PCCP, Capital Partners Acquire Minnesota Industrial Portfolio
The portfolio consists of properties located within infill locations near freeways throughout the metro. The buildings are a mix of bulk warehouse, light industrial and flex product types.
By Keith Loria
A joint venture between PCCP LLC and Capital Partners LLP has acquired a seven-property industrial portfolio in and around the metro area of Minneapolis, Minn., from Artis. At the time of the sale, the 1.2 million-square-foot portfolio was 82 percent leased.
“Venturing with Capital Partners on this acquisition was a good fit and strategic investment for PCCP,” Brendan Shanahan, PCCP’s vice president, said in a prepared release. “This is a cash-flowing, well-located portfolio that we were able to acquire at an attractive basis. Additionally, this was a rare opportunity to acquire a portfolio of this size as it is the largest offering for multi-tenant industrial real estate in the Minneapolis‐St. Paul metro since 2012.”
The portfolio consists of properties located within infill locations near freeways throughout the Minneapolis area. The assets are situated within six and 14 miles from downtown Minneapolis.
The buildings are a mix of bulk warehouse, light industrial and flex product types. The properties are:
- France Avenue Business Park in Brooklyn Center
- Northpoint Industrial Center in Fridley
- Eagan Industrial Warehouse in Eagan
- Corporate Square in Eagan
- Braemar Business Center in Bloomington
- Burnsville Business Center in Burnsville
- Round Lake Business Center in Arden Hills
“With a market vacancy rate of just seven percent, at 82 percent leased, we see opportunity to add immediate value to this portfolio by actively leasing vacant spaces,” Shanahan said.
A Strong Economic Presence
According to PCCP research, the Minneapolis-St. Paul market represents 65 percent of Minnesota’s total economic activity and 60 percent of its population, making it the second-largest economic center in the Midwest. Additionally, the city’s diversified local economy offers one of the highest per capita Fortune 500 ratios and a significant local manufacturing base led by companies such as General Mills, Pillsbury, Genentech, Medtronic, 3M and Cargill.
In 20 years, PCCP has successfully raised, invested and managed more than $14.8 billion of institutional capital through a series of investment vehicles. Capital Partners has a portfolio of more than two million square feet across multiple properties.
In October, PCCP and TriStar Properties began construction of their fifth speculative industrial project located within Gateway Commerce Center in Edwardsville, Ill. PCCP has also recently entered another joint venture with LDK Ventures to acquire an 843,248-square-foot industrial property in Vacaville, Calif.
Photo courtesy of PCCP