WADENA, MINN. — Ziegler has provided a bond issue totaling $20.5 million for the Wadena Cancer Center in Wadena, a city in central Minnesota. The Wadena Cancer Center is jointly operated by Astera Health CentraCare Health and is located on Astera Health’s main campus. In collaboration with CentraCare Health System, Astera Health has entered into a joint venture to establish the Central Minnesota Cancer Center LLC. This initiative aims to address the critical need for comprehensive oncology services in the region. The proceeds of the bond issue will be used to finance the construction and equipping of the 15,350-square-foot cancer center, which will include six clinic exam rooms and eight infusion bays. The facility will provide a full spectrum of cancer care services, including medical and radiation oncology visits, chemotherapy, infusion, radiation treatments and diagnostic imaging. Ziegler utilized a unique financing structure to fund the project through its relationship with a nonprofit entity, National Healthcare, Research and Education Finance Corp. (NHREFCO). NHREFCO works to support the charitable and educational purposes of hospitals, academic medical centers and medical research organizations by acting as the borrower for bond transaction and lessor to the tenant through a long-term assumable lease.
EDEN PRAIRIE, MINN. — Shear Bliss, a family-run hair and beauty salon, will open at Eden Prairie Center in the Twin Cities suburb of Eden Prairie. The salon will fill a former MasterCuts location in suite 2168. Shear Bliss, which maintains an additional location in North Dakota, expects to open its Eden Prairie salon on Friday, April 5. Eden Prairie Center, opened in 1976, features more than 100 shops and restaurants. JLL manages the 1.4 million-square-foot retail property.
BLAINE, MINN. — JLL Capital Markets has arranged a $10.4 million loan for the refinancing of Sanctuary Business Center, a distribution center totaling 137,179 square feet in the Minneapolis suburb of Blaine. Completed in December 2022, the property features a clear height of 32 feet, 31 loading docks, two drive-in doors, 20 trailer stalls and 157 parking stalls. Bill Mork of JLL arranged the five-year loan on behalf of the borrower, Capital Partners. A regional bank provided the loan, which features a loan-to-value ratio of 65 percent and interest-only payments.
MAPLE GROVE, MINN. — Transwestern Real Estate Services has brokered the $8 million sale of Maple Grove Executive Plaza, a 58,000-square-foot medical office building in the Minneapolis suburb of Maple Grove. The property at 7767 Elm Creek Blvd. is home to Children’s Minnesota Specialty Center, iSpine Clinics and Edina Realty. The building is 92 percent occupied, and 66 percent of the tenants are in the medical field. Mike Salmen, Erik Coglianese and Bryan Beltrand of Transwestern represented the seller, Merchant Development LLC. The buyer was an entity linked to MSP Commercial, a real estate firm focused on developing, acquiring and managing healthcare properties in the Twin Cities. MSP is planning capital improvements and extensive renovations to the building, including updating the common areas. The firm plans to prioritize bringing additional medical tenants to the building.
MINNEAPOLIS — Marcus & Millichap has arranged the sale of Blaine Strip Center in Minneapolis for $1.3 million. The 14,005-square-foot retail property is located at 12050 Central Ave. NE. Tom Gommels of Marcus & Millichap represented the buyer, an individual trust completing a 1031 exchange. According to Marcus & Millichap, the asset traded at an above-market cap rate and features below-market rents.
MINNEAPOLIS — Marcus & Millichap has brokered the sale of First Avenue Apartments, a 52-unit apartment property located on First Avenue in Minneapolis. The sales price was undisclosed. Constructed in 1917 and 1919, the asset is comprised of two neighboring buildings within the city’s Stevens Square neighborhood. Michael Jacobs and Abe Roberts of Marcus & Millichap represented the buyer and seller, both of which requested anonymity.
By Louis Suarez, Misty Bowe and Brian Bruggeman, Colliers The Twin Cities medical real estate market has experienced many different phases over the last few years, reflecting the region’s journey toward post-pandemic recovery. Currently, this sector is experiencing a notable shift that is fueled by rising vacancy rates for on-campus hospital properties contrasted with a low vacancy rate of 4.9 percent for off-campus medical buildings. This shift is significantly influenced by the push to outpatient surgery centers, ongoing financial pressures and consolidation trends. Additionally, experts in this region are predicting a scarcity of new medical building supply in 2024, which is expected to exert ongoing pressure on rental rates for existing medical office space, despite the stabilization of interest rates that is anticipated to come later this year. As of the fourth quarter of 2023, the current construction pipeline consists of a mere 84,000 square feet, all of which is spoken for with no additional supply projected to come to market in the next year, which is a nearly 80 percent decrease year-over-year. The dramatic increase in interest rates, rising construction costs and capital constraints have pushed asking rents for new proposed projects to well above $30 per square foot …
ST. CLOUD, MINN. — Marcus & Millichap has arranged the sale of The Highlands, a 100-unit apartment complex in the Minneapolis suburb of St. Cloud. The sales price was undisclosed. Located at 2015 27th St., the property was constructed in 2003 and is part of the Low-Income Housing Tax Credit Section 42 program. Amenities include an outdoor pool, playground, community room and underground parking. Chris Collins and Evan Miller of Marcus & Millichap represented the seller, a limited liability company, and the buyer, a limited liability company.
WOODBURY, MINN. — Marcus & Millichap has arranged the sale of the La Quinta Inn & Suites St. Paul-Woodbury for an undisclosed price. The 108-room, newly built hotel is located at 700 Bielenberg Drive in the Twin Cities suburb of Woodbury. Jon Ruzicka, Jared Plamann, Jake Erickson and Joseph Ferguson of Marcus & Millichap represented the buyer and seller, both of which requested anonymity.
RICHFIELD AND NEW HOPE, MINN. — JLL Capital Markets has brokered the sale of Southdale Parc Apartments and Wingate Apartments in metro Minneapolis for an undisclosed price. Both properties are located in inner-ring suburbs of Minneapolis. Built in 1962 and totaling 69 units, Southdale Parc Apartments is located in Richfield. The community features one-bedroom units with onsite laundry facilities, a Luxor package system, green spaces and onsite parking. Built in 1967 and totaling 136 units, Wingate Apartments is located in New Hope. The property features one- and two-bedroom units with amenities such as a pool, patio, basketball court, playground and clubroom. Dan Linnell, Mox Gunderson, Josh Talberg, Adam Haydon and Devon Dvorak of JLL represented the seller, Centerspace, and procured the buyers, both local private investors.