MINNEAPOLIS, June 16, 2026 – JLL Capital Markets announced today the $10.75 million sale and acquisition financing of 8170 Upland Circle, a 78,943-square-foot, newly repositioned Class A+ industrial facility in Chanhassen, Minnesota.
The transaction represents a compelling value-add success story in one of the nation’s top-ranked industrial markets, where strategic capital improvements transformed a multi-year vacant property into a fully leased, institutional-quality asset.
Buhl Investors acquired the vacant building in February 2025 and immediately executed an ambitious repositioning plan that included removing 20,000 square feet of second-floor mezzanine space, expanding loading dock capacity, and implementing comprehensive building system upgrades. The transformation successfully attracted a creditworthy tenant who committed to a long-term lease.
“This transaction exemplifies successful value-add execution in today’s competitive industrial market,” said Colin Ryan, Senior Managing Director at JLL. “Buhl Investors recognized the opportunity to reposition an underutilized asset in a supply-constrained submarket. Through strategic capital deployment and targeted improvements, they created a best-in-class facility that met the specific operational requirements of an expanding, creditworthy tenant.”
The extensive renovation program included removal of the existing mezzanine structure with steel reinforcements, installation of a new five-inch structural concrete slab with vapor barrier and ESFR sprinkler system upgrades throughout areas of mezzanine removal. The property’s loading capabilities were significantly enhanced through the addition of two new west-facing covered delivery docks, bringing the total to six loading positions. Additional improvements included HVAC system modifications and LED warehouse lighting upgrades throughout the 56,839-square-foot warehouse space.
The repositioned facility features an optimal 28% office finish ratio (22,104 square feet), 27.4-foot clear height warehouse space and 290 parking spaces on a 14.52-acre site. The building’s configuration ideally serves the tenant’s business model as a comprehensive technology solutions provider, offering space for both administrative functions and logistics operations supporting their blue-chip client base.
The property’s location in the Chaska-Chanhassen micro-market provided a significant competitive advantage. With vacancy at just 3.1% and year-to-date absorption exceeding 565,000 square feet, this submarket demonstrates exceptional supply-demand dynamics. The facility’s proximity to the tenant’s adjacent headquarters at 8176 Mallory Court creates valuable operational synergies and underscores the tenant’s long-term commitment to this location.
JLL Capital Markets represented the seller, Buhl Investors, in the transaction. The sales team was led by Senior Managing Directors Colin Ryan and David Berglund. Managing Director Paul Spellman arranged debt financing for the transaction.
JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients, including investment sales and advisory, debt advisory, M&A and corporate finance, loan sales, equity & fund placement, net lease, derivative advisory and energy & infrastructure advisory. The group has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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