JLL Capital Markets announced that it has closed the $8 million sale of Highland Chateau, a 60-unit, 1972-built multihousing community located in the high-demand city of Duluth, Minnesota.
The buyer, PLB Highland Chateau, LLC, was represented by Encompass Real Estate Investment Services.
Completed in 1972, Highland Chateau’s studio, one- and two-bedroom units feature spacious 814-square-foot floorplans, expansive patios/balconies, large windows and beautiful hardwood floors. The community offers its residents garage parking, on-site laundry facilities, a 24-hour fitness center and an expansive courtyard with a grilling and picnic area.
Situated at 822 Baylis Street, the property is uniquely located next to the Web Woods and Marshall College Preparatory School. The area provides immediate access to downtown Duluth, Canal Park, Miller Hill Mall and the hospital. Additionally, the property is positioned between Duluth’s University of Minnesota Campus, College of St. Scholastica and Lake Superior College. To the south of the property sits the recently sold and demolished Central High School site, which has plans to be redeveloped into an expansive mixed-use community with views over the lake.
The JLL Capital Markets Investment Sales and Advisory team representing the seller, Sherman Associates, was led by Director Devon Dvorak, Managing Directors Mox Gunderson, Dan Linnell, Josh Talberg and Senior Director Adam Haydon.
“Duluth has always been a strong multihousing market that has only benefited from the recent push to work from home and drive to live in destination cities. Developments, especially market-rate developments, are few and far between in Duluth, so the city continues to see above-market occupancy rates as they receive an influx of residents moving there from out of state. A direct example of this is Highland Chateau, which was 100 percent occupied on the day of closing,” said Dvorak.
“Our client was very excited to work with the JLL team on another Duluth multihousing acquisition”, said Ben Norton, VP of Encompass REIS, who worked with the Duluth-based buyer to expand their existing portfolio of properties in the Duluth/Superior market. “Our client continually seeks well maintained and positioned opportunities in what continues to be a robust multihousing market in Duluth,” added Norton.
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 sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
