A Philadelphia-based real estate firm is making a major entry into the Twin Cities market with the acquisition of the Flying Cloud Business Centre in Eden Prairie and the Oakview Business Centre I and II in Eagan, a portfolio of more than 360,000 square feet of industrial warehouse space.
Arden Logistics Parks, doing business as AREPIV Minn I Industrial LLC, paid $24.75 million for the 204,000-square-foot Flying Cloud Business Centre at 6533 Flying Cloud Drive, according to a property value certificate released Thursday. The seller is Flying Cloud Business Centre Investors LLC, an entity affiliated with Hartford, Connecticut-based UBS Realty Investors.
The sale breaks down to $121.32 per square foot.
The three-building portfolio also includes Oakview Business Centre I & II, a 157,428-square-foot light industrial campus with buildings at 1325 Eagandale Court and 1284 Corporate Center Drive in Eagan.
Arden Logistics didn’t disclose the sale price. Public documents with sale information for the Eagan properties had not been released as of Thursday.
Avery Ticer of Cushman & Wakefield, who represented the seller, said Thursday that the market responded well to the properties, which are well-located and 98% leased overall. Ticer added that the buyer is a well-respected national player with plans to continue growing in the Twin Cities market.
In a press release, Arden Logistics said the portfolio “represents ALP’s first acquisition in Minneapolis as the company continues to expand into new markets”.
The Philadelphia company spoke glowingly of the Minneapolis-St. Paul industrial market.
“The nearly fully leased 344 million square foot Minneapolis/St. Paul industrial market continues to enjoy favourable conditions, having successfully absorbed over 14 million square feet of space over the past 24 months, representing the strongest absorption period on record,” the Philadelphia firm said.
Craig A. Spencer, Chairman and CEO of Arden Group, said, “As ALP’s first acquisition in this market, the purchase of the Minneapolis Light Industrial Portfolio demonstrates the company’s continued growth and commitment to acquiring high-quality industrial assets in prime infill locations nationwide.
Built in 1996, the Flying Cloud Business Centre is fully leased to four tenants. Located in Eden Prairie’s Golden Triangle – a submarket where highways 62, 169 and 212 converge – the Class A building “has been fully leased for several years, demonstrating tenant demand for the property,” Arden Logistics said.
The taxable market value of the property is $20.278 million, according to Hennepin County records.
Oakview Business Centre I & II is 96% leased to 10 tenants. A Colliers marketing brochure notes that the Oakview properties are close to restaurants and shopping and have convenient access to Interstate 494, Interstate 35E, Highway 55 and Highway 52. Colliers is handling the leasing, said Evan Molde, a Colliers senior associate.
Built in 1985, Oakview Business Centre I & II has a combined taxable value of $9.1 million, according to Dakota County records.
Christian Vergilio, director of acquisitions for ALP, said the “high-quality” Twin Cities assets “complement our existing industrial properties and fit perfectly with our national growth plans. The opportunity to acquire infill light industrial assets in both the ‘Golden Triangle’ and Eagan micro-markets, coupled with below-market rents, a diverse lease mix and supply-constrained locations, made this a compelling acquisition that demonstrates our ability to add significant scale to ALP’s portfolio.”
Arden Logistics Parks was founded by Arden Group in 2021. In addition to the Twin Cities, Arden Logistics has properties in the Atlanta, Charlotte, Columbus, Dallas, Houston, Indianapolis, Philadelphia, San Antonio and Tampa markets.
