Michel Commercial Real Estate

Michel Commercial is proud to announce the sale of the Glenfield Park Estates, a luxury, 152-home community in Blaine, MN. ?? We began advising the developer 12 months before bringing the property to market, providing strategic insights to maximize value. ?? Market Response: ? Thousands of views of our marketing materials ? 12 tours leading to 9 offers (75% tour to bid ratio) ? Competitive buyer pool, including REITs, investment funds, syndication groups, and family offices ?? Michel Commercial continues to be the top selling multifamily brokerage team in the Blaine, Coon Rapids, and Fridley submarket—outpacing our competition by 85.4% in sales volume over the past five years.

?? Minnesota’s Economy is Thriving in 2024! Fueled by significant job creation and rising wages, a net total of 41,695 jobs have been added YTD with the leisure and hospitality industry leading, followed by education, health services, and professional and business services.

?? Buyer Interest is Strong in the Twin Cities — EXCEPT in St. Paul. Why? The reason is simple: rent control. In 2021, before rent control was in place, we sold a property in St. Paul with significant buyer interest, leading to 15 tours. Today, we’re marketing similar properties in similar areas, yet despite our extensive efforts and over 11,525 views of our marketing materials, we've had only 5 tours. >>> The feedback from buyers has been consistent: Why invest in a city where doing business has become an uphill battle? ------ On a positive note, the buyers who are still investing in multifamily properties in St. Paul are benefiting from significantly lower price-per-unit deals compared to the suburbs. Trade offs.

?? The Nuances of Location in Real Estate – Bloomington ?? The well-known rule of real estate is "location, location, location," but not all locations are created equal. Bloomington, MN, is a prime example with I-35W splitting the city into two distinct areas. Though unofficially referred to as "West" and "East Bloomington," the income disparity is clear—higher in the west and lower in the east, as shown by the income heat map below. ?? While this wealth divide isn't unique to Bloomington, it underscores the importance of thoroughly understanding the location of your investment. When assessing multifamily properties, it’s essential to move beyond surface-level data and recognize the subtle nuances of the city. Success hinges on maintaining both a broad and detailed perspective of a property's location and its realistic future potential.

?? ?? Success Story – Affordable Housing Preserved! Affordable housing is in crisis, with many nonprofits facing collapse. A nonprofit facing bankruptcy turned to our team to secure a buyer, ensuring the preservation of 56 apartment homes for women and their children. Thanks to the collaboration of other nonprofits and government agencies, these families can remain housed and continue receiving the services they rely on. Transactions involving deeply affordable housing, that serve the lowest-income residents in our communities, can take as long as 2-3 years to complete. Recognizing the urgency and the estimated $20MM replacement cost for this housing, a dedicated team came together and took swift, decisive action. This success was made possible by the persistence and commitment of everyone involved. Your efforts are truly appreciated! Trellis Missions Inc. Programs City of St. Louis Park Minnesota Housing

The market is shifting, with rising buyer interest and pricing, particularly for suburban properties. I discussed these trends with Todd Dexheimer —listen to our conversation for more insights. https://lnkd.in/geTfazbe

The Twin Cities multifamily market is a national leader in absorption rates for newly developed units, driven by near-record demand, particularly in suburban areas.

?? Real-Time Market Shift ?? Recent activity on our listings has exceeded expectations, driven by a surge in buyer eagerness and increasingly aggressive offers. For example, our recent listing in Blaine (Glenfield Park Estates, 152-units) saw 12 tours and 9 offers, reflecting a 75% offer rate. As values begin to rise and with the Federal Reserve signaling larger interest rate cuts, we anticipate continued increases in values and sustained strong, competitive activity. ? For Buyers: Prices are still below their peak but are starting to climb. Now is an opportune time to buy, as further rate cuts are likely to continue driving values higher. ? For Sellers: Our recent deals have generated significant interest, including 21 tours and 14 offers in Champlin. We've seen substantial price jumps, with some as high as 10% in our 'Best & Final' rounds. It seems we've reached the bottom of the valuation decline, and the outlook for stronger valuations is promising. Thanks for the ink, Finance & Commerce!