Services Provided:

Brokerage, Capital

Industries:

Industrial, Investment

Location

Minneapolis, MN

Brokers:

, Steve Nilsson, David Berglund

Project Summary

Upon the Nilsson/Mork/Simek team successfully securing a 8 year lease deal with client Illinois Central School Bus in September 2011, the tenant elected to close this Minneapolis operation in July of 2013.

The listing team quickly engaged a new user to the site, Sunbelt Rental Inc., who ultimately agreed to a new direct 15 year lease with the Landlord, Hillcrest Development and thereby terminated the existing lease in place with Illinois Central.

Shortly after the lease-up of Sunbelt Rental Inc., the industrial team of Nilsson/Mork/Simek partnered with Colliers investment team of Berglund/Kolsrud/Ryan to market this long term income producing asset to the investment community.

After 30 days of marketing this property to the investment community and with the help of Tim Smith of Welsh Capital, 900 Hennepin Avenue was sold to a 1031 Exchange buyer in December of 2014 for over a 600% increase to what it was purchased for by Hillcrest in 2008.

 

The purchase financing for this deal was provided by Welsh Capital:

Purchase of a 43,554 Industrial building on 4.3 acres

15 year NNN lease with a national tenant

80% LTV

10 year term / 30 year amortization

No prepayment penalty

The buyer was looking for a 10 year fixed rate and as much leverage as possible so, the 80% loan to value really made the deal work.