Tight Warehouse Market Drives Multiple Bids

Global Food Properties and The Brookshire Company are pleased to announce the sale of a 117,270 SF dry mixing and packaging plant in Minneapolis, MN. Global Food Properties and The Brookshire Company represented the Seller, a leading private-label food manufacturer; and Colliers Minneapolis-St. Paul represented the Buyer, a locally-based real estate investor and development firm. The relatively adaptable space will be repurposed for single-tenant, non-food, distribution.

Challenge

The brokerage teams’ primary task was packaging a special-purpose asset for higher use. Fortunately, dry mixing and packaging ambient snack products requires minimal infrastructure, and even less heavily engineered and customized interior finishes. As such, the property was readily adaptable to generic industrial use, or non-specialized warehousing and distribution. A significant advantage was an interstate-adjacent location, midpoint between downtown Minneapolis and St. Paul.

Outcome

The availability created significant interest, across many industries. Prospects included general and “last mile” logistics companies, light industrial users, and non-refrigerated food production companies. The Twin Cities’ low vacancy resulted in dozens of plant tours, and multiple bids. The Seller’s wisdom in tethering the outcome to the expertise of two firms, adding food expertise to a dominant industrial capability, resulted in an elevated price, compressed vacancy, and redeployment of a surplus asset.

For additional details, please contact: Jeffrey J. Counsell, Co-Founder & Managing Broker, Global Food Properties +1 312 589 8844 / jeff.counsell@globalfoodproperties.com