Northland Completes SoRoc South Expansion in Rochester, MN
194 new units at SoRoc on Maine will help address housing demand
ROCHESTER, MN (December 13, 2024) – Northland, a leading national real estate private equity firm with $8 billion in assets under management, is proud to announce the completion of the SoRoc South development in Rochester, MN. The 194-unit second-phase expansion complements the existing SoRoc North 186-unit first-phase built in 2018 and acquired by Northland in 2022. The entire SoRoc on Maine community features 380 units across five buildings in an amenity-rich suburban location near the Shoppes on Maine in South Rochester.
Northland’s market entry in February of 2022 was predicated on the opportunity to rapidly create scale in Rochester by developing SoRoc South and continuing Northland’s growth in the upper Midwest. Northland has committed $120 million in combined investment in Rochester over the past two years with two acquisitions and one development totaling 534 units. In addition to SoRoc on Maine, Northland acquired The Maven on Broadway, a 154-unit mid-rise community with 9,000 square feet of ground-floor retail situated at the corner of Broadway and 4th Street in Downtown Rochester.
“Rochester continually proves itself as a city that feels larger than its population of 120,000, driven by the Mayo Clinic, one of the premier international medical institutions,” said Santo Dettore, Northland’s Vice President of Development. “Our SoRoc on Maine investment strategy was clear from the start: acquire a prime asset in a growth market and enhance its value by expanding the number of units to address the local housing demand. Today, we are thrilled to deliver on that thesis.”
The Massachusetts firm broke ground on SoRoc South in October 2022 and the project was developed in partnership with local Minnesota companies, including Cole Group of St. Cloud as the lead architect, Miller Architects & Builders of St. Cloud as general contractor, and Minnwest Bank providing $28 million in construction financing.
The SoRoc South development spans approximately six acres and features a mix of studio, one, and two-bedroom homes across two three-story buildings. These new units complement SoRoc North’s existing Class-A homes and boast differentiated high-end finishes such as nine-foot ceilings, wood-style plank flooring, custom-designed shaker-style millwork, stainless steel appliances, solid-surface quartz countertops, and modern tile backsplashes. The buildings include underground parking with elevators, as well as two additional fitness centers and a coworking lounge. SoRoc North’s central leasing offices, clubhouse, fitness center, resort-style pool, and courtyard will continue serving both phases of the community.
The Rochester MSA’s 6.3% employment growth rate and 7,000 added jobs – the highest in the state of Minnesota over the last 12 months – has created a pressing need for additional rental housing, with roughly 1,200 units delivered since 2021 and only 350 units currently under construction. Northland’s addition of 194 units in SoRoc South is helping address this need. More than 150 current SoRoc on Maine residents are employed at the Mayo Clinic’s Flagship Campus in the heart of Downtown Rochester, where Mayo recently broke ground on a $5 billion care and research facilities expansion as part of their “Bold, Forward, Unbound” initiative.