MINNEAPOLIS, MN – Centerspace (NYSE: CSR) has entered into Contribution Agreements with entities managed by KMS Management, Inc. (KMS), to buy a portfolio of 17 communities for the aggregate buy price of $323.8 million. The portfolio of 19 real estate assets is comprised of 14 communities in Minneapolis, Minnesota and three communities in St. Cloud, Minnesota. The acquisition will add 2,696 apartment homes to the Centerspace portfolio, further strengthening the Company’s footprint in markets where the Company has historically strong operations.
The Company will fully fund the transaction through the issuance of up to $197.3 million Convertible Preferred Operating Partnership units that pay a preferred 3.875% dividend and are convertible into common units at an exchange rate of 1.2048 common units per Convertible Preferred Operating Partnership Unit representing a conversion price of $83.00 per unit. In lieu of Convertible Preferred Operating Partnership Units, KMS may elect to receive up to $16.2 million of the aggregate buy price in cash at closing. The Company will buy the communities subject to approximately $126.5 million in mortgage liabilities, a part of which the Company intends to refinance upon consummation of the transaction. Additionally, the Company plans to fund approximately $40 million of capital into repositioning the communities over the next 24-36 months. The transaction is expected to close in the third quarter of 2021, subject to customary approvals and closing conditions.
“This fully-funded acquisition fits seamlessly into our investment thesis,” said Mark O. Decker Jr., President and CEO. “Adding KMS’ communities, team and investors to our Company will double our presence in our core market of Minneapolis, increase the scale of our operations and provide numerous opportunities to improve our business. We are thankful to the KMS team and investors and all of their work on this transaction and for their faith in Centerspace as they join our platform.”
Centerspace currently owns 2,537 homes in Minneapolis across 14 communities and 1,192 homes in St. Cloud in six communities. With the addition of the KMS portfolio, the Company will increase its footprint in Minneapolis to 4,901 homes and to 1,524 homes in St. Cloud.
Minneapolis boasts a diverse economy driven by strong employment, headquartering 24 Fortune 1,000 companies and maintains the highest median income in the Midwest. Centerspace’s Minneapolis suburban communities have seen compounded revenue growth of 6.3% and compounded NOI growth of 5.8% from 2018-2020 with St. Cloud having compounded revenue growth of 4.7% and compounded NOI growth of 9.3% during the same period.
“Our plot is to integrate this portfolio onto our existing platform and leverage our operating initiatives, particularly our focus on customer experience and margin expansion, to enhance the overall quality and cash flow of our aggregate portfolios in Minneapolis and St. Cloud. The KMS communities have a long and successful operating history, fantastic locations within their respective submarkets, and we are seeing high demand for product with attainable rental rates,” said Mr. Decker.

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IRVING, TX – FCP and S2 Capital have bought Oxford Park Apartments, a 308-unit garden apartment community in Irving, TX. The off-market transaction marks the third deal in DFW in the last 12 months between S2 and FCP.
“The 1995 vintage property is extremely well located in the Las Colinas submarket of DFW and has been well maintained by the current owner. We plot to complete a significant exterior and interior renovation program to provide our residents with a top-quality apartment at an affordable price point,” said S2’s CEO Scott Everett.
FCP’s Cole Kellogg added, “FCP is extremely pleased to be partnering once again with S2 on this high-quality asset. Our partnership continues to look for investment opportunities across the multifamily spectrum throughout the state of Texas.”
Oxford Park Apartments are well-located in the Las Colinas submarket of DFW allowing for simple commuting to downtown Dallas, downtown Ft. Worth and job centers along the Dallas North Tollway. Residents also have access to nearby amenities including Whole Foods and Oxford Park is within the Carrollton Farmers Branch Independent School District.

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ORLANDO, FL – Frankforter Group has bought The Ivy Residences at Health Village, a 248 unit Class A apartment community in Downtown Orlando. The Ivy is part of the 172-acre Health Village, a mixed-use, transit-oriented, master-plotted urban development.
Many healthcare professionals are residents at The Ivy who choose to live here for the convenience and walkability factor to their work and recreations. One of Florida’s largest hospital complexes, Florida Hospital Health Village is home to hospital and medical-related facilities, administrative offices, commercial uses, residential communities, a hotel, and AdventHealth University. The Ivy contributes to the hospital’s healthy-living mission with thoughtful urban design and responsible development.
FM Capital’s Senior Vice President Daniel Kaweblum arranged $51 million of senior debt with a national balance sheet lender for acquisition.
The Ivy is centrally located just blocks to the SunRail commuter rail system which offers simple access to Winter Park and Maitland to the north, as well as downtown Orlando and Sand Lake Road to the south. The Ivy is also very close to Interstate 4, allowing quick access to Orlando’s most happening neighborhoods such as College Park, Loch Haven Park, Mills Park, Ivanhoe Row, and the Mills/50 District.
The residence at The Ivy enjoys Class-A amenities including a resort-style pool with a multi-level deck and cabanas, a 24-hour fitness center, yoga and Pilate’s studio, a cybercafe, a billiards room, and a community-wide secured-access system. The apartment community includes two mid-rise buildings with 248 units averaging 941-square feet, as well as an integrated parking garage. The apartments feature granite countertops, ENERGY STAR®-rated stainless steel appliances, high-quality ceramic flooring and wood plank flooring, full-size washers and dryers, and modern lighting fixtures.
Stephane Benalal, Director of Acquisitions says, this investment fits well within our core plus investment strategy “We have been very active in the Florida market in the last few years and we are very excited to add this unique asset to our portfolio. We look forward to bringing an exceptional living experience to the residents of this fantastic community”.

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