MINNEAPOLIS—Yesterday, GlobeSt.com reported that First Industrial Realty Trust, Inc., a Chicago-based developer of industrial real estate, had just broken ground on a 142,290-square-foot speculative facility in northwest suburban Brooklyn Park. And the CSM Corporation has also just decided that the time is right to launch speculative projects in the increasingly vibrant Twin Cities market.
The Minneapolis-based company plans to develop two speculative commercial real estate projects — a 202,000-square-foot office and warehouse facility in Brooklyn Park, and a 270,000-square-foot bulk warehouse facility in Rogers, another northwest suburb.
All this activity is not exactly a surprise. At the end of last year, the Urban Land Institute released its Emerging Trends in Real Estate 2014 and placed Minneapolis in its top 20 metro areas for overall investment prospects and its top 10 for development prospects.
“We are eager to begin these speculative development projects, and see great potential in both the Brooklyn Park and Rogers communities,” said Scott Moe, vice president, leasing and development, CSM, in a prepared statement. Moe was not available by press time, but GlobeSt.com will post an update to this story.
“There is a limited supply of properties in the Northwest market, and an aggressive demand to attract businesses to the area,” he added. “Going spec on these two sites allows us to take advantage of existing assets and add value to our portfolio, strengthening marketplace position.”
The Brooklyn Park project will occupy a portion of the 31 acres of raw land in the Northeast quadrant of 93rd Ave. North and Broadway, just south of Highway 610. CSM originally owned 17 acres and recently purchased an additional 14 contiguous acres to assemble the necessary space.
Plans call for a 28′ clear height office and warehouse facility that will feature upscale design elements including exterior glass. Dan Swartz and CBRE will handle leasing for the project, which CSM will design for manufacturing, assembly and light distribution. CSM is actively seeking final approvals with the city and plans to break ground mid-summer 2014.
The Rogers project will occupy 17 acres in the Northwest quadrant of South Diamond Lake Rd. and Brockton Ln. North. This facility will feature a 32′ clear height. Mark Sims and Cassidy Turley will handle this project. CSM has already received municipal approvals and will break ground in early summer 2014.
CSM plans to deliver on both the Brooklyn Park and Rogers projects in the first quarter of 2015.