MINNEAPOLIS (May 18, 2021) — United Properties announced today that it has broken ground on five industrial facilities in the Twin Cities, bringing nearly 750,000 sq. ft. of industrial space to the market. Half of the space has already been pre-leased, which the developers say is a testament to the strength of the Twin Cities industrial market.
“Despite the uncertainty around the economic impacts of COVID-19, and most recently the rising construction costs and material lead times, we continue to see robust leasing velocity and new tenant requirements across the Twin Cities,” says Brandon Champeau, senior vice president and market leader, United Properties. “We were poised to act on this demand, and the build-to-suit and pre-leasing activity in our speculative projects is evidence of the strength of our site positions in each submarket.”
Four of the five buildings are part of a recently announced $165 million joint venture partnership between United Properties and PCCP, a Los Angeles-based real estate investment and management firm. The joint venture will develop an 11-building industrial portfolio in Minneapolis, Denver and Austin.
The first business park development, dubbed as 610 Junction, is located at the intersection of Highways 169 and 610 in Brooklyn Park. The plan includes three industrial buildings of 110,000, 199,500 and 245,000 sq. ft. that will feature state-of-the-art specifications. The business park will open for occupancy in the fourth quarter of 2021. All but one of the buildings are spoken for, with Buildings 1 and 3 pre-leased by Marmon Holdings and JunoPacific, a subsidiary of Cretex Companies, respectively.
The second site, 35 South Business Center, situated at the intersection of Oliver Avenue and 126th Street West in Burnsville, will total 96,000 sq. ft. and is 50% pre-leased by Poly-Tex. The facility boasts a clearing height of 28 feet, multiple drive-in doors and considerable parking capacity.
The third development, InverPoint Building #2, a speculative 108,000-sq.-ft. facility, is the second phase of InverPoint Business Park in Inver Grove Heights which spans approximately 45 acres and will accommodate 460,000 sq. ft. when fully developed. United Properties completed a build-to-suit for Simpson Strong-Tie in InverPoint Business Park in 2020, subsequently selling it to STAG Industrial for a record single-tenant cap rate.
“We’re thrilled to see the amount of investor and tenant demand in the industrial space. Of the 750,000 sq. ft. of industrial space we are delivering to the market in 2021, over half is pre-leased and that is a testament to the strong market fundamentals in the Twin Cities,” says Connor McCarthy, developer director, United Properties. “We’re proud of each of the development projects and look forward to leasing the remainder of the space, and to continue more development in the Twin Cities.”
About United Properties
United Properties has been creating deep roots in the commercial real estate industry for more than 100 years. The company imagines new possibilities in real estate to help enrich communities and create lasting legacies. United Properties provides market expertise for ground-up development, redevelopment and acquisitions of value-add and stable investments. The company invests in and develops office, industrial, retail, mixed-use and senior housing properties. United Properties is owned by the Pohlad Companies and is headquartered in Minneapolis, with offices in Denver and Austin, Texas.
