Buoyed by a healthy economy, the Twin Cities industrial market has experienced strong demand for functional, 24- to 32-foot clear height space, with more companies expanding during the first three quarters of the year, according to Cushman & Wakefield | NorthMarq. The market posted nearly 1.3 million square feet of absorption in the first three quarters of 2014, a solid number. The overall vacancy rate for multi-tenant properties 20,000 square feet and above stood at 10.1 percent at the end of the third quarter, down from a high of 16.4 percent in 2010. The bulk/warehouse segment has posted the most leasing activity with 451,097 square feet of net absorption year-to-date, including 140,514 square feet in the third quarter, and a tight 9.2 percent vacancy rate. Office/warehouse absorption totaled 476,032 square feet year-to-date through the third quarter, and 391,676 square feet in the third quarter alone, lowering the vacancy rate in that segment to 9.6 percent. Office/showroom absorption totaled 359,687 square feet during the first three quarters of 2014, lowering the vacancy rate in that segment to 12.8 percent, the lowest since 2006 when it stood at 11.7 percent. The Northeast submarket posted 222,267 square feet of net absorption in the …
SAINT LOUIS PARK, MINN. — Marcus & Millichap has brokered the $1.4 million sale of Hampshire Apartments, a 16-unit apartment property in Saint Louis Park. The property is located at 2407 Hampshire Ave. S. Josh Talberg, Mox Gunderson, Dan Linnell and Chris Collins of Marcus & Millichap’s Minneapolis office represented the seller, an individual/personal trust, and the buyer, a limited liability company.
PLYMOUTH, MINN. — CPA:17 – Global, a managed non-traded REIT of W. P. Carey Inc., has acquired a 182,000 square-foot, Class A office building for $34 million. The facility is located in Plymouth and will be leased on a long-term basis to Smiths Medical beginning in February 2015. Smiths Medical is a supplier of specialist medical devices, consumables and equipment for global markets and is one of the five divisions that form Smiths Group plc, a multinational diversified engineering company. The property will serve as Smiths Medical’s headquarters as part of a broader initiative to improve productivity and collaboration and reduce costs. The facility was constructed in 1999 as part of a mixed-use development that included retail, residential and restaurant space. The building includes modern infrastructure and features large lobbies and common areas.
EAGAN AND PRIOR LAKE, MINN. — KeyBank Real Estate Capital has secured $31.7 million in Fannie Mae loans for two seniors housing communities. The properties included Keystone Communities of Eagan, which includes 129 units; and Keystone Communities of Prior Lake, which includes 107 units. Charlie Shoop of KeyBank secured financing for the borrower, Toronto, Ontario-based BayBridge Seniors Housing, in conjunction with local operator and joint venture partner Keystone Communities. The financing allowed BayBridge to refinance existing debt at low long-term, fixed interest rates and provided additional growth capital for the sponsor.
BLOOMINGTON, MINN. — NorthMarq Capital’s Minneapolis office has arranged a $203.5 million loan on behalf of an investment partnership between MetLife and Allstate Insurance Co./Allstate Life Insurance Co. for the acquisition of Normandale Lake Office Park. Northwestern Mutual is the lender. Located in the southwest suburb of Bloomington, Normandale is situated on 23 acres overlooking the 2,500-acre Normandale Lake recreational area. Amenities include a childcare facility, two full-service restaurants, conference space and two fitness centers. The complex consists of 1.7 million square feet of Class A office space in five towers, which are connected by enclosed skyways. The park is 93 percent occupied, an increase of 10 percent in the last two years. Tenants at the park include Prime Therapeutics, Aon Benfield, Schwan’s, Towers Watson, Tata Consultancy Services, Emerson Corporation and Oracle Corp. The sale was the second largest suburban office sale in the United States year-to-date in 2014. NorthMarq’s Minneapolis team also included James Hoopes, Daniel Trebil, Michael Padilla and Jon Miller.
BURNSVILLE, MINN. — Marcus & Millichap has brokered the $7 million sale of Whispering Oaks, a 72-unit apartment property in Burnsville. The property is located at 1600 W. 143rd St. and was originally constructed as condominiums. Units include fireplaces, in-unit washers and dryers, and multiple in-unit balconies. The building itself is equipped with underground parking, a swimming pool, community rooms and an elevator. Mox Gunderson and Dan Linnell of Marcus & Millichap’s Minneapolis office represented the seller, a private investor, and the buyer, a limited liability company.
FARIBAULT, MINN. — The Opus Group has completed an 18,500-square-foot renovation at The Inn at Shattuck-St. Mary’s, and the expansion of the historic Phelps Infirmary, built in 1867. The on-campus inn and event space was repurposed for the Shattuck-St. Mary’s School in Faribault, located approximately 50 miles south of Minneapolis. Opus remodeled the 147-year-old building, adding approximately 10,000 square feet of new space to the two-story complex. Shattuck-St. Mary’s School is an Episcopal boarding and day school serving students from around the world. The completed Inn at Shattuck-St. Mary’s will serve as the Diocesan retreat and meeting center for the Episcopal Church in Minnesota. Opus Design Build LLC served as general contractor on the project. Construction began in June 2014 and the Inn’s doors opened for use in October.
ROCHESTER, MINN. — Marcus & Millichap has brokered the $795,000 sale of O’Reilly Auto Parts, a 5,600-square foot net-leased property located in Rochester. The property is located at 2610 Broadway Ave. N. Adam Prins, Matthew Hazelton and Mike Marzinske of Marcus & Millichap’s Minneapolis office represented the seller, a limited liability company.
MINNEAPOLIS — Dougherty Mortgage LLC has closed on a $22.9 million new construction/rehabilitation loan for Grain Belt Terraces, a 150-unit apartment property in Minneapolis. Dougherty arranged the 40-year loan for Orth-Grain Belt LLC. Grain Belt Terraces is part of the redevelopment of the Grain Belt brewery site in the historic Sheridan neighborhood of northeast Minneapolis. Unit amenities at the rental property will include oversized windows and black appliances with granite countertops. The penthouse units will have stainless steel appliances, upgraded flooring and 10-foot ceilings. Property amenities include three elevators, a lounge, an outdoor plaza and underground garage.
ROCHESTER, MINN. — Homewood Suites by Hilton Rochester Mayo Clinic Area/Saint Mary’s has opened in Rochester. The six-story hotel is located at 165 13th Ave. S.W., across from St. Mary’s Hospital and a short distance from the Mayo Clinic. Carpenter & Torgerson II LLC own the 108-room hotel. Guestrooms feature fully equipped kitchens and amenities at the hotel include a fitness center and an indoor swimming pool and a whirlpool Jacuzzi.