ARDEN HILLS, MINN. — New Perspective has opened a 146-unit seniors housing community in Arden Hills, a suburb of Minneapolis-St. Paul. The 192,000-square-foot community offers independent living, assisted living and memory care services. The property is New Perspective’s 10th in the Twin Cities metro area. New Perspective Arden Hills will partner with Bethel University, the community’s next-door neighbor, in providing a variety of campus opportunities for those living in the building.
MINNEAPOLIS — Hanley Investment Group Real Estate Advisors has arranged the sale of a 14,535-square-foot retail property occupied by Walgreens in Minneapolis for $6.6 million. Built in 1966 and renovated in 2020, the single-tenant building is located at 4323 W. Chicago Ave. Hanley’s Kevin Fryman and Ed Hanley, in association with ParaSell Inc., represented the seller, a private investor based in California. A New York-based private investor was the buyer.
ROSEVILLE, MINN. — JLL Capital Markets has brokered the sale of Crossroads Center of Roseville for an undisclosed price. The 357,115-square-foot retail power center is located in the Twin Cities suburb of Roseville. Built in 1985, Crossroads Center of Roseville is 97 percent leased. Some of the tenants include Best Buy, Dick’s Sporting Goods and Kohl’s. Matt Hazelton, Cory Villaume, Bill Krebsbach, Dave Monahan and Michael Nieder of JLL represented the undisclosed seller. HJ Development was the buyer.
MINNEAPOLIS — Transwestern Real Estate Services has negotiated three office leases totaling 45,242 square feet at SPS Tower in Minneapolis. Jim Montez and Reed Christianson of Transwestern represented the owner, Sumitomo, in the transactions. Kinney & Lange signed a 10-year lease for 13,000 square feet. The intellectual property law firm previously operated out of the Third & Third building. Jaclyn May and Paul Donovan of Cushman & Wakefield represented the tenant. Mercer, an international insurance consulting firm, extended its 24,242-square-foot lease for two years. The firm has been a tenant in the building since 2013. Kevin Salmen of Transwestern represented Mercer. Navitaire, an e-commerce platform for airlines and rail systems, signed a five-year lease for 8,000 square feet. Bruce Schuman of Savills represented the company. SPS Tower is a 31-story office building that totals 655,070 square feet. The property features the Turf Club, the largest green space in the central business district of Minneapolis that hosts special events, lawn games, happy hours and live music. Additional amenities include concierge services, a fitness center, conferencing center and onsite parking. The building is currently 90 percent leased.
ROSEVILLE, MINN. — Dick’s Sporting Goods has signed a lease to open a new store at Rosedale Center, a 1.1 million-square-foot shopping center in Roseville, a suburb of the Twin Cities. The retailer will occupy a new building at the parcel formerly home to Herberger’s. Construction of the new store has begun, with completion slated for late 2024. JLL’s retail development partner, Poag Development Group, is overseeing construction management. Holly Rome of JLL leads the leasing efforts for Rosedale Center and secured the lease with Dick’s. Recent tenant additions at Rosedale Center include Aspen Dental, PNC Bank, Caribou Coffee, Raising Cane’s, Shake Shack and Panera Bread.
By Jeff Budish, Northmarq Three years in, and the COVID-19 pandemic has immensely altered how multifamily and commercial properties are utilized, located and valued. Now with interest rate changes, all product types have seen a hit from the change in the cost of capital. While challenges are on the horizon, Midwest markets, including Minneapolis-St. Paul, should see less shake up than elsewhere. Despite rising interest rates, recession worries and nagging inflation, the Twin Cities multifamily sector is resilient. Vacancies remain low, demand is outpacing supply and rents are solid. Year over year, apartment rents in the Twin Cities area are up 5 percent. While COVID changed the dynamics of all product types, it explicitly impacted multifamily. The increase in remote work meant employees were not tethered to a physical office. Many people moved away from their workplaces in densely populated areas to the suburbs. However, Minneapolis and St. Paul proper generally saw net outbound demographic shifts. Valuations over the past two years therefore didn’t include additional inflated pricing based on speculation of continual inbound movement. There is also soaring demand for apartments due to an increase in the number of Americans living on their own, roommate-free. In an AvalonBay public …
MINNEAPOLIS — Husch Blackwell has signed a 9,300-square-foot office lease at IDS Center in downtown Minneapolis. The office marks the law firm’s first Twin Cities location. Adam Barrett and Sven Sykes of Colliers represented the tenant. Accesso owns the property, which totals 1.4 million square feet and rises 57 stories.
MINNEAPOLIS — Kraus-Anderson has begun a $2 million renovation project for Modist Brewing Co. in Minneapolis. Designed by Perkins & Will, the 7,000-square-foot renovation of Modist’s existing North Loop building will add new offices, a brewing lab and event space. There will be a two-story event space along with a pre-function bar and waiting area. Kraus-Anderson is working in partnership with J. Benson, a minority business enterprise contractor. Completion is slated for mid-July. Modist Brewing is located at 505 N. 3rd St. within the city’s warehouse district.
BYRON, MINN. — Quantum Real Estate Advisors Inc. has arranged the sale of a freestanding medical office building located at 221 2nd Ave. SW in Byron, about 10 miles west of Rochester. The sales price was undisclosed. Bluestem Center for Autism occupies the property. Seth Gilford of Quantum represented both the seller and buyer, a South African medical acquisition fund. The seller was looking for capital to help fund expansion into new locations.
MINNESOTA AND NEBRASKA — Centerspace has sold nine multifamily communities in Minnesota and Nebraska for $144.3 million. The transaction included four properties in St. Cloud, Minn., totaling 692 units; two communities in the Omaha-Lincoln market comprising 498 units; and three properties in the Twin Cities market totaling 377 units. Proceeds from the sale will be used to pay down outstanding debt. CBRE served as the broker for the Minnesota assets, while MMG Real Estate Advisors was the broker for the Nebraska assets.