Hanley Investment Group Sells New Construction Two-Tenant Retail in Minneapolis Metro for $8.25 Million, $1,231 PSF. Highest Price Per Square Foot All-Time for Multi-Tenant Retail in Minnesota
EDINA, Minn. – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has completed the sale of a brand-new construction 6,702-square-foot building occupied by E*Trade and Roti Modern Mediterranean restaurant located at 3901 W. 70th Street in Edina, Minn., less than 10 miles from Minneapolis. The sale price for the two-tenant building was $8,250,000, representing a 6.0 percent cap rate, a record low cap rate for a multi-tenant retail pad above $8 million located in the Midwest. It also represented the highest price per square foot all-time for a multi-tenant retail property located in Minnesota, according to CoStar Group.
Hanley Investment Group’s Vice President Jeff Lefko and Executive Vice President Bill Asher represented the seller, OneCorp Real Estate based in Davie, Florida. The buyer, a Denver-based private investor, was represented by Jim Seabold of Coldwell Banker Burnet in St. Paul, Minn.
“The sale represented the rare opportunity to own one of the best corners in one of the top markets in the Midwest,” said Lefko. “Located in the ‘#1 Most Expensive Zip Code in the State,’ the average household income exceeds $118,000 within a three-mile radius of the property making it one of the most affluent neighborhoods in the region.”
Lefko added, “The brand-new two-tenant property is ideally located in the primary regional retail corridor in Edina across the street from the popular Galleria Edina and Southdale Center. It is a quintessential pride of ownership passive investment leased to two strong service-based retailers poised for long-term success in the trade area.”
The newly built freestanding building is located on 0.62 acres at the signalized intersection of France Avenue and 70th Street with average daily traffic counts of over 44,000 cars per day.
E*Trade and Roti share the intersection with Galleria Edina, which features high-end stores such as David Yurman, Eileen Fisher, Louis Vuitton, Kate Spade New York, Tiffany & Co., Restoration Hardware, Tumi, Allen Edmonds, and Lululemon.
Southdale Center, the nation’s first indoor regional shopping mall and one of the top malls in the country after going through a massive mixed-use renovation, is located one block away on France Avenue and includes over 120 specialty stores such as Macy’s, Michael Kors, J. Crew, Coach, Apple Store, AMC 16 Theatres, a new Lifetime Fitness facility, and a wide variety of dining options. Other tenants in the immediate area include Super Target, Whole Foods, The Container Store, and LA Fitness.
Lefko noted E*TRADE (NASDAQ: ETFC) is one of the largest financial companies in the country providing online stock brokerage services. Roti Modern Mediterranean is a Chicago-based fast-casual, healthful, food-conscious Mediterranean restaurant chain that currently has 38 locations across the nation with two more locations coming soon (Minneapolis and Dallas).
“We utilized Hanley Investment Group’s national proprietary database to generate multiple competitive offers that resulted in achieving a record price for the seller and for a multi-tenant retail asset of this type in the state,” said Asher.
“As the retail investment market continues to transition this year, the sale is a prime example and further demonstrates that investors will continue to transact at historically low cap rates and premium pricing for properties with excellent real estate fundamentals in ‘A’ locations and markets across the country,” Asher added.