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Colliers Facilitates Sale of 83,000-Square-Foot Industrial Warehouse in Greater Twin Cities

Raceway Business Center I

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. 
 

Related Experts

Mark Kolsrud

Sr. Executive Vice President

Minneapolis - St. Paul

As the Senior Vice President for Colliers’ Investment Services Group in Minneapolis-St. Paul, I lead my team to success through proven processes. My team focus is mainly on industrial, office, medical-office, and single-tenant net lease; both locally and nationally.

My broad real estate capital markets knowledge and expertise reflects my 30-year career experience in the commercial brokerage business. During this time, I have worked with nearly every major owner in the Minneapolis-St. Paul area, either through Investment Sales or Landlord representation.  I have experience in multi-market cycles and have become one of the top brokers in the Minneapolis area, and globally transacting more than $3.5 billion.

Having been in the business since 1984, I know how to best benefit the client. My number one priority when serving a client is their experience, both for the buyer and the seller. This experience is built off of a vision and collaboration. A project is best completed through a thought out plan put into action.

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John McCarthy

Senior Vice President

Minneapolis - St. Paul

As a Senior Vice President for the MSP Investment Services Group, John McCarthy specializes in the sale of single and multi-tenant office and industrial properties with a focus in office and industrial dispositions. With over 30 years of experience in the Commercial Real Estate industry, John has had experience with tenant representation, investment property sales, and hands-on management of institutionally owned office and industrial buildings completing over 4,700 transactions across over 75 million square feet. John is also widely known as the Opportunity Zone expert throughout the Twin Cities and nationally.

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Peter Loehrer

Senior Associate

Minneapolis - St. Paul

As a capital markets associate for Colliers' Investment Services Group based out of Minneapolis-St. Paul, Peter Loehrer is focused on the full spectrum of single and multi-tenant office & industrial acquisition, disposition, and equity-raise opportunities for both private and institutional quality clients. The Colliers platform and local team provides the expertise and capacity to work with owners, investors, developers and institutional clients throughout the Midwest. Locally, Peter is partnered with Mark Kolsrud, John McCarthy, Peter Carbonneau, Kyle Delarosby, and Lydia Turkzyn.

Prior to joining Colliers Investment Services Group, Peter Loehrer began his career as a Field Research Analyst on CBRE's Minneapolis-St. Paul Office/Industrial capital markets team, where he provided market analysis and insights, investor outreach, and offering memorandum services, as well as lease and credit analysis for a variety of institutional quality clients. Prior to starting at CBRE, Peter was an intern at The Meritex Company, a Minneapolis-based industrial developer/owner.

    Significant Transactions:

    • Raceway Business Center I // Industrial // 83,000 square feet
    • West Development Portfolio // Industrial // 376,638 square feet
    • Water Tower Place Business Center  //  Industrial  //  113,000 square feet
    • Minneapolis Industrial Infill Portfolio  //  Industrial  //  1,915,637 square feet
    • Boulder Lakes III  //  Industrial  //  116,549 square feet
    • I-35 Industrial Center  //  Industrial  //  413,239 square feet 
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    Kyle Delarosby

    Associate

    Minneapolis - St. Paul

    As an Associate for Colliers’ MSP Investment Services Group, Kyle specializes in the sale of single tenant and multi-tenant office investment sales. His role is to support the entire team in underwriting analysis, property marketing and client prospecting. He will particularly focus on further expanding the team’s office investment services enterprise in Minnesota and the greater Midwest.

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    Peter Carbonneau

    Senior Associate

    Minneapolis - St. Paul

    As a Financial Analyst in the Investment Services department at Colliers International | Minneapolis-St. Paul, I provide underwriting, valuation and financial analysis for the Investment Services team. 


    Additionally, I provide lease analysis, lease comparisons and building valuations to brokers throughout the Colliers MSP offices.
    I am intimately involved in the financial analysis process from start to finish and my understanding of the overall market enables me to effectively analyze a property and provide an accurate valuation estimation and recommendation. 


    Prior to joining Colliers MSP, I began my career at NorthMarq Capital LLC directly after graduating with a BA in Finance from the University of Saint Thomas. As a Loan Portfolio Analyst at NorthMarq, I learned the financial intricacies owners and operators face in operating, acquiring, and disposing commercial properties. 


    I have been able to translate the skills I learned in my undergraduate coursework as well as my four years at NorthMarq Capital into my new, dynamic role at Colliers MSP.


    Outside of the CRE industry I volunteer at my church with a program that supports teens and adults with special needs. Additionally, I have been an assistant coach for the Minnetonka High School Varsity Lacrosse team since 2013. 

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    Lydia Turczyn

    Senior Client Services Specialist

    Minneapolis - St. Paul

    Lydia Paasch joined the Capital Markets-Investment Sales team in 2020 as their Senior Property Marketing Strategist at Colliers International in Minneapolis, MN. Lydia and her team specialize in the sale of single and multi-tenant office and industrial properties. Lydia's primary role is to manage the sales process from prospect to closed sale by acting as main point of contact with brokers, clients, designers, vendors, and research groups to establish and achieve client's goals. 

    Prior to joining Colliers International, Lydia worked at CBRE for 5 years on their Capital Markets-Institutional Properties team. 

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    Thomas Sullivan

    Executive Vice President

    Minneapolis - St. Paul

    Tom Sullivan joined Colliers in 2021 with 16 years of experience in commercial real estate. Tom focuses on developing new relationships with commercial property users and owners in the Twin Cities market  in addition to servicing existing clients.

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    Peter Fooshe

    Vice President

    Minneapolis - St. Paul

    Peter joined Colliers in 2021 and is a Vice President with the MSP Advisory Services Team. His experience and expertise include property acquisition and disposition, sale leasebacks, tenant and landlord representation, site selection and new development, and real estate consulting.

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    Tanner Theis

    Associate

    Minneapolis - Downtown

    I am an Associate  on the Colliers International | Minneapolis-St. Paul Brokerage  team  focusing on developing new relationships with office and industrial users and owners in the Twin Cities market.  I work with a team of experienced brokers, where I provide real estate services to firms interested in buying, selling, and leasing industrial office properties.

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