The LeClaire-Schlosser Group of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Minikahda Storage and Excelsior Tech Center, a multi-story mixed-use facility with 186,777 net rentable square feet located in Hopkins, Minnesota.
Charles “Chico” LeClaire, Executive Managing Director Investments, and Adam Schlosser, Senior Vice President Investments, in Marcus & Millichap’s Denver, Colorado office, and Chris Kampmeyer, Investment Associate, in the firm’s Minneapolis, Minnesota office had the exclusive listing to market the property on behalf of the seller. “It was a complicated transaction because it involved the condominiumization of a large mixed-use industrial building. Both sides worked diligently to get over the numerous obstacles to get the transaction closed,” says LeClaire. “The seller was a local LLC comprised of sophisticated commercial investors that were winding down their long-term investments.” The buyer was a private REIT.
“It was a complicated transaction because it involved the condominiumization of a large mixed-use industrial building. Both sides worked diligently to get over the numerous obstacles to get the transaction closed.”
Minikahda Storage and Excelsior Tech Center is a multi-story mixed-use commercial building just outside of downtown Minneapolis in the growing first ring suburb of Hopkins, Minnesota and adjacent to the Cargill campus. The property was originally built for industrial/office/limited production uses but has since found its highest and best use after a large portion was converted to self storage in 2003. While the primary use is self storage, the property still maintains a portion of its original office and industrial components that account for just 23 percent of the overall income but nearly half the current rentable square footage.
The buyer has the opportunity to expand into the unused portion of the building, totaling 30,000 square feet of additional self-storage. Minikahda Storage has a history of high occupancy of 92% that can be attributed to the location, limited competition, and high barriers to entry. This self storage portion offers amenities found in institutional quality self storage facilities such as a large professional leasing office, six elevators, four overhead drive in doors, five dock doors, security cameras and secure keypad access throughout. The self storage portion consists of 1,080 climate-controlled units spanning 100,570 net rentable square feet while the production and office spaces account for an additional 86,699 rentable square feet.
