Northmarq’s Minneapolis office arranges $15.1 million acquisition loan for five-building industrial tech portfolio in Eden Prairie and Eagan
MINNEAPOLIS, MINNESOTA (July 21, 2022) – Bill Mork, vice president of Northmarq’s Minneapolis office, secured $15.1 million in acquisition financing for the “South by Southwest Technology Portfolio,” a five-building industrial tech portfolio with properties located in the Golden Triangle district of Eden Prairie, Minnesota, and Eagan, Minnesota.
The permanent fixed-loan was arranged for the buyer, Edina-based Capital Partners, which is aggressively expanding its industrial portfolio in the Twin Cities and now has nearly 11 million square feet under ownership and management.
Northmarq arranged the loan for the Borrower through its relationship with a local/regional bank. Northmarq was able to secure a 3.92 percent long-term, fixed-rate loan with an interest only component for the Borrower. Notably, the Lender was willing to lock rate immediately and hold it for 90-days.
“The immediate rate lock at sub 4% allowed our client to hedge against rising interest rates prior to funding,” said Mork. “With rates increasing over that time period (as high as 90 basis points), the opportunity cost of not locking would have equated to a substantial amount of additional debt service during the life of the loan.”
The Portfolio:
Southwest Crossing Tech Center I, II, III and IV – located on Viking Drive in the Golden Triangle area of Eden Prairie, a regional employment center in the Twin Cities west metro submarket surrounded by Highways 212 and 169 and Interstate 494. The buildings, constructed in 1985, offer attractive glass lines with decorative brick exteriors as well as drive-ins and dock door loading.
Waters II, 2915 Waters Road, Eagan -- located in the Waters Business Park, near Viking Lakes, a live/work/play development and home to the Minnesota Vikings’ training facility. The high-image building, built in 1989 and located in the metro’s southeast submarket, features glass and a brick exterior and beautifully landscaped grounds, with easy access to Interstates 35 and 494 and Highway 55.
“Capital Partners is the premier owner and operator of Industrial Real Estate in the Twin Cities and the SxSW acquisition will be a great addition to their rapidly growing portfolio,” Mork noted.
Northmarq is a full-service capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales, loan servicing, and fund management. The company combines industry-leading capabilities with a flexible structure, enabling its national team of experienced professionals to create innovative solutions for clients. Northmarq's solid foundation and entrepreneurial approach have built an annual transaction volume of more than $39 billion and a loan servicing portfolio of more than $76 billion. Through the 2022 acquisition of Stan Johnson Company and Four Pillars Capital Markets, Northmarq established itself as a provider of opportunities across all major asset classes. For more information, visit: www.northmarq.com.
