$10.43M in financing secured for a newly constructed distribution center in Blaine, Minnesota

MINNEAPOLIS, Mar. 25, 2024 – JLL Capital Markets announced today that it arranged $10.43 million in financing for Sanctuary Business Center, a state-of-the-art, newly constructed distribution center totalling 137,179 square feet in Blaine, Minnesota.

JLL represented the borrower, Capital Partners, and secured the five-year loan from Regional Bank. Notable loan terms include 65 percent LTV, interest only and no prepayment penalty.

Sanctuary Business Center features 32-foot clear heights, 31 loading docks, two drive-in doors, 20 trailer stalls and 157 parking stalls. The Class A facility was delivered in December 2022 and sits on 18.5 acres at 10201 Xylite St NE.

The property is strategically positioned near the I-35W and 95th Ave NE interchange in the dynamic Northeast submarket. Sanctuary Business Center has efficient access throughout the metro area via multiple interstates and highway including Highway 610, 65 and 10. The Northeast submarket boasts the highest occupancy of all submarkets in the Twin Cities and has the lowest level of new development currently under construction insulating investors from competing with excess supply.

The JLL Capital Markets team was led by Senior Director Bill Mork.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Founded by Peter Mork in 2000, Capital Partners ("CP") is a boutique real estate investment firm that is focused on purchasing and developing quality, well-located industrial real estate in the Twin Cities, Milwaukee, and Southwest Florida. Currently, their portfolio includes over 15 million SF of industrial product with 550 tenants. CP's portfolio features an average occupancy and tenant retention rate of 97% and 91%, respectively, over the past two decades. Additionally, their existing investors have experienced an average cash-on-cash return of 12% over the years. They co-invest in every acquisition and offer their investors reliable cash flows, monthly distributions, no cash calls, and limited risk.

With over $1.7 billion in value of industrial real estate under ownership and management in the Twin Cities and Milwaukee, Capital Partners is built on the strength of their partnerships and unique position within the market. With their equity partners, local industry relationships and ability to attract and retain great tenants they are one of the most successful and fastest growing industrial real estate companies in Minnesota. They actively and aggressively seek out investments and development opportunities in the Twin Cities, Milwaukee, and Southwest Florida with the best potential and use their integrated platform to operate at maximum efficiency. The firms disciplined focus on one market type and one product type has created the deepest of relationships for on and off- market investment opportunities in industrial real estate.

Capital Partners investment platform includes ownership and management of industrial properties, industrial building development, asset management, property management services, and full in-house accounting services.