The Resurgence of Land Sales
After many years stuck in a dormant market, commercial real estate land development in the Twin Cities is making a comeback. Local unemployment rates of approximately 4% help rise the demand for new housing options and the need for new retail services. Projects such as multi-family, senior housing, and retail users including grocery store chains are a driving force behind the resurgence. Historically high rents, as well as outlot development opportunities, have become a realistic option for businesses that require a “build to suit” options.
In the Twin Cities market alone, over 240 acres have been purchased for residential use projects by builders including Mattamy Homes, Ryland Group, and Ryan Companies. Additionally, retailers such as Hy-Vee, Jerry’s Foods, and Walmart have lots totaling over 90 acres for new development. The industrial market includes projects covering over 170 acres in the communities of Brooklyn Park, Minneapolis, Osseo, and Rogers.
The Gaughan Companies brokerage team has captured activity from this market revitalization and that has closed the deal on several land transactions in the past 24 months. Some of the transactions include:
- 157 acres of mixed use development land in Lino Lakes sold (Broker Team John Chirhart and Lou Suski)
- 22 acres purchased by Noble Academy to build a new charter school off of Highways 169 and 610 in Brooklyn Park (Broker Team Dan Hebert and Derrick Jensen)
- 30 acres purchased by Westmor Fluid Solutions for a new facility in Columbus (Broker Team Chirhart and Suski)
- 6 acres of commercial land off of highway 10 in Big Lake (Broker Dan Hebert)
- .65 acre residential lots purchased by a developer in Hudson, Wisconsin (Broker Team Jensen and Hebert)
- 55 acres of agricultural land in Rush City sold (Broker Team Chirhart and Suski)
- 1.5 acres commercial lot in Hugo under contract (Broker Dan Hebert)
- .64 acres redevelopment site in downtown Hugo (Broker Team Chirhart and Suski)
- 3.29 acres redevelopment site near downtown Forest Lake (Broker Team Chirhart and Suski)
For the first time in nearly a decade, Gaughan Companies has construction projects on the horizon that start from the ground up and stretch into 2016. Demand for new development in both the office and multi-family housing markets have created an opportunity for Gaughan Companies to go back to our construction roots. The first project, a medical office building outlot, is slated to break ground in summer of 2015.
With the ability to broker, develop, construct, and manage new projects, Gaughan Companies offers a veteran staff ready to fulfill your vision and exceed your expectations. Are you in the market to explore taking your business to the next level? Contact Us Today!