Nicola Wealth’s 22-building portfolio nears $198 million

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The total cost of Nicola Wealth Real Estate’s recent 22-building industrial portfolio acquisition is nearing $198 million, as public records for 18 of the properties have emerged.

With these figures, the portfolio is shaping up to be among the largest industrial acquisitions of the year in Minnesota. The Canadian investor acquired 1.9 million square feet of properties in the metro area in late September, which rivals Blackstone Group Inc.’s purchase of a 22-building industrial portfolio for $247 million in April.

Warehouse, industrial, manufacturing and office properties make up the portfolio. The properties are in Chanhassen, Blaine, Plymouth, Rogers, Brooklyn Park, Fridley, St. Paul and St. Louis Park. These include the Dell Five Business Park properties in Chanhassen, Lexington Preserve Business Park in Blaine, and Plymouth’s Medicine Lake Industrial Center, according to CoStar information

The Minneapolis-St. Paul office of Colliers represented the seller, who used different LLCs for most of the transactions. According to Minnesota business filings, the LLCs are related to Revantage North America, the real estate arm of Blackstone. The properties sold this month appear to be different from the ones Blackstone acquired in April.

When Blackstone acquired its industrial portfolio in April, CBRE’s Senior Associate Bentley Smith, who was on a team that brokered the deal, said “there’s a deep bench of capital that’s looking for industrial properties.”

Nicola Wealth Real Estate is the in-house real estate team of Nicola Wealth, a Canadian financial planning and investment firm. The company has $10.7 billion in assets under management, according to its website.

“With the demand for industrial warehouses and distributions at an all-time high, sourcing and selecting a buyer was a highly competitive process,” Mark Kolsrud, a Colliers senior executive vice president who worked on the deal, said in a press release that Finance & Commerce reported. “Our team and the seller feel very fortunate to have found a reliable and committed buyer in Nicola Wealth. We wish them the best of luck on their first investment in the Twin Cities.”

The $197.395 million acquisition was Nicola Wealth’s first Twin Cities purchase, which expands the company’s growing industrial portfolio. The metro area’s low-vacancy rate partially drove Nicola Wealth’s interest. The Twin Cities market had a vacancy rate of 3.6% on existing 374 million square feet of inventory, according to the release.

“We are excited to expand our U.S. industrial footprint in an established and stable market such as Minneapolis,” Matthew Schaeffers, director of acquisitions at Nicola Wealth Real Estate, said in the release. “This acquisition presents an opportunity to add a diversified portfolio in a low-vacancy environment that offers attractive risk-adjusted returns.  These assets provide immediate scale complementary to our overall cluster strategy in established and promising markets.”

The following properties have been made public as of publication time on Wednesday. Property information was sourced from CoStar, electronic certificate of real estate values, county property records and Nicola Wealth’s website.

  • A grouping of Chanhassen properties, home to industrial and office space, sold for $57.37 million. These include buildings in the Dell Five Business Park. The properties are located at 18251, 18640, 18701, 18720, 18751, 18860, 18902 and 18940 Lake Drive E. The down payment for the more than 400,000-square-foot grouping was $27.82 million.
  • One of Chanhassen’s Dell Five buildings, at 19011 Lake Drive E., sold in a separate transaction for $17.5 million. This included a $6.25 million down payment. Nicola Wealth’s website says it owns more addresses in the Dell Five park, which totals over 556,000 square feet. The park, built between 1982 and 2000, is located at 18640-19011 Lake Drive E.
  • The 1988 Lake Drive Business Center, at 950 Lake Drive in Chanhassen, sold for $20.75 million. The over 192,000-square-foot building has multiple tenants in its office and industrial space, and its sale included a down payment of $8.25 million.
  • Blaine’s Lexington Preserve II, built in 2005, and another nearby industrial property, built in 2013, sold for a combined total of $32.5 million. In all, these properties, at 3860 and 3890 Pheasant Ridge Drive NE, have a combined total of nearly 275,000 square feet. Its sale included a $11.3 million down payment.
  • A 1977 Plymouth industrial building was acquired for $20.6 million, which included a $7.6 million down payment. The over 210,000-square-foot industrial and warehouse property is located at 975 Nathan Lane N.
  • A 2001 industrial property and the Diamond Lake Industrial Center II, built in 2008, sold for a combined total of $13.525 million. In all, they have less than 129,000 square feet and are located at 19725 and 19875 S. Diamond Lake Road in Rogers. The sale included a down payment of $4.425 million. • Brooklyn Park’s Aspen Distribution Center sold for $9.5 million, including a $5.05 million down payment. It’s at 7316 Aspen Lane N. and has 96,000 square feet of industrial space in the 1978 building.
  • The Beacon Bluff Business Center in St. Paul sold for $13.6 million, which included a down payment of $6.2 million. Located at 955 Wells Street, the approximately 87,000-square-foot industrial/warehouse property was constructed in 2018.
  • St. Louis Park’s Park Glen Business Center was also included in the sale. With nearly 83,000 square feet, the 1987 building offers office and industrial flex spaces. The property is located at 4200 Park Glen Road and sold for $12.05 million, which included a $5.5 million down payment.
  • The North Central I and II industrial buildings in Fridley were also included in the sale. North Central I, at 500 and 502 73rd Ave. NE and 490 and 494 Northco Drive NE, has less than 221,000 square feet in its three buildings, which were built in 1968. The North Central II building has over 66,000 square feet. It’s located at 452 Northco Drive NE and was constructed in 2001. Details about these sales weren’t available as of Wednesday.


Canadian investor acquires 22-building portfolio

Blackstone buys 22-building portfolio for $247M


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