ST. CLOUD, MINN. — Cohen Financial has arranged a $6.5 million loan for the acquisition of a 71,000-square-foot retail property in St. Cloud in central Minnesota. Cash Wise Foods anchors the property. Dan Rosenberg and Matt Terpstra of Cohen Financial arranged the fixed-rate loan with Goldman Sachs Commercial Mortgage Capital. Midland Atlantic Properties was the borrower.
MINNEAPOLIS — Kraus-Anderson has completed its new downtown Minneapolis headquarters, located at 8th Street and 5th Avenue. Employees from throughout the metro are now moving into the 100,000-square-foot campus, which consolidates the construction firm’s Twin Cities operations in a five-story facility. The new headquarters will accommodate approximately 300 employees, doubling the current downtown staff with room for future expansion on the site. Consolidation will combine employees from the Kraus-Anderson construction office in Circle Pines, as well as Kraus-Anderson Realty Co. and the development offices in Bloomington. The new building will also house Kraus-Anderson Mortgage and the parent corporation, Kraus-Anderson Cos. Kraus-Anderson Insurance will continue to operate from its offices in Burnsville. The first floor features a waiting area, conference rooms, employee cafeteria and fitness center. The majority of employee office space is located on floors two through five. An open office concept is used throughout the building, featuring electrically operated workstations, which allow employees to easily change from sitting to standing positions. Pope Architects designed the office. Kraus-Anderson partnered with ESG Architects to develop the downtown block surrounded by 8th and 9th streets.
OAKDALE, MINN. — Brennan Investment Group LLC has acquired an 86,460-square-foot industrial building in Oakdale, a suburb of St. Paul. The purchase price was not disclosed. The seller, Total Logistics Inc., will lease back the space from Brennan. The property is located at 2900 Granada Lane North. The acquisition was funded through a net leased joint venture with one of Arch Street Capital Advisors’ institutional clients.
MINNEAPOLIS — Kraus-Anderson Construction Co., a general contractor based in Minneapolis, plans to break ground this coming Monday, Oct. 23 on Ironclad, a $100 million mixed-use development in downtown Minneapolis. The site, currently a parking lot, is located within the historic Mills District near U.S. Bank Stadium, the newly opened home of the Minnesota Vikings NFL team. Designed by St. Paul-based Collage Architects, Ironclad will include a 14-story, 172-unit apartment building and an eight-story, 139-room, Moxy-branded hotel. The plans also call for a 3,300-square-foot restaurant; 10,000 square feet of retail space on the first floor of the hotel; and a four-story, 65,318-square-foot underground parking garage with room for 411 cars. The apartments will feature private outdoor terraces, a sky lounge and a large amenity deck with green space. The property will also feature a swimming pool, hot tubs, fire pits, cloister garden and insider amenities including electric vehicle charging stations, bike repair facility and rider lounge, sauna, theater and media center, pool table and gaming and an on-site property manager. Ironclad is owned by 811 Washington LLC, a wholly owned entity controlled by the Kharbanda family, which owns and operates multiple properties in downtown Minneapolis. The developer of the hotel …
GOLDEN VALLEY, MINN. — AtWater Group LLC has purchased Valley Square Corporate Center in Golden Valley, a western suburb of Minneapolis, for an undisclosed price. The 81,932-square-foot office building is located at 7500 Olson Memorial Highway. Amenities include a three-story atrium, training room, recently renovated common areas and heated underground parking. AtWater will act as asset manager on behalf of Concorde Properties Group, an affiliate of AtWater Group. Cushman & Wakefield Minneapolis will handle the leasing and property management efforts.
RICHFIELD, MINN. — Grandbridge Real Estate Capital has arranged $14.4 million in bond financing for the acquisition of Seven Hills Preparatory Academy in Richfield, a southern suburb of Minneapolis. BB&T Capital Markets closed a tax-exempt $13.3 million Series 2017A loan and a taxable $1.1 million Series 2017B loan for the borrower, SHPA ABC. Proceeds from the Series 2017 bonds will be used to acquire the 60,000-square-foot facility, as well as expand the property with the construction of a gymnasium. Interior and exterior renovations will also be made. The school serves students in grades K-8.
The Minneapolis retail market ended the second quarter with a vacancy rate of 3.1 percent. The freestanding retail segment (buildings not contained within a shopping center) posted a vacancy rate of 1.8 percent. Over the past year, there has been a pattern of positive absorption in the market. The average quoted asking retail rental rate at the end of the second quarter was $13.94 per square foot. Comparably, a year ago this rate was $13.29 per square foot. Meanwhile, construction of retail properties has been on an upward climb. Within the past four quarters, 1.2 million square feet of retail space has been built, and there is an additional 892,910 square feet in progress, according to CoStar Group. Net absorption continues Retail net absorption was moderate in Minneapolis in the second quarter of 2017, totaling 484,120 square feet. That’s up from 135,536 square feet of positive absorption in the first quarter and 366,652 square feet in the fourth quarter of 2016. However, these figures are all down from the third quarter of 2016, when 638,183 square feet were positively absorbed in the market. Several tenants have moved out of large blocks of space in 2017. For example, Sears vacated 125,209 …
HOPKINS, MINN. — Doran Cos. has completed The Moline in downtown Hopkins, a western suburb of Minneapolis. The 241-unit apartment property features more than 35,000 square feet of amenity space, including a club room, fitness center, business office, pet run, rooftop lounge and pool deck. The name pays homage to the community’s history as home of the Minneapolis-Moline Co., a large tractor and machinery producer. The first-floor lobby features an antique tractor display open to the public.
INTERNATIONAL FALLS, MINN. — Kraus-Anderson has completed Phase I construction of the new passenger air service terminal building at the Falls International Airport in International Falls, located near the border of Canada. The $10 million project replaces approximately two-thirds of the old terminal. Architecture firm Alliiance designed the 17,894-square-foot building. Phase I includes new arrival and departure services with check-in ticketing counters and kiosks, a secured gate lounge, baggage handling, passenger boarding bridge, TSA screening area, car rental services and waiting area. Phase II of the construction — a separately funded project — will complete the full replacement of the old terminal, and provide new space for U.S. Customs processing, the Weather Bureau office, Transportation Security Administration (TSA) offices and Airport Commission conference room. Construction is scheduled to begin in the spring of 2018 and is slated for completion in March 2019.
MINNEAPOLIS — CBRE has arranged the sale of Lee Lofts Apartments in the Minneapolis Warehouse District for $3.2 million. Located at 280 N. Second Ave., the property was originally built in 1906 and converted into loft-style apartments in the 1960s. SRRT Lee LLC, an affiliate of SR Realty Trust Inc., purchased the 24-unit apartment property, which was 96 percent occupied at the time of sale. CBRE also arranged a $2.2 million Freddie Mac loan for the acquisition. Ben Bastian, Joel Torborg and Mark Roos of CBRE represented the buyer. Harmony Lofts LLC was the seller.
