Founders Properties Expands Twin Cities Footprint with $26.4M Eagan Industrial Acquisition

Founders Properties has strengthened its presence in the Minneapolis-St. Paul metropolitan area with the acquisition of Gateway I & II, a modern industrial complex in Eagan, Minnesota. The $26.4 million transaction reflects the ongoing demand for quality industrial assets in secondary markets across the Midwest, particularly those with strong tenant profiles and contemporary infrastructure.

The two-building portfolio, located on Lone Oak Road, comprises 169,656 square feet of industrial space and is currently fully leased—a factor that likely contributed to its appeal to the buyer. The properties were developed between 2016 and 2018, positioning them as relatively new additions to the market with specifications that align with current tenant expectations.

According to REBusinessOnline, Judd Welliver and Bentley Smith of CBRE brokered the deal on behalf of the seller, which was not disclosed. The transaction price equates to approximately $156 per square foot, a figure that underscores the premium commanded by newer, fully occupied industrial assets in desirable submarkets.

Key Details

• Location: Lone Oak Road, Eagan, Minnesota—a suburban submarket approximately 15 miles south of downtown Minneapolis
• Size: 169,656 square feet across two buildings
• Purchase Price: $26.4 million (~$156 per square foot)
• Year Built: 2016-2018
• Occupancy: 100% leased
• Specifications: 24-foot clear heights, multiple dock doors, fenced trailer parking
• Brokerage: CBRE (Judd Welliver and Bentley Smith)

Market Impact

This acquisition signals several important trends for commercial real estate professionals monitoring the Twin Cities industrial sector. First, the transaction demonstrates that institutional-quality assets in suburban Minneapolis continue to attract serious capital, even as broader market conditions remain somewhat cautious. The fully leased status of Gateway I & II likely provided significant comfort to the buyer, reducing lease-up risk and ensuring immediate cash flow.

Eagan has emerged as a particularly attractive submarket for logistics and distribution users, given its proximity to major transportation arteries and the broader Minneapolis-St. Paul metropolitan area. The 24-foot clear heights and fenced trailer parking mentioned in the offering are increasingly table stakes for modern industrial users, particularly those in e-commerce and third-party logistics.

The price per square foot achieved in this transaction—approximately $156—provides a useful data point for investors and appraisers evaluating comparable assets in the region. While not reaching the premiums seen in primary coastal markets, the figure suggests healthy investor confidence in Middle America industrial real estate fundamentals.

For landlords and developers, the sale reinforces the value of investing in modern specifications and maintaining high occupancy rates. For tenants, transactions like this may signal a changing of the guard in ownership, which could influence lease renewal negotiations and property management approaches going forward.