Southgate Apartments
8100 12th Ave S Bloomington / Minnesota
Property Details
Description
Location
Highlights
Value-Add Opportunity
Offering an opportunity for substantial rent growth potential through interior upgrades with the opportunity to take advantage of an estimated $153/unit average monthly premium on rents. The Bloomington submarket has recently experienced multiple properties undergo extensive renovations. These renovated units were quickly absorbed by the market and have increased the average rents in the area.
Strong Occupancy
Southgate Apartments has a strong history of occupancy, delivering consistent and predictable income. Current occupancy stands at 96%, reflecting the sustained demand for quality housing in the Bloomington submarket.
Broader Implementation of RUBS
New ownership has the opportunity to expand the Ratio Utility Billing System (RUBS), aligning reimbursements more closely with actual usage. This approach, already adopted by most renovated properties in the Bloomington submarket, significantly reduces expenses and further strengthens NOI.
Supply-Constrained Submarket
Bloomington’s multifamily market reflects steady renter demand and limited new construction. Deliveries have slowed since 2022 and vacancy has tightened. With minimal new supply expected, existing communities like the Southgate Apartments are positioned to benefit from ongoing demand, strong occupancy, and solid rent growth.
