Pair of Town Office Condos Sold
We are happy to announce the successful sale of (2) Town Office Condos at 7965 Stone Creek Drive, Suites 130 and 30 in Chanhassen, MN for $475,000, or $154.62 psf. The team of Peter Kordonowy and Andy Richards with Summerhill Commercial represented the Seller in this transaction, OB Mulligan, LLC, and Dylan Steman with MRG Realty Partners represented the Buyer, Tesoro Realty Group, LLC.
The Buyer purchased this property to owner occupy the main level for their staffing business and purchased the walkout level as an investment property with an existing tenant. The walkout level will provide potential future growth opportunities for Buyer for their business if needed, and the (2) units share a front main level entrance and are connected by interior and exterior stairs. The main level space also has signage visibility to Highway 5 in Chanhassen.
These two (2) Class B town office condos were owned by Seller since they were built in 2005 and consisted of a main level unit and a walkout lower level unit. Over the years, Seller was able to find tenants to keep the buildings full, while Seller waited for values to come back close to what they were when they purchased the units in 2005 before contemplating selling. With the main level tenant’s lease expiring May of 2022, Seller decided it was time to explore a sale, and engaged its longtime broker, Peter with Summerhill, to do a market study. A combined asking sale price of $475,000 was decided upon with the idea to not push the market too hard, but to capitalize on recent value increases. The property ultimately did sell for full price, and, at $175.00 psf for the main level and $134.25 psf for the lower level ($154.62 psf combined), the prices per square foot are higher than any of the other approximately (6) comparable sales in the last (10) years.
Peter with Summerhill had worked with Seller (which consists of (2) individuals) in the past, and had successfully done three (3) separate lease transactions over the past (10) years. When it came time to sell, Seller decided to hire Peter and Summerhill. After the property was brought to market, there was a healthy amount of activity on the listing, however, there ended up being some challenges involved in how to deal with an existing tenant on the lower level as many buyers either just then wanted the main level or wanted both levels. Ultimately, a Buyer group was able to make sense out of the deal by purchasing both levels, and only occupying the main level and still pay full asking price, even though the lower level tenant was paying below market rents.
As a testimonial to Summerhill’s work on this project, after the property closed, Peter received the following email from Seller
I received the funds from the sale of Stone Creek. I wanted to thank you for all of your help with the sale. It certainly had some twist and turns but I appreciate all your efforts and the great communication keeping me informed. Your communication skills, hard work, and honest is undoubtedly the reason you are successful.
This was a very kind note to receive from a client and is much appreciated. As a company, it is very satisfying to get this sort of recognition, and we were very appreciative for the opportunity to use are skills and knowledge to bring about a favorable result for all involved.
If you, or someone you know, is looking to buy or sell a commercial property, give us a call at 952-473-5650, and we can help.
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