1356 Jefferson Rd, Northfield, MN, 55057-3079, US

Jefferson Square Townhomes

Attributes

Number of units

Occupancy

100%

Year built

1979

Year renovated

2010

Building area net

5,247 m²

Land area net

2.1 ha

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”), as the exclusive advisor, is pleased to present the offering of Jefferson Square (the “Property”), a 50-unit, 100% HAP townhome community located in Northfield, MN. Recognized by Money Magazine's Best 50 Places to Live, Northfield features two prestigious colleges, a high quality of life, and a wealth of employers and economic drivers making it a truly dynamic location to invest.

Jefferson Square's legacy quality is palpable through strong community amenities and top-notch townhome residences. Moreover, the rare 100% HAP designation makes it prime for upside through a mark-up-to-market or re-syndication business plan. JLL invites offers from qualified investors who are interested in this prestigious investment opportunity.

...

Investment Highlights

Rare 100% HAP Contract Provides Stable Operations and Upside

Stable annual rent increases hedging against inflation with an implicit government guarantee
Draft 2025 contract rents schedule project 4.5% growth over that of current contract rents with further upside potential via MUTM
LIHTC re-syndication potential in 2025 as current tax credits were placed into service in 2010
Immediate real estate tax upside due to the recent change to a flat 0.25% classification rate for class 4d apartments in Minnesota

Best-in-Market Townhome Living, Well-Maintained

Redeveloped by one of the most prolific developers, owners, and managers in the multi-housing space
Limited capital project needs due to premier design, construction, and components
Open and spacious floor plans with large unit sizes, 11.7% larger than the competitive set
Limited historical turnover, average 5-year occupancy of 98% and current occupancy of 100%

Premium location Within a Market Boasting Outstanding Fundamentals

Jefferson Square accounts for 1/6th of the affordable housing stock in Northfield
Consistently high occupancy rates and strong pricing power, evident both historically and projected on the go-forward
Proximate to a wealth of economic drivers such as employment, commerce districts, colleges, and more
Linked to the Twin Cities MSA, a market that today is in the spotlight nationally