Matterhorn Venture Partners Expands into Minneapolis with Key Industrial Acquisition

Matterhorn Venture Partners (MVP), a prominent Chicago-based real estate investment firm, has recently made a strategic entry into the Minneapolis market by acquiring a notable small-bay industrial portfolio. This acquisition includes two buildings totaling 57,665 square feet located within the Minneapolis/St. Paul metropolitan area. The initiative is seen as a pivotal step in MVP's broader strategy of aggregating small-bay industrial assets across the region.

The purchased properties include one building at 5221 Lakeland Avenue N in Crystal, Minnesota, and another at 7385-7399 Bush Lake Road in Edina, Minnesota. These properties were acquired from separate sellers and represent MVP's first foray into Minneapolis, highlighting the firm's commitment to expanding its footprint in the small-bay industrial sector.

The Crystal building encompasses 27,012 square feet divided among four suites, while the Edina location is slightly larger at 30,653 square feet across six fully leased suites. Both facilities are constructed with masonry and feature 16-foot clear heights, along with dedicated dock and drive-in loading options. In a market characterized by a sub-2% vacancy rate for industrial buildings under 50,000 square feet, this acquisition positions MVP advantageously as there are virtually no new deliveries currently underway.

MVP's Chief Executive Officer and Co-Founder, Scott McKibben, expressed optimism regarding the acquisition, stating, "Minneapolis is one of the tightest small-bay markets in the country, and this portfolio gives us a functional, infill foothold at a basis well below replacement cost." He further noted that these properties are just the beginning of a larger aggregation effort in the Twin Cities, aiming to tap into the high demand for industrial space in the area.

In addition to leasing the available space in the Crystal building, MVP has ambitious plans to enhance both properties. This includes rolling current in-place rents to match market rates on long-term triple net leases as well as executing a capital improvement program. Planned upgrades will involve exterior enhancements, interior transformations of suites to a white-box state, renovations of bathrooms and fixtures, and retrofits to LED lighting.

The acquisitions were strategically sourced off-market through the efforts of 609 Real Estate, a Chicago-based firm specializing in real estate transactions. Jacob Borenstein, Principal of 609 Real Estate, emphasized the rarity of functional small-bay properties becoming available in locations like Crystal and Edina, underscoring the strategic advantage in pairing these two buildings into a single portfolio.

Matterhorn Venture Partners, since its establishment in 2024, has rapidly grown its portfolio, completing over $800 million in total deal capitalization across 12 states, amounting to more than 6.3 million square feet of industrial assets. The firm aims to create value by partnering with both private and institutional capital partners, emphasizing targeted capital improvements, proactive asset management, and disciplined growth strategies.

As Matterhorn Venture Partners begins its journey in the Minneapolis market, the firm is set to leverage its expertise to enhance the value of these acquisitions and contribute to the dynamic industrial landscape of the region. More details about MVP and its initiatives can be found on their official website: www.matterhornvp.com.