Just Sold: LS Black buys site for housing, HQ

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Editor’s note: “Just Sold” is a Finance & Commerce feature based on the newest certificates of real estate value filed with the Minnesota Department of Revenue for commercial sales throughout Minnesota and reports of sales across the country involving local parties. Research includes company and broker documents, online real estate listings, F&C archives, Catalyst and other research.

Three years ago partners Mike Hudson, Willy Boulay and Sterling Black launched LS Black Development in leased space in St. Paul. Now they’re getting ready to break ground on The Balsam on Broadway, a $65 million, mixed-use project that includes 128 units of affordable housing and 5,500 square feet of space where they can grow their company in the heart of the city.

And while the company is new, it’s a sister company to LS Black Constructors, a construction company based in St. Paul since 1977. The site for the Balsam is a 60-year-old industrial building on 1 acre at 554 Broadway St. The developers bought it from their corporate sibling for $2 million on Jan. 17.

Hudson explained how the project came together.

“We first and foremost saw this site as a fantastic site for housing, given the proximity to the amenities of downtown St. Paul and the numerous employers in the area,” he said in an email interview. “Secondly, as a young and growing company, we knew that eventually we would outgrow our current space, and saw this as an opportunity to stay in St. Paul and experience our mission every day by having our office space be incorporated into one of our projects.

“This allows us a unique experience where we can interact with our tenants and the building on a daily basis.  We think this will be beneficial for all parties and will help us to always keep our tenants and mission in mind when pursuing future projects.

The men fell in love with the site the first time they saw it, yet there have been challenges. Rising costs have pushed the price up from the original estimate of $45 million. They’re still waiting for the state to approve the Low-Income Housing Tax Credit financing, but are ready to start work when it does.

The site is four blocks from CHS Field, home of the St. Paul Saints, and close to Regions Hospital, the Minnesota Department of Labor and Industry and mass transit.

Tushie Montgomery Architects designed the project to include apartments with up to three bedrooms as well as a fitness center, work-from-home spaces, a top-floor “sky lounge,” an indoor play area for children and indoor bicycle parking.

Place: 554 Broadway St., St. Paul

Price: $2 million; no down payment listed; new mortgage; parties related

Buyer: LSBD St. Paul Broadway LLC, St. Paul

Seller: L&N Black Properties LLC, St. Paul

Date: 1-17-23

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Otsego to get Aldi, Michaels

Otsego will be getting a new free-standing, 20,644-square-foot Aldi grocery in a few months, while arts and craft retailer Michael’s plans to renovate a vacant space next to the local SuperTarget for a new 12,000-square-foot store.

The Aldi Inc. Minnesota office, located in Faribault, closed Jan. 11 on the $1.5 million acquisition of a 2.8-acre site at 8700 Parkway Ave. NE, located on the northwest corner of Parrish Avenue and 87th Street. The price works out to $535,714 per acre.

The City Council approved the plans in December. Matt Lilla, regional vice president in the Faribault office, hasn’t announced a date for the start of construction.

Michaels has leased space between the SuperTarget at 15800 87th St. NE and Great Clips.

Ben Krsnak, of Minneapolis-based landlord Hempel Real Estate, said about 5,000 square feet between the future Michaels and Great Clips is still available.

Place: 8700 Parkview Ave. NE, Otsego

Price: $1.5 million; cash; $535,714 per acre

Buyer: Aldi Inc. Minnesota, Faribault

Seller: Tamarack Land-Parrish Meadows LLC, Waconia

Date: 1-11-23

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Correction: This article has been revised to correct the second reference to Mike Hudson.