Property Spotlight - SkyHill Apartments

This week’s edition offers an inside look at our latest acquisition: SkyHill Apartments, a 36-unit property in Champlin, Minnesota. Ridgeview Property Group closed on the asset in December 2024 and immediately launched a full-scale renovation. This case study highlights our approach to transforming vintage buildings through thoughtful, cost-effective improvements.

The Property

The property had been held by the same family for over 25 years. During their ownership, they did a respectable job maintaining the buildings—windows were replaced, roofs stayed in good condition, and the units remained relatively clean.

However, after the passing of the family patriarch, the remaining owners struggled to keep up with operations. Leasing activity declined, and vacancies began to rise. By the time the property was listed for sale, occupancy had dropped to just 50%.

Located in Champlin, MN, the property sits in a quiet, residential neighborhood with low crime. A city park and open green space lie directly across the street, and the Mississippi River is just a 10-minute walk away. Champlin is a strong middle-income suburb, with a median household income of $115,000 and a low ratio of apartments to single-familly homes.

The apartments are spacious, with balconies on the upper floors and common laundry rooms on each level. The building’s core systems were in good shape, with newer windows and one recently replaced boiler. However, the interiors had seen minimal upgrades since original construction—presenting a clear opportunity to modernize the units and unlock significant value.

Our Value-Add Strategy

We partnered with a seasoned designer and a property management firm experienced in value-add repositioning. At the core of our strategy was a comprehensive renovation plan, supported by a total budget of $900,000. Interior unit renovations averaged $20,000 per apartment and included complete kitchen upgrades with new cabinetry, granite countertops, and stainless steel appliances. Bathrooms were improved with new vanities, granite surfaces, and updated fixtures. Luxury vinyl plank flooring was installed throughout, with carpet in the bedrooms to reduce sound transmission. Each unit also received fresh paint, modern LED lighting, and upgraded nickel hardware.

Our vision extended beyond the individual units. We dedicated $80,000 toward common area improvements—recognizing the role shared spaces play in tenant satisfaction and retention. These upgrades included new carpet, fresh paint, updated lighting, and consistent “SkyHill” branding throughout to reflect the property's new identity.

Exterior improvements were also a priority. We allocated $60,000 for a full exterior repaint and an awning retrofit to enhance curb appeal and bring the building’s appearance in line with the renovated interiors. Additional upgrades included new landscaping rock and parking lot repairs with fresh striping.

Financing the Deal

Structuring the right deal was pivotal to the success of our Morada project. We secured a purchase price of $4.03M and obtained a construction loan totaling $3.6M. This loan would make $2.6M available at closing, and the remaining funds would be accessible via construction draws to fund the renovations. The interest rate was locked in at 6.73% for 5 years, with a 30-year amortization. To complete the capital stack, I raised $1.6 million from 17 investors.

Current Update

Seven months into ownership, the results have been strong and support our original thesis.

We’ve achieved our projected rents on several units—$1,519 for two-bedrooms and $1,319 for one-bedrooms—confirming strong demand for our renovated product. Due to the property’s initial 50% vacancy and the availability of multiple completed units early in the process, we strategically switched to offering rent concessions to drive lease-up momentum. With steady leasing activity, we anticipate reaching full occupancy by this fall.

Prospective tenants have consistently praised the quality of the finishes—particularly the kitchens, bathrooms, and overall layout. The quiet residential neighborhood, nearby park, and proximity to the Mississippi River have also been strong selling points.

This positive reception has translated into strong leasing metrics: our tour-to-lease conversion rate has been strong at 33%. These early results validate both our renovation scope and location selection, reinforcing confidence in our long-term rent assumptions.

Key Takeaways and Looking Ahead

SkyHill Apartments represents a textbook example of Ridgeview Property Group’s value-add strategy in action—targeting well-located but underperforming assets, executing thoughtful renovations, and creating durable cash flow through improved operations. With construction progressing on budget, strong renter demand, and lease-up on track, this project is well-positioned to deliver both stable returns and long-term upside. We look forward to sharing continued updates as we bring the property to full stabilization.

Looking ahead, the success of SkyHill Apartments reinforces my belief that value-add remains the most compelling multifamily strategy in 2024. While I plan to focus on ground-up development in the coming years, the current market continues to reward investors who can identify and execute on underperforming assets. I’m actively seeking similar opportunities—using the insights gained from past projects to uncover properties with overlooked potential and strong upside.

-Ben Michel

Ben Michel is the founder of Ridgeview Property Group, an investment firm specializing in multifamily real estate. Register Here to be notified of available investment opportunities.