Unique Office in Golden Triangle is Sold
We are happy to announce the successful sale of a Class C office building at 9975 Valley View Road in Eden Prairie, MN for $475,000, or $119.50 psf. The team of Joe Smith and Peter Kordonowy with Summerhill Commercial represented the Seller in this transaction, the Wayne D. Johnson Trust, and Daisy K. Haung with H86 Property Management Company, LLC represented the Buyer group Lian Sheng, LLC. The Buyer purchased this property as a fully occupied investment property for the Buyer.
This small Class C office building was a unique, but attractive, offering in the marketplace with a private, quiet, wooded setting well located within the Golden Triangle. The property offers a nice green area and is situated on a higher point with some good views. The property, which had been an older farmhouse, had been added on to over the years and converted into an office building with private offices, common areas, a kitchenette, and an exterior deck/patio. The most recent use had been executive offices, and the Buyer purchased the property 100% occupied with multiple executive office tenants with a variety of businesses.
Summerhill Commercial had been in charge of the leasing for the property for approximately 10 years for the Seller and had been able to help the owner maintain good occupancy and income over those years. Over the years of Summerhill’s involvement in the property, the owners had asked for advice on maintaining the property, and, they had done a good job of keeping it up, and improving it, without causing it to lose it’s somewhat vintage character and charm.
In mid-2021, the trust decided it was time to sell, and a price point was finalized with Summerhill’s critical input. The ultimate asking price of $475,000 arguably maximized value with a low cap rate of around 6% yet kept the asset attractive to an investment Buyer. Soon after the property was listed for sale on multiple platforms (including Northstar MLS), the Buyer came along, liked what they saw, and entered into an all cash purchase agreement with no contingencies except title work, and the property closed in a matter of weeks successfully. Summerhill was able to get an all cash, full price, sale transaction done for its client on this deal.
Our primary contact for the Seller is based in Massachusetts, and this sale represented all of her commercial holdings in Minnesota, therefore, we had to say goodbye to this client, and the sale was somewhat bittersweet as a result, however, we were very happy with the result, and feel we brought excellent value and services resulting in a great outcome for our client.
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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