Editor’s note: “Just Sold” is a Finance & Commerce feature based on the newest certificates of real estate value filed with the Minnesota Department of Revenue for commercial sales throughout Minnesota and reports of sales across the country involving local parties. Research includes company and broker documents, online real estate listings, F&C archives, Catylist and other research.

In 2022 Excelsior-based Water Street Partners bought a vacant value-add industrial property in Savage for $5.25 million, with a tenant ready to start renovations.

The property lived up to its description, selling this month for $8.184 million.

The two-story, 45,306 square-foot masonry building was developed in 2017 on 2.89 acres at 8925 Highway 101 W. The single-tenant building has three dock doors, one drive-in door and 27 feet of clear height.

The property was the first disposition out of Water Street Fund II LLC.

WSP is led by managing partners Joe Boone and Jim Hegedus. They declined to name the tenant or buyer or share financial details in the announcement of the sale, saying only that it provided a strong return.

In addition to handling its fund investments, WSP also oversees all capital markets activities for its sister company Oppidan. Judd Welliver and Bentley Smith of CBRE advised on the sale on behalf of WSP.

 “We are pleased to bring this investment full cycle and deliver for investors during an otherwise more challenging period in the market,” Boone said in the prepared statement. “Our portfolio is in a great position and as we stabilize assets, we’ll look to sell properties as the market and terms permit. At the same time, we are in the midst of raising our third fund and excited about acquisition opportunities that lie ahead.”

 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. Fund II is fully invested in multiple assets in Minnesota and elsewhere. WSP is currently raising its third fund. 

No certificate of real estate value was available Thursday.

Place: 8925 Highway 101 W., Savage

Price: $8.18 million

Seller: Water Street Partners, Excelsior