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CBRE <br />COMMERCIAL REAL ESTATE SERVICES <br />MEMO <br />Date: June 5, 2017 <br />Pat Brama-City of Ramsey Community <br />To: Development Director <br />From: Brian Pankratz, CBRE <br />City of Ramsey Sale Jasper & 143rd Land to <br />Subject: Sharp & Associates <br />cc: <br />Patrick <br />In reviewing the draft Purchase Agreement, we support the sale of this property to Sharp & <br />Associates. With the sale and development of this property it will put the property back on <br />the tax rolls, generate development fees, new jobs/businesses, and provide a new industrial <br />development within the City of Ramsey. The proposed project will provide new modern <br />warehouse options to tenants within and outside of Ramsey. The development will offer a <br />variety of bay sizes to allow tenants to grow within the building and potentially expand <br />from Sharp & Associates existing portfolio. <br />The price offered by Platinum is for $606,622 or $1.50 PSF and feel the price is fair based on <br />market values in addition to the risk being taken by developer. The price is also higher than <br />what was proposed by Platinum in a previous deal. There is not an established price range <br />for this parcel but the proposed price would fall within these boundaries. The project is <br />being built on a speculative development basis to my knowledge which is a good sign in <br />the strength of the market. Ramsey is traditionally not a speculative industrial market so <br />vacancy and market rental rates have been factored into the land price. There are not <br />current comparable sales within the Ramsey market for this sale but understand another <br />industrial land parcel with better access/visibility trading for approximately $1.75 PSF. The <br />project will allow tenants to take advantage of the easy access to Highway 10 via Ramsey <br />Blvd. The industrial market has seen several spec industrial buildings in the Brooklyn Park, <br />Rogers, and Dayton markets but this will be one of the first spec buildings built north of the <br />river. <br />The deal will be contingent on final approval of the Purchase Agreement by the City Council <br />and City Attorney. Within the Purchase Agreement there are contingencies for the Buyer <br />