Click here for a PDF of the Summer 2010 Valuation Viewpoint
Property: 427-429 Blake Road, Hopkins, Minnesota
Buyer: Minnehaha Creek Watershed District
Seller: Nemar Properties LLC
Source: Buyer & seller
Sale Date: April 6, 2010 (closing set for August 15, 2010)
Sale Price: $1,365,000
Unit Price: $56,875 (per dwelling unit)
Gross Building Area: 22,368 square feet
Zoning: R-4, Medium High Density Multiple Family
Topography & Soil: Level/good
Visibility & Access: Good, located along Blake Road
Age: 1964
Land Size: 47,300 square feet
Remarks: The property is a 24-unit apartment complex consisting of six one-bedroom units and 18 two-bedroom units in two identical buildings. The Minnehaha Creek Watershed District is purchasing the property for possible expansion of the creek and a Hopkins city park. The purchase price was negotiated based on an existing offer the seller (Nemar Properties LLC) had from a third party. The significance of this sale is that it highlights the decline in value for the apartment market over the last several years. Nemar Properties LLC purchased this complex in December, 2005 for $1,650,000. The current price of $1,365,000 represents a 17.3 percent decline from 2005. Part of the decline in value is due to the reduction in rents for apartment units across the market. At this property, a two-bedroom unite rented for $800-$820/month two to three years ago. Today, these same units have an asking rent of $705/month.
