MAPLE GROVE, Minn. – (RealEstateRama) – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm arranged the sale of a two-tenant retail property occupied by Bank of America and CRAVE American Kitchen & Sushi Bar and shadow-anchored by Lunds & Byerlys at The Shoppes at Arbor Lakes in the Twin Cities metro area. The purchase price of the two freestanding, net-leased properties was $9,150,000, representing a cap rate of 5.66% and $831 per square foot. This sale marks a record-cap rate for a multi-tenant pad property above $7 million to sell in the Midwest.
Hanley Investment Group’s Vice President Jeff Lefko and Executive Vice President Bill Asher represented the seller, OneCorp of Davie, Florida. The buyer, a private investor from Southern California, was represented by Jim Batlle of Coldwell Banker Commercial NRT of Newport Beach, California.
The newly built Bank of America and CRAVE property is located on 1.47 acres at the signalized intersection of Elm Creek Boulevard and Main Street in Maple Grove, Minnesota, with 35,000 cars per day. Maple Grove serves as the retail, cultural and medical center of the northwest region of the Minneapolis–Saint Paul metropolitan area, according to Lefko. Maple Grove is located 15 minutes from Downtown Minneapolis.
The brand-new, 3,986-square-foot, single-tenant Bank of America features a drive-up ATM and is located at 12728 Elm Creek Blvd North. The new construction CRAVE has a 7,029-square-foot building with an additional 4,536-square-foot rooftop patio as well as a ground-floor outdoor dining area at 12734 Elm Creek Blvd North.
“This is a pride of ownership property that is part of The Shoppes at Arbor Lakes, a popular lifestyle center anchored by Lunds & Byerlys,” said Lefko.
Crave American Kitchen & Sushi Bar is a privately held Twin Cities-based restaurant company. With 10 locations, the restaurant delivers an elevated dining experience with an extensive menu at a value-driven price point. Menu items range from a full sushi bar and certified Angus beef steaks to fresh seafood, pastas, salads and fire-baked pizzas that are continually re-mastered with seasonal ingredients.
Maple Grove is part of the Twin Cities metro area, one of the strongest Midwest economies. Maple Grove is home to a regional Boston Scientific research, development and manufacturing facility, employing over 3,000 people. Other major employers in Maple Grove include the Independent School District 279, United Parcel Service and Upsher-Smith laboratories.
Maple Grove is home to more retail than nearly any other city in the state, second only to Bloomington, the home of the Mall of America. Maple Grove itself has approximately six million square feet of commercial space, which includes town centers, lifestyle centers, power centers and community center formats. It also offers seven lakes and over 1,000 acres and 36 miles of maintained parks and trails and 48 playgrounds.
“The area’s market occupancy of 97% is a testimony to the strength of the corridor and the tenants’ sales,” said Asher. “Maple Grove is a ‘must-have’ market for any national retailer operating multiple locations in the Midwest.”
The regional trade area has more than 499,000 residents because of the strategic location near several major expressways and the trade area is expected to grow 6% by 2022, Asher said. The household income within a three-mile radius of the Bank of America and Crave properties is $124,235 and there are 176,832 people within a five-mile radius.
Lefko adds, “Arbor Lakes in Maple Grove is a shopping area that many other U.S. cities have tried to duplicate. You can start at The Fountains at Arbor Lakes shopping complex at Elm Creek Boulevard and Fountains Drive, then travel west down Elm Creek Boulevard to The Shoppes at Arbor Lakes, and then Main Street.”
According to Lefko, “The Bank of America and Crave pad buildings are located on the most visible pad to The Shoppes at Arbor Lakes, Minnesota’s first lifestyle center consisting of four blocks of upscale shopping and dining in an outdoor, urban setting and part of the greater Arbor Lakes Retail Center (466,825-square-foot power center). The Shoppes at Arbor Lakes includes stores such as Pottery Barn, Williams-Sonoma, H&M, Cost Plus World Market, Whole Foods, Trader Joe’s, and numerous others.”
This transaction comes on the heels of Lefko and Asher’s recent $11.8 million sale of Commons Plaza, a four-tenant retail property in Woodbury, Minnesota. Earlier in the year, Lefko and Asher sold the two-tenant E*Trade and Roti located at 70th and France in Edina, Minnesota for $8.25 million. These three trophy properties were all sold to private out-of-state investors and represent record pricing in the Twin Cities.
“Our recent sales in the Twin Cities market demonstrate how aggressive out-of-state buyers are willing to pay premium pricing for well-located, pride-of-ownership real estate,” Lefko noted.
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6+ billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.
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