Open For Investment - Barcelona Apartments

Open For Investment | Barcelona Apartments

The subscription period is now open for the Barcelona Apartments! For all details on this acquisition, the slide deck is available and ready for viewing. If you are interested in investing alongside us on this project, you can click the button below to submit your commitment.

The Barcelona Apartments is a 71-unit multi-family asset in the Twin Cities suburb of Crystal. This asset has tremendous value-add potential with a business plan of renovations on all units. This, coupled with a low cost basis has the potential to provide attractive returns to our investors.

This property is well maintained and has a 95% occupancy, making it a stable investment opportunity. We are acquiring this asset from the original developer after 52 years of ownership.

The Barcelona Apartments benefits from its Crystal location near major arteries such as Highway 100, 169 and Interstate 394, making commuting to neighboring areas and downtown Minneapolis highly convenient. This property sits just 5 miles north of West End’s thriving retail and office center. The Barcelona and the surrounding area benefit from excellent access to numerous and diverse employers nearby. 

Five Reasons We LOVE This Opportunity

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 $93K per unit acquisition price of The Barcelona. The $6.64M purchase price is 25% lower per unit vs past sales comps, and 12% below the current tax-assessed value.

2. Untapped Renovation Potential

A significant opportunity awaits, as none of The Barcelona’s 71 units have undergone renovations. Currently, renovated units in the area are achieving rent premiums of $190 for 1BRs and $390 for 2BRs, offering substantial room for improvement by bringing rents in line with the direct competitors.

3. One Owner Asset

The Barcelona Apartments was built in 1972 and has never before been sold! The seller's pride in ownership is obvious; the property is well-maintained and has had many recent large capital expenditures. The windows, commercial entrance doors, water heater, and boilers were all replaced within the last 15 years. The building’s roof was replaced in sections between 2008 and 2012

4. High Quality Build

The Barcelona Apartments is a high-quality build, well deserving of the renovation treatment. Each apartment features spacious floorplans, either a balcony or walk-out patio, and plenty of closet space. The 3 story slab-on-grade construction translates to having zero garden-level units. A 48 stall parking garage with an automatic entry door makes for convenient parking.

5. Value Creation with Amenity Additions

The Barcelona Apartments offers underutilized spaces that will be repurposed to create value with new amenities.  Some amenities that we intend to add include; a fitness center, dog park, and package delivery room.  We were excited to unearth an unused sauna at our recent property inspection.  With so many renters seeking the health benefits of saunas today, there may be an opportunity to restore the original sauna to functionality again.

Investment Opportunity Highlights

• Number of units: 71

• Capital Raise: ~ $2,750,000

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

• Funding Deadline: February 16th

• Estimated Time of Closing: March 1st

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

To reserve your investment today, simply click the "Invest Now! to be routed to the Investor Portal.  Prior to this email being sent, we have received soft commitments in excess of half of the equity raise.  All commitments will be taken on a first come, first serve basis.

Please feel free to reach out to us with any questions.

Ben Michel
612-991-4900
[email protected]

Scott Kirchner
952-237-4965
[email protected]

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.