In a blockbuster deal for the local market, San Francisco-based Prologis has traded the lion’s share of its Twin Cities industrial portfolio to London-based EQT Exeter.
Sources and real estate documents released this week reveal that 20 buildings with more than 4 million square feet of total space fetched roughly $400 million as part of the deal with more transactions between the same buyer and seller still to come.
Mattie Sorrentino, director of corporate communications for Prologis, confirmed in an email Thursday that Prologis has “sold the majority of its industrial properties in the MinneapolisSaint Paul market, which is part of the company’s longer-term strategy following its acquisition of Duke Realty in 2022.”
Representing the seller was the team of Judd Welliver , Bentley Smith , Michael Caprile , Ryan Bain , Zachary Graham , Joseph Horrigan ,and Victoria Gomez with CBRE National Partners.
A pending sale of three additional buildings with a combined 1 million square feet is expected to close soon, bringing the total portfolio to more than 5 million square feet of space with a roughly $450 million price tag, a source close to the deal told Finance & Commerce.
Historically, Prologis has not had a major long-term presence in the Twin Cities and has sold off big chunks of local property after acquiring other companies.
For example, as part of a $247 million deal in April 2021, Prologis sold a 22-building portfolio of Twin Cities industrial properties to Blackstone Group. CBRE’s Senior Associate Bentley Smith and Executive Vice President Judd Welliver brokered that deal.
Finance & Commerce reached out to EQT Exeter for comment Thursday.
EQT Exeter is a real estate investment manager with more than $29 billion of equity under management, according to its website. The company says it “acquires, develops, leases and manages industrial, office, life sense and residential properties in Europe, the Americas and Asia.”
EQT Exeter’s local assets include a 101,655-square-foot office building in Chanhassen and a 375-unit apartment building in Eden Prairie, according to the website.
As of Thursday afternoon, real estate documents have been made public for about half of the properties in the recently sold portfolio, including buildings in Eagan, Shakopee and Brooklyn Park. Among those is the 374,700-square-foot Gateway South 2101 building at 2101 Fourth Ave. E. in Shakopee, which sold for $30.6 million.
Major tenants at Gateway South include a My Pillow outlet store, according to Catylist.
Finance & Commerce reported in November 2020 that My Pillow renewed a lease at the Gateway South 2101 industrial park and that the company planned to expand its footprint within the building. In 2017, Duke Realty announced that My Pillow planned to consolidate operations from three facilities and occupy 172,836 square feet of space in the Shakopee building.
Based on the published CRVs, other properties in the portfolio include:
- 9200 to 9250 Xylon Ave. N. in Brooklyn Park ($16.8 million)
- 920 Apollo Road in Eagan ($17.35 million)
- 940 Apollo Road in Eagan ($9.46 million)
- 950 Apollo Road in Eagan ($20.59 million)
- 1279 Trapp Road in Eagan ($9.49 million)
- 2301 Fourth Ave. E. in Shakopee ($19.45 million)
- 3880 Fourth Ave. E. in Shakopee ($14.65 million)
- 7300 Northland Drive in Brooklyn Park ($14 million)
- 9100 Wyoming Ave. N. in Brooklyn Park ($18.5 million).
The portfolio sale dwarfs the biggest transaction of its kind in 2023. Finance & Commerce reported in December that the top industrial transaction of 2023 was aseven-building recapitalization deal worth $88 million. Topping the 2022 list was a 17-property portfolio, which sold for $248.9 million.
More than 2.5 million square feet of industrial space is under construction in the Twin Cities and vacancy is about 4.5%, according to a first quarter 2024 market reported released this month by Cushman & Wakefield.
RELATED: Blackstone buys 22-building portfolio for $247M Just Sold: Plymouth distribution center draws $19.3M Copyright © 2024 BridgeTower Media. All Rights Reserved.
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