Mount Royal Manor Offering Memorandum

PROPERTY DESCRIPTION
Mount Royal Manor
Investment Overview
Marcus & Millichap is pleased to announce the exclusive listing of Mount Royal Manor, a 114
unit apartment community located in the Chester Park neighborhood of Duluth, Minnesota.
Mount Royal Manor is being offered on a Free-and-Clear Basis.
Due to strong job growth in the medical, education, and financial fields, Duluth has created a
diverse job market to ensure stability, thus helping Duluth become one of the most desirable
metros in the Midwest. With multiple new companies drawn to the area, Duluth’s population
of 86,000 residents has produced an unemployment rate of 3.7% which is below state (3.9%)
and national averages (4.4%). Mount Royal Manor is conveniently located one block from the
University of Minnesota Duluth which enrolls over 10,000 students annually and was recently
named the “#8 Public University in the United States” by USNews.com.
The seven-story building gives tenants picturesque and unparalleled views of the University,
Downtown Canal Park, and Lake Superior, creating a true North Shore experience for residents.
Additionally, residents are able to enjoy a wide variety of recreational activities, such as,
Grandmas Marathon, The Superior Hiking Trail, Spirit Mountain, and the famous Bayfront
Festival Park. Annually these attractions bring more than 3.5 million tourists to the Duluth area,
accounting for an economic impact of $780 million.
Constructed in 1951, Mount Royal Manor showcases a striking example of early modernism
architecture unique to the property’s neighborhood. Inside you will find multiple floor plans
including two stunning top floor penthouse suites featuring a private elevator and breathtaking
180 degree views of Duluth. The property consists of an additional 13 studio, 76 one-bedroom,
and 23 two-bedroom apartments. Ranging in size from 414 square feet to 1,813 square feet,
residents have numerous floor plans and price ranges to suit their individual needs.
Mount Royal Manor offers new ownership multiple avenues to increase property value and the
bottom line. First, by re-branding into a student focused apartment community, a new owner
can create revenue through renting units per bed similar to neighboring properties such as
BlueStone Lofts and BlueStone Flats. Secondly, the property is a strong candidate for both
State and Federal Historic Tax Credits which will allow a new owner to inject major capital
improvements to common area and in-unit upgrades. Once completed, Mount Royal Manor
should achieve competitive rents with neighboring properties. Lastly, with a current housing
shortage of 4,470 units, as outlined by the Image Duluth 2035 Comprehensive Plan, a new
owner can achieve additional income growth by developing an additional 126 units on the
northern sector of the parcel.
Investment Highlights
■ Walking Distance to University of Minnesota Duluth Campus
■ Irreplaceable Hilltop Location
■ Low Supply, High Barrier to Entry Market
■ Value-Add Opportunity Through Repositioning
■ Historical & Federal Tax Credits and/or Renovation Potential
■ Phase II Development Opportunity on Additional Acreage
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are
approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future
performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap ACT ID Y0510304
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