Icehouse Plaza - Minneapolis, MN_Property for Sale
Icehouse Plaza - Minneapolis, MN_Property for Sale
18 W 26th St & 2522-2550 Nicollet Ave, Minneapolis, MN, 55404, US

Icehouse Plaza - Minneapolis, MN

Asset Description

Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in Icehouse Plaza (the “Property”) located at 2522-2550 Nicollet Ave in Minneapolis, MN. The 37,884 SF retail/residential mixed use asset is 100% leased and has a WALT on the commercial portion of 6.6 years. Featuring seven commercial and 13 residential tenants, this asset offers the unique opportunity to acquire a fully occupied, mixed-use property on the best corner in one of Minneapolis' most sought after submarkets.


At list price, the building is well-below replacement cost on a per square foot basis. Additionally, over $500k in structural improvements, a roof replacement with warranties, and various common area improvements have been recently completed. These recent upgrades, along with strong leasing momentum, evidenced by Starbucks' recent 10 year deal in the center, illustrate the asset's ideal positioning to deliver stable cash flows for years to come.


The property features iconic Minneapolis restaurants in the heart of Eat Street, a historic submarket with excellent fundamentals. The two largest tenants, Icehouse and Vertical Endeavors, which take up over half of the commercial space, have been at the property for over 11 years. Additionally, the property benefits from being in a high-density area central to essential amenities; within a three-mile radius, the area has a population of over 262,000 people, and the property is located between the downtown Minneapolis and the Minneapolis-Saint Paul International Airport, being just 10 minutes from both.

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Attributes

Asking price
CHF 8,560,000
Cap rate
8%
Building area gross
3,520 m²
Land area gross
0.48 ha
Occupancy
100%
WAULT
6.6 years
Year built
1900

Media

Investment Highlights

FULLY OCCUPIED MULTI-TENANT CENTER WITH RESIDENTIAL COMPONENT AND ASSUMABLE DEBT

• Icehouse Plaza is a multi-tenant center that is 100% leased by seven retail tenants, all of which are on net leases, and has 13 residential units, which are also fully occupied

• The in-place loan on the asset is assumable and features a below-market interest rate of 4.45%


ICONIC MINNEAPOLIS RESTAURANTS WITH AMPLE OUTDOOR SPACE IN THE HEART OF EAT STREET

• The tenant mix includes some of Minneapolis' most iconic restaurants, such as Icehouse and Black Sheep Pizza

• The two largest tenants, Icehouse and Vertical Endeavors, which take up over half of the commercial space, have been at the property for over 11 years


BELOW REPLACEMENT COST AND RECENT CAPITAL IMPROVEMENTS

• At list price, the building is well-below replacement cost on a per square foot basis

• Over $500k in structural improvements, a roof replacement with warranties, and various common area improvements have been recently completed


STRONG LEASING MOMENTUM AND BELOW MARKET RENTS

• In addition to leasing demand from local businesses, national brands such as Starbucks, who signed a 10 year lease in 2022, have signaled strong interest in the center

• Several of the local tenants are currently paying below-market rents for the submarket


BEST CORNER IN THE SUBMARKET WITH MULTIPLE ACCESSES AND PARKING

• The property is ideally situated on the best corner in the submarket, the signalized intersection of Nicollet Ave and W 26th St

• The center is easily accessible from both roadways and has on-site parking in a parking-restricted part of town


HIGH DENSITY AND CENTRALLY LOCATED

• Within a three-mile radius, the area has a population of over 262,000 people

• The property is located between the downtown Minneapolis and the Minneapolis-Saint Paul International Airport, being just 10 minutes from both

Icehouse Plaza - Minneapolis, MN 4_Property for Sale
Icehouse Plaza - Minneapolis, MN 4_Property for Sale

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Icehouse Plaza - Minneapolis, MN (0 Properties)

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Last updated
4 Apr 2024