Elion Partners’ $77.8 million sale of the Whole Foods Market-anchored retail component of CityPlace, a mixed-use project in the Minneapolis-St. Paul-area community of Woodbury, Minnesota, marked the largest grocery-anchored retail transaction of 2018 in the Midwest.
Inland Retail Property Fund, LP acquired the asset, which will be the eighth shopping center acquired by the retail fund focused on necessity retail. HFF marketed the property on behalf of Elion.
Elion redeveloped the former State Farm regional corporate headquarters into CityPlace, a mixed-use concept of retail, medical office, entertainment, 236 hotel rooms and a residential component that includes 253 apartment units on its 100 acres. The 184,711-square-foot, regionally dominant retail component was completed between 2016 and 2017 and features an e-commerce-proof mix of tenants, including Whole Foods Market, Nordstrom Rack, Sierra Trading Post, La-Z-Boy Furniture, Sur La Table, Verizon Wireless, Chuck & Don’s Pet Store, Cafe Zupas, Qdoba Mexican Grill, Cycle Bar, Discover Strength Personal Fitness and Potbelly Sandwich Works.
CityPlace is located at 305 Radio Drive in Woodbury, which is 9.4 miles east of downtown St. Paul and 19 miles east of downtown Minneapolis. The center has frontage along Radio Drive, Hudson Road and Interstate 94, which exposes it to a combined 105,000 vehicles per day. More than 60,500 residents earning an average annual household income of $116,000 live within a three-mile radius of the property, and there are approximately 148,000 residents within the trade area.
“We are grateful to the city of Woodbury for their partnership, which, coupled with Elion’s integrated capabilities as both a fiduciary and an operator, made this complex transaction a reality,” said Juan DeAngulo, managing partner and co-founder of Elion Partners. “This property is very special to us at Elion, and we are thrilled that it is now in great hands with Inland.”
“CityPlace, with its Whole Foods anchor and diverse tenancy, is a prime example of a quality necessity-based shopping center,” added Howard Fields, Inland Retail Property Fund portfolio manager. “We are delighted to add CityPlace to our portfolio.”