KPR Enters Minnesota With 452 KSF Retail Buy
In the past 18 months, the firm has purchased 12 other retail centers amounting to 3 million square feet, for a combined $400 million.
New York City-based KPR Centers has acquired Shoppes at Knollwood, a 451,700-square-foot retail center in St. Louis Park, Minn. The deal, brokered by CBRE, marks the company’s entry into the Minnesota market.
LACERA previously owned the property, according to Yardi Research Data. The firm had bought it in 2015 from Rouse Properties for $106.7 million, financing the acquisition with a $53 million loan from Principal Financial Group.
KPR currently owns and self-manages approximately 10 million square feet of retail space across 20 states. In the past 18 months, the firm has purchased 12 other retail centers amounting to 3 million square feet, for a combined $400 million.
Its latest acquisitions include the 230,000-square-foot grocery-anchored Eagle Plaza in the Philadelphia area, for which KPR paid $42 million. In another recent deal, KPR entered the Denver market with the purchase of University Hills, a 210,000-square-foot grocery-anchored center.
The LEED-certified Shoppes at Knollwood
Completed in 1955 as Knollwood Mall, the retail center underwent several renovations over the years, which transformed it into an enclosed mall in 1980. LACERA invested $30 million into Shoppes at Knollwood and brought it to its present-day form.
The LEED-certified shopping center was nearly 99 percent leased at the time of the sale. Anchored by Cub Foods, DSW Shoe Warehouse, HomeGoods, Nordstrom Rack, Old Navy, Total Wine & More, TJ Maxx and Ulta Beauty, Shoppes at Knollwood has a tenant roster with more than 40 retailers, including Applebee’s, Burger King, Claire’s and Chick-fil-A.
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Located at the intersection of highways 7 and 169, Shoppes at Knollwood boasts 5.5 million customer visits annually and serves a population of more than 104,000 on a 3-mile radius, with average incomes of $140,000 per year. Downtown Minneapolis is some 8 miles northeast.
CBRE Director Michael Wilson, together with Executive Vice Presidents Christian Williams and Richard Frolik, represented the seller.
In the first seven months of the year, the Twin Cities’ retail market registered $71 million in investment sales, with eight properties trading at approximately $79.5 per square foot, according to Yardi Research Data. The investment volume is significantly lower than the one of last year, when 16 properties changed hands at an average per-square-foot price of $164 for a total of $253 million.
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