Les Chateaux, a high-end apartment complex on London Road, has been sold for $19.75 million.

Mox Gunderson, a broker for real estate investment firm Marcus & Millichap, said the sale to an out-of-state buyer closed on Wednesday. The seller was Minneapolis-based Sherman Associates, which owns a number of properties in Duluth including the NorShor Theatre.

With 141 units, the sale price works out to a little more than $140,000 per apartment.

“I’d be willing to wager you’re not going to find too many other 1970s-era buildings for that kind of money anywhere outside the metro area in the history of Minnesota,” Gunderson said.

Gunderson declined to name the buyer, but a resident and a maintenance worker at the apartment complex both said they’d been told it was Monarch Investment and Management Group of Franktown, Colo.

No one at Monarch could be reached for comment on Thursday, but its website listed Les Chateaux as one of its four Minnesota properties. Monthly rental prices for available units listed on the website ranged from $991 for a 750-square-foot apartment with one bedroom and one bathroom to $2,436 for a three-bedroom, two-bathroom, 1,875-square-foot apartment.

Connie Dahlen, who has lived at Les Chateaux for 12 years and was assistant manager for about a decade, said she was pleased by the change.

“I’m excited about it,” Dahlen said. “I think it’s going to be a nice change. I think there’s going to be a lot of great things that are going to be done. … We just thank God we have a beautiful place to live. We’re very happy.”

Matt Lackner, Les Chateaux’s maintenance worker since late March, said he chose to stay with the property under its new owners rather than with Sherman Associates.

The month from the time the property was listed until its sale had been “very foggy and not transparent,” Lackner said. “But it’s all over now.”

He had been impressed with the brief time he spent with Monarch management, Lackner said.

Others bids came from Chicago, the Twin Cities, North Dakota and Wisconsin, Gunderson said.

“The buyer owns apartment buildings across the nation,” he said. “They have a very good reputation. They’re in this for the long haul. I think the tenants should be excited.”

Monarch’s website shows properties in 18 states.

Sherman Associates, which purchased Les Chateaux in 2012, remains committed to Duluth, spokeswoman Valerie Doleman said in an email. She cited Sherman’s role in the NorShor as an example of that.

“Sherman Associates develops for a long-term hold,” Doleman wrote. “Occasionally, we select certain assets for sale to fuel our growth.”

Although she declined to confirm that Monarch was the purchaser, she said Sherman Associates was “pleased with the excellent quality of the buyer.”

Built in the 1970s, Les Chateaux is considered “vintage” in real estate broker terms. It looks dated from the outside, Gunderson said, but inside all of the kitchens have been renovated within the past couple of years.

The units are “beautiful, gorgeous apartments,” Dahlen said.

The three buildings are 96 percent occupied, Gunderson said. “The property achieves good rents,” he said. “You have a strong tenant base that wants to live on the water.”

The 60-unit Du Lac building is closest to the lake. “If you’re standing on the balcony, you can underhand a wiffle ball and hit the waves of Lake Superior,” Gunderson said. “It’s irreplaceable real estate.”

The buildings are in the 3700 and 3800 blocks of London Road, just east of Glensheen Mansion.

It marks the first sale in Duluth involving Marcus & Millichap, which has 79 offices nationwide. Its website boasts of $37.8 billion in “recently closed transactions” and closing an average of 4.2 transactions every business hour.

It won’t be the firm’s last deal in Duluth. Three other properties are listed now, Gunderson said.

“Duluth is a market that is on the map now,” he said. “Out-of-state, out-of-city money is starting to express an interest.”

Marcus & Millichap closed on properties in Cloquet, Grand Rapids and Bemidji last year, Gunderson said.

The company is based in Palo Alto, Calif. Gunderson operates out of its Minneapolis office.

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