A farm in Minnetonka, Minn. (a southwest suburb of Minneapolis) was purchased by Ron Clark Construction and Design. They closed on the 25.5 acre property for $6.22 million, according to the Minneapolis / St. Paul Business Journal.
That comes to just more than $235,000 per acre!!! Farm real estate values for Minnesota averaged $4,760 an acre in 2013, according to NASS.
just what we need! more new houses,what are they thinking? there is whay to many setting empty now,gess the morage banks haven't taken enough losses?.heck farmland is nothing......houses are everything
While this sale is of land zoned for farming by Hennepin county, it is not a sale of an active farm. Judging from the aerial map at the Hennepin County property records page, there are no actual buildings left on this so-called farm. The property is not large enough for modern commercial farming. There is no space for expansion of the farm. Indeed, it is rather the sale of the last section of a once active farming operation. The southern border of the property is abutted primarily by both BMW and Lexus car dealerships (yes, this is the luxury territory of Hennepin county). To the east is more commercial development and to the north and west, residential development and a Middle school. The years when this land was part of an active farming operation are well past. Much of the original farm had been sold off years ago. [You can find the property on Google Maps, type in Minnetonka, MN and it is to the northwest of the junction of I494 & I394. If you go to the satellite view, you can pick the parcel out, because it is the only undeveloped land in that area.]
With regard to the high sale price, this land sale is very near to Lake Minnetonka, a large and very popular pleasure lake in south western Hennepin county. In the later 19th and early 20th centuries, the very affluent built their summer cabins on the western shores of Lake Minnetonka. The long time home owners of this area are members of the MacMillan family (Cargill), the Washburn and Dunwoody families (General Mills), the Pillsbury family (Pillsbury), and the Dayton family (Target). A rule of thumb for land values in Hennepin county is if it is on the Lake the value of the property will be about 6x the value of a same or similar lake property most elsewhere in both the county and the state, it within 1 mile of the lake the factor will be about 3x the value of a similar parcel anywhere else in the county. This parcel is virtually the last open parcel of land in the city of Minnetonka.
I do think that the reporting about this sale has been very disingenuous.
I think most of us kinda knew the situation even without knowing the details. It has happened and is happening all over the place. The high price tells you it was highly sought after. Pldairy's sentiment is real but you "can't fight city hall" or progress. After the building boom and bust of the 2000's I can see how more building seems foolish. But the wealthy have recovered and want new houses. And if you can afford it you can get it.
The area of Hennepin County where this property is located has been for the wealthy since the late 1800s - the hired help has never been able to buy a house in Minnetonka (this statement is only a slight exaggeration). And you are dead on about the wealthy and their new homes. The folks who will be buying homes in this development are going to blink even one eye at the underlying land price. In fact, I looked at current listings for individual lots for sale in the general area of this property and prices are ranging from a low of 187000 to a high of 625000 per acre. All in all, in this particular context the developer got away with a "bargin." But, as I said at the beginning, this area has been the bastion of the 'haves' for over 100 years.
I just wouldn't feel comfortable parking the ole cab over in the drive way while I ran in and ate dinner before heading back out to the field for another load.
btw--dinner would be noon, and I only need one fork for the salad, meal, and dessert.