FRIDLEY, EAGAN AND BROOKLYN CENTER, MINN. — CBRE has negotiated the sale of an eight-building industrial portfolio totaling 941,564 square feet in metro Minneapolis for $88.5 million. The buildings, which range in size from 72,268 to 207,558 square feet, are located in Fridley, Eagan and Brooklyn Center. Judd Welliver, Bentley Smith, Mike Caprile, Zach Graham, Ryan Bain and Joe Horrigan of CBRE represented the seller, PCCP. The portfolio, which was 98 percent occupied at the time of sale, sold to a joint venture between Minnesota-based Capital Partners and Cincinnati-based Eagle Realty Group. Bill Mork led a JLL Capital Markets team that arranged $57.3 million in acquisition financing on behalf of the buyer. A life insurance company provided the five-year, fixed-rate loan, which featured a loan to value ratio of 65 percent.
SHOREVIEW AND MINNETONKA, MINN. — Alerus Financial, a diversified financial services company, has signed two office leases totaling nearly 53,000 square feet in metro Twin Cities. The company is relocating its Shoreview and Minnetonka offices. The new Shoreview office will be located at The Lex at 4100 Lexington Ave., while the new Minnetonka office will be located at Crescent Ridge II at 10900 Wayzata Blvd. Both offices will enable Alerus to install exterior top-of-building signage. Eddie Rymer and Alex Ach of JLL represented the tenant in both leases. Eagle Ridge Partners is the landlord for the Shoreview property, while Piedmont Office Realty Trust is the owner of the Minnetonka building. JLL project and development services teams are assisting both build-outs.
Cleeman Realty Group Brokers $5.1M Sale of Retail Property Net Leased to Hy-Vee in Fairmont, Minnesota
FAIRMONT, MINN. — Cleeman Realty Group has brokered the $5.1 million sale of a 54,740-square-foot retail property net leased to Hy-Vee in Fairmont, a city in southern Minnesota. The property sits on five acres at 907 S. State St. Grocer Hy-Vee has operated at the location since 1991 and added a gas station and convenience store in 2011. Jeremy Scheer of Cleeman represented the undisclosed buyer. The seller was also undisclosed.
Lupe Development Partners, Wall Cos. Plan to Demolish Former Minneapolis Public Works Building, Replace it with Affordable Housing
MINNEAPOLIS — Lupe Development Partners and Wall Cos. are planning to demolish the former Minneapolis Public Works storage building at 3501 E. 44th St. The developers plan to build a 90-unit affordable housing building in its place. The project is still pending final approval from the Minneapolis City Council, but construction is expected to begin in spring 2024 if the remaining financing is secured. Named Snelling Yards, the community will feature three- and four-bedroom units. Of the total units, 26 will be reserved for residents who earn up to 30 percent of the area median income (AMI) and 39 will be reserved for those who earn up to 50 percent AMI. Additionally, 13 units will be designated for veterans experiencing homelessness. Snelling Yards is a joint venture with Ecumen, which owns the adjacent 100-unit affordable seniors housing development, The Hillock. Lupe and Wall were granted development rights to the property in 2017. The project has received more than $2 million from the City of Minneapolis Affordable Housing Trust Fund and another $1.2 million from Hennepin County’s Affordable Housing Incentives Fund and Environmental Response Fund. The project is currently advancing through the Metropolitan Council’s Livable Communities Demonstration Account grant process.
OWATONNA, MINN. — Kraus-Anderson has completed a new $99 million high school in Owatonna, about 65 miles south of Minneapolis. The project is part of a $112 million district bond referendum, which voters passed in November 2019. Construction began in May 2021. Designed by Wold Architects and Engineers, the three-story school totals 317,000 square feet and accommodates 1,600 students. In addition to classrooms, there are industrial arts labs, tech shop spaces, an 825-seat auditorium and a large commons and cafeteria space in the center of the building. Additionally, the school features a main gymnasium and auxiliary gymnasium with walking track, a 3,451-seat football stadium, eight tennis courts, two grass multipurpose fields, two synthetic turf multipurpose fields, two softball fields, two baseball fields and a full track. Located on 90 acres with parking for 890 vehicles, the development also includes four storage buildings for athletics.
EDEN PRAIRIE AND EAGAN, MINN. — Arden Logistics Parks (ALP) has acquired a three-building light industrial portfolio totaling 361,428 square feet in metro Minneapolis for an undisclosed price. The portfolio consists of the Flying Cloud Business Centre in Eden Prairie and Oakview Business Centre I and II in Eagan. The transaction marks the first acquisition in the Minneapolis market for ALP. The Flying Cloud Business Centre totals 204,000 square feet and is fully leased to four tenants. Oakview Business Centre I and II total 157,428 square feet and are 96 percent leased to 10 tenants. The seller was not released.
Kraus-Anderson Completes $91.8M Expansion of Friendship Village Senior Living Campus in Bloomington, Minnesota
BLOOMINGTON, MINN. — Kraus-Anderson has completed a $91.8 million expansion of Friendship Village, a senior living campus located at 8100 Highwood Drive in the Minneapolis suburb of Bloomington. Lifespace Communities owns the property. Designed by SAS Architects and Planners, the 380,294-square-foot project adds a new five-story independent and assisted living building with 93 units. The expansion also includes a new three-story skilled nursing building and a three-story health center with a physical and occupational therapy gym and memory care suites. Services and amenities for assisted living and memory care include 24-hour nursing care, dedicated dining spaces, a fitness center, salon and activity rooms. Extended-stay offerings are three meals per day prepared restaurant-style, 24-hour nursing care, transportation services, a dietitian, social worker and physical, occupational and speech therapists. Rehabilitation services include chef-prepared meals, access to all Friendship Village amenities, physician and nursing care, a social worker, dietitian, salon and therapy services. Construction began in August 2019, and the new expanded spaces are slated to open in November.
ST. CLOUD, MINN. — An affiliate of Phoenix Investors has acquired a 922,444-square-foot industrial facility in the Minneapolis suburb of St. Cloud for an undisclosed price. Constructed in 1950, the property was formerly home to Electrolux Group and its upright freezer manufacturing and production business until it closed in late 2019. The vacant building features 31 dock doors, nine drive-in doors, office space, 980 parking stalls and a clear height of 28 feet. Paul Danko of Savills brokered the sale. Phoenix intends to lease up the property with multiple tenants.
ST. PAUL, MINN. — Marcus & Millichap has brokered the $5 million sale of Phalen Shores, a 53-unit multifamily property in St. Paul. Built in 1987, the five-story community features a fitness center, outdoor spaces and an underground heated garage. Abe Roberts and Michael Jacobs of Marcus & Millichap represented the seller and buyer, neither of which were disclosed.
BROOKLYN PARK, MINN. — Ryan Cos. US Inc. has completed PrairieCare’s youth and young adult psychiatric inpatient hospital expansion in the Minneapolis suburb of Brooklyn Park. Ryan completed the project three weeks ahead of schedule. The nearly 30,000-square-foot expansion includes an additional 30 inpatient beds as well as activity and therapy spaces. The expansion enables PrairieCare to serve an additional 1,000 youth and young adults each year. The hospital is located adjacent to 610 Medical Center, a two-story medical office building that houses PrairieCare, PrairieCare Medical Group and the PrairieCare Foundation. Ryan also built and designed 610 Medical Center. Pope Architects served as the architect and interior designer for the expansion project.