Just Sold: White Bear Lake office building sells for $3.7M

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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 the Minnesota Secretary of State’s Office, city and county records, 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.

The 23,641-square-foot Oak Ridge Centre multitenant office building in White Bear Lake, has sold for $3.7 million in a deal between private investors.

Vadnais Heights-based Oak Ridge Centre LLC closed March 21 on the acquisition from the longtime owners, Muellner Family LLLP of White Bear Lake, according to a certificate of real estate value made public on April 12. The three-story Class B property, at 4801 Highway 61 N., was built in 2000 on a 0.61-acre site on the west side of the highway and north of Fourth Street.

The building houses 11 tenants, including a 20-person office of Coldwell Banker Burnet and a 14-person office of Burnet Title. Other tenants include the White Bear Lake Area Chamber of Commerce and a mix of medical offices and business services.

The purchase price works out to $156.51 per square foot.

Michael Ahles, an investment specialist in Marcus & Millichap’s Minneapolis office, marketed the building and secured the buyer. The property drew strong interest from buyers, he said. It was a stable investment which boasted a 6.13 percent cap rate, a rate expected to rise as a lease is finalized for the building’s only vacancy.

Purchase price: $3.7 million, with no down payment and new financing

Price per square foot: $156.51

Last sale: N/A; Ramsey County values the property at $2.32 million for tax purposes

Property ID: 14-30-22-14-0149, 21-30-22-13-0031

Date of deed: 2-21-8

ECRV released: 4-12-18

Buhl Investors to convert site to self-storage

Description: 43,900-square-foot Class C manufacturing plant, built in 1977 on 2.3 acres at 1717 W. River Road, Minneapolis

Buyer: Buhl Investors 1717 LLC, Edina

Seller: Pioneer Metal Finishing LLC, Green Bay, Wisconsin

Purchase price: $2.2 million

Price per square foot: $50.11

The transaction: Edina-based Buhl Investors has paid $2.2 million for a vacant 43,900-square-foot manufacturing plant at 1717 W. River Road in Minneapolis, which it plans to convert to a 1,009-unit self-storage facility.

Buhl Investors 1717 LLC closed Monday on the acquisition from Pioneer Metal Finishing LLC, a Green Bay, Wisconsin, company. In late 2016, Pioneer paid $3.03 million for a larger facility at 4800 Quebec Ave. N. in New Hope and renovated it before moving the company’s local operations there in 2017.

Peter Deanovic, founding principal in Buhl, has developed storage facilities for Utah-based Extra Space Storage Inc., a self-administered and self-managed real estate investment trust.

As Finance & Commerce has reported, Extra Space entered the market in 2016, when it paid $17.75 million for an existing 765-unit self-storage building at 2960 Empire Lane in Plymouth. The storage company now lists seven locations in the Twin Cities.

Buhl also redeveloped an industrial building for Extra Space he had purchased in 2015 at 5051 Highway 7 in St. Louis Park. Last month, a Buhl entity completed an Extra Space storage center at 6150 Baker Road in Minnetonka and sold it to another Buhl-related entity for $3.72 million. Buhl paid $2.05 million in 2016 for an industrial warehouse at 7625 Cahill Road in Edina. It is not yet listed on Extra Space’s online list of locations.

Some developers sell individual properties upon completion. Some complete a number of storage facilities and own the real estate until they sell them as a portfolio.

Last sale: $1.07 million in 1997

Property ID: 15-029-24-42-0015

Date of deed: 4-16-18

ECRV released: 4-17-18

Mounds View apartments sell for $3 million

Description: Mounds View Estates, 40 units in five buildings, built in 1966 on 1.43 acres at 2300, 2310 and 2320 County Road I and 2305 and 2315 Groberg St. in Mounds View

Buyer: Mounds View Estates Partners LLC, Minneapolis

Seller: Mary B. and Douglas J. Kramasz, Jordan; David J. and Lisa M. Siwek, Shakopee

Purchase price: $3.05 million, with a $762,500 down payment and new financing

Price per unit: $76,250

The transaction: An entity related to Minneapolis-based BBH Management Co. has paid $3.05 million for Mounds View Estates, which includes 40 apartments in five adjacent buildings in Mounds View.

The low-rise buildings were built in the mid-1960s in an area south of County Road I and west of Interstate 35W.

Mounds View Estates Partners LLC closed March 30 on the acquisition from Mary B. and Douglas J. Kramasz of Jordan and David J. and Lisa M. Siwek of Shakopee. The apartments, built in 1966, are at 2300, 2310 and 2320 County Road I and 2305 and 2315 Groberg St. in Mounds View

The purchase price works out to $76,250 per unit, well below the average of $124,967 per unit for Twin Cities area apartments recorded by Finance & Commerce’s online Apartment Sales Tracker. The tracker has reported the sale of 42,815 apartment units since Aug. 31, 2011.

Last sale: $550,000 in 1998

Property ID: 08-30-23-21-0001/0002

Date of deed: 3-30-18

ECRV released: 4-6-18

RELATED CONTENT:

Just Sold: Cottage Corp. moves 175 jobs to St. Paul

Just Sold: REIT pays $18M for Plymouth self-storage building

Just Sold: Pioneer Metal to move to New Hope

Certificates of real estate value

Twin Cities Apartment Sales Tracker