Eagan’s industrial corridor just got a new heavyweight landlord. Founders Properties has snapped up Gateway I & II, a fully leased two‑building industrial portfolio on Lone Oak Road, for $26.35 million. The pair totals roughly 169,656 square feet of mid‑bay warehouse space with modern specs that keep logistics and light manufacturing tenants happy, adding another institutional owner to a stretch of Eagan where demand for well‑located, turnkey space is still running hot.
According to REJournals, Founders paid $26.35 million for Gateway I & II, which were built between 2016 and 2018 and offer 24‑foot clear heights, ample dock doors, and fenced trailer parking. REJournals reports the buildings are fully leased and together span 169,656 square feet. The outlet also ran a photo credited to Founders Properties.
What Founders Purchased
Founders positions itself as an industrial specialist focused on small‑ and mid‑bay assets in dense labor markets near key transportation routes. On its website, Founders Properties says it targets infill properties it can actively manage to boost occupancy and returns, a strategy that lines up neatly with a two‑building, fully leased portfolio like Gateway. The firm has pursued similar buys across the Midwest as investors chase stable cash flow from compact warehouse assets.
Why Buyers Still Want Mid‑Bay Industrial
The Twin Cities industrial market continues to reward modern, well‑located product even as overall vacancy ticked up in 2025. Cushman & Wakefield’s Q4 2025 report pegs metro vacancy near 4.7% and notes buyers are increasingly favoring mid‑bay and infill formats. The report says sales activity picked up last year as financing stabilized, shifting capital toward smaller industrial footprints and outdoor storage opportunities. Those dynamics help explain why a fully leased, relatively new asset in Eagan would draw competitive interest.
Local Implications
The $26.35 million price works out to roughly $155 per square foot based on the 169,656‑square‑foot total, a mark that reflects the premium for leased, newer product, per REJournals. Nearby CBRE listings for Lone Oak Road properties include comparably sized mid‑bay buildings and active leasing brochures that show the area remains a draw for logistics and service tenants, according to CBRE. For Eagan, the deal deepens institutional ownership of the south‑metro industrial corridor at a time when redevelopment of large corporate campuses nearby is reshaping local demand.
As capital flows back into smaller industrial formats, buyers with operational expertise, such as Founders, are likely to keep pursuing fully leased, well‑spec’d assets in the Twin Cities’ suburban corridors. That trend, noted by Cushman & Wakefield, suggests more mid‑market trades similar to Gateway could close in 2026 if financing and tenant demand remain steady.
