Eden Prairie-based Interstate Development has paid Wisconsin-based Quad/Graphics $3.675 million for a campus the printing, marketing and communications company has closed in Shakopee.
Valley Industrial Interstate LLC closed Jan. 27 on the acquisition of a 160,000-square-foot building, built in 1980 on 11 acres at 4101-5101 Valley Industrial Blvd. S. The seller was QG Printing II LLC, a Quad/Graphics entity, which bought the property in 2013 for $5.6 million.
Eric Simmer, partner in Interstate, is enthusiastic about the new value-add project.
“Our acquisition of 5101 Valley Industrial will allow us to deliver a tremendous value to future tenants,” Simmer said in an email interview. The building has 160,000 square feet of space, 21.5 feet of clear height and rail access.
“If there are users in the southwest market who don’t necessarily need a brand-new building, we’ve got one where the net rents will start with a 3,” he said. “This represents significant savings for the right entrepreneurial valueminded group. The building will be ready to show April 1, after the decommissioning is complete and we have a chance to white box it.”
The property drew significant interest from buyers and sold within 30 days, said Chris Hickok, managing director in the Minneapolis office of JLL, who represented the seller.
The Edina office of Tradition Capital Bank provided financing, while Minneapolis-based Messerli Kramer handled the legal work.
Interstate’s long-term holdings include 46 buildings, with 73 tenants and 2.2 million square feet of space across 5 states.
The 2013 sale was part of Quad/Graphics $267 million acquisition of American Color Graphics Inc., based in Baltimore. Quad/Graphic announced in 2019 that it would close the Vertis Communications operations at the site and move them to other company locations. It was the company’s last property in Minnesota. Quad/Graphics closed its St. Cloud plant in 2014 and its Waseca plant in 2017.
Place: 4901-5101 Valley Industrial Blvd. S., Shakopee
Price: $3,675,000; $22.97 per square foot; 1031 exchange
Buyer: Valley Industrial /Interstate Development, Eden Prairie
Seller: QG Printing II LLC/Quad/Graphic, Sussex, Wisconsin