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ST. PAUL-AMB Property Corp. paid $12.9 million to buy a former Dayton-Hudson Stores distribution center in Energy Park. The 250,000-sf Energy Park Distribution Center, south and west of Energy Park Drive, was sold by an institutional investor represented by the investment sales division of Bloomington, MN-based United.
"The property was nationally marketed and more than 15 written offers were received for the building," says Eric Bjelland, a vice president with United Properties. "Both institutional and entrepreneurial capital was attracted to this asset."
One reason it was sought after is that it's one of the few modern distribution buildings in the Midway area, Bjelland says. Now called Energy Park Distribution Center, located in St. Paul's Midway trade area, the building was developed by Opus in 1991 for the former Dayton Hudson Corp. After serving as a warehouse for Dayton's department store for nine years, it was closed four years ago by Target Corp., the new name for Dayton Hudson. Target has since sold its department store division to focus on the discount business.
The building was more than 80% leased at the time of the sale. The price of $12.9 million represents a average $51.6 per sf. Bjelland and Peter Rand, also a United Properties vice president, represented the seller in the transaction. United said its client has declined to be identified. A search of property records shows that an entity called 1930 EPD Corp. bought the building in 1994 for $8 million; property records listed its value at $7.9 million.
Buyer AMB Property, which is based in San Francisco, owns more than four million sf of commercial real estate in the Twin Cities, including several distribution buildings in the Midway area.
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