Laserfiche WebLink
BRE <br />MARKETVIEW MINNEAPOLIS/ST. PAUL RETAIL <br />QUALITY DEALS SEE LOW CAP RATES <br />The $34.5 million purchase by NorthPond <br />Partners of Calhoun Square was the largest <br />investment sale in the Minneapolis market in H2 <br />2019. Major tenants include LA Fitness and <br />Kitchen Window, as well as a one -acre <br />redevelopment site and plans for a major <br />renovations of the center. <br />James W. Tindall purchased the Fleet Farm in <br />Lakeville for $33.0 million, and RCG Ventures <br />purchased the Best Buy and HomeGoods- <br />anchored Oakdale Village for $25.3 million. <br />ExchangeRight purchased a 98,141 sq. ft. Hy-Vee <br />in Savage for $22.4 million and Peterson <br />Enterprises purchased the brand-new 700 <br />Figure 5: Largest Single Property Sales Transactions by Price <br />Commons Drive in Woodbury, with tenants that <br />include Sleep Number and Wellhaven Pet Health. <br />Smaller properties continued to be attractive to <br />investors, fetching per sq. ft. prices greater than <br />$800. Properties occupied by high -credit tenants <br />like Starbucks, U.S. Bank, and Walgreens <br />experienced continued downward pressure on <br />cap rates and upward pressure on rents, which <br />drove prices for these top -tier properties into <br />record territory. The high demand for these <br />properties shows that investors continue their <br />flight to quality. Cap rates on select H2 2019 sales <br />shown in Figure 6 range from 4.64% to 6.00%. <br />Property Name Buyer <br />Price ($) Total Sq. Ft. City <br />Calhoun Square <br />NorthPond Partners <br />34,500,000 <br />177,251 <br />Minneapolis <br />Fleet Farm <br />James W. Tindall <br />33,000,000 <br />202,669 <br />Lakeville <br />Oakdale Village <br />RCG Ventures <br />25,300,000 168,860 Oakdale <br />Hy-Vee ExchangeRight <br />22,400,000 98,141 Savage <br />700 Commons Drive AE Peterson Enterprises <br />11,800,000 13,676 Woodbury <br />Source: CBRE Research, H2 2019. <br />Figure 6: Largest Single Property Sales Transactions by Price Per Sq. Ft. <br />Property Name Buyer <br />Price ($) Total Sq. Ft. Price ($) PSF City <br />Starbucks <br />Confidential <br />2,575,000 <br />2,325 <br />1,108 <br />Lakeville <br />U.S. Bank <br />Diversified Equities Corp <br />3,500,000 3,636 <br />959 <br />Lakeville <br />Walgreens Diversified Equities Corp <br />9,000,000 10,189 880 Robbinsdale <br />700 Commons Drive AE Peterson Enterprises <br />11,800,000 13,676 861 Woodbury <br />Bank of America/Crave Diep L Nguyen <br />9,200,000 11,015 833 Maple Grove <br />Source: CBRE Research, H2 2019. <br />H2 2019 CBRE Research <br />© 2020 CBRE, Inc. I 3 <br />