🔥Open For Investment! | Sunset Apartments | Champlin, MN🔥

I’m excited to announce that Ridgeview is officially under contract to acquire The Sunset Apartments, a 36-unit multifamily asset in the Twin Cities suburb of Champlin.

This asset has tremendous value-add potential and will undergo a complete renovation. This, coupled with a low cost basis has the potential to provide attractive returns to investors.

This is Ridgeview’s second acquisition in Champlin, with the prior being the Riverway Apartments in 2022. Champlin is an “A” location with high incomes and low crime. Residents at the Sunset Apartments are a 10-minute walk to the Mississippi shores and a 5-minute drive to the 4,900-acre Elm Creek Park Reserve.  Champlin also features quality schools, numerous parks, and ample employment opportunities.

• $113,570 Median Income

• 3.4% Unemployment Rate

• 89.7% Rate of Home Ownership

• Located just north of the growing Hwy 610 Corridor where Target has 3,300 employees at their Target Northern Campus

• Close to high traffic 169 corridor - near shopping, restaurants, and entertainment
  

To express your interest in joining this venture, visit the Ridgeview Investor Portal:

1. Low Cost Basis

As the Federal Reserve waged war on inflation, multifamily interest rates have risen into the 6% and 7% range, putting downward pressure on sale prices. Today’s interest rate environment is directly responsible for the $112K per unit acquisition price. The $4.035M purchase price is 15% lower per unit vs past sales comps in the area.

2. Untapped Renovation Potential

A significant opportunity awaits, as none of Sunset Apartment’s 36 units have undergone renovations. Currently, renovated units in the area are achieving rent premiums of $350 for 1BRs and $400 for 2BRs, offering substantial room for improvement by bringing rents in line with the direct competitors. Ridgeview used the same playbook this year at the Morada Apartments in Crystal.

3. Prime Location in a Proven Market

Champlin is a highly desirable city with high incomes and low crime. Ridgeview first entered the market in 2022, acquiring the Riverway Apartments. Tenants love the neighborhood and tend to stay longer than usual, leading to lower turnover costs and lower expenses overall.

4. Tax Advantages

A Cost Segregation study will be completed. This tax strategy accelerates depreciation for real estate, boosting cash flow and reducing tax burdens on rental income. Investors in the Sunset Apartments can expect significant passive losses on their 2024 tax return.

5. Low Supply Coming Online

Apartment starts have dropped dramatically due to high interest rates and increased construction costs. The last large-scale apartment development in Champlin was the 212-unit Bowline Apartments in 2022, after which there have been minimal apartments built locally.

Investment Opportunity Highlights

• Number of units: 36

• Capital Raise: $1,600,000

• Minimum Investment: Minimum investment of $50,000 (Cash & Solo 401k funds acceptable / IRA funds may be accepted depending on timelines)

• Date Investment is Open to Investors: November 1st

• Estimated Time of Closing: December 30th, 2024

• Depreciation Losses: Bonus depreciation will be applied to the 2024 tax year

To express your interest in joining this venture, visit the Ridgeview Investor Portal:

Please feel free to reach out with any questions.

-Ben Michel

This 506(c) offering is open to accredited investors only.  The numbers presented are projections; actual numbers are dependent on asset performance.  

 All funded commitments will be taken on a first-come, first-serve basis.