The firm paid $49.76 per square foot for the former Sportsman's Guide facility in South St. Paul.
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How much did Industrial Realty Group pay for the former Sportsman's Guide distribution facility in South St. Paul?
Industrial Realty Group paid $21 million, or $49.76 per square foot, for the former Sportsman's Guide headquarters and distribution facility in South St. Paul, Minnesota, according to Commercial Real Estate Direct. The transaction was reported on August 31, 2026, and falls in the $10 million to $25 million deal range. The Minneapolis/St. Paul Business Journal first reported the acquisition.
Key facts
- Industrial Realty Group paid $21 million for the former Sportsman's Guide headquarters and distribution facility in South St. Paul, Minnesota, according to Commercial Real Estate Direct.
- Industrial Realty Group paid $49.76 per square foot for the South St. Paul distribution facility, according to Commercial Real Estate Direct.
- The acquired property was the former Sportsman's Guide headquarters and distribution facility, according to Commercial Real Estate Direct.
- The transaction was reported on August 31, 2026, according to Commercial Real Estate Direct.
- The deal falls in the between $10 million and $25 million price range category, according to Commercial Real Estate Direct.
Industrial Realty Group paid $21 million for a distribution facility in South St. Paul, Minnesota, the Minneapolis/St. Paul Business Journal reported. The price equals $49.76 per square foot.
The property previously served as the headquarters and distribution center for Sportsman's Guide. The seller was not disclosed.
South St. Paul sits in the southern Twin Cities metropolitan area. The facility is in Dakota County, part of the broader Minneapolis-St. Paul industrial corridor.
Industrial Realty Group is an acquirer of warehouse and distribution properties. The firm focuses on last-mile and logistics assets in secondary markets.
The transaction closed in late August. Terms beyond the purchase price were not disclosed.
The Deployment Angle
Family Office Real Estate Daily Desk · our analysis, not the source's
The $49.76-per-foot basis is well below gateway-market replacement cost and suggests room for value-add repositioning or lease-up if the facility carries vacancy. A family office entering via a programmatic joint venture with Industrial Realty Group or a similar platform could underwrite to stabilized yields in the mid-to-high single digits if the asset requires capital and leasing work.
Secondary Midwest industrial has drawn family capital seeking yield without competing against institutional programmatic buyers in the Inland Empire or New Jersey. The Twin Cities metro benefits from Fortune 500 corporate headquarters, a diversified economy, and population growth that supports distribution demand. Underwrite tenant credit and lease roll carefully—Sportsman's Guide filed for bankruptcy in 2017, so the property may have been dark or single-tenant for an extended period.
Co-GP capital alongside a repeat operator in this geography makes more sense than direct ownership unless the family office has local property management or an established Midwest industrial book. Pricing discipline at $50 per foot leaves margin for error. Avoid leverage above 55 percent loan-to-value until occupancy and rent rolls are confirmed—lenders will haircut appraised value on vacant or recently vacated assets, and the headline price may not reflect deferred capex or TI obligations.
