Commercial Real Estate in Minnesota and Wisconsin. Bought, Structured, and Operated.

The Plan Comes Before the Offer

Most buyers price a building and then figure out what to do with it. We build the operating plan first, then decide what the building is worth to us. That means modelling the rent roll we intend to create rather than the one we inherited, mapping pre-leasing before close where the asset supports it, and knowing on day one whether the exit is a sale, a refinance, or a long hold.

The math is specific to the building. A repositioning that works on a twelve-unit in one submarket is the wrong plan two miles away. We would rather spend the time up front and pass on a deal than close one we cannot operate.

What we look at

Pre-leasing and absorption before close, where the asset supports it

The rent roll we intend to build, not the one we inherit

Capital plan, stabilization timeline, and the cost of being wrong

Exit defined at underwriting: sell, refinance, or hold

What We Work On

Multifamily — Small to mid-size multifamily across the Twin Cities metro, greater Minnesota, and Wisconsin. We underwrite for what the property does after close, not what it looks like on a broker package.

Retail and Mixed-Use — Neighbourhood and strip retail, urban infill, and commercial with a residential component. Re-tenanting and rent-roll rebuilds are the core of the work.

Hospitality — Independent and small-flag properties where the operating plan, not the purchase price, decides whether the deal works.

Industrial — Small-bay, flex, and light industrial. Straightforward assets where the value is in the lease structure and the tenant mix.

Office and Office Conversion — Including repositioning obsolete office to a use the submarket actually wants. These need the most honest underwriting and the longest timelines.

Repositioning and Value-Add — Across every class above: physical work, tenant restructuring, rezoning. This is where the operating plan matters most and where most buyers get the timeline wrong.

Structured Acquisitions — Seller-carried paper, master lease with option, and other structures applied where conventional debt does not fit the situation or the timeline.

How Deals Get Done

Not every acquisition is a purchase with a bank behind it. We take control of assets through seller-carried paper, master lease with option, and other negotiated structures, and we use conventional debt when conventional debt is the right tool. Which one we reach for depends on the seller’s situation, the timeline, and what the building needs, not on what is easiest to close.

That flexibility is usually what makes a difficult deal

possible. A seller who cannot wait ninety days for financing, an asset a lender will not underwrite yet, a partnership that needs to be unwound before anything can happen — those are the situations where structure does the work that price alone cannot.

We do not discuss our positions publicly. Sellers, partners, and their counsel get specifics directly, under confidentiality, when there is a live deal to discuss.

We Also Fund Lease Options

Alongside the commercial work, The Option Co. funds lease-with-option-to-purchase transactions in Minnesota, Wisconsin, Ohio, Georgia, and Florida. Every one is fully underwritten. We verify income and debt-to-income, review credit, and require a documented path to a conventional refinance from a licensed loan officer before we will write a deal.

We turn down more of these than we write. A lease option is only worth doing when the buyer has a real route to owning the home at the end of it.

See the residential program

Who We Want to Hear From

Owners and sellers — You have a building you want to exit, and the situation is not clean enough for a standard listing. Timing, condition, partnership structure, or debt is in the way.

Operating partners — You know an asset class or a submarket better than we do and you want a sponsor who will actually build the plan with you.

Brokers and attorneys — You have a deal that needs a principal who can move, or a structure that needs someone willing to underwrite it properly.

How It Starts

Every engagement starts with a deal review call. We look at the property, the numbers, the seller situation, and the structures available. If it works, we move. If it does not, we tell you why, and that answer is usually worth the call on its own.

Common Questions From Owners and Brokers

Who buys commercial property in Minnesota without listing it first?

Principals do. We are one. The Option Co. Commercial acquires, repositions and operates commercial and multifamily property in Minnesota and Wisconsin for our own account, and sponsors deals alongside operating partners. A broker markets your building to buyers and is paid a commission when it sells. A principal is the buyer. Those are different jobs, and the difference matters most when the situation is not clean enough for a standard listing.

Are you a broker? Will you list my building?

No. We do not take listings and we do not quote commissions. When we sit down with you we are either buying, partnering, or telling you honestly that the deal is not for us. There is no commission conversation, because there is no commission. Our residential arm is separate and licensed, and we keep the two clearly apart.

What kinds of commercial property do you buy?

Multifamily, retail and mixed-use, hospitality, industrial, and office including office conversion. Repositioning and value-add work runs across all of them. On multifamily we focus on small to mid-size across the Twin Cities metro, greater Minnesota and Wisconsin. If a property sits outside that footprint we will tell you rather than waste your time.

How do you decide what a building is worth?

Most buyers price a building and then figure out what to do with it. We build the operating plan first, then decide what the building is worth to us. That means modelling the rent roll we intend to create rather than the one we inherited, mapping pre-leasing before close where the asset supports it, and knowing on day one whether the exit is a sale, a refinance or a long hold. The math is specific to the building. A repositioning that works on a twelve-unit in one submarket is the wrong plan two miles away.

Do you pay cash, or how do deals actually get structured?

Not every acquisition is a purchase with a bank behind it. We take control of assets through seller-carried paper, master lease with option, and other negotiated structures, and we use conventional debt when conventional debt is the right tool. Which one we reach for depends on the seller's situation, the timeline, and what the building needs, not on what is easiest to close.

What is a master lease with option, and when does it make sense?

The buyer takes over operating the property under a long-term lease and holds a separate written right to purchase it later at agreed terms. It fits when an asset needs work or stabilisation before a lender will underwrite it, or when a seller needs to be out of the operating seat sooner than a conventional sale can close. It is one tool among several, and it is the wrong tool as often as it is the right one.

My building is listed with a broker. Can I still talk to a buyer directly?

You can talk to us, and anything we do goes through your broker. That is how it should work, and we would handle it the same way if the roles were reversed. We will not discuss price with you while an exclusive listing is active, and we will never suggest cancelling it. Nothing about a conversation with us changes your agreement. If the listing ends and you are still weighing options, we would be glad to pick it up then.

My situation is complicated. Is that a problem?

Usually it is the reason to call. A seller who cannot wait ninety days for financing, an asset a lender will not underwrite yet, a partnership that needs to be unwound before anything can happen, deferred capital work nobody wants to fund — those are the situations where structure does the work that price alone cannot.

Do you charge a fee or a commission to look at a deal?

No. There is no commission and no fee to have us look at a property. We are buying for our own account, so our incentive is the deal itself.

What happens on the first call?

Every engagement starts with a deal review call. We look at the property, the numbers, the seller situation, and the structures available. If it works, we move. If it does not, we tell you why, and that answer is usually worth the call on its own.

What do you need from me to look at a property?

The property type, the city, roughly how big it is, what occupancy looks like, and — most usefully — what is actually driving the decision to sell. That last one tells us more than the rent roll does.

Do you buy office? What about office conversion?

Yes, including repositioning obsolete office to a use the submarket actually wants. These need the most honest underwriting and the longest timelines of anything we look at, and we would rather say so up front than discover it in year two.

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Erik Moody is a licensed Minnesota real estate salesperson. When The Option Co. purchases a property, it acts as a principal for its own account and does not represent the seller. Sellers are encouraged to obtain their own legal, tax, and real estate advice.