10/26/2022
We are pleased to announce the completion of two industrial leasing transactions at Arboretum Business Park I in Chanhassen, Minnesota for our client Coeur Terra LLP, owner of this 24’ clear 132,800 square foot multi-tenant office warehouse building built in 1997.
One of the transactions was with Apex International, a company with multiple locations in the western suburbs. Apex International began as a privately owned company in 1999 and are a quality contract manufacturer of personal and home care products with an extensive range of capabilities in cosmetic and natural products. Apex was in need of additional production and warehousing space in the general area of their main facility in Chaska. The total square footage for this transaction was 31,200 square feet with approximately 2,569 square feet office and 28,631 square feet warehouse, and the lease began September 1, 2022.
This deal required an early termination of a Lease the Landlord had with Lyman Lumber, who had been in the space since 2017, but had outgrown it, and moved to a larger facility in Shakopee. Lyman Lumber was physically out of the space, and no longer needed it, but had existing Lease term left. Summerhill was able to negotiate a five month early termination that created a win/win/win solution for Landlord, APEX, and Lyman Lumber with no downtime for the Landlord in occupancy, and got Apex into the space when they needed it. This transaction was done with no tenant improvements and at full market rates with some discount for a small amount of office space Apex did not need.
Apex International was represented by Mark Steingas, owner and founder of Copperwood Investments of Deephaven, Minnesota, and Lyman Lumber was represented by Sam Svendahl with Colliers International on the sublease listing/early termination for Lyman Lumber.
The other transaction in the same building was with Super Radiator Coils, a local Chaska company that has specialized in the manufacturing of custom coils and heat exchangers for nearly 100 years. With their continued growth, they required some expansion space in the near proximity to their main facility. Their use of the space will be for additional production capacity. The space Super Radiator Coils is leasing is 31,865 square feet total with approximately 500 square feet of office and 31,365 square feet of warehouse and the lease began October 1, 2022. This transaction included minimal tenant improvements of adding an entrance sidewalk, and was done at full market rates.
This transaction also involved negotiating an early termination by two months with an existing Tenant, Bailiwick Services LLC, who had moved out of the space to consolidate into one facility, and, as a result, Summerhill, on behalf of its client, was able to achieve a win/win/win for the Landlord, Super Radiator Coils, and Bailiwick Services.
Super Radiator Coils was represented by industry veteran Jay O’Brien of Great Places Real Estate and Bailiwick Services was represented by Brad Bohlman with Colliers International.
Both of the above transactions are term length deals, and Arboretum Business Park I is now 100% full. In additional to leasing services, Summerhill Commercial Real Estate, LLC also provides property management services for its client Coeur Terra LLP at Arboretum Business Park I and we are very pleased to have completed these two transactions prior to the 2023 budgeting season for our owner client, with great credit Tenants. Joe Smith and Peter Kordonowy were the Landlord Brokers for both of the above transactions and Patrick Lensing is Landlord’s Senior Property Manager.
