DeKalb's newest 3M building sells for $69.4 million

DeKALB – A California-based real estate investment trust bought 3M’s recently completed 987,500-square-foot distribution center in Park 88 in DeKalb for $69.4 million.

Griffin Capital Corp. announced the purchase on behalf of Griffin Capital Essential Asset REIT II Inc., according to a news release. It bought the property from Park 88 Group LLC, which is a joint venture between Clayco and Venture One Real Estate.

“We are excited to acquire a new, state-of-the-art Class A logistics facility that serves as a primary distribution center for 3M Company’s extensive products that are used by businesses and households on a routine basis throughout the world,” Griffin Capital’s Vice President of Acquisitions, Shawn Carstens, said in a statement. “Our acquisition of this property reinforces our REIT’s focus on driving shareholder value by investing in income-generating properties leased to well-established corporate tenants on a long-term basis, while utilizing our skills as experienced operators of large commercial properties to maximize returns on each investment.”

Mark Goode, principal of Venture One Real Estate, said the sale was good for the DeKalb area.

“Anytime you have a company investing resources in DeKalb, it’s a positive for the region,” he said.

Construction of the 3M building started last fall.

Griffin Capital Essential Asset REIT II Inc. is a publicly registered non-traded real estate investment trust focused on acquiring a portfolio consisting primarily of single-tenant business essential properties throughout the U.S.

As of Tuesday, it had acquired 29 office and industrial buildings with about 5.5 million rentable square feet and an asset value of about $814.4 million, according to the release.

The distribution warehouse, which was completed in August, is on a 49.71-acre site in Park 88.

The property serves as a regional distribution facility for St. Paul, Minnesota-based 3M, which has expanded and consolidated its distribution footprint in the city. 3M has been operating in DeKalb since 1985, and the Park 88 facility will become 3M’s largest distribution center in DeKalb, and among its largest distribution centers nationally, according to a news release.

Local officials approved incentives of up to $4 million for the project in 2015; 3M agreed to lease the properties for at least 10 years.

The company’s 122-month lease started in August, according to the news release. When the new 3M building was completed, the company shuttered its Wirsing Parkway facility.