The 749,550-square-foot warehouse in Lakeville traded at $126.48 per square foot.
The answer · checked against Commercial Real Estate Direct
How much did ExchangeRight pay for the Amazon-leased industrial property near Minneapolis?
ExchangeRight Real Estate paid $94.8 million, or $126.48 per square foot, for a 749,550-square-foot industrial property at 9800 217th St. West in Lakeville, Minnesota. The property is leased to Amazon. The acquisition is associated with ExchangeRight Net-Leased Portfolio 61 DST, and Arch Street Capital Advisors is tagged in connection with the transaction.
Key facts
- ExchangeRight Real Estate paid $94.8 million for the industrial property at 9800 217th St. West in Lakeville, Minnesota, according to Commercial Real Estate Direct.
- The Lakeville, Minnesota industrial property sold for $126.48 per square foot, according to Commercial Real Estate Direct.
- The industrial property at 9800 217th St. West in Lakeville, Minnesota totals 749,550 square feet, according to Commercial Real Estate Direct.
- The transaction is associated with ExchangeRight Net-Leased Portfolio 61 DST, according to Commercial Real Estate Direct.
- Arch Street Capital Advisors is tagged in connection with the ExchangeRight acquisition of the Lakeville, Minnesota industrial property, according to Commercial Real Estate Direct.
- The tenant at the Lakeville, Minnesota industrial property acquired by ExchangeRight is Amazon, according to Commercial Real Estate Direct.
ExchangeRight Real Estate paid $94.8 million for a 749,550-square-foot industrial property leased to Amazon in Lakeville, Minnesota. The transaction valued the warehouse at $126.48 per square foot.
The property is located at 9800 217th Street West in Lakeville, about 20 miles south of Minneapolis. ExchangeRight acquired the asset as part of its net-leased portfolio strategy.
The deal was reported by the Minneapolis/St. Paul Business Journal. The property is part of ExchangeRight Net-Leased Portfolio 61 DST, a Delaware statutory trust structure used for 1031 exchange investors.
Arch Street Capital Advisors was involved in the transaction. The acquisition adds to ExchangeRight's holdings of single-tenant industrial properties anchored by investment-grade e-commerce operators.
Amazon has been a major driver of industrial demand in the Twin Cities market. Large-format distribution facilities have traded actively in the region as investors seek long-term lease commitments from credit tenants.
The Lakeville submarket has attracted logistics operators seeking proximity to Minneapolis-St. Paul while maintaining access to interstate highway networks. The property sits in a corridor that has seen steady absorption of warehouse space over the past several years.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
This deal offers a reference point for pricing single-tenant Amazon industrial in secondary Midwest markets. At $126.48 per square foot, the transaction implies ExchangeRight underwrote cap-rate compression on the presumption that Amazon's lease commitment justifies tight pricing even in a tertiary location 20 miles from the metro core.
Family offices considering co-GP opportunities in net-lease industrial should pressure-test whether Amazon credit alone can support valuations north of $125 per square foot in markets where replacement cost runs closer to $90 to $100 per square foot. The spread between pricing and land value suggests minimal mark-to-market upside if Amazon vacates or renegotiates at expiry.
A programmatic JV with a sponsor pursuing DST structures like ExchangeRight's Portfolio 61 would require clarity on the lease term, renewal options, and rent escalators—none of which are disclosed in the source. Without those mechanics, the $94.8 million price is an incomplete data point for underwriting similar opportunities.
Direct ownership via a separate account makes sense only if the lease has at least 10 years of primary term remaining and annual bumps above 2 percent. Otherwise, the asset is effectively a bond that reverts to commodity warehouse space at maturity, and the 1031 wrapper adds structural friction that family offices investing off their own balance sheet can avoid.
