Positive End to 2023 for Twin Cities Retail Real Estate Market
After a challenging year characterized by high interest rates, construction costs, and online competition, the Twin Cities retail real estate market closed out 2023 on a positive note. Essential Growth Properties, an Ohio-based company, made its market debut by acquiring Elk Park Center for $20.8 million. The shopping center, located at 19216 Freeport Ave. in Elk River, is anchored by Cub Foods.
The transaction was facilitated by the JLL Capital Markets team in Minneapolis, including Matt Hazelton, Cory Villaume, and Bill Krebsbach. Hazelton noted that there were very few trades above $20 million in the past year, and even fewer transactions involving grocery-anchored centers. In fact, Elk Park Center is only one of three properties this year to surpass the $20 million mark. The JLL team members were involved in selling two of these properties, positioning them as key players in the market.
Notably, Blaine’s Northtown Mall secured the top spot, selling for $31 million in August to 4th Dimension Properties, a newcomer to the market based in Hollywood, Florida. This sale is expected to bring new development and excitement to the area, according to Erik Thorvig, Blaine’s community development director.
Another encouraging transaction was the sale of Crossroads Center in Roseville, which was acquired by HJ Development for $29 million in April. The center, occupying 357,115 square feet at 1643 County Road B2 W., boasts a 97% occupancy rate and is home to prominent tenants such as Dick’s Sporting Goods, Kohl’s, and Best Buy.
While the past year presented challenges for transactions involving debt, demand for retail properties remains strong. However, there has been limited availability of properties for sale. Chris Allen, the national director of analytics for REDIComps, a data provider for MNCAR, expressed optimism about vacant spaces being filled soon.
In conclusion, the Twin Cities retail real estate market experienced a positive end to 2023, as exemplified by the successful transactions of Elk Park Center, Northtown Mall, and Crossroads Center. Despite the challenges posed by the past year, the market continues to show resilience and strong demand, signaling a positive outlook for the future.
FAQ
1. What were the top retail sales in 2023 in the Twin Cities?
The top retail sales in 2023 in the Twin Cities were:– Northtown Mall in Blaine, sold for $31 million– Crossroads Center in Roseville, sold for $29 million– Elk Park Center in Elk River, sold for $20.8 million
2. Who were the buyers and sellers in these transactions?
The buyers and sellers in these transactions were as follows:– Northtown Mall: Buyer – 4th Dimension (Hollywood, Florida), Seller – Washington Prime Group (Columbus, Ohio)– Crossroads Center: Buyer – HJ Development (Plymouth), Seller – CSHV Crossroads, LLC (c/o California State Teachers’ Retirement System of West Sacramento, California)– Elk Park Center: Buyer – Essential Growth Properties (Ohio), Seller – Freeport Elk River LLC (Broomfield, Colorado)
3. What are the future prospects for the Twin Cities retail real estate market?
Despite the challenges faced in 2023, the Twin Cities retail real estate market remains resilient. Demand for retail properties remains strong, and there is optimism that vacant spaces will be filled soon. This indicates a positive outlook for the future of the market.