Trautz Properties Inc. just bought a retail center in Northtown Mall’s outlot in Blaine for $4.7 million.
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The owner of Blaine’s Northtown Mall, 4th Dimension Properties, just sold a retail center in the mall’s outlot amid a slow season for retail transactions.
The five-tenant retail center at 599 Northtown Drive was acquired by Minneapolis-based Trautz Properties Inc. for $4.7 million. While nothing is set to change for the property — home to a Chipotle Mexican Grill, FedEx Office Print & Ship Center, Verizon, Gamestop and Potbelly — it marks movement in an area slated for more change.
“There’s nothing else happening in the market. That, in itself, makes it significant because there’s been very little retail that has closed this year yet,” said Amy Senn, vice president of investment sales with Mid-America Real Estate, who represented the buyer.
She said this is a typical acquisition for Trautz, which invests in retail around the Twin Cities metro. The $4.7 million price tag puts it in the top 20 largest retail transactions so far this year, according to state filings.
A few deals for Cabela’s properties and Lithia’s purchases of the Pohlad family’s auto dealerships make up a handful of the state’s largest retail sales for 2024 so far.
The Northtown outlot property is about 10,000 square feet and fully leased, and most of the tenants have been there since it was built in 2005.
The center is surrounded by other retail, including a Cub Foods, Walmart Supercenter and a Target. Suzanne Jones with Mid-America said these “shadow anchor” properties (which have some kind of anchor tenant not connected to the property or deal) are highly sought in today’s market. Mark Robinson and Bryce Thompson, of Mid-America, also represented the buyer in the deal.
Felix Reznick, principal with Hollywood, Florida-based 4th Dimension, has been working to reinvigorate Northtown Mall since buying it last August. He told the Business Journal in January that he’s adding an Imagination Station play area for kids and he invested in a new boiler for the shopping center.
Reznick said at the time that he wants to see more allowable uses in the area around the mall. He’s been interested in developing the outlots into a hotel or multifamily uses, although that won’t happen with the site now owned by Trautz. The city of Blaine is also interested in expanding uses in the area.
“He’s indicating, yes, that there are big changes coming,” Senn said about Reznick. “I’ve heard that a lot of good things are coming. But other than that, it’s just historically been a good market.”