OTSEGO, MINN. — Duke Realty Corp. will construct a 220,000-square-foot industrial facility for Wagner SprayTech Corp. in Otsego, approximately 33 miles northwest of Minneapolis. The building will be situated on 12.3 acres within the Gateway North Business Center. Wagner SprayTech, a company that develops and markets paint sprayers, applicators and decorating products, will use the facility as a warehouse and distribution center. Construction on the building will begin in the second quarter and delivery is slated for the fourth quarter of this year. The build-to-suit asset will feature 5,000 square feet of office space, 36-foot clear heights and has the capability to expand by 50,000 square feet. Wagner will relocate from its existing facility in Brooklyn Center once the new project is complete. Paul Bickford with Colliers International and Fred Hedberg with Paramount Real Estate represented Wagner in the transaction. Dan Swartz with CBRE represented Duke Realty.
ROCHESTER, MINN. — Investors Real Estate Trust has acquired a 393-unit luxury townhome portfolio in Rochester for $72.5 million. The rental portfolio is comprised of four multifamily communities that consist of two- and three-bedroom units that were built between 1990 and 2010. The properties include Avalon Cove at 3202 Avalon Cove Lane NW, a 187-unit property; Cascade Shores at 144 Beach Lake Road SW, a 90-unit property; Crystal Bay at 2450 Crystal Bay Court SW, a 76-unit property; and French Creek at 2000 Chardonnay Lane NW, a 40-unit property. With the addition of these townhomes, Investors Real Estate Trust now owns 1,773 units within the Rochester market. Investors Real Estate Trust is a publicly traded REIT that invests in income-producing properties located primarily in the upper Midwest. Keith Collins, Ted Abramson, Abe Appert and Laura Hanneman of CBRE represented the seller, Bouquet Cos., in the transaction.
MINNETONKA, MINN. — The AFL-CIO Housing Investment Trust (HIT) will invest $14.8 million in the Zvago Cooperative project, a 54-unit, four-story cooperative for seniors along the banks of Glen Lake in the Minneapolis suburb of Minnetonka. The $19 million project is an expansion of the Glen Lake Redevelopment project, which includes a 52-unit mixed-use project built in 2008 and a 159-unit seniors housing community built in 2011. In addition to the 54 new seniors housing units, the expansion will offer views of Glen Lake, a community patio overlooking the lake and adjacent wetlands, and amenities such as a clubroom, fitness facility and heated underground parking. The developer for the project is OneTwoOne Development LLC, a wholly owned subsidiary of Ecumen, a Minnesota-based nonprofit provider of seniors housing and aging services. Zvago Cooperative is the HIT’s 76th project in Minnesota. The multifamily investment firm is based in Washington, D.C.
BUFFALO, MINN. — Mid-America Real Estate has brokered the sale of Buffalo Crossing, a 19,753-square-foot retail property for $3.8 million. A local investment group acquired the property from an undisclosed seller. The shopping center is located in Buffalo, approximately 40 miles northwest of Minneapolis. Situated along Highway 55, Buffalo Crossroads is anchored by Jimmy John’s and Anytime Fitness. Mark Robinson of Mid-America represented the buyer in the transaction.
ST. PAUL, MINN. — Cushman & Wakefield/NorthMarq has arranged a 1,450-square-foot retail lease in St. Paul. Ehinger Schwarz 1876, an interchangeable jewelry maker, has opened its third location in the Oxford Square shopping center on Grand Avenue last week. Minneapolis-based RMF Group is the landlord. Tom Martin and Kim Meyer of Cushman & Wakefield/NorthMarq represented the tenant in the transaction.
WINONA, MINN. — Dougherty Mortgage LLC has closed a $1.1 million HUD loan for the acquisition and rehabilitation of a 54-unit multifamily property. River View Flats is located in Winona, approximately 50 miles east of Rochester. The project has obtained an allocation of Low Income Housing Tax Credits as well as subordinate funding from the Minnesota Housing Finance Agency and the City of Winona. Upgrades will include the replacement of major plumbing and mechanical systems and an improvement to property accessibility. River View Flats features off-street parking, on-site coin laundry and a patio with grill. The 40-year term loan was arranged for borrower Morningside Terrace LLC.
ST. PAUL, MINN. — Dougherty Funding LLC has provided an $18.2 million loan for an 11-story, 155,511-square-foot mixed-use building. Lowery Building LLC will use the loan proceeds to refinance and renovate the building. Lowery Square Building was constructed in 1926. The building previously operated as the Lowery Hotel and currently contains 135 apartment units, three floors of office space leased to the Ramsey County Attorney’s Office and to-be-built first-floor and rooftop restaurants. The building is connected to the downtown St. Paul skyway system and is located in the St. Paul central business district.
MINNEAPOLIS — Oppidan Investment Co. has sold the White Bear Marketplace in Minneapolis for an undisclosed price. Oppidan developed the 118,627-square-foot shopping center on a site previously occupied by Kmart. Cub Foods, Planet Fitness, Northern Tool and Starbucks co-anchor the newly constructed retail center. Jim Leary and Jeff Budish of CBRE represented Oppidan Investment Co. in the transaction. The buyer was a regional private investor.
BROOKLYN PARK, MINN. — Dougherty Mortgage LLC has provided a $1.6 million Fannie Mae supplemental loan for a 96-unit multifamily property in Brooklyn Park, approximately 11 miles northwest of Minneapolis. The loan features a 4.5-year term and a 30-year amortization schedule. The Fountains in the Park LLC was the borrower. The capital will be used to fund capital improvements and a partnership recapitalization.
PRINCETON, MINN. — Lancaster Pollard has arranged a $6 million FHA loan to refinance Sterling Pointe Senior Living, a 57-unit independent living, assisted living and memory care community in Princeton, approximately 50 miles north of Minneapolis. The community was originally built in 2011. Ownership wanted to refinance its existing debt using FHA/HUD in order to benefit from the long-term low interest rates and nonrecourse feature, as well as pay off a TIF (tax increment financing) loan. Quintin Harris, senior vice president with Lancaster Pollard in Minneapolis, led the transaction.