TA puts Centennial Lakes Plaza up for sale

The owner of the Centennial Lakes Plaza retail center in Edina has put the building up for sale, and is expecting that the 29-year-old property will sell for more than $70 million.

The 198,717-square-foot center at 7401 and 7501 France Ave. S. is owned Centennial Lakes Plaza LLC, according to Hennepin County property records. The owner has selected the Twin Cities office of Cushman & Wakefield to market the property, according to a Cushman & Wakefield press release.

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Cantel Medical buys former Sleep Number headquarters in Plymouth

Cantel Medical Corp. paid $31 million for its new Plymouth headquarters, the former home of Sleep Number Corp.

The New Jersey-based medical-device company already confirmed it would move its Twin Cities office into the 159,000-square-foot building at 9800 59th Ave. N. It signed a 10-year-lease in May, but it’s now closed on the property and will be its own landlord.

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2 suburban rental deals total $64 million

Investors from Florida and Eden Prairie have paid a total of $64 million for aging apartment complexes in Burnsville and Bloomington, giving the sellers what appear to be tidy margins on the transactions.

Priderock Capital Partners of West Palm Beach, Florida, made the bigger purchase, buying the 304-unit River South apartments at 13000 Harriet Ave. S. in Burnsville for $37.25 million, according to a certificate of real estate value made public on March 30.

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United sells TRIA center for $35 million

Edina developer Luigi Bernardi and a longtime investment partner have bought the Bloomington center.

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View article from Rebusiness Online.

Lone Star sells former Bloomington school for $26.25M

It’s a $6.15 million profit for the Dallas investor.

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Two Stanton projects in North Loop sold for $19 million

Cushman & Wakefield’s Lance Steiger and Robert Dulin arranged the sale of Riverwalk Flats, a 96 apartment building, and the nearby Riverwalk Lofts building which has 10,000 square feet of office condo space, in the North Loop neighborhood of Minneapolis.

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International Market Square in Minneapolis sold for nearly $29M

The Minneapolis design center International Market Square has been sold for nearly $29 million.

The facility, which has more than 100 design showrooms and galleries, was sold last week to a partnership that includes Minneapolis-based Eagle Ridge Partners as well as an unnamed family and a group of local investors.  Tom O’Brien Cushman & Wakefield represented the seller in the transaction.

The sale includes the complex’s approximate 374,000 square feet of commercial space, the upper three levels of the adjacent parking ramp and two nearby surface parking lots. The group paid just under $85 per square foot.

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Growth tapering in Twin Cities office, industrial real estate markets

This year and last have been relatively good times for the Twin Cities’ office and industrial commercial real estate markets. Vacancy levels in the office market are nearing pre-recession lows while a massive building boom has been ongoing in the industrial sector.

A panel of top local experts met for an industry-sponsored event at the Hopkins Center for the Arts to assess whether the trends will hold. Their verdict generally was “yes,” though likely not as robustly.

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Tom O’Brien shares market insights with financial executives

Executive ​Director Tom O’Brien, a member of Cushman & Wakefield’s Capital Markets Group, was a featured speaker recently at an event attended by financial executives from all over the metro.

Tom was a panel member at Financial Executives International (FEI) Twin Cities’ professional development session June 28, held at the Golden Valley Country Club.

Tom took the stage with other financial experts to share an overview of the real estate sales and financing market in the Twin Cities and nationally. Other speakers included representatives of Winthrop & Weistine, KPMG, Well Sargo, BDO and other notable companies.

FEI is the preeminent professional association for senior financial executives, representing over 10,000 leaders nationally. FEI provides peer networking opportunities, emerging issue alerts, personal and professional development and advocacy resources that advance the success of FEI members, their companies and the profession.​

By: Adam Rae Voge

U.S. Lodging Overview

Cushman & Wakefield’s Hospitality and Gaming Valuation and Advisory Group recently released its March 2017 US Lodging Industry Overview. The report has a number of findings that parallel what we are seeing here in the Midwest.

As noted in our January 2017 Hotel Compass Report, the report notes that 2016 marked another year of continued highs for national occupancy (65.5 percent) and ADR ($124), while the resulting $83.00 average RevPAR represented an increase of 3.3 percent over 2015. The report indicated that in 2017 demand growth is forecasted to lag supply increases for the first time in seven years.

The report also indicated that the average rate growth in 2017 is forecast to be 2.8 percent nationally. This is below the average rate growth of the last six years, which ranged from 3.3 to 4.6 percent. Although most of these moderating trends were expected by the end of 2016, the overall environment is still positive and continues to support strong investor interest in acquiring and developing hotel assets.

We have also seen evidence of the first occupancy declines here in Minnesota, which should be viewed in light of the amount of new supply that has emerged in many markets. Amongst the top 25 lodging markets in 2016, Minneapolis had the 4th highest year-over-year percent increase in ADR at 5.9 percent, and the 5th highest year-over-year RevPAR increase at 5.0 percent. Despite the strong environment, there is reason for some to be cautious.

In Minneapolis and across the Midwest, the majority of new supply continues to be concentrated in upscale to upper-midscale select service developments, although there are many midscale projects being pursued in more secondary and tertiary markets. Despite widespread new supply, we are still seeing high levels of interest in hotels of all types, particularly in well positioned and/or value-add opportunities, another sentiment reflected in the report.

The report indicates that cap rates for full-service hotels remained flat nationally in 2016 at 7.9 percent, but increased 14 basis points to 8.8 percent for limited service hotels. Please visit here for more on the report.