As the University of Minnesota Rochester student housing and general apartment complex being built on First Avenue continues to rise in downtown Rochester, a new deal just wrapped up for national company to manage it.
Called 318 Commons, G.H. Holdings is building the almost $28 million nine-story apartment complex. It is slated to include 98 apartments, ranging in size from three-bedroom units to efficiencies, as well as space for classrooms, offices, and a student life area.
U of M is leasing 70 apartments -- 148 beds -- for $1.4 million a year to house students as its Rochester campus grows. G.H. Holdings, a partnership between Hal Henderson and Grant Michelitz, plans to have the complex ready to use by the start of the 2011 school year.
Now an Austin, Texas-based real estate company called Campus Advantage is signed up to manage 318 Commons. Campus Advantage manages more than 30,000 beds, at 52 locations in 21 states nationwide.
Adding another hook to this is the fact that Campus Advantage was founded and is run by a guy who grew up in Rochester and attended University of Minnesota.
His name is Mike Peter. I should be chatting with him or tomorrow, so watch for updates.
Here's a quote from the press release that rolled out Tuesday.
"These new start-ups are evidence that certain sectors of the real estate industry are beginning to thaw and attract new investment," said Mike Peter, President and CEO of Campus Advantage. "We welcome these new communities to the Campus Advantage family, and expect more to join soon."
The complex is across First Avenue from the Minnesota BioBusiness Center and Dooley's Pub.
The complex will also include some retail and restaurant space. Long-empty buildings that last housed the Affiliated Group and the Ultra Lounge bar were scraped off of First Avenue to clear the way for the project.