Cushman & Wakefield’s Lance Steiger and Robert Dulin arranged the sale of Riverwalk Flats, a 96 apartment building, and the nearby Riverwalk Lofts building which has 10,000 square feet of office condo space, in the North Loop neighborhood of Minneapolis.
The Minneapolis design center International Market Square has been sold for nearly $29 million.
The facility, which has more than 100 design showrooms and galleries, was sold last week to a partnership that includes Minneapolis-based Eagle Ridge Partners as well as an unnamed family and a group of local investors. Tom O’Brien Cushman & Wakefield represented the seller in the transaction.
The sale includes the complex’s approximate 374,000 square feet of commercial space, the upper three levels of the adjacent parking ramp and two nearby surface parking lots. The group paid just under $85 per square foot.
This year and last have been relatively good times for the Twin Cities’ office and industrial commercial real estate markets. Vacancy levels in the office market are nearing pre-recession lows while a massive building boom has been ongoing in the industrial sector.
A panel of top local experts met for an industry-sponsored event at the Hopkins Center for the Arts to assess whether the trends will hold. Their verdict generally was “yes,” though likely not as robustly.
Executive Director Tom O’Brien, a member of Cushman & Wakefield’s Capital Markets Group, was a featured speaker recently at an event attended by financial executives from all over the metro.
Tom was a panel member at Financial Executives International (FEI) Twin Cities’ professional development session June 28, held at the Golden Valley Country Club.
Tom took the stage with other financial experts to share an overview of the real estate sales and financing market in the Twin Cities and nationally. Other speakers included representatives of Winthrop & Weistine, KPMG, Well Sargo, BDO and other notable companies.
FEI is the preeminent professional association for senior financial executives, representing over 10,000 leaders nationally. FEI provides peer networking opportunities, emerging issue alerts, personal and professional development and advocacy resources that advance the success of FEI members, their companies and the profession.
By: Adam Rae Voge
Cushman & Wakefield’s Hospitality and Gaming Valuation and Advisory Group recently released its March 2017 US Lodging Industry Overview. The report has a number of findings that parallel what we are seeing here in the Midwest.
As noted in our January 2017 Hotel Compass Report, the report notes that 2016 marked another year of continued highs for national occupancy (65.5 percent) and ADR ($124), while the resulting $83.00 average RevPAR represented an increase of 3.3 percent over 2015. The report indicated that in 2017 demand growth is forecasted to lag supply increases for the first time in seven years.
The report also indicated that the average rate growth in 2017 is forecast to be 2.8 percent nationally. This is below the average rate growth of the last six years, which ranged from 3.3 to 4.6 percent. Although most of these moderating trends were expected by the end of 2016, the overall environment is still positive and continues to support strong investor interest in acquiring and developing hotel assets.
We have also seen evidence of the first occupancy declines here in Minnesota, which should be viewed in light of the amount of new supply that has emerged in many markets. Amongst the top 25 lodging markets in 2016, Minneapolis had the 4th highest year-over-year percent increase in ADR at 5.9 percent, and the 5th highest year-over-year RevPAR increase at 5.0 percent. Despite the strong environment, there is reason for some to be cautious.
In Minneapolis and across the Midwest, the majority of new supply continues to be concentrated in upscale to upper-midscale select service developments, although there are many midscale projects being pursued in more secondary and tertiary markets. Despite widespread new supply, we are still seeing high levels of interest in hotels of all types, particularly in well positioned and/or value-add opportunities, another sentiment reflected in the report.
The report indicates that cap rates for full-service hotels remained flat nationally in 2016 at 7.9 percent, but increased 14 basis points to 8.8 percent for limited service hotels. Please visit here for more on the report.
Cushman & Wakefield Director Leah Maurer has arranged for the sales of Edinburgh Festival Centre and Shingle Creek Shopping Center, two nearly fully occupied retail assets in the northwest Twin Cities market.
Director Leah Maurer joined a panel of other industry experts to discuss the state of the commercial real estate brokerage industy this past week.
The annual event, hosted by MNCAR, featured industry analysis from the point of view of Capital Markets brokers.
Among the insights she shared with the many in attendance at the Metropolitan Ballroom, Leah said she remains bullish on retail property sales in Minneapolis-St. Paul, even as some investors pause to gauge the impact of expanding Hy-Vee on grocery-anchored retail centers.
Leah also spoke in favor of broker specialization and collaboration in real estate transactions, arguing that both ultimately provide better value for real estate clients.
Leah recently celebrated 10 years with Cushman & Wakefield. In that time she’s been honored as an Emerging Leader in Retail by Real Estate Forum and a Top Woman in Finance by Finance & Commerce, among other awards.
By: Adam Rae Voge
A half-block site next to the Minneapolis Convention Center is listed for sale by Cushman & Wakefield as a likely spot for a new hotel.
The 1.2-acre site at 228 S. 12th St. is directly across the street from the city-owned event center and on the same block as the Hotel Ivy.
The Cushman & Wakefield Hospitality Team of Ronn Thomas and Tim Storey represented BD Hotel Ventures in the sale of the 151-room Radisson Hotel in Fargo, North Dakota. The sale closed Friday, December 2.
At 201 Fifth St. N. in Fargo, the Radisson has ideal access to downtown Fargo, with such attractions as the Fargo Theatre, Plains Art Museum and the Fargo Civic Center within an easy walking distance. North Dakota State University and the Fargodome are within a short drive of the Radisson.
The 18-story hotel is also known as the second-tallest building in all of North Dakota, behind only the state capital building in Bismarck.
“The Radisson was an attractive property for potential investors because it’s one of the area’s premier hotels,” said Thomas. “The building was recently renovated, and it’s connected to the downtown Fargo skyway system.”
The industrial and office markets should continue to be busy over the next year or two, according to a panel of commercial real estate professionals who spoke this month.
At “Riding the Wave: What’s Next?”, an event hosted by Minnesota NAIOP in conjunction with MNCREW, MNCAR, the Minnesota-Dakotas Chapter of CCIM and SIOR, eight industry leaders took a look at key trends and existing demand in the office and industrial markets today, as well as giving a packed Hopkins Center for the Arts an idea of what may be yet to come.
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