CBRE has arranged a joint venture partnership between Capital Partners and Eagle Realty Group on a five-building industrial portfolio in Minnesota made up of two newly constructed buildings that are 100% occupied and three speculative industrial developments.
Phase I of the partnership has a pipeline totaling 627,980 square feet followed by potential for an additional 550,000 square feet. The assets are located in the strategic logistic submarkets markets within Minneapolis.
The CBRE Minneapolis Institutional Properties team of Judd Welliver and Bentley Smith arranged the partnership on behalf of their client, Capital Partners, which is based in Minneapolis, Minnesota.
Capital Partners is a vertically integrated industrial operating company with significant experience stewarding institutional capital, with more than 11 million square feet owned and managed.
The Phase I properties included in the venture are as follows:
169 Logistics Center
- SE Quadrant Hwys 169 & 610 – 147,250 square feet
Dayton Logistics Center
- Brockton Lane N & Future 121st Ave – 248,000 square feet
Xenon Industrial Center
- 11201 Xeon St NW, Coon Rapids, MN – 147,250 square feet
Naples Street Business Center
- 10580 Naples St NE, Blaine, MN – 85,480 square feet
According to a recent CBRE report, in Q3 2022, the Minneapolis industrial market absorbed 2.6 million square feet, bringing the 2022 year-to-date total up to 6.2 million square feet. Vacancy rates have fallen to 3 percent, a decrease of 120 basis points year-over-year.