CBRE has successfully orchestrated the sale and acquisition financing for a significant industrial portfolio totaling 255,501 square feet across two properties in Maple Grove, Minnesota. The transaction saw Enclave acquire the portfolio from Artis REIT for $25.5 million, marking a notable deal in the region’s industrial real estate market.
Key Takeaways
- A 255,501 sq. ft. industrial portfolio in Maple Grove, MN, was sold for $25.5 million.
- Enclave acquired the two-property portfolio from Artis REIT.
- CBRE represented the seller and secured acquisition financing for the buyer.
- The portfolio is 100% leased to two tenants and benefits from a prime location.
Transaction Details
The portfolio, located at 9200 Forestview Lane N. and 9155 Cottonwood Lane, is strategically positioned southwest of the Highway 610 and 169 intersection within the Northwest industrial submarket. This prime infill location, coupled with stable cash flow from tenants on long-term leases, was a significant draw for investors.
CBRE’s team, including Judd Welliver, Bentley Smith, Zach Graham, Ryan Bain, Michael Caprile, and Joe Horrigan, acted as representatives for the seller in this transaction. Simultaneously, CBRE Capital Markets’ Debt and Structured Finance team in Minneapolis, comprising Joel Torborg, Mike Vannelli, and Billy Mork, successfully secured a $15 million fixed-rate, interest-only loan for the buyer.
Investor Appeal
Bentley Smith highlighted the strong investor interest, stating, "The asset attracted strong investor interest due to its infill location and the stable, durable cash flow generated by tenants on long-term leases." He further added that "the buyer is acquiring the property at a significant discount to replacement cost, which was a key factor driving the purchase decision."
The industrial properties are currently fully occupied by two tenants, ensuring immediate and consistent revenue for the new owner. The acquisition at a discount to replacement cost presents a compelling value proposition for Enclave.