JLL Arranges $10.75M Sale and Financing of Repositioned Chanhassen Industrial Facility for Buhl Investors
JLL Capital Markets has arranged the $10.75 million sale and acquisition financing of 8170 Upland Circle, a 78,943-square-foot industrial facility in Chanhassen, Minnesota, the firm announced June 16, 2026. The transaction involved seller representation and debt financing for Buhl Investors, a Minneapolis-based real estate investment management firm that repositioned the previously vacant property into a fully leased asset.
Buhl Investors Executes Value-Add Repositioning
Buhl Investors acquired the vacant building in February 2025 and undertook an extensive renovation program. The scope of work included removing 20,000 square feet of existing second-floor mezzanine space, installing a new five-inch structural concrete slab with vapor barrier, and upgrading the ESFR sprinkler system throughout areas affected by the mezzanine removal. The firm also added two new west-facing covered delivery docks, bringing the property's total loading positions to six, and completed HVAC system modifications along with LED warehouse lighting upgrades across the 56,839-square-foot warehouse area.
Following the renovation, the repositioned facility features a 28% office finish ratio totaling 22,104 square feet, 27.4-foot clear height warehouse space, and 290 parking spaces on a 14.52-acre site. The improvements successfully attracted a creditworthy tenant who committed to a long-term lease, achieving full lease-up of the property. The tenant was described as a comprehensive technology solutions provider whose business model requires space for both administrative functions and logistics operations.
"This transaction exemplifies successful value-add execution in today's competitive industrial market," said Ryan Robert, 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."
Chaska-Chanhassen Submarket Conditions
The property is located in the Chaska-Chanhassen micro-market within the broader Minneapolis-St. Paul metro area. According to the announcement, the submarket recorded a vacancy rate of 3.1% and year-to-date absorption exceeding 565,000 square feet at the time of the transaction. The facility's proximity to the tenant's adjacent headquarters at 8176 Mallory Court was cited as providing operational synergies that underscored the tenant's long-term commitment to the location.
JLL Capital Markets Team
JLL Capital Markets represented Buhl Investors, the seller, in the transaction. The sales team was led by Senior Managing Directors Colin Ryan and David Berglund. Managing Director Paul Spellman arranged the debt financing component of the deal.
JLL's Capital Markets group provides capital solutions including investment sales and advisory, debt advisory, mergers and acquisitions, corporate finance, loan sales, equity and fund placement, net lease, derivative advisory, and energy and infrastructure advisory. The group has more than 3,000 Capital Markets specialists in offices across nearly 50 countries.
About the Firms
JLL (NYSE: JLL) is a commercial real estate services and investment management company with annual revenue of $26.1 billion and operations in over 80 countries, with a global workforce of more than 113,000 as of March 31, 2026, according to the firm.
Buhl Investors is a real estate investment management firm based in Minneapolis, Minnesota. The firm's capabilities include land entitlement and development, property repositioning, adaptive re-use, and historic renovation across product types including retail, hospitality, office, industrial, education, senior housing, storage, and residential land.