ("JLL") a licensed real estate broker, is pleased to present Dylan Apartments, an 82-home luxury apartment community located in St. Michael, MN, a thriving Twin Cities suburb within the Northwest submarket. The property is a 2023-built community situated just off I-94, presenting unmatched connectivity to many nearby amenities in addition to the greater Twin Cities. Dylan offers a variety of sought-after floor plans from spacious studios to three-bedroom homes, boasting a spacious average unit size of 817 SF. The property offers best-in-market living including luxe interior finishes and a comprehensive amenity package, creating a modern oasis for its residents all at an accessible monthly rate.

Dylan's location in St. Michael provides prime access to nearby retail options, a strong St. Michael-Albertville public school district, and top local employers such as Boston Scientific, Cretex Companies, and North Memorial Health, along with regional names such as Target Corporation and Medtronic to the south. Moreover, the asset is in immediate proximity to an unrivaled set of entertainment and recreational venues including Lake Maria State Park, Fox Hollow Golf Club, a charming downtown area, excellent local dining and shopping, and an extensive parks and trails system.

St. Michael's high quality of life, strong schools, and smalltown charm have driven 38% population growth since 2010. Average household incomes surpass $150,000, providing an ample rent cushion relative to current rent levels at the asset. These demand drivers, coupled with zero impending supply in the immediate future, position this investment to capture substantial upside in the near term.

Offered for sale by its original developer and free and clear of existing debt, JLL invites offers from qualified investors who are interested in this prestigious asset.

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Attributes

Number of units

Occupancy

93%

Year built

2023

Building area net

6,225 m²

Media

Investment Highlights

Irreplaceable 2023-Built Asset, Superior Construction Quality

Opportunity to acquire a premier 82-home apartment community featuring spacious floorplans
2023-built construction by Rise Modular utilizing factory-controlled precision manufacturing for enhanced energy efficiency and structural durability
Best-in-class amenities include a fitness center, heated parking, clubroom with coffee bar, outdoor grilling stations, fire pit, and dog wash station
Premium finishes with white wood cabinetry, quartz countertops, stainless steel appliances, vinyl plank flooring, private balconies, and smart home technology

Small-Town Living with Immediate Access to the Broader Twin Cities

Ideally situated in St. Michael, Minnesota, a community that has experienced 38% population growth since 2010 with small-town charm and immediate I-94 connectivity
Prime access to retail and dining including downtown St. Michael, Albertville Premium Outlets, and Rogers shopping corridor
Proximity to Medical Alley employers including Boston Scientific, North Memorial Health, Takeda, Target Corporation, Medtronic, and UnitedHealth Group
St. Michael's average household income of $151,976 creates substantial rent cushion - Dylan residents save 55% monthly versus all-in homeownership costs
Award-winning St. Michael-Albertville School District, ranked as one of the Top 20 Twin Cities Metro High Schools

Compelling Market Fundamentals and Significant Discount to Replacement Cost

There are zero units under construction and just 199 proposed units within a 5-mile radius of the The Dylan
Recent Northwest submarket deliveries since 2023 totaling 611 units have been rapidly absorbed, achieving a 96% occupancy with only 22 available units
Third-party rent growth forecasts project 3.38% average annual growth through 2028
Offered at a substantial discount to replacement cost - competing projects would require rents of $3.00+ per square foot to break ground
The most recent 80 lease trade outs and renewals are averaging 4.60% growth on an effective basis supporting proforma assumptions