Industrial Realty Group Acquires 422,727-Square-Foot Distribution Facility in South St. Paul for $21.47 Million

Industrial Realty Group (IRG) has acquired a 422,727-square-foot cross-dock industrial distribution facility at 411 Farwell Avenue in South St. Paul, Minnesota for $21.47 million, the company announced August 28, 2026. The property, formerly the headquarters and primary distribution center for online and catalog retailer The Sportsman's Guide, is fully available for occupancy as IRG moves to reposition the asset for new industrial users.

Property Details and Configuration

Situated on approximately 19 acres within an established industrial corridor, the facility comprises roughly 392,727 square feet of warehouse space and 30,000 square feet of office space. The building, originally constructed in 1970, is configured for cross-dock distribution operations, with loading access on three sides, 36 dock-high doors, two drive-in doors, a 110-foot truck court and 22-foot clear height. The site also includes an existing Union Pacific rail spur with rail doors, though activation would be required to restore active rail service.

At a purchase price of approximately $50.80 per square foot, the acquisition reflects pricing driven by the property's repositioning potential rather than in-place income, as the facility was vacant at the time of sale following The Sportsman's Guide's lease expiration on May 31, 2026.

The property is located approximately two minutes from Interstate 494, providing access to the broader Minneapolis-St. Paul interstate network. It sits roughly 15 minutes from both Downtown St. Paul and Minneapolis-St. Paul International Airport. IRG noted the facility can accommodate a single large user or be subdivided to support multiple tenants.

IRG Executive Comments on the Acquisition

Peter Goffstein, Executive Vice President of Industrial Realty Group, described the acquisition as a strategic fit for the firm's portfolio. "411 Farwell is a highly functional distribution asset with the infrastructure, scale and location to serve a wide range of industrial users," Goffstein said. "The property's cross-dock configuration, rail capability and access to the Twin Cities transportation network make it a strong addition to our portfolio and an attractive opportunity for companies seeking efficient regional or national distribution space."

Twin Cities Industrial Market Context

The acquisition comes as the Twin Cities industrial market remains among the tighter major markets in the country, though vacancy has edged upward in recent quarters. Total industrial vacancy in the Minneapolis-St. Paul metro stood at approximately 4.2 percent in the first quarter of 2026, running roughly two percentage points below the national average. Availability in the market rose to approximately 6.8 percent over the same period, reflecting a gradual softening from the ultra-low vacancy levels seen in prior years.

Average asking rents for industrial space in the Twin Cities metro have held firm, with NNN rates in the range of $9.34 to $9.57 per square foot as of early 2026. The market's relative tightness, combined with limited large-block availability, positions well-located bulk distribution assets like 411 Farwell to attract tenant interest as IRG moves through its leasing campaign.

IRG's Expanding Industrial Portfolio

The South St. Paul acquisition is one of several transactions Industrial Realty Group has announced in recent months. The firm, which is among the largest privately held commercial and industrial real estate companies in the United States, has also recently completed an acquisition in Suffolk, Virginia and announced portfolio expansions in Mexico, among other activity across its national portfolio.

The 411 Farwell Avenue property expands IRG's presence in the Twin Cities region and adds a large-format, rail-served distribution asset to its industrial holdings. With the building fully available for lease, IRG is positioned to market the facility to regional and national distribution users seeking functional, infill warehouse space in the Minneapolis-St. Paul metro.

Sources

• Industrial Realty Group Press Release – IRG Acquires 422,727 Square Foot Distribution Facility in St. Paul
• IRG St. Paul Acquisition Press Release PDF – August 28, 2026