A joint venture of PCCP, LLC and Capital Partners has acquired a six-building light industrial portfolio totaling 690,742 square feet in Minneapolis. The properties are located in infill locations within a 10-mile radius of downtown Minneapolis and adjacent to major transportation networks.
The portfolio was built from 2001-2014 and includes six multi- and single-tenant buildings that are 91% leased to 15 tenants with an average suite size of 38,400 square feet and a Weighted Average Lease Term of 6.3 years. The buildings feature clear heights of 20’ to 32’ and the portfolio has been well-maintained, benefiting from prior institutional ownership. The portfolio consists of a diverse tenant roster including international, national, and regional tenants.
During their previous tenure at CBRE Peter Mork and Jason Simek, Managing Partners of Capital Partners, helped design, develop, and lease the portfolio throughout the early 2000s.
The Minneapolis industrial market is the 13th largest in the country and consists of 351 million sf of inventory. The market has a strong, diversified local economy that has fueled demand for specialized and flex industrial space. The Twin Cities industrial market saw 9 million sf of absorption in 2022, the strongest annual performance on record, and vacancy currently stands at 2.2%. The market is home to a growing med tech, life science, and manufacturing industries, and production that relies on the skilled labor pool. Due to the strong corporate presence, sector growth, and educated workforce, the Minneapolis MSA recorded an unemployment rate of just 2.9% in January 2023.
