{"id":1058,"date":"2026-04-17T10:02:27","date_gmt":"2026-04-17T15:02:27","guid":{"rendered":"https:\/\/www.lee-associates.com\/twincities\/?p=1058"},"modified":"2026-04-20T08:18:58","modified_gmt":"2026-04-20T13:18:58","slug":"peavey-road","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/twincities\/2026\/04\/17\/peavey-road\/","title":{"rendered":"Peavey Road Partners Acquires Chaska Industrial Property for One of Minnesota\u2019s First Mezzobusiness Cannabis Facilities"},"content":{"rendered":"<p><strong>Minneapolis, Minn.<\/strong> \u2013 Peavey Road Partners LLC has acquired a 42,886-square-foot industrial property at 4024 Peavey Road in Chaska, positioning the site for one of Minnesota\u2019s first mezzobusiness cannabis cultivation, manufacturing, and retail operations.<\/p>\n<p>The property will be fully leased and operated by Blom Inc, a Minnesota-based cannabis company pursuing a <a href=\"https:\/\/mn.gov\/ocm\/businesses\/licensing\/license-types\/\">mezzobusiness license<\/a>\u2014the state\u2019s most vertically integrated license type\u2014allowing for cultivation, manufacturing, processing, packaging, and retail operations within a single platform. The facility will include what is believed to be the first \u201cfarm store\u201d retail concept in Minnesota, supported by Blom securing one of only three retail licenses issued within the City of Chaska.<\/p>\n<p>The acquisition closed on April 3, 2026, for $3.12 million, with financing provided by United Prairie Bank. In addition, Peavey Road Partners plans to invest approximately $4 million for building improvements to convert the former industrial facility into a state-compliant cultivation and retail operation.<\/p>\n<p>Cannabis real estate in Minnesota presents unique capital and execution challenges compared to traditional industrial assets, according to Kai Thomsen, principal at Lee &amp; Associates Twin Cities and co-founder of Peavey Road Partners. Access to lending remains limited, underwriting is more conservative, and operators must deploy significant upfront capital for specialized buildouts, environmental systems, and regulatory compliance\u2014often well before revenue begins.<\/p>\n<p>\u201cGetting these facilities off the ground isn\u2019t just about finding a building\u2014it\u2019s about solving for capital, infrastructure, and timing all at once,\u201d said Thomsen \u201cThere are very few lenders in the space, and even fewer properties that meet the power, and zoning requirements needed for cultivation.\u201d<\/p>\n<p>Peavey Road Partners was created by Kai Thomsen and Wade Shatzer of Equimax to address the unique real estate and capital challenges specific to Minnesota\u2019s cannabis industry. The platform is rooted in institutional real estate experience, with a focus on sourcing, structuring, and executing complex transactions, while partnering with best-in-class operators like Blom to handle cannabis operations. This is Thomsen\u2019s second property sale in the cannabis space. The first was the sale of the 110,000 sq. ft Itron manufacturing property in Waseca, which sold for $3.5 million to MSR Group in January. MSR plans a similar cannabis manufacturing and retail operation at the site.<\/p>\n<p>\u201cThis is a highly capital-intensive business with limited room for error early on,\u201d said Shatzer. \u201cWe approach this purely from a real estate and capital markets perspective\u2014our role is to structure the deal, deliver the facility, and partner with experienced operators who know how to execute on the cannabis side.\u201d<\/p>\n<p>Blom intends to operate the facility under a mezzobusiness license, allowing for cultivation, manufacturing, and retail sales from a single location\u2014an increasingly important model in the early stages of Minnesota\u2019s market, according to Blom. The property has also been designed with built-in expansion capacity to support Blom\u2019s future growth.<\/p>\n<p>\u201cWe\u2019re excited to bring this project to life in Chaska,\u201d said Aaron Cohen, CEO of Blom. \u201cThis facility gives us the ability to control the full process from cultivation through retail and positions us to scale as the market develops.\u201d<\/p>\n<p>In addition to the on-site retail component, Blom plans to pursue at least two additional retail locations as part of its broader growth strategy.<\/p>\n<p>Aaron Cohen and his wife, Heidi, founded Blom with business partner Martin Stern to bring a disciplined, quality-driven approach to cannabis operations in Minnesota. With a background in MedTech engineering and product development, Cohen has spent his career delivering products that improve the quality of life. Blom is an extension of that work, serving as a precision-driven platform designed to deliver consistent, high-quality products in this rapidly emerging market.<\/p>\n<p>The building, formerly used for industrial manufacturing, offers strong infrastructure fundamentals and the ability to support the significant mechanical and electrical systems required for indoor cultivation. The seller, Highland Development, was represented by Hudson Brothen of Cushman and Wakefield.<\/p>\n<p>###<\/p>\n<p><strong>\u00a0<\/strong><strong>About Lee &amp; Associates Twin Cities<\/strong>:<\/p>\n<p>Lee &amp; Associates Twin Cities is a full-service commercial real estate firm providing brokerage, property management, and consulting services across office, industrial, retail, and investment sectors. As part of the national Lee &amp; Associates network &#8211; with more than 80 offices across North America &#8211; the Twin Cities team combines deep local market expertise with the reach and resources of a national platform. Our professionals deliver creative, data-driven solutions to help clients buy, sell, lease, and manage real estate assets with confidence.<\/p>\n<p><em>For more information, visit <a href=\"http:\/\/www.lee-associates.com\/twincities\">www.lee-associates.com\/twincities<\/a>. <\/em><\/p>\n<p><strong>About Peavey Road Partners LLC<\/strong><\/p>\n<p>Peavey Road Partners is a real estate investment platform founded by Kai Thomsen and Wade Shatzer, focused on acquiring and developing specialized industrial assets designed to meet the unique demands of the cannabis industry.<\/p>\n<p><strong>About Blom Inc<\/strong><\/p>\n<p>Blom Inc is a Minnesota-based cannabis company building a vertically integrated platform where consistency is engineered, transparency is embedded, and operational rigor drives every step from seed to sale.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Contact: <\/strong><\/p>\n<p>Martha Nevanen<\/p>\n<p><a href=\"mailto:martha@buzz-partners.com\">martha@buzz-partners.com<\/a><\/p>\n<p>651-492-5861<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Minneapolis, Minn. \u2013 Peavey Road Partners LLC has acquired a 42,886-square-foot industrial property at 4024 Peavey Road in Chaska, positioning&#8230;<span class=\"readmore\"><a class=\"moretag\" href=\"https:\/\/www.lee-associates.com\/twincities\/2026\/04\/17\/peavey-road\/\">+<\/a><\/span><\/p>\n","protected":false},"author":266,"featured_media":1060,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,8],"tags":[],"class_list":["post-1058","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-press-releases"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.5 (Yoast SEO v28.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Peavey Road Partners Acquires Chaska Industrial Property for One of Minnesota\u2019s First Mezzobusiness Cannabis Facilities - Twin Cities | Lee &amp; 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