A property associated with Pioneer Wheel and Rim, a long-standing automotive parts provider, located in Minneapolis, has been acquired by a tire wholesaler based in Fridley for $5.7 million. This transaction marks a significant change in property ownership for the Minneapolis site of Pioneer Wheel and Rim, a company with roots stretching back to 1911.
The industrial complex, encompassing 103,587 square feet, was constructed in 1988 and is situated on a 3.99-acre plot. A substantial portion of the building is dedicated to warehouse space, featuring a 78,297-square-foot main warehouse with a 30-foot clear height and ten dock doors, essential for logistics and distribution. Complementing the warehouse, the facility includes 6,440 square feet of office, meeting, and showroom space on the main floor, along with an additional 18,850 square feet in the lower level for further warehouse and storage capabilities. The property incurred Hennepin County taxes of $179,639 in 2023, reflecting its value and scale within Minneapolis.
Pioneer Wheel and Rim, a company established in Minneapolis over a century ago, will continue its operations through its existing wholesale locations in Madison, Wisconsin, and Fargo, North Dakota. Despite the sale of the Minneapolis property, Pioneer remains committed to serving its customer base with a comprehensive inventory. Their product range includes axles, wheels, trailer hubs, trailer hitches, trailer wheels, brake controllers, bearings, and a wide array of other automotive components, catering to diverse needs within the automotive and trailer industries.
The buyer, Fridley Properties LLC, is linked to The Tire Depot Co., a well-known tire wholesaler that currently operates locations in Fridley and St. Paul. This acquisition could signal an expansion of The Tire Depot Co.’s operational footprint in the Minneapolis area. Bill Wolfson Commercial of Coldwell Banker Realty represented the seller in this transaction, highlighting the property’s desirability in the current market.
According to Bill Wolfson, the listing garnered considerable interest, stating, “We had a ton of action on this. I’ll bet we had nearly 10 offers,” indicating a competitive market for commercial real estate in Minneapolis and the attractive nature of the Pioneer Wheel and Rim location.
Property Details: 2500 Kennedy Ave. NE, Minneapolis
Sale Price: $5,737,900, with no down payment specified
Buyer: Fridley Properties LLC, Fridley
Seller: Marquette Properties Inc., Minneapolis
Transaction Date: July 12, 2024
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SRRT Divests Partial Stake in Eagan Warehouse
In a separate transaction, a partial interest in a large warehouse located in Eagan has been sold, reflecting shifts within the commercial real estate investment sector. The 358,532-square-foot warehouse, built in 1970 on 17.36 acres at 905 Yankee Doodle Road in Eagan, saw a partial interest sale for $2.89 million.
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The sale, finalized on July 9, involved an entity related to SR Realty Trust Inc., who had previously purchased the entire property in 2023 for $25 million. Murphy Warehouse Inc., the building’s occupant at the time of SR Realty Trust’s initial purchase and a long-term tenant, remains in place. Murphy Warehouse had invested in renovations after acquiring the property for $6.55 million in 2012. The Eagan warehouse is strategically positioned west of Thresher Fields Park, between Lexington Avenue and Dodd Road.
SR Realty Trust, a private real estate investment trust focused on commercial properties in the Upper Midwest, manages a portfolio of nearly 3 million square feet. This partial interest sale suggests a strategic portfolio adjustment by SR Realty Trust.
Property Details: 905 Yankee Doodle Road, Eagan
Sale Price: $2,885,982 for partial interest; $1,154,393 down payment; assumed interest-only mortgage of $1,731,589 at a variable 5.59% rate through 2033; 1031 exchange involved
Buyer: Pige LLC, Golden Valley, North End 110 York LLC and Wolf-Einer Merker, St. Paul
Seller: SRRT Yankee LLC, Minneapolis
Transaction Date: July 9, 2024
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