The year’s hot investment? Apartment buildings [The Twin Cities]
Flat-roofed and 50 years old, Centennial Gardens in Roseville is a sturdy 190-unit apartment building in need of a facelift – not a show stopper. Nonetheless, the brick complex attracted 12 written offers when it hit the market in April and is scheduled to close in a few weeks.
Unlike houses and condos languishing on the market around the Twin Cities, apartment buildings are selling like Bomb Pops in July.
Investors, previously emboldened by low interest rates, chased them during the condo conversion craze. Although the recent surge in interest rates could cool things, they’re chasing them again for somewhat more sober reasons: rent.
Apartment vacancies are down, and rents are rising. That’s bad news for renters, of course, but it’s music to the ears of owners, investors and their brokers.