West metro office, light industrial opportunities

Editor’s note: On the Market is a regular feature from Finance & Commerce that highlights interesting commercial real estate that has recently been put up for sale. Let us know about CRE that’s on the market at [email protected].

Two partially vacant west metro commercial properties make the cut for this week’s On the Market. First up is a Class B office building with an attentive owner, plenty of recent upgrades and heated parking. Second: a flexible light industrial building with five separately metered bays, three of which are blank slates for new tenants or owner-occupants.

Eden Prairie Class B office

Crosstown Woods was built in 1981 but looks at least 10 years newer, thanks in no small part to an attentive, local owner that listing broker Steve Nelson said originally intended to occupy part of the property itself. The pandemic disrupted those plans, but the owner continues to treat the place as its own, Nelson said.

“They did a lot of work on the place and now the rest of the tenants get to take advantage,” he said.

Recent and/or ongoing updates include new elevators, refreshed bathrooms, a redone outdoor patio, upgraded mechanicals and extensive common-area improvements, according to Nelson.

A tuck-under garage with several dozen heated parking spaces is another perk that’s relatively rare in a building of this vintage, Nelson added. Roughly 170 surface stalls ensure plenty of capacity even at full occupancy. And transit users can look forward to a future Green Line station about half a mile away.

Crosstown Woods has about 18,000 square feet available for lease, according to the listing brochure, including an entire floor available for a potential owner-user. But the rent roll is sticky, with most tenants sticking it out through the worst of COVID, and the 5.6-acre property has a freestanding cell tower that brings in additional income, Nelson said.

“We’ve had multiple offers just for that piece,” he said.

Address: 10125 Crosstown Circle, Eden Prairie

Type: Office

Square Footage: 48,803 square feet

Asking Price: $4.9 million

Owner: Pinnacle Crosstown Woods, LLC (St. Louis Park)

Listing Broker: Steve Nelson, Ches Masserano & Mack Damerow, Hoyt Properties

Minnetonka flexible light industrial

Formerly home to Eaton Corp., an electrical equipment manufacturer, Minnetonka Technology Center is a smaller but equally well-located property tucked into a quiet light industrial park less than two miles northwest of Crosstown Woods.

Like its Eden Prairie counterpart, it promises room for growth for a new owner-user or a value-add opportunity for an investor, listing broker James Smith said.

Two of its five separately metered bays are occupied, one by a longer-term tenant — No Sweat, which makes high-performance helmet and hat liners — that recently moved into a larger space remodeled on its behalf. The other was recently leased to a small but fast-growing biomedical company, Smith said.

The other three bays are blank slates. Each has at least one dock or drive-in door and 16-foot clear heights throughout, making them suitable for administrative, warehousing, light production and other flexible uses.

The smallest (Suite 140) is 3,160 square feet, the largest (Suite 170) about 7,200 square feet. The office-warehouse ratio varies from around 50% to less than 30%, giving potential tenants or owner-users some control over their preferred mix. Ninety parking spaces ring the V-shaped, single-story structure.

Address: 5421 Feltl Road, Minnetonka

Type: Light industrial/flex space

Square Footage: 27,268 square feet

Asking Price: $3.5 million

Seller: Office Warehouse Development, LLC (New Hope)

Listing Broker: James Smith, Mike Sowers & Adam Widder, Commercial Investors Group