Summerhill Commercial Real Estate LLC

07/25/2023

https://conta.cc/46Vjo85

12/08/2022

TENANT REPRESENTATION/LIGHT CONSTRUCTION SERVICES: Summerhill Commercial Real Estate, LLC successfully represented its client GoBros, LLC in its 26,471 sf office warehouse lease extension that included a 6,629 sf lease expansion and $110,000 tenant improvement construction project at Minco 300 at 15310 Minnetonka Industrial Road, Minnetonka, MN. Peter Kordonowy was the Tenant Representative and Patrick Lensing was the Project Manager for the buildout.
For more information on this transaction, visit our Blog at: https://lnkd.in/gkEusaV3
Peter Kordonowy, CCIM
President/Broker

11/04/2022

We are pleased to announce the completion of raw land sale transaction at 4200 Peavey Road in Chaska, Minnesota on August 31, 2022.

Summerhill Commercial Real Estate, LLC represented the Seller Peavey Properties, LLC and the Buyer, SW Peavey Real Estate, LLC, represented themselves in the negotiations.

The transaction was for a 2.73 acre industrial site with frontage on Highway 41 in Chaska, accessible by Peavey Road. The sale price was $300,000 or $2.52 per square foot. The site presented some challenges for any Buyer as there are some soft soils to contend with which will require some excavation and import of new soil for a new building. The dimensions of the site limit the size of the building that can be built on it with an expected future building size of 18,000 to 20,000 square feet. The site is also in a special industrial district that requires any new company utilizing the site to generate a level of new jobs acceptable to the City of Chaska.

The property had been on and off the market many times over the past ten years and has now successfully sold. The site is in a good location just south of the intersection of Highways 5 and 41 near the headquarters of Lifetime Fitness. The area is also home to many small to medium local and regional companies and has good accessibility to highways and freeways with nearby amenities such as US Bank, Holiday Inn Express, Kindercare, Tweet Pediatric Dentistry, and many others while being only minutes from the downtowns of both Chaska and Chanhassen.

In additional to sales brokerage services, Summerhill Commercial Real Estate, LLC also provides Buyer Rep brokerage services, and Landlord Rep and Tenant Rep brokerage service, as well full charge property management services for existing and new clients in the areas of industrial, retail, and office commercial real estate. Call us at 952-473-5650 if you have any questions, or for a free consultation.

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.

06/30/2022

We are happy to announce the successful sale of (2) Town Office Condos at 7965 Stone Creek Drive, Suites 130 and 30 in Chanhassen, MN for $475,000, or $154.62 psf. The team of Peter Kordonowy and Andy Richards with Summerhill Commercial represented the Seller in this transaction, OB Mulligan, LLC, and Dylan Steman with MRG Realty Partners represented the Buyer, Tesoro Realty Group, LLC.

The Buyer purchased this property to owner occupy the main level for their staffing business and purchased the walkout level as an investment property with an existing tenant. The walkout level will provide potential future growth opportunities for Buyer for their business if needed, and the (2) units share a front main level entrance and are connected by interior and exterior stairs. The main level space also has signage visibility to Highway 5 in Chanhassen.

These two (2) Class B town office condos were owned by Seller since they were built in 2005 and consisted of a main level unit and a walkout lower level unit. Over the years, Seller was able to find tenants to keep the buildings full, while Seller waited for values to come back close to what they were when they purchased the units in 2005 before contemplating selling. With the main level tenant’s lease expiring May of 2022, Seller decided it was time to explore a sale, and engaged its longtime broker, Peter with Summerhill, to do a market study. A combined asking sale price of $475,000 was decided upon with the idea to not push the market too hard, but to capitalize on recent value increases. The property ultimately did sell for full price, and, at $175.00 psf for the main level and $134.25 psf for the lower level ($154.62 psf combined), the prices per square foot are higher than any of the other approximately (6) comparable sales in the last (10) years.

Peter with Summerhill had worked with Seller (which consists of (2) individuals) in the past, and had successfully done three (3) separate lease transactions over the past (10) years. When it came time to sell, Seller decided to hire Peter and Summerhill. After the property was brought to market, there was a healthy amount of activity on the listing, however, there ended up being some challenges involved in how to deal with an existing tenant on the lower level as many buyers either just then wanted the main level or wanted both levels. Ultimately, a Buyer group was able to make sense out of the deal by purchasing both levels, and only occupying the main level and still pay full asking price, even though the lower level tenant was paying below market rents.

If you, or someone you know, is looking to buy or sell a commercial property, give us a call at 952-473-5650, and we can help.

We provide full charge commercial real estate services in the Twin Cities in industrl, retail, & ofc.

06/06/2022

We are pleased to announce the successful sale transaction of 10350 Jamestown Street NE in Blaine, Minnesota for $1,250,000 or $146.50 per square foot. A property of this size was in great demand with multiple offers pending. The Buyer paid over asking price and closed on the property April 19, 2022. The property is a single tenant owner/user facility. Joe Smith of Summerhill Commercial Real Estate, LLC represented the buyer, Factum, LLC and Hayden Hulsey of Remax Results Commercial represented the Seller, Verity, LLC. The Buyer will utilize the property for the operation of their business.The property is an 8,532 square foot two story property zoned I-1, light industrial. The building was built in 2001 and is in excellent condition. There are two levels of office totaling 5,552 square feet and a 2,980 square foot 22’ foot clear warehouse with additional mezzanine storage. The office features a spacious reception area, conference room, resource room, kitchenette, 4 restrooms, private offices and open cubicle area. The warehouse is 100% conditioned space, with LED lighting, is served by a grade level drive in door with floor drain and a truck height dock. A second dock can be added. The lot is 1.24 acres which allows for a 5,000 square foot future expansion of the existing building with an additional electrical service already in place. There are 23 existing parking spaces with the ability to add twenty-four spaces to accommodate the potential expansion.

The property has a tenant in place until September and the buyer will begin to occupy the building upon the tenant vacating the property.

We provide full charge commercial real estate services in the Twin Cities in industrl, retail, & ofc.

04/18/2022

We are happy to announce the successful sale of an eighteen (18) unit multi-family condominium/apartment complex at 4076 Tower Street in St. Bonifacius, MN for $1,832,500, or, $124 PSF. The team of Peter Kordonowy and Andy Richards with Summerhill Commercial represented the Seller in this transaction SOS Properties, LLC, and Bill Modell with Rose Real estate represented the Buyer Doyle Property Group, LLC. The Buyer purchased this property as a multi-family investment to add to a growing portfolio of multi-family properties.

The property is located near the main street of downtown St. Bonifacius in a quiet residential area. The complex was set up as a condominium complex with (18) PIDs. Our client, the Seller, was able to assemble all (18) units starting back in the 2000s, which, once fully assembled, enabled it to work as an apartment/multi-family project. The property itself was on 1.055 acres, and (17) of the units were (2) bedroom units and (1) was a (1) bedroom. All the tenants paid for their own electrical and heat, and the Seller had recently replaced the roof, replaced the coin operated washers and dryers, replaced the water softener, and had done many other updates to the interior of the units. That being said, in a rising rents environment, most Buyers saw some upside potential in the current rents that were being charged, and Seller was aware rents could be increased, but, had decided to hold off on that, and sell the building instead. The complex had (21) exterior parking spots, on street parking, and each apartment had its own garage unit.

The property was brought to market at $1,750,000, however, interest far exceeded expectations, and, ultimately, Seller entered into a contract to sell at above asking price, with approximately (5) additional buyers in back up, all at, or above, the original asking price. Interest in this asset was very high, and we were able to successfully manage the process and get it under contract to sell above asking price with a strong buyer within about 1.5 weeks of bringing it to market. The transaction closed on March 15, 2022.

Our client thought the timing to sell was right, and, as our client primarily does office, retail, and industrial commercial real estate, the Seller felt it made sense to sell the property at this time, and, Seller was happy with the whole sale experience, and was happy with the successful closing. Buyer was happy to purchase the asset as well, and to be the winner on the deal.

If you, or someone you know, is looking to buy or sell a commercial property, give us a call at 952-473-5650, and we can help.

We provide full charge commercial real estate services in the Twin Cities in industrl, retail, & ofc.

04/04/2022

We are happy to announce the successful sale of a Class C office building at 9975 Valley View Road in Eden Prairie, MN for $475,000, or $119.50 psf. The team of Joe Smith and Peter Kordonowy with Summerhill Commercial represented the Seller in this transaction, the Wayne D. Johnson Trust, and Daisy K. Haung with H86 Property Management Company, LLC represented the Buyer group Lian Sheng, LLC. The Buyer purchased this property as a fully occupied investment property for the Buyer.

This small Class C office building was a unique, but attractive, offering in the marketplace with a private, quiet, wooded setting well located within the Golden Triangle. The property offers a nice green area and is situated on a higher point with some good views. The property, which had been an older farmhouse, had been added on to over the years and converted into an office building with private offices, common areas, a kitchenette, and an exterior deck/patio. The most recent use had been executive offices, and the Buyer purchased the property 100% occupied with multiple executive office tenants with a variety of businesses.

Summerhill Commercial had been in charge of the leasing for the property for approximately 10 years for the Seller and had been able to help the owner maintain good occupancy and income over those years. Over the years of Summerhill’s involvement in the property, the owners had asked for advice on maintaining the property, and, they had done a good job of keeping it up, and improving it, without causing it to lose it’s somewhat vintage character and charm.

In mid-2021, the trust decided it was time to sell, and a price point was finalized with Summerhill’s critical input. The ultimate asking price of $475,000 arguably maximized value with a low cap rate of around 6% yet kept the asset attractive to an investment Buyer. Soon after the property was listed for sale on multiple platforms (including Northstar MLS), the Buyer came along, liked what they saw, and entered into an all cash purchase agreement with no contingencies except title work, and the property closed in a matter of weeks successfully. Summerhill was able to get an all cash, full price, sale transaction done for its client on this deal.

If you, or someone you know, is looking to buy or sell a commercial property, give us a call at 952-473-5650, and we can help.

We provide full charge commercial real estate services in the Twin Cities in industrl, retail, & ofc.

01/25/2022

https://conta.cc/346qHOr

Brokerage & Leasing We are pleased to announce the successful sale of a property, and separate purchase of a property, by Summerhill’s client, Zealand Ventures, LLC, in 3Q21, along with the subsequent

10/12/2021

You don't want to miss this. We are happy to announce Summerhill successfully represented its client, Chan Lakes Investment, LLC, in its acquisition of Chanhassen Lakes I & II for $9.02M. The closing

09/30/2021

We are happy to announce that Peter Kordonowy, CCIM of Summerhill has successfully represented its client, Chan Lakes Investment, LLC, in acquiring Chanhassen Lakes I and II in Chanhassen, MN. Check out our Blog at: https://www.summerhillcommercial.com/blog/investment-client-acquisition/

06/17/2021

We are pleased to announce completion of a 7,384 sf office/whse lease transaction with Great Day Improvements, LLC, dba Patio Enclosures at Maplewood Business Center II”B” (MW II “B”). Joe Smith represented the Landlord in this transaction. Great Day took over possession of the space on 6/1/21.

MW II “B” is a multi-tenant industrial building Summerhill leases and manages for its client TG V, LLP, and it offers Hwy 36 visibility. Joe worked directly with Great Day Improvements NE Regional Mgr, Ron DeGraw, to complete the negotiations of this deal.

Great Day, founded in 1966, is a direct-to-consumer provider of branded premium building products which include Patio Enclosures brand sunrooms and screen rooms; Stanek brand windows and patio doors; as well as pool enclosures and lanai's by Hartshorn Custom Contracting.

The premises required a complete make-over after the previous tenant, who was in the ink business, vacated the space in a substandard condition. Congrats to Joe and the tenant on this deal!