A stunning real estate transaction has just shaken up the student housing market near the University of Minnesota. Two of Dinkytown’s largest apartment buildings—The Bridges and The Knoll—were sold this week for a combined $55 million, marking a dramatic 40% decrease from their $93 million sale price just eight years ago.
WF Investments, a Boston-based firm, purchased The Bridges for $33 million and The Knoll for $22 million. Both properties were originally built by Doran Companies during a wave of student-focused development near the U of M. In 2017, Doran sold the buildings to TIAA’s subsidiary, Nuveen.
So what caused the drop? Experts suggest the student housing market operates on different revenue models, with multiple tenants per unit driving unique pricing metrics. But with rapid development on the eastern side of campus in neighborhoods like Stadium Village and Prospect Park, competition is heating up—and some older properties may not command the premiums they once did.
Whether you're an investor watching trends or a local keeping an eye on real estate in Minneapolis, this sale underscores a shift in the student housing landscape near the University of Minnesota.
