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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.<\/p>\n
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.<\/p>\n
“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.” <\/span><\/p>\n 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. <\/p>\n 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.<\/p>\n