Roundhouse Buys 346-Unit 270 Hennepin in Minneapolis in JLL-Arranged Sale With Freddie Mac Financing

MINNEAPOLIS — Roundhouse has acquired 270 Hennepin, a newly constructed, 346-unit multifamily community in Minneapolis' North Loop, from a partnership between Diamond Realty Investments and Harlem Irving Companies. JLL Capital Markets announced Nov. 6, 2026, that it arranged both the sale and the buyer's seven-year acquisition loan through Freddie Mac.

JLL said the transaction is the largest multifamily sale in Minneapolis in more than two years and one of the largest multi-housing trades in the Twin Cities over that period. JLL represented the seller in the sale and worked on behalf of Roundhouse to secure the Freddie Mac financing.

Roundhouse Acquires 270 Hennepin Tower

Delivered in 2021, 270 Hennepin is a 21-story tower at 270 Hennepin Ave. The property is 95% leased and spans 271,115 rentable square feet on a 0.97-acre site. It offers 43 floor plans, from studios to three-bedroom layouts, including 38 top-floor residences. The average home size is 784 square feet.

The ground level includes 20,075 square feet of commercial space that is 100% leased to Puttery, an immersive mini-golf and entertainment concept.

Amenities include an indoor pool on the 19th floor, a fitness center and yoga studio, a work-from-home lounge, a private dog run, rooftop patios and terraces, and heated underground parking across four levels.

North Loop Location

The building sits next to the Four Seasons, Whole Foods and RBC Gateway, a mixed-use building that houses the U.S. headquarters of RBC Wealth Management. According to JLL, the location has a 96 Walk Score, a 93 Transit Score and a 95 Bike Score, and is close to more than 216,000 downtown jobs. Five Fortune 500 company headquarters — Target, U.S. Bancorp, Xcel Energy, Ameriprise and Thrivent Financial — are within a five-minute walk.

The neighborhood includes more than 70 food and drink destinations, 17 retailers exclusive to the market, and direct access to the Minneapolis Skyway System, which JLL described as the longest continuous skyway network in the world.

Freddie Mac Financing and JLL's Role

Freddie Mac provided the seven-year acquisition loan for Roundhouse. JLL's Capital Markets Investment Sales and Advisory team representing the seller was led by Managing Director Josh Talberg, Director Joseph Peris and Analyst Jack Graveline.

"270 Hennepin is an irreplaceable asset in one of the country's most supply-constrained submarkets, at a time when Minneapolis fundamentals are clearly strengthening," said Talberg. "Demand is growing, downtown employers are returning to the core, and the North Loop, adjacent to the Gateway District, sits at the center of the city's vibrancy. With nothing slated to break ground through 2027, Roundhouse acquired a trophy asset with exceptional insulation from new supply."

Twin Cities Multifamily Market Backdrop

The Minneapolis-St. Paul metropolitan area recorded 95% average occupancy through the second quarter of 2026. Supply expansion through 2029 is projected to fall to 1.2% of existing inventory. The Twin Cities was ranked the most sought-after market for apartment hunters in summer 2026 by RentCafe, and was the No. 5 state Americans moved to in 2025.

Minneapolis-St. Paul rent growth continued for a sixth consecutive quarter, while new construction declined sharply and renter demand remained sufficient to absorb deliveries. Stabilized Class A acquisitions in the Twin Cities have been trading in the high-4% to mid-5% cap-rate range, with cap rates generally stable.

Nationally, multifamily deliveries fell 27% year over year in the second quarter of 2026, and construction activity declined to 3.5% of inventory, its lowest level since 2013. National multifamily occupancy was 93.5% in the second quarter, with 5,106 units of absorption against 2,793 units of new supply.

JLL's capital markets business has also been growing. The firm reported 19% local-currency growth in Capital Markets Services in the second quarter of 2026, led by investment sales, debt advisory and equity advisory. Third-quarter Capital Markets Services revenue rose 21%, with investment sales up 33%, debt advisory up 13% and equity advisory up 39%.

About the Buyer and Sellers

Roundhouse, founded in 2008, is a developer, owner and operator of multifamily housing with a portfolio of more than 12,000 units and approximately $2 billion under management across six states in the Western U.S.

Diamond Realty Investments invests in and develops multifamily, student housing, medical office, industrial and data center real estate. The firm specializes in joint venture partnerships and has invested in more than 200 properties, with total acquisition and development costs exceeding $12.6 billion.

Harlem Irving Companies, which has more than 70 years in business, develops retail, residential, commercial, institutional and mixed-use properties in the Chicago region and beyond.

Outlook

With no competing projects slated to break ground through 2027, according to JLL, the Roundhouse acquisition adds a 2021-built, 95%-leased tower in the North Loop to the buyer's Western U.S. portfolio. A limited incoming supply pipeline in the Minneapolis market could also push vacancy lower.

Sources

JLL, "Sale and financing arranged for 270 Hennepin in Minneapolis," Nov. 6, 2026: https://www.jll.com/en-us/newsroom/sale-and-financing-arranged-for-270-hennepin-in-minneapolis