CBRE Announces $12.6 Million Sale of 121K-SF Industrial Building in Bloomington, Minnesota

CBRE has arranged the $12.6 million sale of Bloomington Tech, a 121,684-square-foot office and warehouse building in Bloomington, to Birmingham, Alabama-based Harbert Management Corporation.

Bentley Smith, Michael Caprile, Judd Welliver, Ryan Bain, Zachary Graham, Joseph Horrigan and Victoria Gomez with CBRE National Partners represented the seller, New York City-based DRA Advisors, in the transaction.

Built in 1985, the building is located at 9201 East Bloomington Freeway. At the time of sale, the property was 100% occupied by 14 tenants. It features a 56% office finish, 14-foot clear heights, 20 loading docks, five drive-in docks and 354 parking spaces. The property received several improvements in the past 12 years, including exterior painting and a new roof, parking lot, windows and patio.

“While interest rates are a common topic of concern, industrial continues to showcase strong pricing power and investor demand,” said CBRE’s Smith. “Furthermore, Capital Partners and DRA did an excellent job repositioning this asset with significant aesthetic upgrades which helped drive leasing and net operating income growth.”

Situated just off I-35 West and north of West 94th Street in the South Central submarket, the property is within 10 minutes of several Metro Transit rail line stations and 13 minutes to Minneapolis-St. Paul International Airport. It also provides tenants quick access to retail amenities, including the Mall of America and Southtown Shopping Center, as well as single and multifamily housing developments like the Penn-American District.

The average price per square foot for industrial sales fell slightly in the third quarter of 2023, with a 3% year-over-year decrease and a 2% decrease from Q2, according to CBRE Research. The South Central submarket had an average net blended asking rate of $9.93 per square foot in the quarter.