Oppidan sells East Brainerd Mall to Toronto-based firm
Minneapolis-based Oppidan Investment Company Tuesday announced it sold East Brainerd Mall to Toronto-based Slate U.S. Opportunity (No. 2) Realty Trust.
The Trust acquired two of the Oppidan’s grocery-anchored retail centers in Minnesota, including East Brainerd Mall and Phalen Retail Center in St. Paul.
“These sales are indicative of changing investor confidence in the retail sector as the economy continues its recovery,” said Joe Ryan, president of Oppidan, in a news release. “I anticipate seeing more movement in our retail holdings in the coming months.”
According to the tax records and 2012 assessment with Crow Wing County, the East Brainerd Mall had an estimated land value of $2,237,700 and an estimated building value of $10,397,800. It’s total taxable value was $12,635,500. That was for taxes payable in 2013.
For taxes payable in 2014, the estimated land value was $881,900 and the building value was $10,679,279 for a total of $11,561,179.
In 2001, GG Corporation sold the mall to KTJ Limited Partnership 72 in care of Oppidan Inc. for $2,500,000.
No sale price was reported in the recent sale to Slate.
When Oppidan purchased the 141,557-square foot East Brainerd Mall in 2001, J.C. Penney served as the retail anchor. Oppidan redeveloped the mall into a 191,639-square foot retail development co-anchored by Cub Foods.
When J.C. Penney left the development in 2008, Oppidan redeveloped the site again into a mixed-use retail and office complex co-anchored by Ascensus, which consolidated a number of its Brainerd-area offices into the former J.C. Penney site.
In addition to Ascensus and Cub Foods, East Brainerd Mall tenants include Anytime Fitness, Caribou Coffee, Deerwood Bank, Denfeld Tobacco, Dollar Tree, Four Seas Buffett, Great Clips, Lakes Area Pregnancy Center, Lutheran Social Services, Select Life, Subway and Verizon Wireless.
In 2008, Oppidan purchased land and three buildings at the intersection of Maryland Avenue and Clarence Street in St. Paul. Later that year, the company opened Phalen Retail Center, a 73,678-square foot retail development anchored by Cub Foods.
Jim Leary, senior vice president with CBRE’s Investment Properties Group, represented Oppidan in both sales.
Twin Cities-based Oppidan Investment Company is a national property development firm, working with retailers such as Cub Foods, Carl’s Jr., Camping World, Coborn’s, Econofoods, Goodwill, Orchard Supply, Verizon Wireless and Gander Mountain. Since its founding in 1991, Oppidan reports it successfully developed more than 300 projects valued at more than $1.5 billion spanning more than nine million-square feet of property in 26 states.
Slate U.S. Opportunity (No. 2) Realty Trust is a commercial real estate investment and asset management company. As of Tuesday, the East Brainerd Mall and Phalen Retail Center in St. Paul were both on the company’s website of 27 properties on the retail list, amounting to 2,264,760 square feet.
Slate focuses on buying grocery-anchored properties in strategic markets in the United States. On Aug. 1, Slate U.S. Opportunity Realty Trust announced it purchased the Alta Mesa Plaza, a grocery-anchored shopping center in Fort Worth, Texas.
Slate reports its founding partners have nearly two decades of experience in the industry managing complex real estate transactions in domestic and international markets. Slate has 20 properties in its stable of office space with more than 2 million square feet and reports it is acquiring strategically located and strong performing core and suburban office properties in major Canadian markets.
Slate has retail properties in Alabama, Florida, Georgia, Maryland, Michigan, North and South Carolina, Ohio, Pennsylvania, Tennessee, Virginia and Wisconsin. East Brainerd Mall and Phalen Retail Center are Slate’s only two properties in Minnesota.