ROCHESTER, MINN. — CBRE Investment Management has acquired The Berkman, a 350-unit luxury apartment complex in Rochester, a city in Southeast Minnesota. The purchase price was $187.6 million, according to local media reports. The sellers were Kayne Anderson Real Estate and Alatus LLC.
Located at 217 14th Ave. SW, The Berkman sits across the street from the Mayo Clinic’s Saint Marys Campus, which is the nation’s largest intensive care unit. The property is also less than one mile from the Mayo Clinic’s downtown campus. The community opened in 2020.
The Berkman features several environmentally friendly components, including low-flow plumbing fixtures, efficient electric heat pumping technology and sustainable building materials. David Selznick, chief investment officer with Kayne Anderson, says the objective of the development was to provide an environmental, social and governance (ESG)-oriented community to support the Mayo Clinic’s staff, patients and overall Rochester resident base.
“We believe that this asset’s proximity to the area’s elite base of education, research and world-renowned medical institutions, combined with strong demographic fundamentals, will position this property as a quality asset that will capitalize on durable demand from ‘eds and meds,’” says Benjamin Green, managing director of residential transactions at CBRE Investment Management.
Community amenities include a rooftop lounge, rooftop pet lawn, outdoor pool, clubroom, sports suite, library, television lounge and fitness center. The Berkman, which is also home to 23,494 square feet of commercial and retail space, offers studios, one-, two- and three-bedroom units as well as six walk-up townhomes.
A JLL Capital Markets team led by Mox Gunderson, Josh Talberg and Dan Linnell represented the sellers.
Kayne Anderson Real Estate is a real estate private equity investor in medical office, seniors housing, off-campus student housing, multifamily and self-storage. The company, which manages $14 billion of real estate assets as of Jan. 31, is part of Kayne Anderson Capital Advisors LP.
Alatus is a real estate developer that partners with clients and communities throughout the upper Midwest.
CBRE Investment Management, which maintains $141.9 billion in assets under management as of Dec. 31, is an independently operated affiliate of CBRE Group Inc.
— Kristin Hiller