Quarry Town purchase illustrates company’s local investment strategy

Danny Hanson: Edgewood could accommodate another 1,000 units in Springfield market.

The recent acquisition of a mixed-use development in Galloway Village marks the 16th Springfield property for Fargo, North Dakota-based Edgewood Real Estate Investment Trust since entering the market in 2018.

Edgewood REIT closed July 25 on the purchase of Quarry Town, located at 4006 S. Lone Pine Ave., said Jamie Thomas, local asset manager for Edgewood REIT. The financial terms of the deal with Green Circle Projects were undisclosed.

“We’re thrilled to add Quarry Town to our growing Springfield portfolio,” Thomas said in a news release announcing the purchase. “The combination of residential and commercial space, along with its prime location in the Galloway Village, makes Quarry Town a perfect fit for our vision. We’re especially excited to be part of such a unique and charming neighborhood.”

Past Springfield Business Journal reporting indicates Green Circle Projects debuted the $14 million Quarry Town development in 2019. Greene County Assessor records note the property spans nearly 140,000 square feet.

Thomas said around 98% of Quarry Town’s 100 apartments are leased, with 85% occupancy on the commercial side. Commercial space that’s available is over 3,500 square feet recently vacated by Great Escape Beer Works, which relocated to Republic.

Fitting in
Edgewood REIT entered the Springfield market through the 2018 purchase of Missouri Valley REIT Inc. from the local Williams family of businesspeople, according to past reporting, and the company in 2021 purchased the downtown Heer’s building. Its property ownership holdings in the Queen City also include the Mission Ridge independent living facility, Cambium Apartments, Tera Vera and the Trail’s Bend apartment complex.

Quarry Town fits right in with the company’s existing portfolio in Springfield, said Danny Hanson, executive vice president of Edgewood REIT.

“We’re looking for multifamily apartment dwellings,” he said.

Quarry Town’s 100 apartments add to an existing slate of 1,976 units owned by Edgewood REIT, according to the company’s 2024 annual report. Additionally, Mission Ridge has over 100 senior housing units managed by Seattle-based Merrill Gardens.

In the case of Mission Ridge, Hanson said Edgewood REIT leases the facility to the operator.

“We’d like to get some more net-lease assets,” he said. “If they own their building, we’ll buy them and lease them back to them.”

The growth of Edgewood REIT’s local portfolio likely isn’t finished. Hanson said the company could accommodate another 1,000 apartment units, or more, in the market.

“Certainly, we’re looking to acquire,” he said. “We would really like to acquire additional multifamily apartments.”

Springfield, too, fits in for Edgewood and its holdings in 14 states, with a large presence in the Midwest including in Missouri, Iowa, Kansas and Nebraska. 

“We just really like Springfield,” Hanson said. “It’s a vibrant community that has good industry and a lot of really good people that we’ve formed relationships with in our time of ownership of the assets there.”

Thomas, one of three local asset managers for Edgewood REIT, has worked at myriad real estate companies, including Green Circle Projects, Prosperiti Partners and Entrust Property Solutions, in her career. She joined Edgewood around a year ago.

“I’ve had 15 years’ experience in this industry in Springfield. When I had the opportunity to come to Edgewood last year, I took it,” she said. “I really appreciated that outside perspective. I really like adding value not only to the Springfield community but our shareholders.”

Nationwide investments
Edgewood REIT is a privately held investment trust with some 1,300 investors, said Hanson.

As of June 30, Edgewood REIT had $2.1 billion in total assets, according to the company’s second-quarter report to shareholders and partners posted to its website. At the end of the second quarter, Edgewood reported 94.8% occupancy among its roughly 8,600 multifamily units and 97.3% occupancy for its 118 health care and other commercial properties.

In 2024, Edgewood REIT produced $50.4 million in net income on total revenue of $213 million, according to the company’s latest annual report. That compares with net income of $45.9 million and revenue of $189.9 million in 2023. 

The organization was formed in 2010.

Market movement
The Quarry Town purchase follows a property management switch in Springfield earlier this year for Edgewood REIT.

Springfield Business Journal reported in March that Edgewood REIT had decided to transition the management of its Queen City properties to Investors Management and Marketing Inc., also based in Fargo, after eight years with Springfield-based TLC Properties. The transition became effective in mid-April.

“Executives of IMM and Edgewood REIT, both based in Fargo, North Dakota, have a 50-year relationship,” officials said in a joint news release released in March. “Edgewood REIT and TLC Properties are working together to ensure a smooth and seamless transition for both residents and employees.”