The U of M is one of the top public universities in the United States and has several facilities throughout Minnesota. The main campus of the University of Minnesota is located in Minneapolis and occupies nearly 2,000 acres of land. The whole University of Minnesota - Twin Cities includes campuses in both Minneapolis and Saint Paul.
The neighborhood thrives because of the presence of the University and while there isn't a lot of real estate in the area, the houses, condos and apartments there are prime real estate, particularly for investors. The rental rate in the area is obviously high with University students who prefer to live off campus but still want to live near by.
Living in the area also has its appeals, primarily if you are a student or a single person; the area is full of life and energy, most particularly during the school year.