Minnesota

Twin Cities Industrial Market Poised for Additional Growth

by Kristin Harlow April 15, 2021

By Joe Mahoney, Opus Development Co. Despite a confluence of major events in 2020 that shook our world — the pandemic, social unrest, historically high rates of unemployment — the industrial real estate market in the Twin Cities fared very well. While positive net absorption was limited in the second quarter of 2020, the rate accelerated to 1.1 million square feet during the fourth quarter and ended the year at 3.2 million square feet, according to CBRE Minneapolis-St. Paul. Active users also increased. In the beginning of 2020, there were 6.4 million square feet of users. At the end of the third quarter, that number had increased to 10 million, and by the end of the year, there were close to 12 million square feet of users, almost doubling over the course of the year. We see user demand continuing to trend up and accelerate this year. To support growth plans, users are looking for highly functional manufacturing, warehousing and distribution facilities. Many businesses are increasing efficiency and productivity by consolidating several obsolete buildings into one new highly functional, build-to-suit space. COVID-19 supply chain disruption has prompted some businesses to increase their footprint for storing more inventory and reducing reliance …

April 15, 2021

Acquisitions Midwest Minnesota Office

Monarch Alternative Capital, Crestlight Capital Purchase Three-Building Office Portfolio in Minneapolis

by Kristin Harlow April 6, 2021

MINNEAPOLIS — Monarch Alternative Capital LP and Crestlight Capital have acquired a portfolio of three office buildings in the North Loop submarket of Minneapolis for an undisclosed price. The properties are located at 241 N. 5th Ave., 411 Washington Ave. and 500 N. 3rd St. Swervo Development Corp. was the seller and developer for all three buildings. The new owners plan to invest in branding and amenities for the properties. Monarch is an investment firm with approximately $9 billion of assets under management, and Crestlight is a Detroit-based private equity real estate investment firm with roughly $500 million in assets under management.

April 6, 2021

Acquisitions Michigan Midwest Minnesota

Fabcon Precast Acquires Michigan’s Kerkstra Precast

by Kristin Harlow April 2, 2021

MINNEAPOLIS — Minneapolis-based Fabcon Precast, a provider of structural precast wall panels, has acquired Kerkstra Precast for an undisclosed price. Kerkstra is a producer of high-quality precast and prestressed concrete products in Michigan. From its two manufacturing facilities in Grand Rapids and Detroit, Kerkstra serves the industrial, commercial, residential and infrastructure markets across the Midwest. Its comprehensive product offering includes structural and architectural wall panels, hollowcore planks, beams, columns, double tees, stairs and other specialty products. With the addition of Kerkstra, Fabcon will offer an expanded portfolio of products and operate out of seven total manufacturing locations throughout Minnesota, Michigan, Kansas, Ohio, Pennsylvania and New York. Fabcon provides end-to-end integrated capabilities, from engineering and design to production, project management and construction.

April 2, 2021

Acquisitions Midwest Minnesota Multifamily

Colliers Negotiates $4.9M Sale of Transit-Oriented Development Site in Minnetonka

by Kristin Harlow March 23, 2021

MINNETONKA, MINN. — Colliers | Minneapolis-St. Paul has negotiated the sale of a 3.9-acre development site within Opus Park in Minnetonka for $4.9 million. The site presents a transit-oriented development opportunity, as it is adjacent to the Opus Light Rail Transit (LRT) station along the Southwest Light Rail Line. The buyer, Pittsburgh-based Linden Street Partners, plans to break ground on a 275-unit apartment complex later this year. Andy Heieie, Ted Bickel and Jeff Budish of Colliers represented the seller, Newport Partners.

March 23, 2021

Development Midwest Minnesota Multifamily

Multifamily Development Site in Suburban Minneapolis Sells for $4.6M

by Kristin Harlow March 15, 2021

RICHFIELD, MINN. — Developer Schafer Richardson has purchased a 3.5-acre site in Richfield, an inner ring suburb of Minneapolis, for $4.6 million. Richardson plans to build a Class A apartment complex with 237 market-rate units to be named Rya Apartments. Andy Heieie, Ted Bickel and Jeff Budish of Colliers | Minneapolis-St. Paul represented the undisclosed seller of the land, which is located on Richfield Parkway. A timeline for construction was not disclosed.

March 15, 2021

Acquisitions Industrial Midwest Minnesota

STAG Industrial Acquires 80,000 SF Industrial Building Near Minneapolis

by Kristin Harlow March 12, 2021

INVER GROVE HEIGHTS, MINN. — STAG Industrial Inc. has acquired an 80,000-square-foot industrial building in Inver Grove Heights, about 20 miles southeast of Minneapolis. The property was recently completed as a build-to-suit for Simpson Strong-Tie, a provider of structural products for the construction of homes and buildings. Known as InverPoint Business Park I, the building features a clear height of 24 feet, a training center and roughly 7,200 square feet of office space. Judd Welliver, Ryan Watts, Sonja Dusil, Bentley Smith and Tom Holtz of CBRE Minneapolis represented the developer and seller, United Properties. The property is the first of five planned projects to be completed in the InverPoint Business Park.

March 12, 2021

Midwest Minnesota Retail

Target to Invest $4B for New Stores, Fulfillment Services

by Kristin Harlow March 4, 2021

MINNEAPOLIS — Target Corp. (NYSE: TGT) has unveiled plans to invest approximately $4 billion annually during the next several years in an effort to accelerate new store openings and store remodels, as well as enhance its fulfillment services and strengthen the company’s supply chain. The Minneapolis-based retailer plans to increase its fresh and frozen food pickup assortment as well as launch adult beverage pickup in 800 more stores over the next few months. Target will continue to incorporate brand partnerships, including the opening of approximately 100 Ulta Beauty “shop-in-shops” in 2021, with plans to add hundreds more over time. Building on its 15-year relationship with Apple, Target has introduced a new Apple shopping destination online and in 17 stores. More locations are scheduled to roll out this fall. The discount retailer plans to open 30 to 40 new stores each year in urban centers, college campuses and dense suburban cities across the country. In urban centers such as New York City, Los Angeles and Portland, Target will open more small-format stores. It also plans to open small-format stores at the University of Georgia and University of Michigan. Target opened 30 new stores in 2020. Target also expects to accelerate its …

March 4, 2021

Acquisitions Midwest Minnesota Multifamily

Oak Residential Partners Acquires 249-Unit Apartment Community in Suburban Twin Cities

by Kristin Harlow March 4, 2021

COTTAGE GROVE, MINN. — Oak Residential Partners has acquired Hinton Heights in Cottage Grove, a suburb of the Twin Cities. The purchase price was undisclosed. The 249-unit apartment community features amenities such as an indoor pool, spa and picnic areas. All units feature individual entrances and most have attached garages. Ted Abramson, Keith Collins and Abe Appert of CBRE Minneapolis Multifamily represented the seller, Curtis Capital Group. The sale represents a value-add opportunity, according to Abramson. NorthMarq provided a $41.5 million Freddie Mac loan for the acquisition. The seven-year, fixed-rate loan features three years of interest-only payments.

March 4, 2021

Midwest Minnesota Retail

Target’s Comparable Sales Grew 20.5 Percent in Fourth Quarter, Aided by Spike in Digital Sales

by Kristin Harlow March 2, 2021

MINNEAPOLIS — Riding on the strength of digital sales, Target Corp. (NYSE: TGT) reported that its fourth-quarter sales grew 20.5 percent compared with the same period a year ago. The Minneapolis-based retailer’s quarter ended Jan. 30. Comparable store sales increased 6.9 percent while digital sales grew 118 percent, accounting for two-thirds of the company’s overall growth. Same-day services such as order pickup grew 212 percent, led by more than 500 percent growth in drive-up services. CNBC reported that Target’s earnings topped Wall Street’s estimates, as its sales got a lift from a strong holiday season and stimulus checks. For the year, Target’s 2020 sales growth of more than $15 billion was greater than the company’s total sales growth over the prior 11 years. “Following years of investment to build a durable, scalable and sustainable business model, we saw record growth in 2020, as our guests turned to Target to safely provide for their families throughout the pandemic,” said Brian Cornell, chairman and CEO, in a news release. Target’s stock price opened at $190.27 per share Tuesday, March 2, up from $109.06 per share one year ago.

March 2, 2021

Acquisitions Midwest Minnesota Multifamily Seniors Housing

JLL Negotiates $5.5M Sale of Memory Care Facility in Suburban Minneapolis

by Kristin Harlow March 2, 2021

CHANHASSEN, MINN. — JLL Capital Markets has negotiated the $5.5 million sale of Olive Branch Estates in Chanhassen, a suburb of Minneapolis. The 24-unit, 28-bed memory care facility was constructed in 2015. The one-story property sits on 4.6 acres. John Klement of JLL represented the seller, a private owner and operator. The buyer, a limited liability company, has retained Elysian Senior Homes to operate the community. The sales price represents a cap rate of 8.75 percent.

March 2, 2021

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