183,000 sq. ft Spec Industrial Property in MN receives $4 M C-PACE loan

Minneapolis, Minnesota (April 24, 2024) – PACE Loan Group closed a $4 million C-PACE loan for Lakeville 35 Logistics Center, a 189,678 sq. ft. spec industrial project being developed by Likewise Partners, which has completed 44 million sq. ft. of industrial transactions across the Midwest.  The project broke ground this month with an estimated completion date in Q4 2025.

The project, 21300 Juniper Way, Lakeville, Minnesota, is the first phase of a two-phase development built on 30 acres along Highway 70. It will include 19 dock doors, 32-foot clear height, and office space to accommodate the growing need for more efficient warehousing and distribution spaces.

Located in the South Central submarket as defined by CoStar, the area is well-connected to regional infrastructure, ranking as the metro's fourth-largest industrial submarket by inventory. Major transportation linkages serving the submarket include Interstate 35, which provides access to downtown Minneapolis, Progressive Rail, and Airlake Airport.

“Lakeville 35 Logistics Center is the only speculative industrial building that will be delivered in Lakeville in 2025 and represents the significant demand in the area,” Steve Buss, founder and CEO, Likewise Partners.

The C-PACE proceeds will be used to finance energy conservation measures. Qualifying projects include building envelope, ENERGY STAR windows, heating, ventilation, and air conditioning, high-efficiency water fixtures, and lighting systems and controls.

Matthew McCormack, senior vice president – PACE Loan Group, originated the loan. “We were able to replace what would otherwise have been more expensive preferred equity, increasing leverage and borrower’s returns,” he said. 

The project team includes Gardner Builders, the general contractor, Ed Farr Architects, professional engineering, surveying, planning, and environmental services firm Sambatek, and Cushman & Wakefield. 

Media Contact:

Martha Nevanen

Martha@paceloangroup.com

651-492-5861