Blaine Courts, the senior apartment building, is going to be sold. It’s been owned by the Blaine Economic Development Authority since 1990 along with Cloverleaf Courts that had opened in 2000. These buildings have 157 units total and were perfect at the time of being built since there were few senior options in Blaine. Ever since, competition has come to the area and the EDA wants out of the senior housing business. Here’s a look at what the city is doing with Blaine Courts.
Why are they selling?
The council believes that a private company with experience in running a senior apartment is going to be more suited to keep costs down than having the city run it. One council member opposed selling the two properties to Lang-Nelson Associates since the buildings are solvent and it’s not a necessary sale. Other members prefer to get out of the business it’s not suited for and to avoid the process of being a landlord and raising rents.
The city has actually been using Avinity to run day-to-day operations while the city only really set annual budgets and authorized projects for the building including elevator replacements and furniture purchases. While Avinity has offered to purchase both properties, the city declined waiting for a higher offer. Lang-Nelson offered higher at $10.65 million for both apartments.
After Lang-Nelson made a higher offer and the offers became public, Avinity counter-offered making their offer within $25,000 of Lang-Nelson’s offer. Lang-Nelson’s offer was chosen because the city thought it was a better deal seeing that there would be an additional $2 million received at closing.
It won’t be at least 90 days until Lang-Nelson takes over from Avinity. Lang-Nelson has agreed to pay the remaining $1 million after closing through a 10 year promissory note which was better than Avinity’s offer to pay $3.1 million over 16 years. Lang-Nelson owns 15 properties throughout the Twin Cities metro and seven of those are for seniors, so they were a good choice for this reason too.
The city looks forward to having money back to use for better things in the community.
Kris Lindahl Real Estate