High Demand for Industrial Product Spurs Rapid Year-End Closing
MINNEAPOLIS - January 7, 2022 – Leading diversified professional services and investment management company Colliers recently facilitated the sale of Raceway Business Center I, a highly functional Class A industrial warehouse located in Newport, Minnesota. Built on a former go-kart track site known as Raceway to Fun, the property garnered strong investor interest during its two-week marketing lifespan, an indication of growing demand for Twin Cities East industrial product.
Colliers’ Minneapolis-St. Paul office and Industrial Investment Services Team, comprised of Mark Kolsrud, John McCarthy, Peter Loehrer, Pete Carbonneau, Kyle Delarosby and Lydia Turczyn worked closely with the Colliers’ Advisory Services Team of Tom Sullivan, Peter Fooshe and Tanner Theis and representing the seller in negotiations with the buyer, Stag Industrial Holdings, LLC.
“Raceway Business Center I was a near-perfect offering,” said Loehrer. “This sale provides a clear message that proves the validity and durability of the east industrial submarket. This submarket is Minneapolis’ best warehouse-labor-exporter location, and for that reason and more, several local and national developers have established land positions there.”
The 83,000-square-foot property, located at 710 Hastings Ave., was speculatively developed in 2018 by Scannell Properties and features 28-foot clear heights, 10 dock-high doors, three drive-in doors, 122 parking stalls, 45-foot by 50-foot column spacing, secured-access loading and a 120-foot truck court with a 70-foot concrete apron. The property is situated on a 6.46-acre parcel off Highway 61.
“Minneapolis’ industrial market continues to show incredible strength – there is much more capital looking for deals than there are offerings. It isn’t unusual to see ten plus investors show up for the right deal,” adds Loehrer.
Slowing delivery of industrial product paired with climbing land prices will drive demand higher in the greater Twin Cities market, which includes the suburban cities of Newport, Eagan, Inver Grove Heights, South St. Paul and more. As fewer sales transpire in the region, investors eagerly seeking new construction will continue to expand and buy property in outlying markets.
Colliers’ Minneapolis-St. Paul office and Industrial Investment Services Team, comprised of Mark Kolsrud, John McCarthy, Peter Loehrer, Pete Carbonneau, Kyle Delarosby and Lydia Turczyn worked closely with the Colliers’ Advisory Services Team of Tom Sullivan, Peter Fooshe and Tanner Theis and representing the seller in negotiations with the buyer, Stag Industrial Holdings, LLC.
“Raceway Business Center I was a near-perfect offering,” said Loehrer. “This sale provides a clear message that proves the validity and durability of the east industrial submarket. This submarket is Minneapolis’ best warehouse-labor-exporter location, and for that reason and more, several local and national developers have established land positions there.”
The 83,000-square-foot property, located at 710 Hastings Ave., was speculatively developed in 2018 by Scannell Properties and features 28-foot clear heights, 10 dock-high doors, three drive-in doors, 122 parking stalls, 45-foot by 50-foot column spacing, secured-access loading and a 120-foot truck court with a 70-foot concrete apron. The property is situated on a 6.46-acre parcel off Highway 61.
“Minneapolis’ industrial market continues to show incredible strength – there is much more capital looking for deals than there are offerings. It isn’t unusual to see ten plus investors show up for the right deal,” adds Loehrer.
Slowing delivery of industrial product paired with climbing land prices will drive demand higher in the greater Twin Cities market, which includes the suburban cities of Newport, Eagan, Inver Grove Heights, South St. Paul and more. As fewer sales transpire in the region, investors eagerly seeking new construction will continue to expand and buy property in outlying markets.
