Just Sold: Capital Partners buys Normandale Tech Center
Peter Mork, founding partner in Capital Partners, is the lead investor in the acquisition. He put together a group of limited partners that split ownership, with NTC M LLC taking one-sixth interest, NTC S LLC and NTC K LLC each taking one-12th interest, and NTC P and NTC Q LLC each taking one-third interest.
The sole seller was DRF IV LLLP, an entity related to Frauenshuh, which bought the property in 2008 for $10.34 million.
The 162,669-square-foot center includes two flex buildings, built in 1980 on 9.65 acres at 6401 Cecilia Drive in Bloomington. The multitenant center includes eight exterior docks, six drive-in doors and 16½-foot clear height. The center is about 95 percent occupied with 21 tenants, including LMS Technologies, Inc., True Lacrosse, Pilcrow Solutions and FedEx.
The sale price works out to $64.86 per square foot.
“This is going to be a long-term hold for us,” said Mork.
Capital Partners owns and manages about 50 properties across the Twin Cities. He cited the access and visibility along Interstate 494 as key reasons for responding quickly when Frauenshuh began marketing the building quietly.
“This is right in the heart of where people look for this product style,” Mork said, noting that more than 200,000 cars pass the site on the interstate each day.
Moving fast on opportunities is important, Mork said.
“There’s just not a lot of good product on the market,” he said. “It’s too expensive to build and all the infill locations are developed.”
Mork said the building is in pretty good shape, but he plans to add some new signage, accent painting, as well as a flag display that’s become the company’ signature. The display includes the U.S. flag, the Minnesota state flag and the POW-MIA flag.
Jonathan Juris, vice president of corporate services for Frauenshuh, represented the company. He was not available Monday.
Purchase price: $10.55 million with $3.65 million down payment and new financing, part of a 1031 exchange
Price per square foot: $64.86
Last sale: $10.34 million in 2008
Property ID: 17-116-21-12-0007
Date of deed: 6-26-18
ECRV released: 7-5-18