 |
Madison, WI-based Sara Investment Real Estate paid Minneapolis-based United Properties $19 million for 58,531 square feet of retail space at its Penn & American retail center – a large mixed-use development that includes a Fresh Thyme Farmers Market grocery store, apartments and a hotel in Bloomington, MN.
Sara only purchased the portion of the retail space tied to Phase II of the development, which was completed in 2015 and includes the Fresh Thyme building and the ground floor retail beneath the 107-room Home2 Suites hotel, which includes a Red Robin restaurant, an AT&T location and a nail salon.
The hotel itself was not a part of the transaction, and neither were the apartment and townhome complex on the south side of the site, and the remainder of the retail space completed in Phase I.
Executives at Sara did not respond to a request for comment, but Minneapolis-based United Properties provided a brief statement about the deal.
“UP is very proud of the Penn & American asset and believe it’s a great value for the community. That said, the sale of Penn & American reflects our strategy to sell some assets, freeing up capital to procure new assets,” the company said through its spokesperson, Sheila Thelemann.
In the statement, Thelemann added that a number of investors considered the property, but United Properties was looking for a buyer with a knack for managing mixed-use sites.
“Retail / mixed-use developments are complex properties requiring a highly-specialized investor. We are pleased to have found a buyer for Penn & American who has those capabilities,” she wrote.
| Deal Summary: |
|---|
| Building: Portion of Penn & American Address: 2100 W. 80 1/2 St. Size: 58,531 SF Price: $19 million ($325 /SF) Buyer: Sara Investment RE Seller: United Properties Broker(s): Tom Fritz, Brandon Duff, Matt Spangenberg and Mackenzie Wolfgram – Stan Johnson Co. |
| CoStar COMPS #4399695. |
Penn & American is one part of a broader redevelopment effort initiated by the city of Bloomington in 2007 to transform a 160-acre section of aging building stock in Hennepin County. At the time, the nine-acre parcel where Penn & American sits was occupied by several car dealerships.
United Properties partnered with Bloomington-based StuartCo on Phase I of the development, which included 234 rental units spread over three buildings and 14,000 square feet of retail on the ground floor. The $45 million complex opened in 2012.
Phase II followed three years later. According to the city, discussions about a third phase will begin later this year.
With its new acquisition in Bloomington, Sara now owns seven properties in the Twin Cities – a portfolio that represents office, retail and industrial space, including three high-profile properties in Minneapolis’ chic Northeast neighborhood. Outside of Minnesota, the company has holdings in Madison, Milwaukee and St. Louis.
