Investment Client Acquisition
We are happy to announce that Peter Kordonowy of Summerhill has successfully represented its client, Chan Lakes Investment, LLC, in acquiring Chanhassen Lakes I and II in Chanhassen, MN.
The transaction closed on 7/29/21 and Summerhill’s client paid $9.02M, or $84.82 per square foot, for the purchase of this 106,339 square foot multi-tenant 2 building office/warehouse/flex complex built in 1984 and 1986. The buildings are currently 100% occupied by 13 tenants, and some of the spaces can be divided up further if needed. These 2 industrial buildings have clear heights of 13’ and 15’ and dock and drive in loading.
After successfully advising and guiding its client throughout the transaction, Summerhill is handling property management and leasing duties for the buildings. With the addition of these 2 buildings to its overall larger management portfolio of industrial, retail, and office properties throughout the Twin Cities and beyond, Summerhill will be managing 7 buildings just in the Chanhassen market area.
The industrial market, and commercial real estate in general, continue to be a highly sought after asset class for investors looking to invest, and the market is pretty hot. Despite the competitive acquisition environment, Summerhill was able to negotiate a deal on behalf of its client that is at a price point well below replacement cost, and which offered an acceptable risk and return to the investors.
Summerhill’s client saw value in these 2 small bay, multi-tenant, industrial buildings, and felt that the buildings were well positioned for good occupancy, and could accommodate flexible uses. Multi tenant industrial buildings in good locations are hard to come by in this market, and it was a rare opportunity for Summerhill’s client, and we were very happy to help our client purchase these buildings.
As a sidenote, and coincidentally, about 6 weeks after this transaction went through, Chanhassen was named the best place to live in the U.S. by Money magazine (see here: https://money.com/chanhassen-minnesota-best-places-to-live-2021/), which we were happy to see for the owners and tenants of the properties we manage in Chanhassen.