JLL Capital Markets announced that it has closed the $17.45 million sale of Greysolon Plaza, a 150-unit affordable housing community located in downtown Duluth, Minnesota.
JLL completed the sale from the seller, Sherman Associates, to the buyer, Orbach Affordable Housing Solutions.
Located in the heart of downtown Duluth, Greysolon Plaza offers 150 spacious one-bedroom apartment homes, many with breathtaking views of Lake Superior and downtown. Residents have easy access to retail, restaurants, arts and entertainment. Directly in front of the property, the main bus lines offer convenient access to all points of interest in the Twin Ports. Greysolon Plaza also has a downtown skyway connection for access to medical facilities, banks and the historic NorShore Theater.
The location coupled with the favorable Duluth rental market fundamentals created a unique opportunity for Orbach Affordable Housing Solutions, who was looking to plant a flag in the Duluth affordable housing arena.
“Orbach Affordable Housing Solutions is very proud of this project,” said Jay Reinhard, President of Orbach Affordable Housing Solutions. “It is our mission to ensure families have a safe, comfortable place to live and provide our tenants with the community they deserve.”
In the past 24 months, through the Low-Income Housing Tax Credit program, OAHS has acquired more than 1,000 units and expended over $300 million in total rehabilitation development costs in Pennsylvania and California. Over the next 12 months, OAHS is scheduled to acquire 2,000 additional units in New York, New Jersey, Pennsylvania and Minnesota with another $300 million in total rehabilitation and development costs.
“Our management team is comprised of the industry’s leading professionals specializing in all aspects of affordable property management and re-development,” said Meyer Orbach, Chairman of OAHS. “We are committed to ensuring high-quality housing for all income levels and we pledge to continue preserving the affordability of these units for generations to come.”
The JLL Capital Markets team representing the seller was led by Senior Directors Mox Gunderson, Dan Linnell and Josh Talberg and Director Adam Haydon.
“We are excited for the Orbach team to continue their expansion into Minnesota with Greysolon Plaza, one of Duluth’s most iconic buildings,” Gunderson said. “The project received multiple bids, drawing interest from both coasts due its historic nature, size of HAP contract and limited affordable housing for sale inventory.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients—whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.