Kumo Capital, in partnership with Brait Capital, is excited to announce the acquisition and redevelopment of Midtown Square, a 226,848-square-foot property situated on 10.19 acres in St. Cloud, Minnesota. This initiative aims to modernize Midtown Square into a vibrant, multifaceted hub for businesses and retailers, leveraging its strategic location and strong local demographics.
Midtown Square features a two-story retail structure and an attached four-story office building. Located less than 0.25 miles from one of Minnesota’s busiest intersections, the property enjoys exceptional accessibility and visibility. Its proximity to a population of over 105,000 people within a five-mile radius further strengthens its position as a cornerstone of the St. Cloud market.
The property boasts a diverse mix of tenants representing industries such as fitness and health, entertainment, professional services, event planning, and food services. Prominent national tenants include T-Mobile, Red Wing Shoes, and Liberty Tax Services, providing a stable foundation of cash flow and foot traffic.
Redevelopment Strategy
Acquired at a price well below replacement cost, Midtown Square offers a compelling value-add opportunity. Kumo Capital and Brait Capital will implement a phased redevelopment strategy designed to maximize both short and long-term returns:
- Short-Term Leasing: Below-market leases will be utilized during the renovation phase to maintain high occupancy levels, generate immediate cash flow, and attract foot traffic, enhancing the property’s appeal to prospective higher-end tenants.
- Property Enhancements: Strategic improvements, including necessary repairs and a modernized façade, will elevate the property’s profile and attract higher-quality tenants.
- Outparcel Sale: Proceeds from the sale of the Dunkin’ Donuts outparcel will offset redevelopment costs, optimizing project returns.
By year-end 2025, the net operating income (NOI) is projected to increase drastically relative to what is in-place.
Kumo Capital is thrilled to reimagine Midtown Square as a modern, dynamic hub that meets the evolving needs of St. Cloud’s thriving community.
