Congratulations to Santamaria Enterprises & Paramount’s West Team for the purchase and closing of The Cliff Town Offices!
THE BUILDING 2805 Cliff Road or The Cliff Town Offices is a ½ acre, 8,420 SF multi-tenant office building. It is class B space consisting of 3 floors and built in 2004.
Paramount Real Estate broker, Jeffrey Swanson helped his client, Santamaria Enterprises, purchase this fully leased investment property as part of a 1031 exchange for the price of $1,100,000.00. The property closed on July 20, 2020 and Jeff will stay on to help with any leasing needs the asset will have in the future. Currently we have two newly renovated, 1,200 square foot suites available for lease.
For more details about the spaces available: Cliff Town Offices For Lease
Santamaria Enterprises recently sold a building in Minneapolis that included a night club owned by the landlord. The profits from this sale were rolled into this 1031 exchange, and were used to purchase the 2805 Cliff Road building. Paramount also represented them in leasing space in Richfield, MN. They use this space to operate their Latino radio station, La Raza. Tune in and enjoy the show on 95.7 FM!
HISTORY OF THE PROPERTY
6450 Carlson Drive is a 42,760 multi-tenant office-warehouse building located off Highway 62 and Interstate 494. The Eden Prairie industrial building situated on 3.97 acres, was built in 1986. When a long term tenant vacated the majority of the building, Paramount was engaged to market the property. Initially they marketed it as a 36,885 square foot vacancy For Lease.
PARAMOUNT’S CLIENT & THE DEAL
Bloomington-based Paramount Real Estate Corporation brokers, Jeffrey Swanson, Associate and Fred Hedberg, President represented the seller in this transaction. FHM Partners, the sellers, consist of a local managing partner and two out of state passive owners.
“This Eden Prairie industrial building was on the market For Lease. We were in the midst of negotiating a 10-year lease for the building’s vacant space. This is when a user/buyer made an unsolicited offer to purchase the building. Paramount advised FHM Partners on the pros and cons of each opportunity. The partners decided that it was in their best interest to sell. The transaction moved forward quickly with only a slight delay due to a change in financing that pushed the closing out 10 extra days,” commented Jeff Swanson.
THE NEW OWNER
BLCKGLD, LLC, a Minnesota owned LLC, is the entity that recently purchased this office-warehouse building at 6450 Carlson Drive. With their upcoming expansion, a company with common ownership to BLCKGLD, LLC plans to remodel and occupy the entire building.
In conclusion, Paramount congratulates the West Team for closing on this deal!
PARAMOUNT RELOCATES POWERBLOCK’S HEADQUARTERS
Congratulations to Paramount’s East Team for their work to relocate PowerBlock’s headquarters to the Twin Cities! Read on to learn more about their history, dive a bit into the details of the deal, and see what is to come for PowerBlock!
PowerBlock Incorporated, the makers of the world’s best adjustable dumbbells, is currently based in Owatonna, MN; where Carl Towley founded the company in 1993. Moving PowerBlock’s headquarters to the Twin Cities will be monumental for this Minnesota grown, family-owned business! With a passion for body building and strength training, Towley observed the typical dumbbell took up too much floor space. This lead to the creation of a nested weight stack with a single handle secured by a U-shaped pin.
Paramount’s East team, John Young, Phil Simonet, and Joseph Schultz, were able to assist with consolidating three of PowerBlock’s locations into one! The new building will allow PowerBlock to unlock operational efficiencies not currently recognized. In addition, the new facility will allow PowerBlock to streamline their process; above all, boosting their bottom line.
What’s to Come
PowerBlock has BIG plans to make the space their own! Moreover, they will use the space as a way to brand themselves and display their company culture. In conclusion, their hope is that the updated space will allow them to attract the talent that will help execute their long-term strategic plan.
We cannot wait to see what the future has in store for them!
FIND OUT MORE ABOUT POWERBLOCK:
FORMER KABUKI RESTAURANT SITE SOLD IN EDEN PRAIRIE
Site Location: 6534 Flying Cloud Drive | Eden Prairie, MN Paramount Real Estate Corp listed the former Kabuki Restaurant site for sale in the fall of 2018. The 2.5 acre site provides easy access to Crosstown 62 and Hwy 169. It is located between Shady Oak Road, on the West, and Valley View Road, on the South.
Finding the Right Fit…
Due to its location, interest was high and the site tours were frequent. Interested users proposed many different uses. These included a dog daycare, pickle-ball courts, various types of restaurants and retail, a daycare, a brewery, storage facilities and office space. Many also wanted to use the site for outdoor storage, but current zoning does not allow this. In addition, the City was changing the zoning from Highway Commercial to Industrial Tech Flex. That alone prohibited many of the uses proposed. The Seller actually agreed to two separate purchase agreements. The agreements were then subsequently voided because the city discouraged both users’ proposed plans.
Challenges to Overcome…
The sales process was an interesting one. The building was in poor condition with the HVAC, roof, electrical, plumbing and restrooms needing updating. The seller held an online auction to clear out much of the remaining kitchen equipment and assorted restaurant accessories. Unfortunately what followed the auction was a bit devastating; vandalism and unsold stolen equipment. As if that wasn’t enough, the former Kabuki site had household junk dumped and abandoned on four different occasions.
A Closed Transaction…
In December 2019, we finalized yet another purchase agreement for the former Kabuki Restaurant site. The Coronavirus did have an effect as well, delaying the normal due diligence process and typical closing. The result… business closings and financial issues. Amending and extending the purchase agreement three times also didn’t speed anything up. The sale did ultimately close in June 2020.
It was a long sales process! Thankfully the Sellers as well as their legal counsel, were patient and willing to work toward a final agreement. We commend them for their willingness to work through the many problems and issues that occurred throughout the process. That being said, all parties are relieved that the property finally closed.
Written By: Bob Johnston | Vice President