IRG Acquires Twin Cities Distribution Facility
An ecommerce tenant recently vacated the property.
Industrial Realty Group LLC has acquired a 422,727-square-foot industrial distribution facility at 411 Farwell Ave. in South St. Paul, Minn. The vacant property was formerly the headquarters of The Sportsman’s Guide, an online and catalog retailer.
STAG Industrial sold the property for $21.5 million, according to Yardi Matrix. STAG acquired the property from Farallon Capital Management in 2018, the same source shows.
The 19-acre site is in an established industrial corridor, and the structure is configured for cross-dock distribution operations with about 392,727 square feet of warehouse space and 30,000 square feet of office space.
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The Class B property was completed in 1970 and offers cross-dock loading on three sides, 36 dock-high doors, two drive-in doors, a 110-foot truck court and a 22-foot clear height. It also includes an existing Union Pacific rail spur and rail doors, with activation required for future rail service, IRG said.
While currently vacant, the building can accommodate a single large user or be divided to support multiple tenants.
Located about two minutes from Interstate 494, the property is about 15 minutes from both downtown St. Paul and Minneapolis–St. Paul International Airport.
JLL Managing Directors Chris Hickok and Dan Larew, along with Associate Jack Nei, are handling leasing for the property.
A new partnership for IRG
In May, IRG agreed to form IRG Realty Trust Inc. with Sachem Capital Corp. The combined company is expected to have an enterprise value of about $3.4 billion, based on IRG contributing 98 of its 200 industrial assets to the REIT. Sachem will contribute about $470 million of total assets in direct and indirect mortgage loans, investments in developed and purchased properties, and other assets. IRG’s remaining industrial assets are to remain with it.
According to the plan, IRG would own about 94.1 percent of the combined company via operating partnership units, while Sachem’s existing shareholders would own about 5.9 percent. The deal is expected to close by the end of 2026.
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