Just Sold: Tailwind sells Mankato project for $6.35 million.

Byline: Anne Bretts

Editor's note: "Just Sold" is a Finance & Commerce feature based on certificates of real estate value recently filed for commercial transactions and significant residential transactions in Twin Cities counties. Additional details in the transactions come from Plat Research, the Minnesota Secretary of State's Office, company documents, online real estate listings, F&C archives, CoStar and other research. Some purchase prices and per-unit calculations have been rounded.

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Tailwind Group, one of the most prolific developers in Mankato, has sold one of its successful mixed-use projects for $6.35 million and plowed $2.2 million of that into a 1031 exchange investment in another property with potential as a future project.

CAM 2 Properties LLC, an entity related to an investor in Madison Lake, closed Sept. 20 on the acquisition of The Lofts 1633, a retail and apartment development at 1633 Monks Ave. The price included a reported $10,000 down payment, an assumed mortgage of $3.99 million over 56 months at 4.1 percent interest and a $3.5 million balloon payment in 2024.

The three-story, 41,380-square-foot building was completed in 2014 on a site just a block from the Minnesota State University, Mankato campus. It features commercial space on the first floor topped by two floors of apartments. The price works out to $153.46 per square foot.

The sellers were six private investors in Minnesota, Iowa and Texas, led by developer Kyle Smith, Tailwind's leader. Smith said the investment agreement was designed to hold the property for five years or so and then sell.

Three of the investors and a related entity closed on Sept. 27 on a 1031 exchange purchase of an aging Walgreens store at 602 S. Front St. for $2.2 million. The 20,601-square-foot building was built in 1958 on more than an acre of land on a block along Riverfront Drive, in a redevelopment area just south of the Mississippi River.

The seller was represented by Nathan Whalen and Jeremie Johnson of the National Retail Group & Net Leased Group of the Indianapolis office of Marcus & Millichap.

Smith said Walgreens still has a few years left on its lease, but after that the property would make an attractive redevelopment site.

Tailwind has developed a broad portfolio of office, retail and apartment projects and now is focused on student housing, Smith said.

"It's been a great ride," he said.

Purchase price: Lofts 1633, $6.35 million; Walgreens, $2.2 million

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