15306-15500 Highway 7, Minnetonka
After months of delays and design changes, Minneapolis developer Mark Davis has closed on land deals totaling $4.6 million, clearing the way for construction to start next week on the 63,000-square-foot Minnetonka Medical Building.
“We’re excited to get going on this,” said Davis, principal in The Davis Group.
Davis and partner Michael Sharpe worked with Robbinsdale-based North Memorial Health Care on market studies and determined that Minnetonka would be a strong location for a new building. But finding a site was a challenge.
“In maturing communities you simply can’t find an open site,” he said. “We had to cobble together seven properties to make it work.”
MMB Medical Partners LLC, an entity related to his company, has closed on the purchase of three commercial buildings at 15306, 15400 and 15500 Highway 7 in Minnetonka as well as four houses directly north of them on Highwood Drive. The first deal closed a few weeks ago; the last deals closed Tuesday, Davis said. Not all of the certificates of real estate value were available when this column was prepared.
The 5.5-acre site is on a narrow band of commercial land between Highwood Drive and a frontage road along on the north side of Highway 7, just west of Williston Avenue.
North Memorial has signed a lease for 35,000 square feet and has an option to lease an additional 7,400 square feet for an ambulatory surgery center. North Memorial will continue to operate the clinic it already has at 2000 Plymouth Road in Minnetonka.
The project was set for construction in July, but neighbors in the residential area north of Highwood Drive site raised concerns about traffic and how the size of the building would change the feel of the area.
“We made significant changes to the design,” Davis said. The building went from a rectangle to a square, setbacks were increased, and a large buffer was created to minimize the impact on the neighborhood, he said.
Pat Giordana of BDH+Young of Edina designed the building and Pimco Construction Inc. of Plymouth is the general contractor. Completion is set for September 2014.
The building is the second medical office building Davis is developing in Minnetonka. Construction is underway on the $7.5 million, 29,400-square-foot building at 10709 Wayzata Blvd. Minnesota Eye Consultants PA is leasing the entire space as its newest clinic. The practice already has locations in Blaine, Bloomington, Maplewood, Minneapolis, New Prague and Plymouth. That building is set to open Feb. 1.
Purchase price: $4.6 million (cash)
Price per acre: $836,364
Property ID: Multiple property IDs; see CRV
Date of deed: 9-17-13
ECRV released: 9-18-13
218 Ninth Ave. N./900 Third St. N., Minneapolis (Submitted image: Schafer Richardson)
218 Ninth Ave. N./900 Third St. N., Minneapolis
Description: The 54,000-square-foot former Gurley Candy Manufacturing Building and Fannie Mae addition, an office and warehouse space, to be converted to 30 market-rate apartments and 10,000 square feet of retail space.
Buyer: Gurley Lofts LLC, an entity of Schafer Richardson, Minneapolis
Seller: FTK Properties, Crystal; Dennis F. Walsh and Walsh Bishop Associates Inc., Stockholm, Wis.
Purchase price: $2.425 million
Price per square foot: $44.91
The transaction: A former North Loop candy factory is about to get a sweet new life as Gurley Lofts, a 30-unit, market-rate apartment building in one of the hottest neighborhoods in Minneapolis.
Gurley Lofts LLC, an entity related to North Loop developer Schafer Richardson, paid $2.425 million for the Gurley Candy Manufacturing Building, built in 1919, and what’s known as the Fannie Mae addition, built in 1949. The finished project will use 900 Third St. N. as the address for commercial and retail users in the Gurley Candy Manufacturing Building and 218 Ninth Ave. N. for the Gurley Lofts apartments.
“The windows are enormous,” said Kit Richardson, principal in Schafer Richardson, describing the natural light, high ceilings and open design of the interior.
Richardson said the company has been working for more than a year to develop contemporary loft-style apartments that keep the industrial feel of the space and allow the original part of the building to qualify for historic tax credits.
There will be four units per floor in the main building and six units per floor in the addition, which isn’t a historic space. The design has a mix of studio, one- and two-bedroom units and one three-bedroom unit, with rents ranging from $970 to $2,950 per month. The first units should be available before the end of the year, with the rest available in the first quarter of 2014.
Schafer Richardson bought the building from FTK Properties and the architectural firm Walsh Bishop, who bought it for $2.2 million in 2008 with plans to redevelop it. The recession killed those plans and the owners decided to let someone else take it on, Richardson said.
Last sale: The sellers paid $2.2 million in 2008.
Property ID: 22-029-24-21-0054/0085
Date of deed: 9-16-13
ECRV released: 9-17-13
925 Fourth St. SE, Minneapolis (Submitted photo: CoStar)
925 Fourth St. SE, Minneapolis
Description: 6,256-square-foot, 45-room hotel, built in 1958
Buyer: CPM Hospitality LLC, Minneapolis
Seller: Gopher Motel Inc., Edina
Purchase price: $2.5 million
Price per room: $55,556
The transaction: Minneapolis-based CPM Cos., has acquired the University Inn, a 45-unit hotel built in 1958 at 925 Fourth St. SE in Minneapolis. CPM Hospitality, an arm of the company, paid $2.5 million for the hotel, one of a growing portfolio of properties CPM owns near the University of Minnesota’s main campus.
CPM and its co-founder Daniel Obepriller are best known for apartment development. The company’s biggest project to date is a current proposal for the $75 million, 333-unit WaHu student housing project east of TCF Bank Stadium.
Oberpriller didn’t return calls for this story.
Last sale: Solar Corp. paid $442,000 in 1992, and passed it to Gopher Motel Inc. through a quit claim deed in 2008.
Property ID: 24-029-24-31-0112
Date of deed: 9-13-13
ECRV released: 9-18-13
Source: Finance & Commerce