Upland Real Estate Group is marketing four Minnesota behavioral health treatment facilities for $15.59 million alongside a 13-unit north Minneapolis apartment building listed for $1.25 million. The offerings span specialized health care real estate with long-term leases and smaller-scale multifamily investment opportunities for Twin Cities property investors.
The Blueprint
- Upland Real Estate Group is marketing four behavioral health facilities totaling 53,071 square feet for $15.59 million.
- The health care portfolio includes Twin Town in St. Paul, with 51 beds, and Cedar Ridge in Stillwater, with 36 beds.
- A 13-unit north Minneapolis apartment building is listed for $1.25 million, with studios, one-bedroom and two-bedroom units.
- The apartment property received more than $230,000 in upgrades over 12 years, including solar panels installed in 2021.
This week’s On the Market pairs a rare opportunity to acquire a portfolio of inpatient and/or outpatient health treatment centers with a (literal) garden-variety multifamily property ideal for independent landlords looking to build a residential portfolio of their own.
Behavioral Health Treatment Center portfolio
Upland Real Estate Group is marketing four standalone opiate or behavioral health treatment facilities that it says have each operated as such for 20 to 50 years. They’re equipped with triple net leases that run as long as 15 years into the future, according to the portfolio’s listing brochure. And that’s just what’s on paper.
“It is extremely challenging to receive zoning approval for behavioral health centers, making renewal highly likely due to these barriers to entry,” Upland listing agents Deb Vannelli and Keith Sturm say.
Three of the facilities provide inpatient treatment along with a menu of outpatient services. The largest of these, Twin Town, has 51 beds at 1706 University Ave. W. in St. Paul. Cedar Ridge, in Stillwater, has 36 beds. Northstar Behavioral Health, a 20-bed facility north of St. Paul, is also being marketed separately.
Three of the four facilities are owned or backed by larger companies with dozens or hundreds of locations: EOSIS Behavioral Health, formerly known as Meridian; and Behavioral Health Group, which Sturm and Vannelli say oversees the United States’ largest network of accredited outpatient opioid treatment and recovery centers.
Meanwhile, Northstar’s woodsy St. Paul property spans 12 city lots, offering plenty of room for future expansion, the brokers say.
Address: 3329 University Ave. SE, Minneapolis; 11400 Julianne Ave. N., Stillwater; 1706 University Ave. W., St. Paul; 1609 Jackson St., St. Paul
Type: Specialty (behavioral health treatment facilities)
Square Footage: 53,071 square feet
Asking Price: $15.59 million
Seller: Multiple
Listing Broker: Upland Real Estate Group
North Minneapolis garden apartments
This 13-unit garden-style apartment building in a leafy section of north Minneapolis is a much lower-key offering — and a more attainable one for independent landlords.
Boasting a well-kept brick exterior typical of Twin Cities apartments built during the 1960s, the building features a mix of five oversized studios, two one-bedroom apartments and six two-bedroom units on three levels, according to the listing from Revolution Realty Group agents David Salamzadeh, James Faillettaz and Amy Westerlund. The property has ample off-street parking, including separate garage units, plus shared storage and utility space on the lowest level.
A change in pricing strategy caused a significant jump in rental income over the past 18 months, with potential to rise further as the sole vacant unit leases up, according to the listing brochure.
There’s more: The previous owner put more than $230,000 into the property over the past 12 years, Salamzadeh, Faillettaz and Westerlund say. Major upgrades include a new roof in 2013, new windows and fresh driveway asphalt in 2018, a new water heater and boiler in 2019, and rooftop solar panels in 2021.
“The combination of the solid bones of a 1960s build along with all of the recent capex updates truly makes this a great long-term investment,” Salamzadeh, Faillettaz and Westerlund say.
Address: 1900 Vincent Ave. N., Minneapolis
Type: Multifamily
Square Footage/Unit Count: 13 units
Asking Price: $1.25 million
Seller: R & G Housing, LLC (Maple Grove)
Listing Broker: David Salamzadeh, James Faillettaz & Amy Westerlund, Revolution Realty Group