Just Sold: Champion Hotels acquires three AmericInns

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Editor’s note: “Just Sold” is a Finance & Commerce feature based on certificates of real estate value recently filed for commercial transactions and significant residential transactions in Twin Cities counties. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State’s Office, company documents, online real estate listings, F&C archives, CoStar and other research. Some purchase prices and per-unit calculations have been rounded. Full prices are available on the CRVs posted here.

Oklahoma-based Champion Hotels has acquired three Minnesota AmericInn Hotel & Suites properties, part of a portfolio of 10 hotels shed as part of Wyndham Hotel Group’s recent acquisition of Northcott Hospitality’s AmericInn brand for $170 million.

Champion Chanhassen LLC, an entity related to Oklahoma City-based Champion Hotels, paid Northcott Co. $4.89 million for the 77-room hotel at 570 Pond Promenade in a deal that closed Oct. 2. The same day, Champion Worthington LLC paid Northcott $2.365 million for the 42-room AmericInn Lodge & Suites at 1475 Darling Drive in Worthington. Certificates of real estate value for the sales were made public Oct. 11.

The sale prices work out to $63,562 per room in Channhassen and $56,317 per room in Worthington.

As Finance & Commerce reported, New Jersey-based Wyndham announced in July that it would buy the AmericInn franchise system operated by Chanhassen-based Northcott. That system includes 200 hotels in 21 states, 64 of them in Minnesota. Most involve real estate owned by franchisees, but the deal also included 11 hotels Northcott owned.

Mark Masuda, vice president of sales and marketing for Northcott, explained that Wyndham doesn’t like owning real estate assets, so it shed 10 hotel properties. Northcott and Wyndham are joint owners of one property.

Masuda confirmed that Champion also bought the 135-room AmericInn Hotel Bloomington West at 4201 American Blvd. W. in Bloomington. No certificate of real estate value had been made public as of Monday. The rest of the sold properties are spread across several states. No prices were available Monday.

Champion officials couldn’t be reached Monday. Champion’s website doesn’t list any properties in Minnesota.

Purchase price: (Chanhassen) $4.89 million, with a $1.32 million down payment and new financing; agreement includes $200,000 in furniture, fixtures and equipment. (Worthington) $2.365 million, with a $660,325 down payment and new financing; agreement includes $100,000 in fixtures and equipment.

Price per room (Chanhassen) $63,562; (Worthington) $56,317 per room in Worthington

Last sale: N/A

Property ID: (Chanhassen) 25-8680010; (Worthington) 31-0609-250

Date of deed: 10-2-17

ECRV released: 10-11-17

Brennan pays $8M for Oakdale industrial property

Description: Fully leased 86,460-square-foot Class C industrial manufacturing building, built in 1996 on 15.10 acres at 2900 Grenada Lane N. in Oakdale

Buyer: STNL II (Oakdale) LLC, an entity of Brennan Investment Group, Rosemont, Illinois

Seller: Grand Oaks Properties, an entity related to Dedicated Logistics Inc., Oakdale

Purchase price: $8 million, with a $3.154 million down payment and new financing

Price per square foot: $92.53

The transaction: An entity related to Rosemont, Illinois-based Brennan Investment Group has paid $8 million for an 86,460-square-foot industrial manufacturing building at 2900 Granada Lane N. in Oakdale. The seller is Grand Oaks Properties LLC, which is related to the building’s tenant, Dedicated Logistics Inc., according to CoStar.

The seller bought the property in 2008 for $5 million. The current sale price works out to $92.53 per square foot.

Bellevue, Washington-based Radiant Logistics Inc. announced in June that it had acquired Dedicated Logistics. It didn’t acquire the real estate.

Brennan has been active in the Twin Cities since late 2012, according to a spokesperson for the company. In addition to the Oakdale acquisition, Brennan owns eight buildings in the market, with a total of 2.3 million square feet of space. The company’s total portfolio includes more than 34 million square feet of commercial space, the spokesperson said. She declined to comment further. The seller couldn’t be reached for comment.

Last sale: $5 million in 2008

Property ID: 19-029-21-21-0007

Date of deed: 10-5-17

ECRV released: 10-13-17

Big River buys Minneapolis business center

Description: 67,000-square-foot multitenant business center built in 1940 on 2.03 acres as 2518 Second St. N., Minneapolis

Buyer: Big River Second Street LLC, an entity related to Big River Real Estate, Minneapolis

Seller: Web II Co. LLP, a private investor group, Edina

Purchase price: $2.185 million cash

Price per square foot: $32.61

The transaction: New investors have paid nearly $2.2 million for a 67,000-square-foot business center at 2518 Second St. N. in Minneapolis.

The original section of the building opened in 1940 and has been expanded over the years to a total of 67,000 square feet of space. Its use has evolved as well, now housing about 15 tenants.

“It’s gentrifying,” said Todd Hanson of Cushman Wakefield in Bloomington. The building, which lies within a mile of the North Loop, has seen a shift from industrial users to a mix of traditional printing and engraving companies and creative services.

Hanson and colleagues Jason Sell and Chris Weirens represented the seller. The buyer was represented by Lamar Newburn of Lee & Associates Commercial Real Estate Services, Inc. – Twin Cities in St. Louis Park.

The sellers had owned the building a long time and were ready to take on new investments, Hanson said.

Last sale: $585,000 in 1985

Property ID: 15-029-24-21-0049

Date of deed: 9-27-17

ECRV released: 10-9-17

Related:

• Certificates of real estate value
• Wyndham pays $170M for AmericInn brand
• New York investor buys three industrial buildings