Raceway Enterprise Middle I, an industrial warehouse constructed on a former go-kart monitor website in Newport, has offered for $11 million — a strong return on a Class A constructing that opened in 2018 as a speculative improvement.
Boston-based STAG Industrial bought the 83,000-square-foot constructing at 710 Hastings Ave. from Starline Properties LLC, an entity that shares the identical handle as Indiana-based Meyer Distributing, based on public data.
Colliers Minneapolis-St. Paul represented the vendor.
The sale worth breaks right down to $132.53 per sq. foot, which is 32% greater than a sister property — the 144,000-square-foot Raceway Enterprise Middle II — traded for 2 years in the past. Finance & Commerce reported in February 2020 that the latter constructing offered for $14 million.
Raceway Enterprise Middle II was certainly one of 5 buildings acquired by Minneapolis-based Capital Companions and Los Angeles-based Pacific Coast Capital Companions in an almost $60 million portfolio deal.
As for Raceway Enterprise Middle I, Peter Loehrer, a capital markets affiliate for Colliers’ Funding Companies Group, mentioned the per-square-foot worth displays the present marketplace for industrial warehouse buildings within the Twin Cities.
“It simply goes to indicate how far more demand there’s for industrial than there was a yr in the past, two years in the past, six months in the past,” Loehrer mentioned in an interview. “Pricing has visibly elevated, even since we launched this one to market in late 2021.”
In one other signal of the instances, the property was snapped up rapidly.
Mark Kolsrud, senior govt vp in Colliers’ Minneapolis-St. Paul workplace, mentioned the property generated sturdy curiosity from potential consumers within the quick time it was available on the market.
“We solely marketed it for every week and picked a purchaser the second week,” Kolsrud mentioned. “We most likely had a listing of 40 or 50 names … and picked one that might shut by yr finish.”
East of the Mississippi River, Newport is a sizzling spot for speculative industrial improvement, Loehrer mentioned, including that the town is a part of a sturdy industrial submarket that features Eagan, Inver Grove Heights and South St. Paul.
“The river is form of a psychological barrier for buyers,” Loehrer mentioned. “Fortunately, when you’re it from an financial standpoint, there’s no distinction between this and Eagan.
“However there’s a variety of improvement going up in Oakdale and Cottage Grove, so we’re going to see much more Class A industrial buildings going up and being offered a lot additional out than Newport.”
Raceway Enterprise Middle I, developed by Scannell Properties, rose on the previous Raceway to Enjoyable go-kart website. In 2016, the household leisure advanced mentioned it was closing after greater than 30 years in enterprise.
The constructing has “28-foot clear heights, 10 dock-high doorways, three drive-in doorways, 122 parking stalls, 45-foot by 50-foot column spacing, secured-access loading, and a 120-foot truck court docket with a 70-foot concrete apron,” based on Colliers.
Tenants embrace Crew Inc. (34,747 sq. toes), Meyer Distributing (17,840 sq. toes) and LaForce (9,413 sq. toes), based on the CoStar Group.
Colliers’ brokerage staff representing the vendor included Kolsrud, Loehrer, John McCarthy, Pete Carbonneau, Kyle Delarosby, Tom Sullivan, Peter Fooshe, Tanner Theis and Lydia Turczyn.
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