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Fargo, ND-based Dakota REIT has paid $9.15 million for two buildings in Apple Valley, MN from Excelsior Group, according to brokers from the Minneapolis office of CBRE, which represented the seller in the sale.
The St. Louis Park, MN-based real estate investment firm has held the properties since purchasing them for $7 million in June 2013, according to CoStar data.
See CoStar COMPS #2772947.
Housing the corporate headquarters of Questar Assessments Inc., which makes and administers online testing for K-12 schools, the Apple Valley Business Center complex includes a 48,733-square-foot, single-story office building at 5550 W. Upper 147th St. and a 56,320-square-foot distribution center at 14720 Energy Way. The structures were constructed in 2002 and 2005, respectively, according to Dakota County records.
Questar has occupied the buildings since 2006, and has a long-term lease at the site.
Executives from Excelsior Group and Dakota REIT did not respond to requests for comment.
The properties’ main draw was that they are fully occupied by an attractive, long-standing tenant, which makes them a low-risk investment with reliable cash flow, CBRE broker Judd Welliver said in a prepared statement.
Dakota REIT has two portfolios, one focused on multifamily properties and another for its commercial buildings. None of the multifamily properties currently among its holdings are in the Twin Cities, but the REIT’s commercial footprint here is significant.
Prior to the deal with The Excelsior Group, Dakota REIT had eight properties in the region, including two retail centers and six business parks or office properties, according to its most recent annual report to shareholders. All but one had occupancy rates over 90 percent.
