Discovery Square developer buys downtown Rochester apartment complex for $2.15 million
Jul. 19—ROCHESTER — The developer of the Med City's Discovery Square buildings recently paid $2.15 million for an almost 60-year-old downtown Rochester hotel-turned-apartment-complex.
The 14-unit apartment building with orange doors at 512 Third Ave. SW was purchased by
Mortenson Co.
under the name of 512 Rochester SW, LLC on July 15, 2022.
The two-story concrete block building, which started life as a hotel, was mostly recently part of the
Third Avenue Lofts apartments
. It is now surrounded by Mayo Clinic parking lots.
The other two Third Avenue Lofts buildings were demolished to make way for the construction of Residences at Discovery Square.
Minneapolis-based Mortenson Co. built and owns the nearby Discovery Square One and
Discovery Square Two
connected complexes in the core of the Destination Medical Center zone. The Discovery Square campus is located on the next block directly north of the 512 Third Ave. SW property.
Mortenson representatives describe the purchase as "a long-term investment in the neighborhood."
"We have hired a local management company to improve services for residents as a part of our commitment, and we will be making some necessary repairs and improvements to the property starting shortly," wrote Cameron Snyder, Mortenson's director of corporate public relations.
Olmsted County estimated the total market value of the building and land at $1.31 million for 2022-2023. Winona developer Gary J. Heim sold the property. Heim had owned it since 2019, when he purchased it for $1.27 million.
"Mortenson is pleased to be a part of all that is happening in Rochester. We are seeing firsthand the strong interest in the vitality of the downtown area as a part of the Destination Medical Center initiative," wrote Snyder about the project. "The city is undergoing an exciting transformation and there is a lot of momentum behind it."
Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to
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