Crescenda announces the sale of Synergy 3311 to Costco
Minneapolis, Minnesota – Crescenda Merger & Acquisition Advisors announced that its client, Synergy 3311 and its 175,000 square foot building in Northeast Minneapolis was acquired by Costco Wholesale Corp.
Washington-based Costco (Nasdaq: COST) paid $8.3 million to buy the former Immedia headquarters and manufacturing plant that will become the company’s first Business Center in Minnesota.
Costco already has eight Minnesota stores and another on the way (in Woodbury). The Minneapolis location will be a business supplier, according to the City of Minneapolis. Costco operates a dozen "Business Centers" nationwide, which are open to all members and have an expanded selection of business products. Business Centers elsewhere also deliver to customers.
Kevin Reich, the Minneapolis city council member whose district includes the new Costco Business Center, recently told the Star Tribune all the necessary zoning and regulatory hurdles have already been cleared and the Business Center could open within 18 months, creating a “couple hundred” new jobs.
The company offers a detailed explanation about their new Business Center format on their website but the concept is to sell businesses the supplies and equipment they need – and sometimes even the products they will re-sell.
The Star Tribune says Costco’s Business Centers specialize in serving offices, food service and convenience stores.
Scott Tankenoff, managing partner of active Northeast developer Hillcrest Development, developed the building and sold it to former Immedia owner John Ledy. Ledy is the one who sold it to Costco.
Tankenoff said a Costco in that area would serve small and medium businesses who want to buy in bulk. The company also pays a living wage, Tankenoff said. Costco recently announced it would raise its own minimum wage to $13 an hour. “This is a very good thing for the city and a very good thing for the neighborhood,” he said. According to Tankenoff, "Costco has been searching for a store in that part of the metro area for years and expects they will draw customers from St. Paul, St. Anthony, and Roseville, as well as Minneapolis."
Crescenda Investment Banking Advisors (Crescenda, LLC) represented Synergy 3311as sell-side advisor. Jim Odney handled the sale for Crescenda who worked closely with Colliers International. Andrew Odney handled the sale for Colliers.
About Crescenda, LLC
Crescenda is a mergers and acquisitions intermediary and investment banking advisory firm specializing in representing privately held businesses in the sale of their companies.
Jim Odney, Managing Director Crescenda, LLC Plymouth, MN 55441 Ph: (763) 545-1886 jim@crescenda.com
www.crescenda.com