Single-Tenant Bank of America plus Two-Tenant Famous Dave’s “Quick Que” Concept and Banfield Pet Hospital Sell for $11.45 Million
COON RAPIDS, 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 has arranged the sale of Riverdale Village, a new construction, three-tenant drive-thru investment located on an outparcel to Menards in Coon Rapids, Minnesota. The sale price was $11.45 million.
Hanley Investment Group’s Executive Vice Presidents Jeff Lefko and Bill Asher, in association with Robert Wise, vice president with CBRE in Minneapolis, Minnesota, represented the seller, OneCorp Global in Hollywood, Florida. The buyer, a private investor based in Evergreen, Colorado, was represented by Boston Weir, principal of Henry Group Real Estate in Denver, Colorado.
“We generated multiple qualified offers within the first week of formal marketing and selected a 1031 exchange buyer based in Colorado,” said Lefko. “Due to a highly competitive bidding war, we closed escrow at $455,000 above the list price and achieved the lowest-cap rate for a multi-tenant retail property in the Midwest above $10 million.”
Lefko adds, “These were brand new buildings with long-term leases located in a growing, affluent market in a high-traffic intersection and surrounded by many of the top names in national retail.”
Built in 2021, the three-tenant investment consists of a single-tenant, 4,150-square-foot building with a drive-thru occupied by Bank of America and a two-tenant, 6,700-square-foot building occupied by Famous Dave’s and Banfield Hospital. The buildings are situated on 1.66 acres at the hard-corner, signalized intersection of Northdale Boulevard and Main Street (45,000 cars per day) and adjacent to the route U.S. 10 entrance/exit ramps.
“The property received significant activity from buyers interested in multi-tenant retail, but due to the freestanding Bank of America, single-tenant buyers also came to the table,” Lefko noted.
This is a dominant regional retail destination within the Riverdale shopping area, notes Lefko. Anchor tenants include Costco, Dick’s Sporting Goods, Kohl’s, Lowe’s, Target, The Home Depot, Walmart, ALDI, Bed Bath & Beyond, Best Buy, Cub Foods, DSW, Five Below, Hobby Lobby, HomeGoods, JOANN Fabric and Craft, Michaels, Menards, Petco, PetSmart, Sportsman’s Warehouse, T.J. Maxx and ULTA Beauty.
“Coon Rapids is a tight retail market with very few new retail development opportunities available,” said Lefko. “The area has experienced a 7.47% population growth between 2010 and 2020 within five miles of the property. Currently, there are over 165,000 people with an average household income of $102,000 within a five-mile radius of River Village.”
Coon Rapids is a 25-minute drive to Downtown Minneapolis and a 25-minute drive to Minneapolis-St. Paul International Airport (39.5 million passengers in 2019).
Hanley Investment Group has completed the sale of 177 Midwest retail properties valued at $677 million in the past 48 months.
Lefko adds “This sale is a great representation of how multi-tenant cap rates have compressed, especially for extremely well-located properties. We are at an all-time low in the supply of quality real estate so when we bring generational assets to the market, we receive an unprecedented amount of activity.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory services company with an $8.9 billion transaction track record that specializes in the sale of retail properties nationwide. Our expertise, proven track record, and unwavering dedication to putting clients’ needs first set us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property-specific marketing strategies, cutting-edge technology, and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers, and 1031 exchange buyers are unparalleled in the industry, translating into maximum exposure and pricing for each property. With unmatched service, Hanley Investment Group has redefined the experience of selling retail investment properties. For more information, visit www.hanleyinvestment.com.
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