By Anne Bretts - Finance & Commerce
June 20, 2018
Editor’s note: “Just Sold” is a Finance & Commerce feature based on certificates of real estate value recently filed for commercial transactions and significant residential transactions in Twin Cities counties. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State’s Office, company documents, online real estate listings, F&C archives, CoStar and other research. Some purchase prices and per-unit calculations have been rounded. Full prices are available on the CRVs posted here.
Eagan-based MSP Commercial has sold two HealthEast Clinic properties in St. Paul for a total of $12.7 million in unrelated deals with two separate buyers eager to expand their holdings in the Twin Cities.
In one deal an entity related to Seattle-based Elliot Bay Capital Trust paid an MSP entity nearly $7.1 million for the 22,721-square-foot HealthEast Clinic – Midway at 1390 University Ave. W. in St. Paul. The clinic was developed in 1998 on 1.54 acres on the south side of University Avenue, just east of Snelling Avenue and for a time served as a Border’s Bookstore. The property sold for $2.25 million in 2011.
The current price works out to $311.39 per square foot.
In the second transaction, an MSP entity sold the HealthEast Clinic – Rice Street at 980 Rice St. for $5.95 million. (See next item.)
Alex Young, president of MSP, said the two properties were mature investments that were positioned well for a sale. MSP will continue to manage both buildings.
“Tenants won’t notice a difference,” Young said. Proceeds will go back into the company’s 33 development projects and properties in Minnesota and Wisconsin.
Young brought in Colliers International’s Minneapolis-St. Paul Investment Services Team of senior vice presidents Mark Kolsrud, Colin Ryan and David Berglund, who collaborated with Louis Suarez and Brian Bruggeman of Colliers’ Health Care Services Team to market the properties.
“We had a ton of interest,” Ryan said. Buyers from all over the country bid on the two properties, but no one was able to claim both.
Elliott Bay CEO Christian Whipple said bidding on the University Avenue West property was an easy decision.
“The seller in this property was the same one that sold us our first property in the Twin Cities,” Whipple said. “We had an existing relationship with them.”
The property’s location near the intersection of Snelling and University avenues is in one of the Twin Cities’ hottest development areas, Whipple said. Finally, the 2017 acquisition of St. Paul-based HealthEast Care System by Minneapolis-based Fairview Health Services improved the value of the property, he said.
“It checked all the boxes for us,” he said.
As Finance & Commerce reported, Elliott Bay Healthcare Realty II LLC in December paid an MSP entity $5.5 million for a 21,000-square-foot Class B medical office building at 1725 Legacy Parkway E. in Maplewood. The building is leased to a U.S. Department of Veterans Affairs clinic and to Fresenius Medical Care, a dialysis provider based in Germany.
Purchase price: $7.1 million
Price per square foot: $311.39
Last sale: $2.25 million in 2011
Property ID: 34-29-23-31-0018/0024
Date of deed: 5-13-18
ECRV released: 6-13-18