Just Sold: Big River makes $5.3M industrial acquisition

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Editor’s note: “Just Sold” is a Finance & Commerce feature based on the newest certificates of real estate value filed with the Minnesota Department of Revenue for commercial sales throughout Minnesota and reports of sales across the country involving local parties. Research includes company and broker documents, online real estate listings, F&C archives, Catylist and other research.

Big River Real Estate in Minneapolis has made a $5.3 million light industrial acquisition, but the transaction provides a snapshot of the impact of rising interest rates and insurance costs on financing investments.

Big River Golden Valley LLC closed April 9 on its purchase of two buildings totaling 61,700 square feet built on 4.38 acres at 2450 Louisiana Ave. N. in Golden Valley. The seller was Lacasa-Uptown Properties LLC, an entity related to Schafer Richardson in Minneapolis. Mike Olson of Schaefer Richardson represented his company.

The price works out to $85.90 per square foot.

The building is fully leased to Tennant Company and 22nd Century Roofing.

“We are excited to have purchased this building and feel like it will complement well the other assets we have in our fourth private equity real estate fund,” Big River CEO Ryan Mallery said in an email interview.

“We decided to close all cash with hopes to finance it in the next 12-18 months in a lower interest rate environment,” he said. “Of note, we were shocked at what it cost to insure this building. We had to go to a secondary market and pay almost 65 cents per square foot per year in premiums. This is about double what we are used to paying for similar product.

“It seems like there is an opportunity out there for an underwriting company to come in and be a disrupter in the insurance world — premiums have just really escalated over the last few years.”

Place: 2450 Louisiana Ave. N., Golden Valley

Price: $5.3 million; cash; $85.90 per square foot

Buyer: Big River Golden Valley LLC, Minneapolis

Seller: Lacasa-Uptown Properties LLC, Edina

Date: 4-9-24

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Eden Prairie business center draws $5.25M

The 50,645-square-foot Westwood Business Center in Eden Prairie has sold to local investors for $5.25 million.

An entity identified as IDP Bury Drive LLC in Wayzata acquired the property from Roosevelt 301 LLC, an entity related to an investor in Boise, Idaho.

The center was built in 1986 on 5.49 acres at 6201 Bury Drive in Westwood Industrial Park in Eden Prairie. The multitenant building includes office, high-tech production and warehouse space, anchored by Beacon Embeddedworks Inc. and H&B Specialized Products.

Joe Antonucci, owner of Landmark Partners Inc. in Minneapolis, was leasing agent for the property’s owner, a Boise, Idaho, investor who bought in 2016 for $4.15 million.

“The seller decided to redeploy his assets elsewhere,” Antonucci said.

The buyers, a group of investors based in Wayzata, made a direct offer and closed April 9. The price works out to $103.66 per square foot.

Place: 6201 Bury Drive, Eden Prairie

Price: $5.25 million; no down payment listed; new mortgage; $103.66 per square foot

Buyer: IDP Bury Drive LLC, Wayzata

Seller: Roosevelt 301 LLC, Boise, Idaho

Date: 4-9-24

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