Minneapolis’ NAI Legacy Showcases a Revival in the Retail Market despite COVID-19
NAI Legacy is pleased to announce that they have closed on the 1031 syndication of the RH | Minneapolis Gallery located in Edina, Minnesota. NAI Legacy established RH | Minneapolis under a Delaware Statutory Trust (DST), which is a popular legal structure that is used to hold investment real estate assets. The DST structure allows multiple investors to directly invest in beneficial shares of the Trust. This legal structure provides investors with flexibility over traditional ownership and qualifies for 1031 treatment. As a DST Sponsor of RH Minneapolis, NAI Legacy provided over 20 investors from 11 states with flexibility and other benefits over traditional ownership. The investors came from Minnesota, California, New York, Georgia, Louisiana, Washington, Texas, Virginia, Nevada, Michigan and Florida.
DeeAnn Peissig, Senior Vice President-Accounting commented, “This was very satisfying moment for our company. When the pandemic hit, investors were wary of the retail market, but RH found a way to open safely with shopper distancing. The acquisition of RH | Minneapolis was attractive to investors, and we were able to source equity from across the country. Our affiliation with local NAI Global offices enhances our investment program’s reach, and fully syndicating RH | Minneapolis will help stretch that reach even further.” RH | Minneapolis provides an individualized and unparalleled experience to each of their customers which made the property a resounding success over the past year. The property dominates three levels and 58,000 square feet of indoor and outdoor space. The iconic experience features artistic installation of luxury home furnishings in a gallery setting, allowing the shopper a unique experience when visiting this location.
“Restoration Hardware was an appealing acquisition for our investment program due to the strength of the tenant, quality of the lease and the unbeatable real estate. Our investment thesis proved resilient through the pandemic as many other retail investments fell out of favor. It speaks volumes of the quality of the investment opportunity and the quality of our team that we fully subscribed this offering. I’m excited to build on the momentum with our upcoming offerings,” commented Spencer Lund, Senior Vice President-Investments.
About NAI Legacy
Coupling the latest technology with a traditional emphasis on customer service, the NAI Legacy team provides strategic guidance, administrative support and brokerage services for properties totaling nearly 2,500,000 square feet. With business lines including property management, traditional sales and leasing services, and 1031 tax-deferred exchange solutions, NAI Legacy is adept at navigating all aspects of quality commercial real estate assignments.
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