The Brainerd multi-family market has been making headlines recently, drawing attention from real estate investors and analysts alike. With a vacancy rate of just 2.0%, which has remained stable over the past 12 months, it’s clear that this region is experiencing robust demand for multi-family properties. One particular gem in this market is Pine Grove Estates, a 191-unit apartment building located in Baxter, Minnesota. In this case study, we’ll take a closer look at Pine Grove Estates and the broader Brainerd multi-family market.
Brainerd Multi-Family Overview
To gain a comprehensive understanding of Pine Grove Estates, it’s essential first to grasp the overall dynamics of the Brainerd multi-family market. As mentioned, the vacancy rate stands at a low 2.0%, indicating a strong demand for rental properties. This level is consistent with the previous year, signifying the market’s resilience and stability.
The dominant subtype of multi-family space in Brainerd is the 3 Star category, which boasts 937 units. This suggests that the majority of renters in the area are seeking reasonably priced, quality housing options. In contrast, there are 440 units classified as 1 & 2 Star space and 282 units of 4 & 5 Star space, indicating a diverse range of options for renters with varying preferences and budgets.
In terms of rental rates, the average monthly rent in Brainerd is approximately $1,010, marking a 3.1% increase from the previous year. Over the past three years, rents have witnessed a cumulative growth of 8.7%, showcasing the area’s potential for attractive returns on investment.
Moreover, Brainerd’s multi-family market is experiencing growth, with approximately 350 units currently under construction. This represents a significant 21.3% expansion of the existing inventory, indicating strong confidence in the region’s rental market.
In the past year, there have been 2 sales transactions, with a total trading value of approximately $41.7 million. Over the last three years, a total of 7 sales have taken place, further highlighting the investment activity and interest in Brainerd’s multi-family properties.
Pine Grove Estates: A Closer Look
One of the standout properties in the Brainerd multi-family market is Pine Grove Estates, a 191-unit apartment building located in Baxter, Minnesota. This property boasts an incredibly low vacancy rate of just 0.4%, demonstrating its popularity among renters.
The asking rent for units at Pine Grove Estates is $1,100 per month, which is slightly above the average for the Brainerd market. However, when measured by square footage, the asking rent is $1.26 per square foot, suggesting that tenants are willing to pay a premium for the quality and amenities offered by this property.
Pine Grove Estates falls into the 3 Star category, indicating that it provides a balance between affordability and quality. This is a promising sign for investors looking for properties that can attract a broad range of renters.
One notable aspect of Pine Grove Estates is its relatively recent construction, with the building dating back to 2015. This suggests that the property is still in excellent condition, potentially reducing maintenance and renovation costs for investors.
Conclusion
The Brainerd multi-family market is experiencing a period of stability and growth, making it an attractive destination for real estate investors. Pine Grove Estates, with its low vacancy rate, above-average rental rates, and recent construction, stands out as a compelling investment opportunity in this thriving market.
As with any investment, it’s crucial for potential buyers to conduct thorough due diligence, including property inspections, financial analysis, and market research. Pine Grove Estates serves as a prime example of the potential within the Brainerd multi-family market, but success in real estate investment ultimately depends on a comprehensive understanding of the local market conditions and individual property characteristics.
Investors looking for a blend of stability and growth in the multi-family sector would do well to consider the opportunities offered by Pine Grove Estates and the broader Brainerd market. With the right strategy and management, these properties can offer not only attractive returns but also a secure foothold in a dynamic and resilient real estate market.
