Views on large multi-family in Eden Prairie vs. Cottage Grove, MN

[Joseph A.]

I am considering two syndication deals for large multi-family complexes. One in Eden Prairie positioned as a value add deal, and one in Cottage Grove offering nice cash flow and a long-term hold opportunity. I know very little about the Minnesota market and would appreciate any views on the differences between the two locations. Are they A or B locations? Are there major differences in demand for rentals, demographics, job opportunities etc.? Any thoughts are greatly appreciated!

[Dan B.]

Eden Prairie and the SW metro is definitely more upscale than the SE metro. I would say Eden Prairie is an A location and Cottage Grove is a B. I would also say there are definitely more white collar jobs in the SW metro than anywhere else in the area except downtown minneapolis. I know because I've had to commute down there a lot from the north side. Value add deals are hard to find but kudos to those that have found one. I am looking for a small - mid size complex in the metro area with a value add possibility.