An Edina med-tech industrial building has been sold for $11.2 million, another indicator of the solidity of the industrial market in the Twin Cities.
The Edina V building located at 5150-5198 W. 76th Street not far from Interstate 494 was sold by Edina 76 Property Group LLC, an entity controlled by Sara Investment Real Estate, which is headquartered in Madison, Wis. It was purchased by the Francois Oil Co., which operates several gas stations and is based in Belleville, Wis.
A call to a Francois executive wasn't immediately returned.
Sara Investment Real Estate had previously bought the more than 136,000-square-foot building in 2014 for about $8.8 million including transaction costs inherited from its previous owner. Edina V's current long-term tenants include health care company Arkray USA and Barr Engineering Co.
"Eighty percent of the building is occupied by Arkray USA, which has a long history in the building and is completing about $3 million of renovations to their space," Tim Prinsen, senior vice president at Colliers International's local office, said Monday. "The building location is in Edina in an industrial park that historically has a very low vacancy."
Colliers International, which represented Sara Investment in the sale, said the firm "felt the property was well positioned at 100 percent occupancy and wanted to take advantage of favorable market conditions."
Along with Prinsen, the Colliers team was also made up of Bob Pounds, Amy Senn and Lori Pounds.
"Colliers has developed a great relationship with Sara Investment Real Estate," said Bob Pounds, a senior vice president at Colliers. "We have been a valued adviser in assisting to grow their Minneapolis-St. Paul holdings, and we look forward to continuing that effort in the future."
According to the most recent Colliers International quarterly report, vacancy of space in the Twin Cities industrial market has continued to drop below historical levels. The average vacancy rate in the metro area for industrial is 6.8 percent, which is lower than any annual average in the last decade.