A Minnesota-based company has purchased a block of small 20th-century apartment buildings in the Bishop Arts District.
Oaks Properties LLC, which owns apartments in Minnesota and Dallas, bought the block of Eighth Street between Adams and Llewellyn. The properties had been in the McDonald family for at least two generations.
Oaks Properties founder and president Norman Bjornnes says the company has no plans for the properties yet.
“We’re going to take good care of them as they are,” Bjornnes says. “The McDonald family took great care of them. They’re in great condition. We’re just trying to fill their shoes right now.”
Oaks Properties has been in business since 1970. They also own the Oaks Trinity apartments on Greenbriar, which were built by Trammell Crow Residential in 2014.
“We typically own our properties for multiple generations,” says Bjornnes, who lives in Minnesota but also keeps an apartment at the Oaks Trinity. “We’re excited to be a part of the neighborhood.”
The Eighth Street properties comprise 11 buildings, including the McDonalds’ single-family home, and a total of 2.67 acres. They net an income of about $340,000 a year, according to the listing from HFF last year.
The buildings are included in the Bishop/Davis zoning, which is extremely permissive. It allows for the buildings to be torn down and replaced with four-story apartment buildings along the whole block, from sidewalk to alley, with no setbacks or yard requirements.