Distiller buys Minneapolis property near Surley Brewing.

Byline: Matt M. Johnson

An Irish-themed distillery has paid more than $1 million for a Minneapolis site for its operations even as drinking and eating establishments throughout the city have closed in the wake of the COVID-19 outbreak.

O'Shaughnessy Distillery paid about $1.06 million for a 2.61-acre property at 600 Malcolm Ave. SE that includes a 4,963-square-foot former potato factory, according to a certificate of real estate value made public last week. The new distillery plans to rehab the old building and add three additions to create a 27,503-square-foot venue that would include event spaces, production facilities and a bar, according to plans filed with the city of Minneapolis.

The seller is Minneapolis-based Wall Cos., which is developing hundreds of apartment units and a food hall next door at its Malcolm Yards project. The distillery would rise on property just north of Surley Brewing's Minneapolis production and event facility and about three blocks north of University Avenue Southeast.

The deal, which closed on March 16, works out to about $405,412 per acre, or about $213.20 per square foot if based on the size of the building. Hennepin County values the property at $1.1 million for tax purposes.

O'Shaughnessy Distillery made the property purchase on the same day that Minneapolis Mayor Jacob Frey declared a local public health emergency and called for bars and restaurants to close or limit service. O'Shaughnessy Distillery owners Michael and Patrick O'Shaughnessy did not respond immediately on Tuesday to a request for comment on the purchase or the future of their...