The certificate of real estate value wasn’t available Friday, but leaders at Excelsior-based Water Street Partners have announced they’ve closed on the purchase of an industrial/office building in Savage for $5.25 million, with a new unnamed tenant almost ready to pick up the keys.

The sale includes a 45,000-square-foot building, developed in 2017 on 2.89 acres at 8925 Highway 101 Frontage Road. The price works out to $116.67 per square foot.

WSP managing partners Joe Boone and Jim Hegedus are working with an undisclosed tenant to lease the entire building.

Over at the local office of Colliers, Joe Owen, senior vice president, and Corbin Chapman, senior associate, are working with the seller, Trend Lab, to relocate to a smaller, undisclosed space in the Shakopee area.

WSP also is working on the acquisition of an additional asset, which will bring Water Street Fund II LLC close to fully invested.

“This is a perfect value-add opportunity for our fund and our investors in that we were able to secure a tenant prior to closing, which significantly reduces the risks of acquiring a vacant building,” said Joe Boone, WSP managing partner, in a prepared statement. In an interview, he said that the soaring cost of new construction has created demand among tenants for available quality properties.

Water Street Fund II LLC is a closed-end, discretionary real estate fund targeting commercial and multifamily investments in the Minneapolis-St. Paul and Raleigh-Durham, North Carolina, markets. WSP expects to acquire five to seven investments on behalf of the fund over the next two years. Typical investments will be value-add properties requiring total capitalization of between $5 million and $15 million. It is a sister company to Excelsior-based Oppidan.

Place: 8925 Highway 101 Frontage Road, Savage

Price: $5,250,000; $116.67 per square foot

Buyer: Water Street Partners, Excelsior

Seller: Sampson Commercial Properties LLC, Prior Lake

Date: 11-17-22