Interstate Development - Media

Just Sold: Interstate Development sells $12M portfolio in Maple Grove

Published May 30, 2018
By: Anne Bretts

Eden Prairie-based Interstate Development has sold a $12 million office warehouse portfolio that includes this building at 9464-9496 Hemlock Lane N. in Maple Grove and two others in the Five Star Commerce Center. Interstate bought the portfolio for $9 million in 2015. (Submitted photo: CoStar)

Editor’s note: “Just Sold” is a Finance & Commerce feature based on certificates of real estate value recently filed for commercial transactions and significant residential transactions in Twin Cities counties. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State’s Office, company documents, online real estate listings, F&C archives, CoStar and other research. Some purchase prices and per-unit calculations have been rounded. Full prices are available on the CRVs posted here.

Eden Prairie-based Interstate Development has sold the three buildings in the Five Star Commerce Center in Maple Grove for $12.47 million, a significant jump from the $9.07 million it paid in 2015.

In a May 24 deal, an Interstate entity named 610 Industrial LLC sold the buildings on the Five Star campus to Kenwood-Rosewood Apartments LLP and Royal Oaks Partners LLC, two entities related to Fargo, North Dakota-based Sterling Office and Industrial Trust. The sale was part of a 1031 exchange.

In a second internal transaction, the two entities sold the properties to a third within the trust, which assumed an $8.027 million, 10-year mortgage with a fixed interest rate of 4.79 percent.

The properties total 163,336 square feet, and the purchase price worked out to an average of $76.34 per square foot.

The properties:

  • Five Star Commerce Center I, 9464 Hemlock Lane N., a 47,116-square-foot Class B flex light manufacturing building, built in 1999 on 3.3 acres.
  • Five Star Commerce Center II, 11701-11741 95th Ave. N., a 67,000-square-foot Class B industrial manufacturing building, completed in 1999 on 4.45 acres.

Purchase price: $12.47 million

Price per square foot: $76.34

Last sale: $9.07 million in 2015

Property ID: (Building I) 11-119-22-42-0009; (Building II) 11-119-22-43-0010

Date of deed: 5-24-18

ECRV released: 5-29 -18

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