|
United Properties Outlook: Industrial -Northwest Page 2 of 3
<br />Ave. in Brooklyn Park.
<br />• Automation Inc. took 37,000 sq. ft. of bulk warehouse space in Real Estate Recycling's France Avenue Business
<br />Center in Brooklyn Center. The tenant relocated from Minneapolis and took occupancy of the new space in
<br />November.
<br />• In addition to these deals, a couple more big leases were signed, but the companies won't take occupancy until
<br />frst-quarter 2008. These leases will be reflected in next quarter's data. Southern Graphic Systems (SGS), which
<br />provides graphic services for consumer products packaging, will vacate 25,000 sq. ft. at Plymouth Technology
<br />Center and lease the entire 78,000 sq. ft. of bulk warehouse space at the new 610 Business Center in Brooklyn
<br />Park. The building was developed by Ryan Companies, which has sold it to Investors Real Estate Trust (IRET).
<br />• Also not reflected in this half's numbers is the expansion of Vascular Solutions Inc., a company that develops
<br />diagnostic and interventional devices for vascular medicine. The company is currently located in 32,000 sq. ft.
<br />Northgate I in Maple Grove, at Bass Lake Road and Interstate 494. The company signed aseven-year lease to
<br />expand and take an additional 58,000 sq. ft. in the building on Aug. 1, 2008. To accommodate this expansion,
<br />another tenant will vacate its space at Northgate I and is looking for 35,000 to 40,000 sq. ft. in amulti-tenant
<br />building in the West market. It will relocate this spring.
<br />• In user-building sales, Empirehouse sold a 51,585-sq.-ft. building at 4401 Quebec Ave. N. in New Hope to 4401
<br />Quebec LLC (Horwitz Mechanical) for $3,146,685, or $61 per square foot.
<br />• Cobalt Industrial REIT II acquired a 70,100-sq.-ft. building at 19875 South Diamond Lake Road in Rogers from
<br />AGW Properties LLC.
<br />• Cobalt Capital Partners purchased the 252,000-sq.-ft. Midway Distribution Center, a bulk warehouse property
<br />located at 2075-85 Ellis Ave. in St. Paul, from San Francisco-based Bristol Group.
<br />• Cobalt REIT purchased atwo-building portfolio of multi-tenant industrial buildings totaling 194,000 sq. ft. from a
<br />local ownership group. Both properties are located in Fridley.
<br />• Cobalt Industrial RErr II purchased an 86,000-sq.-ft. flex space industrial property located at 1905 County Road
<br />C W. in Roseville from Fat Industrial Holdings, LLC.
<br />• n new construction, three speculative buildings were delivered in the past six months totaling 427,804 sq. ft.
<br />They were predominantly 24-foot-clear bulk buildings because the Northwest's bulk market has been tight. Duke
<br />Realty Corp. completed the 153,000-sq.-ft. Gateway North in Otsego. No leases have yet been signed. Net
<br />asking rates are $5 for warehouse space and $10 for office. Duke anticipates developing as much as 1.4 million
<br />square feet of industrial space in the new 165-acre Gateway Business Park. It could take five to seven years to
<br />build out the entire park. Otsego is the next logical step out from Rogers for industrial development.
<br />• Opus Corp. completed the 104,000-sq.-ft. Park West Business Center, an office warehouse building at Brooklyn
<br />Boulevard and Boone Avenue in Brooklyn Park. No leases are yet signed. The net asking rates are $12 for office
<br />and $6 for warehouse. These rates set a new high watermark for 24-foot clear space.
<br />• First Industrial Realty Trust completed the 170,804-sq.-ft. Interstate North Business Center in Brooklyn Park, a
<br />speculative warehouse/distribution building at 7035 Winnetka Ave. This building is fully leased. First Industrial
<br />signed a 70,000-sq.-ft. lease with PODS Enterprises Inc., and Ruan Transport Corporation, one of the largest
<br />privately owned transportation service companies in the United States, is leasing the remaining space.
<br />• In construction currently underway in the Northwest, there are two buildings totaling 225,650 sq. ft. AMB
<br />Property Corp. is developing the 2200 Commerce Building at Commerce Boulevard and George Weber Drive in
<br />Rogers. It is a 150,000-sq.-ft. bulk building. Net rental rates are $9.50 and $4.75. The building is set to open in
<br />second-quarter 2008.
<br />• Also, the 75,650-sq.-ft. 610 Business Center II is under construction in Brooklyn Park. The office showroom
<br />building is being developed by Ryan Companies in the northwest quadrant of Broadway and 93rd Avenue North.
<br />It is scheduled for completion in first-quarter 2008. Net rates are $12 and $5.50.
<br />~. In planned development, there is only one building: Shingobee Builders has plans for the 65,000-sq.-ft. Otsego
<br />~/ Business Center in Otsego. The developer will break ground when the office warehouse building is 50%
<br />preleased. And in preliminary development, there are five projects totaling nearly 600,000 sq. ft.: three are bulk
<br />warehouse buildings and the other two are office warehouse buildings.
<br />• In other activity to report, Eden Prairie-based Department 56 Inc., which sells collectibles and giftware,
<br />terminated its lease at a 335,000-sq.-ft. distribution center in Rogers and will vacate the space by the end of
<br />December. Morgan Stanley, which owns the building, has signed a 10-year lease with Walgreen's for the entire
<br />space; the lease will start March 1. This is a new distribution requirement for the national drugstore chain. This
<br />building is not in the multi-tenant universe because it's asingle-tenant building, but it is a significant transaction
<br />in the market.
<br />• Other big users are looking for space in the Northwest. For example, Plymouth-based ev3 Inc., afast-growing
<br />medical device company, is looking for 300,000 to 500,000 sq. ft. for a new headquarters. It currently leases a
<br />64,000-sq.-ft. manufacturing and R&D facility and a 50,000-sq.-ft. headquarters property in Plymouth. These
<br />leases, which expire in 2009 and 2010, respectively, are with Liberty Property Trust. Also, ev3 has a 16,000-sq.-
<br />ft. distribution center in Brooklyn Park. Eva likely will do a build-to-suit to own or lease because there are no
<br />existing options large enough to meet their requirement. It may take 18 to 24 months for abuild-to-suit to be
<br />completed.
<br />http://outlook.uproperties.com/Screens/Industrial/Northwest.aspx 2/4/2008
<br />
|