By Anne Bretts - Finance & Commerce
March 23, 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.
A retail power center once riddled with debt and empty space now has new tenants and a new owner.
A local private investor has paid $11 million for the Northtown Village Shopping Center, which includes five stores in two buildings totaling 184,113 square feet of space. The buildings share a 7.6-acre site at 10-50 Coon Rapids Blvd. NW in Coon Rapids, on its border with Blaine.
WC Northtown Village LLC, an entity related to World Class Capital in Austin, Texas, closed March 19 on the sale to L&K Capitals LLC, an entity related to a private investor in Plymouth. The deal surfaced in a certificate of real estate value released Wednesday.
The sale price works out to $59.74 per square foot.
The $11 million price is a major jump from the $2.85 million World Class paid in 2011 to a special servicer to acquire a defaulted $16.4 million mortgage after the property went into foreclosure. World Class took possession of the property.
The property originally was 100 percent leased with a lineup that included Michaels, Bed Bath & Beyond, Office Depot, Hancock Fabrics, Circuit City and Sports Authority. After bankruptcies and relocations, Michaels is the only original tenant.
Despite those vacancies, the center was in a strong location at the north end of a retail district that includes Northtown Mall, Target, Home Depot, Walmart, Cub Foods and Aldi.
World Class tapped the Minnetonka office of Colliers International to handle the leasing and property management as well as the sale. Heather McKinzie served as property manager. Terese Reiling-Holden handled leasing and teamed up with Jeff Budish on the sale.
“Terese and Heather did a great job aligning the right tenant mix,” Budish said. “The property doesn’t fit the typical model with a grocery anchor, but the value-oriented tenants do well there.”
The team recruited Planet Fitness and Savers, and recently added an Urban Air trampoline park and MN Home Outlet, a Burnsville-based outlet retailer which also has a store in Woodbury. The deals filled all five major spaces in both buildings for the first time in a decade, leaving only 16,000 square feet available.
According to CoStar information, the two-building center was built in 1995.
The center was one of several developed by Edina-based Robert Muir Co., where developer Kelly Doran served as president for 15 years before leaving in 2005 to form his own namesake company. Muir retained control of the retail centers.
Nine years later, Robert Muir had retired to Florida and Bloomington-based Doran took over management of Muir's remaining five retail centers. Muir died in 2017.
Purchase price: $11 million with a down payment of $150,000 and new financing
Price per square foot: $59.74
Last sale: $2.85 million in 2011
Property ID: 36-31-24-41-0005/0009/0015
Date of deed: 3-19-18
ECRV released: 3-21-18