Minikahda Mini Storage and Excelsior Tech Center

Property Location

150 Tyler Avenue North
Hopkins, MN 55343

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investment highlights

  • Desirable Infill Location Next to New Light Rail & Cargill Campus
  • Room for Expansion – Potential for a 30K Net Rentable Square Foot Expansion Phase I for an Additional $450K in Revenue
  • Located in a Tight Self Storage Market with High Barriers to Entry
  • Seasoned Storage Operation with Historic Occupancy Above 90%
  • Diversified in Place Office & Industrial Revenue Streams with Substantial Upside through Leasing this Space Back to Market Occupancies
  • Excellent Three Mile Demographics – 99K People & $110K Average Household Income

property summary

Minikahda Mini Storage and Excelsior Tech Center is a multi-story mixed-use commercial building just outside of downtown Minneapolis in the growing first ring suburb of Hopkins, Minnesota. The current ownership is obtaining approvals from the county to condominiumize the building into two sections with full approvals and construction to be completed by closing (please refer to pages 18 and 19 for additional information). The property was originally built for industrial/office/limited production uses but has since found its highest and best use after a large portion was converted to self storage in 2003. While the primary use is self-storage, the property still maintains a portion of its original office and industrial components that account for just 23 percent of the overall income but nearly half the current rentable square footage.  There is immediate upside opportunity by converting a recently vacated portion of the warehouse space into additional self storage to meet the growing demand in the area.

Minikahda Mini Storage has a history of high occupancy that can be attributed to the location, limited competition, and high barriers to entry.  This self storage portion offers amenities found in institutional quality self storage facilities such as a large professional leasing office, six elevators, four overhead drive in doors, five dock doors, security cameras, and secure keypad access throughout. Current physical occupancy on the self storage portion is just over 90 percent, while the remainder of the office/production/warehouse space sits at 49 percent. There is substantial upside in leasing the office and production space back up to occupancy levels more in line with historic averages of 75 percent plus. The self storage portion consists of 1,080 climate-controlled units spanning 100,570 net rentable square feet while the production and office spaces account for an additional 86,699 rentable square feet. The majority of the non-storage tenants are on short term gross leases.  The Excelsior Tech Center office portion offers a large well-appointed lobby with vaulted ceilings, shared breakroom and an attractive entryway veranda with well-manicured landscaping.

The local trade area makes the project ripe for self storage expansion due to the high historic occupancy in the surrounding area and a dense growing residential/commercial tenant base. In addition to Hopkins, the property services the affluent city of Edina to its immediate south which currently offers limited self storage options due to strict zoning regulations. There is an immediate opportunity to add additional self storage units in the 20,000 square foot vacant warehouse space in the building’s interior northwest side. This expansion would allow for approximately 30,000 additional net rentable square feet with the mezzanine level included and approximately $450,000 in additional revenue potential without cannibalizing any current revenue producing square footage.

Minikahda Mini Storage presents a unique opportunity for an investor to get into a seasoned self storage facility in a mature market with stable existing cashflow and expansion potential. A new investor can gain sizable returns by implementing dynamic pricing and revenue management platforms into the existing storage operation and building out a long overdue expansion into the existing footprint. Additional upside can be achieved by leasing the office and production space back to historic averages. Hopkins will continue to foster new growth and development by further implementing their comprehensive plan bolstering already high occupancy and new demand for self storage and office space well into the future.

Broker Information

Charles "Chico" LeClaire

Executive Managing Director

Phone: 303.328.2025
Email: cleclaire@marcusmillichap.com
License: CO EA00147681

Adam Schlosser

Senior Vice President

Phone: 303.328.2044
Email: aschlosser@marcusmillichap.com
License: CO FA100050407

Chris Kampmeyer

Associate

Phone: 952.852.9762
Email: ckampmeyer@marcusmillichap.com
License: MN 40584756

Jon Ruzicka

Broker of Record

Phone: 952.852.9767
Email: jon.ruzicka@marcusmillichap.com
License: 40583288

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