A medical device manufacturer’s warehouse in New Brighton sold for $15 million this week, according to a certificate of real estate value.
The property was previously owned by Donatelle Plastics, a company that specializes in building and manufacturing medical components and devices. Donatelle was acquired by DuPont, a Wilmington, Delaware, chemical company.
While it was not disclosed how much DuPont paid for Donatelle’s business operations, the $15 million for the warehouse, located at 501 County Road E-2 Extension in New Brighton, was an all-cash deal.
According to Ramsey County tax records, the warehouse’s estimated market value in 2024 is $9.7 million, up from its estimated market value of $7.9 million in 2023. The warehouse was built in 1998 and, according to a listing on Catylist, is more than 150,000 square feet.
In a press release about the Donatelle acquisition, the chemical giant said the Minnesota company brings on board advanced technologies for building “injection molding, liquid silicone rubber processing, precision machining, device assembly and tooling.”
DuPont’s head of media relations, Dan Turner, said in an emailed statement that the Donatelle facility would operate as normal and that no other properties were part of the Donatelle purchase. This marks the third location in the Twin Cities metro area that is part of the DuPont empire — Turner said Spectrum Plastics Group has a warehouse in Minneapolis and DuPont Water Solutions operates a facility in Edina.
In a DuPont report on its second-quarter earnings, CEO Lori Koch said the Donatelle purchase marks an expansion of its presence in the health care space.
“Earlier this week, we announced the closing of the acquisition of Donatelle, which expands our healthcare offerings through enhanced expertise in medical device markets closely related to the Spectrum business we acquired last year,” said Koch.
The north-central submarket, where the property is located, has a low vacancy rate of 1.9% overall, and even lower for industrial properties, which sits at 1.3%, according to a Colliers industrial market report for the second quarter of 2024. That compares to a straight vacancy rate of 4.0% for the Twin Cities overall.
According to the Colliers report, North Central is likely to see a good number of new deliveries in the coming years, at a time when construction and development are starting to slow due to the environment of rising interest rates and other costs. There are 493,000 square feet under construction currently, the most of any Twin Cities submarket, 16% of which is pre-release.
Low vacancy and declining deliveries are a recipe for rent growth, according to industrial brokers, though Hudson Brothen, chief executive of Cushman & Wakefield, called the Twin Cities metro area’s vacancy rate “unhealthily low.”
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