All the pieces are falling into place for the new Paragon Outlet mall that is planned for Eagan.
Recently, the CBRE Minneapolis Land Services Group said it represented the Baltimore-based outlet mall in the purchase of 29 acres for the development. The seller was the city of Eagan, and the selling price for just the land was $5.8 million. The overall sale price was $14.73 million, which included funds to relocate streets and utilities, and a contribution for parking.
Paragon Outlet Partners plans a $100 million 400,000-square-foot upscale outlet mall for the southeast quadrant of Highway 77 and Highway 13. The open-air mall is expected to open in late 2014.
Saks Fifth Avenue's Off Fifth will anchor the center with a 28,000-square-foot store -- one of about 100 stores that will locate at the mall.
Those specialty stores will include a Gap Outlet spanning 11,500 square feet and a 7,500-square-foot Banana Republic Factory store, according to Mid-America Real Estate-Minnesota LLC. (Retail specialist Johnny Reimann and senior vice president-principal Stefanie Meyer represented the tenants.)
Brian Pankratz, the CBRE broker who handled the deal for Paragon, said in a statement, "The economic impact of the new Eagan outlet center will create new jobs for construction and retail, along with a strong new tax base for the city of Eagan moving forward."
The outlet mall will be part of the city's redevelopment of the Cedar Grove area -- the remaining vacant land could be developed into space for a hotel, apartments, restaurants and other retail uses.
The city recently received $595,955 in cleanup funding from the state for the 40-acre Cedar Grove site, which is contaminated with petroleum and other pollutants. The site was the former home of a gas station and a mall. The grant covers the portion of the site to be developed by Paragon.
Janet Moore covers commercial real estate for the Star Tribune.