Just Sold: CPM pays $6.75M for Cheapo site in Uptown
By: Anne Bretts December 8, 2015 12:19 pm
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 with Just Sold here.
1300 W. Lake St., Minneapolis
An entity related to CPM Cos. paid $6.75 million to secure the former Cheapo Discs building at 1300 W. Lake St. in Minneapolis, which it plans to replace with a new six-story building with retail and office space and 125 market-rate apartments.
“Demo starts now,” CPM developer Daniel Oberpriller said Tuesday.
Construction will begin within 30 days to meet a timeline that will let residents begin moving in by May 2017. “Nobody wants to move in January,” he said, explaining the delicate balance of interest rates, weather, construction schedules and tenant convenience.
The project also requires some delicate maneuvering to complete demolition and construction on a site that is about a foot away from The Walkway, a high-end apartment complex with 92 units and multiple restaurants.
“It will be very tight,” he said.
The company is used to tight spaces. This is the fourth project Minneapolis-based CPM has under construction in Uptown and the fifth one underway in the city.
Lake and Freemont LLC, the CPM entity, closed Dec. 3 on the purchase of the 25,000-square-foot building from the Richard M. Schulze Trust, which is related to retailer Best Buy’s founder of the same name. The price appeared when the certificate of real estate value was made public Monday.
Oberpriller has had the property under contract since April, but had declined to disclose terms of the deal. Hennepin County values the 66-year-old property at $2.92 million, according to property tax records. Cheapo and its iconic red sign have moved to new space at 2600 Nicollet Ave.
Minneapolis-based ESG Architects created the design for the project, which will be built on the northwest corner of Lake Street and Fremont Avenue, just northeast of Calhoun Square. Minneapolis-based ReuterWalton Commercial LLC is the general contractor.
The site includes parcels at 2928 Fremont Ave. S. and at 1300 and 1300½ W. Lake St. The design has been tweaked since it was unveiled last summer, most significantly by reducing the number of apartments from 130 to 125.
The plan calls for 20,000 square feet of retail space and about 5,000 square feet of boutique office space. CPM hasn’t announced any tenants yet.
Farther west, CPM is busy with three other housing projects. Work has already started on a 45-unit buildingat Lagoon and Irving avenues, a four-story mixed-use building at 1708 and 1714 W. Lake St., and a similar building called 16Twenty just a block east of that. The company also is working on its Doubletree Hotel by Hilton project near the University of Minnesota.
Purchase price: $6.75 million, with no down payment and new financing
Price per square foot: $270; Hennepin County values the property at $2.92 million
Property ID: 33-029-24-43-0097/0098/0099
Date of deed: 12-3-15
ECRV released: 12-7-15