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HUGO, MN-United Properties Development Co. has sold its 100% leased Victor Marketplace here for about $11.8 million, sources say. Victor Hugo Boulevard LLC purchased the 70,000-sf site, with a cap rate of about 6.9% on next year’s figures, sources say.

The property is anchored by a 55,000-sf Festival Foods Grocery store. The rest of the space is 100% leased, and includes the On the Rocks wine bar and Dunn Bros. Grill & Cafe. Sources say United bought the land for the property in June 2005 for $2 million.

Eric Bjellend and Leah Truax with Northmarq Investment Services represented the seller in the deal. United Properties is a division of Northmarq.

Bjelland, VP of investment services, says United, which built the property in 2006, didn’t need to stick around. “It wasn’t a strategic long-term hold,” he tells GlobeSt.com. He says the sale does indicate that quality properties with a strong income stream remain interesting to investors, even in the current credit crunch. “This market, a northern suburb of the Twin Cities, is seeing strong demographic growth, though it has slowed down a little bit like everything else around the country.”

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