Investment group offers $ 2.5 million for Grand Forks Corporate Center II


September 14 — The Grand Forks municipal government is about to sell one of its two downtown “business centers”.

On Wednesday, September 8, city staff and consultants opened seven sealed bids for the city-owned Corporate Center II, located across DeMers Avenue from the also public Corporate Center I in the city center. Town of Grand Forks. Appraisers hired by the city valued Corporate Center II at around $ 3 million, but the highest bid opened on Wednesday was $ 2,505,000. Only three bidders showed up at an auction at Grand Forks town hall on Friday morning, and none increased their bid.

“I think it’s a fair price,” Mayor Brandon Bochenski told the Herald on Friday afternoon. “We were obviously worried that there would be a lot of low offers, but I think it was a pretty competitive offer.”

City staff expect to receive a high bid of around $ 2.3 million to $ 3 million, according to Bochenski.

The offers received by the city are expected to be presented to the board of directors of the city’s Jobs Development Authority on September 20. There, council members could accept one of the offers or reject them and keep the business center in the city’s hands, according to city administrator Todd. Feland. The city cannot solicit a second round of offers unless it wants to start over, he said.

Highest bid of $ 2.5 million

The highest bid was placed by Tanner Grimsley, an addiction counselor at Agassiz Associates, who stressed that he was not making an offer on behalf of that company.

Instead, Grimsley said he was an intermediary for an investment group he declined to name. He said they are not based in the Grand Forks area but are based in the United States.

“I’m just the face of it,” Grimsley told the Herald. “They think it’s a big city and they want to do some really cool development stuff here and make the city better.”

At least on paper, however, Grimsley’s offer was on behalf of Grimsley Consulting LLC, a Thompson-based company that touts commercial renovations and new construction projects in Grand Forks and Fargo, including a pair of Turning buildings. Point Health and Wellness.

Unsuccessful auctions

Other bidders for the center included Kevin Ritterman, CEO of Dakota Commercial who offered $ 1 million on behalf of the company, and Phil Gisi, a developer who runs a chain of elderly care facilities who offered $ 1.95 million on behalf of Edgewood Group, LLC. Edgewood’s bid was the second highest the city received for Corporate Center II.

Gisi confirmed to the Herald in July that he was interested in purchasing one or both of the city centers through Edgewood Real Estate Investment Trust or a related company. He said on Friday that the potential investment group had not decided whether to bid on Corporate Center I.

This building contains offices for Alerus Financial, Brady Martz & Associates and the law firm Camrud, Maddock, Olson and Larson. These tenants could potentially buy the space they are currently leasing to the city. Appraisers estimate its value at around $ 7 million.

Corporate Center II, at least for now, houses more Brady Martz offices as well as a regional Social Security office. None of them, however, have the guaranteed option of purchasing their space there.

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