Real Estate Transaction: Naegele Building

Property: The Naegele Building, 1700 West 78th Street, Richfield, MN

Buyer: The Limited

Seller: Morris Communication, Inc. (Augusta, GA)

Source: Occupant

Sale Date: October 1996 (purchase agreement), to be closed after tax increment financing and special use permits are approved

Sale Price: $7,253,886 (Note: the sale price does not consider the impact of tax increment financing for $3,011,000 over a 25-year period, where a 3% inflation in property values is assumed)

Unit Price: $20.61/sq. ft. of gorss land area, $23.26/sq. ft. of net land area

Net Rentable Area: NA

Gross Building Area: 94,509 sq. ft.

Zoning: C-2 Commercial

Utilities: All available

Topography and Soil: Gently rolling topography; good soils (sandy)

Visibility and Access: Excellent visibility at an intersection of two interstate highways

Age: 1964

Land Size: 352,024 sq. ft. or 8.08 acres of gross area 311,830 sq. ft. or 7.16 acres exclusive of roadway easement

Remarks: The purchase price includes a $1,650,00 lease buy-out payment by the seller, but does not include $2,500 paid to a tenant for relocation, nor an estimated $600,000 for razing . (If the $602,500 is added to the purchase price, total acquistiion cost is $25.19/sq. ft. of net land area.)
There are also two permanent easements in place for two large, outdoor advertising billboards located at the northeast and southwest corners of the site. Purchase of the Naegele site does not include rights to these easements. The easements were sold to a separate party, not involved in this transaction, for $1,000,000.

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