Golub & Co. has signed a 12,277-square-foot lease at RSM Plaza, a 415,824-square-foot office complex in Minneapolis’ central business district.

Transwestern Real Estate Services worked on behalf of the landlord, while IAG Commercial Real Estate represented the tenant, Meyer Borgman Johnson.

The structural design practice will relocate its corporate headquarters to the 20-story property, with a move-in scheduled for June this year.

Located at 801 Nicollet Mall, RSM Plaza was developed in phases between 1968 and 1971. The property consists of two office buildings known as the West and East Towers.

Close to multiple bus stops as well as to interstates 394 and 94, RMS Plaza is 12 miles from Saint Paul, Minn., and within 14 miles of Minneapolis-Saint Paul International Airport.

READ ALSO: What’s Defining Office in 2025?

Meyer Borgman Johnson will move from the nearby 510 Marquette Ave. S. to the property’s West Tower, fully occupying the 20th floor. Golub & Co. owns the duo since 2015, when it picked up the asset for $78.4 million, according to CommercialEdge. The ownership completed a $10 million improvement program in 2018 that added multiple upgrades at the property, such as a renovated lobby and the addition of conference rooms and meeting spaces.

RSM Plaza includes floorplates between 12,300 and 29,000 square feet, an on-site fitness center, bike storage and on-site parking, as well as 25,000 square feet of first and second-floor retail space. Other tenants include R.S. Peterson Sales Inc., Groundswell, Community Reinvestment Fund USA and Bioworld Merchandising, CommercialEdge shows.

Transwestern’s team of Vice President Trinette Wacker and Principal Broker Reed Christianson brokered the deal on behalf of the landlord. President Jeffrey LaFavre and Advisor Zach Synstegaard with IAG Commercial Real Estate represented the tenant.

Twin Cities ends 2024 with affordable rents and low vacancy

According to a recent CommercialEdge report, office markets in the Midwest had the most affordable rates in 2024. Twin Cities posted the second-lowest average asking rent at $26.25 per square foot, below the national average of $33.11 per square foot. Detroit was the least expensive among the top 25 U.S. office markets, with rents averaging $21.46 per square foot.

With a rate of 16.2 percent as of December, the Twin Cities recorded the third-lowest office vacancy rate in the nation, representing a 160-basis-point year-over-year decline.

The post Golub & Co. Inks HQ Lease in Minneapolis appeared first on Commercial Property Executive.

The Minneapolis portfolio has 17 buildings and spans nearly 1.9 million square feet, while the Baltimore acquisition includes 10 buildings totaling 881,000 square feet. The locations and square footage of each asset in the two portfolios were not released and the company declined to offer more details, including the seller or sellers of the assets.

The company described the properties in general terms noting they have highly diversified tenants, high average clear heights, ample loading docks and parking spaces, as well as proximity to major thoroughfares, employment centers and residential neighborhoods.

READ ALSO: The Future Demand for Industrial Is Decarbonized

The firm, which has been among the top five largest cross-border buyers of U.S. real estate over the past five years, focuses on key U.S. industrial markets with significant population bases, diversified economies and resilient tenant demand.

Investcorp noted that as of the fourth quarter of 2024, market rent growth over the past three years averaged 13.4 percent in Baltimore and 11.4 percent in Minneapolis, according to Green Street Advisors data. These figures outpace the 9.3 percent average for the top 50 U.S. metropolitan areas.

Baltimore has seen a recent influx of major corporations including Optum Inc., JLL, Under Armour and Morgan Stanley. Minneapolis has a diverse economy that features 17 Fortune 500 companies like Target Corp., Best Buy Co., 3M Co. and General Mills.

In the U.S., the Bahrain-based firm invests primarily in the industrial and residential asset classes, with 98 percent of its portfolio coming from those two sectors. As of September, nearly 60 percent of Investcorp’s real estate assets under management in the U.S. were in the industrial sector. Since 1996, Investcorp has acquired approximately 1,400 properties totaling more than $26 billion.

Growing U.S. industrial presence

The Minneapolis and Baltimore deals come about five months after Investcorp made three industrial acquisitions totaling about 1.5 million square feet for approximately $300 million. The Dallas and Atlanta infill portfolio had 16 buildings totaling 597,161 square feet and expanded the firm’s existing significant industrial presence in both markets. The West Coast infill portfolio includes 17 buildings encompassing 539,909 square feet across Denver, Las Vegas, San Diego and the San Francisco Bay Area. The Tampa industrial portfolio had eight buildings comprising 279,887 square feet.

Investcorp officials noted well-located, multi-tenanted assets continue to attract interest from tenants and investors as re-shoring and nearshoring efforts reshape the industrial and manufacturing landscapes in the U.S. The three portfolios reflected those characteristics and were expected to provide a resilient cash flow with year-over-year industrial rent growth.

Last April, Investcorp acquired a 1.3 million-square-foot, 31-building industrial portfolio in South Florida and Denver for about $200 million.

A month earlier, Investcorp formed a new investment vehicle valued at $526 million with two leading sovereign wealth funds to focus on acquiring U.S. industrial assets. The investment vehicle’s buying capacity was estimated at about $1.5 billion.

Several properties in Indiana and Florida previously owned by Investcorp changed hands last year. In July, Sperry Equities acquired Northwest Indiana Logistics Portfolio with 639,829 square feet across two buildings in Portage, Ind. Investcorp had owned the assets, which are in the Chicago industrial market, according to CommercialEdge data.

Cypress Park, a five-building industrial park in Orlando, Fla., with 256,838 square feet, was sold to Harbert Management Corp. in April for $40.5 million. The industrial park had been acquired by Investcorp in 2021 for $28 million, according to CommercialEdge.

The post Investcorp Pays $335M for Industrial Portfolios appeared first on Commercial Property Executive.

Onward Investors has acquired Ameriprise Financial Center, a 960,000-square-foot office building in Minneapolis.

The high-rise traded for $6.3 million, representing a nearly 97 percent discount from its previous open-market sale price of $200 million in 2016, The Minneapolis/St. Paul Business Journal reported. GHR Foundation sold the asset after assuming control of the building in 2023, following the previous owner’s execution of a deed in lieu of foreclosure.

Morning Calm Management acquired the asset in 2016, according to CommercialEdge. The firm took out a $137.8 million loan financed by the seller, The Opus Group.

Located at 707 Second Ave. S., the property is in the city’s business district and less than 10 miles from the Minneapolis-Saint Paul International Airport.

READ ALSO: What’s Defining Office in 2025?

Constructed in 2000, the 31-story high-rise has floorplates averaging 35,000 square feet and an adjacent four-story parking ramp with 300 spots. Onward Investors is considering various possibilities for the property, including repurposing all or part of the building for non-office uses. Ameriprise Financial, which had its headquarters at the building since its completion, announced in late 2022 that it will vacate the space.

Last year, the Minneapolis Council passed the Office to Residential Conversions Amendment, which streamlines review processes, eliminates public hearing requirements and temporarily exempts converted buildings from the affordable housing policy for five years.

Minneapolis office activity

In December, Onward Investors formed a joint venture with Cross Ocean Partners and Neuberger Berman Special Situations client funds for the acquisition of Wells Fargo Center, the third-tallest building in Minneapolis. Starwood Capital Group sold the 57-story, 1.2 million-square-foot asset.

Last year, Minneapolis’ office investment volume totaled more than $735 million, an 181 percent increase from 2023, according to a CBRE report. Additionally, the market’s vacancy rate as of December clocked in at 24.1 percent, a 10-basis-point decrease quarter-over-quarter. Nevertheless, the city’s central business submarket recorded one of the highest rates at 27.6 percent, the same report shows.

The post Onward Investors Acquires 960 KSF Minneapolis Building appeared first on Commercial Property Executive.

A joint venture of Cross Ocean Partners, Neuberger Berman Special Situations client funds and Onward Investors has acquired Wells Fargo Center, the third-tallest building in Minneapolis. Starwood Capital Group previously owned the 57-story, 1.2 million-square-foot high-rise, according to CommercialEdge.

The asset traded before in April 2019, when Starwood acquired it from Hines Interests for $313.6 million, the same source shows. After the acquisition, Starwood implemented several building upgrades.

The Class A skyscraper was developed in 1987, after a former building at the site was destroyed in the largest fire in U.S. history at the time. The high-rise became Norwest Corp.’s headquarters, a company that has later merged with Wells Fargo.

The LEED Gold-certified property features floorplates ranging between 11,000 and 30,707 square feet. Amenities include a fitness center, wellness rooms and a communal lounge, coworking spaces and focus rooms, as well as a conference center with training rooms.

Located in the city’s downtown at 90 S. Seventh St., the transit-oriented building was 62 percent leased at the time of sale, with tenants including BMO Capital Markets, Jones Day and KPMG.

Minneapolis’s recent office activity

Minneapolis’ office investment volume in the third quarter of this year reached $105 million, with sales in suburban areas accounting for most of the transactions, according to a CBRE report. The rolling four-quarter sales activity totaled nearly $524 million. Additionally, the market’s vacancy rate at the end of the third quarter clocked in at 23.9 percent.

In February, Ryan Cos. agreed to purchase a large portion of the Thomson Reuters campus in Eagan, Minn. The deal involved 179 acres of the 263-acre complex, including a 1.1 million-square-foot office building, three data centers and 90 acres of undeveloped land.

The post Neuberger JV Buys 1.2 MSF Minneapolis Tower appeared first on Commercial Property Executive.

Industrial Realty Group has purchased a 965,134-square-foot industrial portfolio in St. Cloud, Minn., within the Minneapolis-St. Paul metro. Minnesota Logistics LLC sold seven buildings, while Maiers Transport & Warehousing Inc. sold the eighth, according to Stearns County public records.

IRG will redevelop the eight properties—part of St. Cloud Industrial Park—and has tapped Colliers to handle leasing at the campus.

Publisher’s Clearinghouse is the largest tenant of the industrial park. It will soon vacate the space, a transition that will allow IRG to attract a mix of distribution, manufacturing or warehousing tenants. Following the redevelopment, availabilities will range from 50,000 to 500,000 square feet.

The buildings are:

• 720 Anderson Ave. & 730 Anderson Ave., two 1969-built assets totaling 275,040 square feet
• 710 Anderson Ave., a 102,968-square-foot property completed in 1971
• 5 Mcleland Road, which came online in 1964 and has 106,528 square feet
• 19 & 21 Mcleland Road, two buildings completed in 1967 and totaling 222,940 square feet
• 20 Mcleland Road, a 161,968-square-foot building completed in 1985
• 30-34 Mcleland Road, a single, 1968-built asset totaling 114,789 square feet

All buildings are one-story with dock levelers and bumpers, loading doors, fire sprinklers. The portfolio has clear heights ranging from 12 to 21 feet. The campus is also rail-served and allows for easy access to Interstate 94 and to U.S. Highway 10. St. Cloud Regional Airport is 9 miles away, while Minneapolis is within 72 miles.

The deal comes about seven months after Fulfillment Distribution Center, another tenant at the campus, announced it will be laying off more than 350 employees after its client, Publisher’s Clearinghouse, decided to close its commerce line, St. Cloud Times reported.

The Colliers team in charge of leasing includes Vice President Casey O’Malley, Vice Chair Andy Lubinski, Associate Vice President Aaron Whitmore and Senior Associate Ethan Haglund.

Twin Cities metro ranks second for Midwest sales

A total of $862 million in industrial assets changed hands in the Twin Cities year-to-date through September, according to a recent CommercialEdge industrial report. Across Midwestern markets, only Chicago ranked higher, with $2.1 billion in sales.

In May, EQT Exeter acquired 5.1 million square feet—among the largest industrial transactions in the metro this year. The company picked up a 24-property industrial portfolio from Prologis. The deal’s total value was not disclosed, but 14 of these assets changed hands for a combined $284.6 million.

The post IRG Buys 1 MSF Minneapolis-Area Industrial Portfolio appeared first on Commercial Property Executive.

Hines, Marquee Development and AFL-CIO Building Investment Trust have officially completed North Loop Green, a 1 million-square-foot mixed-use development in Minneapolis.

The project comprises 350,000 square feet of office space, 350 multifamily units, 100 short-term rental residences, 10,000 square feet of retail space and a 1-acre public park.

Construction began in 2021, with ESG Architecture & Design and Kraus-Anderson acting as designer and general contractor, respectively.

The 3.4-acre development represents the third phase of a Planned Unit Development, which includes two additional office buildings and a multifamily property. The joint venture redeveloped a six-parcel site for the project’s assembly, which served as a surface parking lot.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

North Loop Green consists of two towers and a park. The office component includes 14 stories with ground-floor retail, while the residential building rises 34 floors.  

North Loop Green’s office tower

The office component features floorplates averaging 28,523 square feet, terraces on each level, floor-to-ceiling windows, as well as a swimming pool and gym, to name a few. Moreover, the property is Wired pre-certified, while pursuing LEED Silver certification.

Piper Sandler & Co. will relocate its headquarters to North Loop Green in the summer of next year. The investment banking firm inked a 15-year lease for 113,000 square feet of office space in 2022.

Other notable leases include Värde Partners’ 12-year agreement for 28,000 square feet of office space signed last year, as well as KPMG and the development’s own designer—ESG Architecture & Design. Currently, the office component is 70 percent leased.

A host of eateries and bars will occupy the mixed-use development’s retail component, with one already in service and two others slated to open this fall.

Located at 350 N. Fifth St., North Loop Green is less than 1 mile from interstates 94 and 394. The Mississippi River and the Target Field, home to the Major League Baseball’s Minnesota Twins, are within walking distance.

Taking Twin Cities’ office pulse

According to a recent CommercialEdge report, the Twin Cities’ asking office rate was down 7.9 percent year-over-year as of May. However, the vacancy rate was also down 80 basis points during the same period, standing at 16.2 percent—below the national average of 17.8 percent as of May.

Due in part to the rise in construction costs and the overall performance of the office sector, Minneapolis-St. Paul’s office supply pipeline was virtually non-existent, with only 35,666 square feet under construction as of May, the same report shows.

The post Hines JV Completes 1 MSF Minneapolis Mixed-Use Development appeared first on Commercial Property Executive.

Davis Healthcare Real Estate has completed Lakeville Specialty Center, a 100,500-square-foot medical office building in Lakeville, Minn.

The development team included Synergy Architecture Studio, Timco Construction and KOMA as structural engineer, among others.

Davis obtained a $2.9 million construction loan from Bridgewater Bank in 2021, according to Dakota County records. The groundbreaking ceremony took place the following year in June, when the specialty clinic was already fully leased.

The now-completed facility is occupied by Allina and MNGI Digestive Health. The former has taken a total of 78,500 square feet, offering orthopedics, oncology, women’s health and cardiology services, while the latter operates a clinic and endoscopy center across 22,000 square feet.

Plans for the medical office building initially called for a 50,000-square-foot building, rising on a 4.2-acre site. Due to a strong leasing demand in the health-care sector and the commitment from the two tenants, the developer doubled the size of the facility, which extended the project’s completion timeline by four additional months. The four-story Class A property now offers 540 car spaces and an underground parking structure.

Lakeville Specialty Center took shape at 18645 Orchard Trail, near Interstate 35 and 22 miles south of downtown Minneapolis. Other medical providers in the surrounding area include Children’s Minnesota Cardiovascular Care, MinuteClinic, Park Nicollet Urgent Care Lakeville and Lakeville Orthodontics, among others.

The Minneapolis-St. Paul office market currently has 16 other medical office buildings in various stages of development, set to add 1.5 million square feet to the existing inventory, CommercialEdge data shows.

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Multiple limited liability companies affiliated with EQT Exeter have acquired a roughly 5.1 million-square-foot industrial portfolio in metro Minneapolis-St. Paul, public records show. Prologis sold the assets with the assistance of CBRE.

The portfolio totals 24 properties but sales documents currently mention only 14 assets having changed hands for a combined $284.6 million. The deal’s total dollar value was not disclosed and the entire transaction is expected to close during the second quarter of this year.

CBRE’s Judd Welliver confirmed the sale, but was unable to provide further information to Commercial Property Executive. Welliver worked together with Bentley Smith, Michael Caprile, Ryan Bain, Zachary Graham, Joseph Horrigan and Victoria Gomez in representing the seller, according to the Minneapolis-St. Paul Business Journal.

The properties are part of four Minneapolis logistics submarkets and provide access to the I-494/I-694 beltway around the Minneapolis-St. Paul metro area. The facilities were 90 percent leased at the time of sale by 54 unique tenants, approximately 20 percent of the total being existing tenants within EQT Exeter’s portfolio.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

Two of the traded assets, totaling 541,622 square feet, are part of Arbor Lakes Business Park, an 100-acre campus in Maple Grove, Minn., according to CommercialEdge information. Developed by Duke Realty, both facilities came online in 2018 and entered Prologis’ portfolio in 2022, following the two firms’ merger.

The acquisition of Duke Realty by Prologis for $26 billion was first announced in June 2022. Multiple industry observers were quick to weigh in on the deal.

The all-stock transaction closed in early October of that year and ultimately valued at $23 billion. What Prologis gained was Duke’s full investment, management and development portfolio totaling 142 million square feet across 480 buildings, in addition to a development pipeline of 7 million square feet.

EQT Exeter, too, is committed to the industrial sector. Last July, it closed its Industrial Value Fund VI at $4.9 billion, well past its original goal of $4 billion.

Soft landing? 

Although the nation’s industrial real estate sector is tapering off after two years of “unprecedented growth coming out of the pandemic,” and tenant demand—though positive—is also slowing, the sector’s outlook is largely good, according to a first-quarter report from Cushman & Wakefield.

Deliveries continue to outpace net absorption, but the overall nationwide vacancy of 5.8 percent remains under the long-term average of 7 percent, and rents continue to grow, albeit more moderately.

Equally good, construction starts are about half of what they were a year prior, in large because of interest rates. Tallying all the pluses and minuses, Cushman & Wakefield concludes, “Demand is cooling but not crashing, while vacancy is rising but at a controlled pace (largely due to new supply) and rent growth is slowing but solidly positive. This is exactly what a soft landing looks like for the industrial sector.”

The post Prologis Sells Twin Cities Industrial Portfolio for $285M+ appeared first on Commercial Property Executive.

RL Cold, a division of RealtyLink LLC, has broken ground on a 292,000-square-foot design-build cold storage facility in Lakeville, Minn., near Minneapolis. Ware Malcomb provided design services and Graycor Construction Co. serves as general contractor. Completion is expected next spring.

The Lakeville City Council approved the project’s final plans in May 2023. The development also involves the construction of 215th Street—an extension of County Road 70—and 220th Street, as well as Galway Lane, to serve as access drives.

READ ALSO: Why Cold Storage Is Getting Hotter

Designed to achieve LEED certification, the facility will have 50-foot clear heights, 70-foot-deep truck docks and up to 34,000 pallet positions. Plans also call for 98 employee parking spots, 61 truck spots and 38 truck dock doors.

Spanning 28 acres, the project will take shape inside the 205-acre Airlake Industrial Park. Interstate 35 is 4 miles away, with downtown Minneapolis roughly 20 miles north. Americold owns a 359,914-square-foot cold storage facility within the same campus.

Minneapolis-St. Paul’s supply pipeline falters

The Minneapolis-St. Paul’s industrial supply pipeline encompassed 3.7 million square feet in the first quarter of this year, according to a Colliers report. The amount marked a decline from the previous quarter, which bolstered 5.8 million square feet, and an even steeper fall year-over-year compared to the 7 million square feet underway in 2023’s first quarter.

Solugen contributed to the current pipeline by breaking ground on a 500,000-square-foot biomanufacturing facility in Marshall, Minn., just last month. The firm specializes in providing low-carbon organic acids used in agriculture, energy, water treatment and personal care. Completion is expected in the fall of 2025.

The post RL Cold Kicks Off Minneapolis Cold Storage Facility appeared first on Commercial Property Executive.

Climate technology company Solugen has started construction on its 500,000-square-foot Bioforge Marshall project, a biomanufacturing facility in Marshall, Minn. The company is developing the bio-based chemicals plant in partnership with Archer Daniels Midland Co., also known as ADM, a global leader in sustainably sourced solutions from nature.

Solugen’s new facility is expected to be delivered in the fall of 2025. Upon completion, the development is expected to create more than 50 manufacturing jobs in addition to as many as 100 temporary jobs during construction.

READ ALSO: Getting Into the Heads of Life Science Clients

The Bioforge Marshall facility will sit on a 34-acre site and will feature three modular trains or production lines with a total production capacity of 120 kilotonnes per annum. Additionally, the plant will utilize ADM-sourced dextrose to manufacture low-carbon organic acids to be used in agriculture, energy, water treatment and personal care. For this purpose, two dextrose pipelines will be connected directly to ADM’s adjacent corn processing plant, resulting in higher production capabilities and lower transportation costs and emissions.

Solugen’s new facility will utilize a production process that is estimated to reduce CO2 emissions by up to 18 million kilograms per year, while also increasing the company’s existing capabilities. The Minnesota Department of Employment, together with the state’s Economic Development’s Job Creation Fund, has issued $760,000 in incentives for the development.

As part of their strategic partnership, which was announced in late 2023, Solugen and ADM also initiated collaborations with local workforce development groups and educational institutions including the Marshall Chamber of Commerce and Southwest Minnesota State University, as well as the Minnesota West Community and Technical College, among others. Solugen is also operating two facilities totaling 500,000 square feet in Houston, where the company opened its first carbon-negative molecule manufacturing plant.

Strategic life science partnerships

Earlier this year, another strategic partnership between Trinity Capital Advisors and Foundation Capital Ventures has formed Foundation, a platform focused on creating real estate solutions to support the growth of the life science, technology and innovation sectors across the U.S.

In February, Onyx Equities teamed up with Machine Investment Group to kick off the next phase of an upcoming international life science and biotechnology hub. The partnership had purchased an 108-acre industrial campus in Kenilworth, N.J., in 2023. Dubbed The Northeast Science and Technology Center, the upgraded campus will cater to prospective cutting-edge research and development companies.

The post Solugen Breaks Ground on 500 KSF Biomanufacturing Plant appeared first on Commercial Property Executive.

Ryan Cos. has agreed to acquire a large portion of the Thomson Reuters campus in Eagan, Minn.

The transaction involves 179 acres of the 263-acre property, including a 1.1 million-square-foot office building, three data centers totaling 333,912 square feet and 90 acres of undeveloped land. However, the sale excludes Thomson Reuters’ manufacturing facility that will continue to operate on campus.

Tony Barranco, North Region president at Ryan Cos., told Commercial Property Executive the company will collaborate with the City of Eagan and Thomson Reuters to determine the best uses for the undeveloped portion of the site. Barranco also told CPE that the new ownership will begin the due diligence process, as well as gather stakeholder feedback.

Part of a downsizing process

Located at 610 Opperman Drive, the Thomson Reuters campus is approximately 3 miles from the interchange between interstates 494 and 35E, which provides direct access to Minneapolis and St. Paul, Minn. Minneapolis–Saint Paul International Airport is less than 9 miles away.

Last January, Thomson Reuters put the 179 acres up for sale as part of its downsizing efforts. Six months later, the firm selected a new office location and leased some 300,000 square feet at The Landing, a 385,000-square-foot office building at 2900 Ames Crossing Road in Eagan; the move marks a footprint shrinkage of roughly 800,000 square feet.

Ryan’s third Twin Cities project

For the Minneapolis-based Ryan Cos., the Thomson Reuters campus acquisition represents its third major project in the Twin Cities metro area in the past 12 months. The company previously partnered with C.S. McCrossan Inc. to develop a 100-acre science and technology park in Maple Grove, Minn., for Boston Scientific.

More recently, Ryan Cos. acquired a 40-acre parcel in Arden Hills, Minn., from the Ramsey County Board of Commissioners. Development opportunities for the build-to-suit site include a regional or national corporate campus, a research and development center, life sciences offices, or manufacturing and distribution facilities.

Outside its Minnesota projects, Ryan Cos. topped out its 23-story Ryan Tower office project in Plano, Texas, in September. The building will include 409,000 square feet when completed later this year. 

The post Ryan Cos. Picks Up Big Piece of Thomson Reuters Campus appeared first on Commercial Property Executive.

CRG has completed The Cubes at French Lake, a 1 million-square-foot Class A industrial property in Dayton, Minn. The developer hired CBRE as exclusive leasing agent for the facility.

According to CRG, this is Minnesota’s largest speculative industrial project to date and its first super-bulk distribution facility. The development team included CRG’s parent company, Clayco, as general contractor and Lamar Johnson Collaborative as designer.

CRG started work on the property in 2022 and obtained $61.1 million in construction financing, provided by First National Bank of Omaha, CommercialEdge data shows.

READ ALSO: What’s Next for Industrial Real Estate?

The Cubes at French Lake is at 11500 Dayton Parkway N. The cross-dock facility features 40-foot clear heights, ESFR sprinkler systems, 100 grade-level dock doors with the possibility to add 69 others, four drive-in doors, 60-foot speed bays, a 185-foot depth truck court, 231 trailer parking spots and 652 vehicle parking spaces. The property also features a 3,950-square-foot office space, weather seals, surface-mounted fire extinguishers and 4,000 amps of power.

Located on 65 acres close to Interstate 24 via the Dayton Parkway interchange, the building is 26 miles from Minneapolis, 33 miles from Saint Paul and within 39 miles of Minneapolis-Saint Paul International Airport. Other industrial users in the area include King Solutions Inc., T.J. Maxx, Graco Inc. and FedEx.

CBRE’s Senior Vice Presidents Dan Swartz and James DePietro, together with Senior Associate Austin Lovin, are in charge of leasing the industrial asset.

Twin Cities development lagging other Midwest metros

Twin Cities had 1.5 million square feet of space under construction, a recent CommercialEdge report shows. Compared to other midwestern markets, the metro had the smallest pipeline, while Chicago led with 13.2 million square feet, followed by Kansas City (10.8 million square feet) and Detroit (7.9 million square feet).

Among the notable industrial projects completed last year, The Opus Group added 380,000 square feet to its Minneapolis footprint. The developer wrapped up Nordeast Business Center in Minneapolis, totaling 130,439 square feet, the Sanctuary Business Center in Blaine, Minn.—encompassing 137,178 square feet—and the 111,820-square-foot Johnny Cake Business Center in Apple Valley, Minn.

The post CRG Completes Minnesota’s Largest Spec Industrial Building appeared first on Commercial Property Executive.

Hammes Partners has acquired Hudson Medical Center, a 160,000-square-foot medical office building in Hudson, Wis., within the Twin Cities market. Hudson Medical LLC sold the property with help from Transwestern Real Estate Services.

The developer took out a $42.8 million construction loan in 2022 from U.S. Bank, according to CommercialEdge information. The property came online a year later.

The facility features an ambulatory surgery center and orthopedic field house. Tenants at the three-story building include Minnesota Oncology, Twin Cities Orthopedics, Valley Surgery Center and Associated Eye Care.

The Class A property at 2651 Hillcrest Drive is close to several dining and retail options, including a Target. Downtown St. Paul is within 20 miles, downtown Minneapolis is some 29 miles west, while Minneapolis–Saint Paul International Airport is 27 miles away.

In March last year, Hammes acquired a six-building medical office portfolio in Chicago from Twin Building Management. The properties totaled more than 120,000 square feet.

Recent deals in the Twin Cities market

Transwestern’s team that represented the seller included Vice President Frank Richie, Managing Principal Mike Salmen, together with Senior Associate Erik Coglianese and National Managing Director John Huff.

Last fall, Montecito Medical purchased Minnesota Women’s Care, a 32,711-square-foot medical facility in Woodbury, Minn. The deal was backed by a $141 million portfolio loan from Capital One.

According to a Transwestern report, Minneapolis’ medical office vacancy rate clocked in at 6.6 percent in the second quarter of last year, well below the 8.1 percent national average. Additionally, the metro ranked in the top 10 markets nationally in terms of net absorption during the same period.

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IDS Center’s valuation dropped 5 percent year-over-year. Image courtesy of CommercialEdge

Accesso Partners has secured a loan extension for up to three years for IDS Center, a 1.4 million-square-foot tower in Minneapolis. The owner worked with Iron Hound Management Co. to arrange the deal, as the firm is seeking longer term refinancing options.

Accesso acquired the building in 2013 for $253 million. The purchase involved a $182.5 million CMBS loan from Wells Fargo Bank originated by JPMorgan Chase with a 4 percent fixed rate, according to CommercialEdge data.

The note entered special servicing in February and reached its maturity date on May 1st, with a $154.4 million outstanding balance. Its master servicer is Midland Loan Services, an affiliate of PNC Bank, while the special servicer is KeyBank National Association, public records show.

READ ALSO: Don’t Forget These CRE Finance Options

Completed in 1972, IDS Center rises 57 stories at 80 S. Eighth St. in Minneapolis’ CBD and is LEED Gold certified. In 2021, the owner completed an extensive renovation to the building’s common areas. The property’s assessed value registered a nearly 5 percent drop from 2022’s $270 million figure, reaching some $257 million, Hennepin County records show.

As of September, the office tower was 76 percent leased, above the rate registered in the previous couple of years, but below the 80 percent figure from 2019, the Minneapolis/St. Paul Business Journal reported. Tenants include various banks, law firms and wealth management companies.

Looming distress in the Minneapolis office market

Iron Hound Managing Director Christopher Herron and Director Kevin Thompson, along with Associate Anthony D’Amelio, assisted Accesso in negotiating the loan extension.

As much of the debt burdening office markets is slated to mature in the near future, investors and banks make active efforts to lower their exposure to the asset class. As of October, the amount of debt reached $920 billion nationally, 16.1 percent of which is due next year, according to a recent CommercialEdge market bulletin. The total office loan volume in Minneapolis was more than $9.5 billion, 28.9 percent of which is bound to reach maturity in 2024 and nearly 44 percent by 2026, the same source shows.

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800 Nicollet Mall last traded in 2003 for $174 million. Image courtesy of Piedmont Office Realty Trust

U.S. Bancorp has renewed its lease for 447,000 square feet at 800 Nicollet Mall in Minneapolis. The firm signed the agreement with landlord Piedmont Office Realty Trust. The bank has been using the space as its global headquarters since the building’s opening in 2000.

Rising 30 stories, the building spans 935,661 square feet and includes 20,000 square feet of retail space. It features 43,000-square-foot floorplates and such amenities as a fitness center, showers, game room with golf simulator, bike storage and a conference center with a capacity of up to 100 people.

The owner acquired it in 2003 for $174 million, CommercialEdge data shows. Other tenants include various capital management and law firms, according to the same source. The building is also LEED Gold certified. Transwestern and Newmark serve as leasing brokers for the property.

Located in downtown Minneapolis, 800 Nicollet Mall is close to interstates 94 and 35, while being some 13 miles from Saint Paul. It is also within walking distance of multiple light rail stations, as well as the Target Field train station.

As of September, the Twin Cities registered an average listing rate of $26.7, marking a 4.2 percent year-over-year increase, which significantly outpaced the 0.3 percent national average growth that month, a recent CommercialEdge report shows. The metro’s vacancy rate stood at 16.9 percent, 90 basis points below the national average, but up 3.6 percent year-over-year, according to the same source.

The post US Bancorp Renews 447 KSF Minneapolis Lease appeared first on Commercial Property Executive.

The Minnesota Women’s Care clinic in Woodbury, Minn., encompasses 32,711 square feet. Image courtesy of Montecito Medical

Montecito Medical has acquired Minnesota Women’s Care, a 32,711-square-foot medical office building in Woodbury, Minn. Obgyn Consultants PLLC sold the asset for $9.8 million, according to Washington County records.

The same source shows that earlier this month Montecito Medical received a $141 million portfolio loan from Capital One, with a maturity date set for 2028.

Minnesota Women’s Care offers such medical services as treatment for complex gynecological conditions, pelvic floor disorders, urogynecology, bio-identical hormone replacement therapy, chronic pain management and annual wellness, among others. The medical provider group serves the Twin Cities area and has three locations in Minnesota, namely in Maplewood, Woodbury and Apple Valley, as well as a medical office building in Hudson, Wis.

Located at 1687 Woodlane Drive, the property is near Interstate 494, less than 9 miles from downtown Saint Paul and some 20 miles from Minneapolis. Other medical providers in the surrounding area include Woodbury Medical Plaza, Medifast, HealthMax Progressive Medicine and Woodbury Medical.

Since October 2022, four primary medical office properties changed hands in the Minneapolis-St. Paul market, totaling 256,180 square feet, CommercialEdge data shows.

Montecito Medical has acquired medical facilities in 35 U.S. states, valued at more than $5.1 billion. In the last few months, the company expanded its Virginia portfolio with the acquisition of a 209,000-square-foot medical office building in Roanoke. Completed in 2021, the asset changed hands for $21.6 million.

The post Montecito Medical Grows Portfolio With Twin Cities Asset appeared first on Commercial Property Executive.

The former Electrolux manufacturing plant is close to St. Cloud Regional Airport. Image courtesy of CommercialEdge

Phoenix Investors has purchased a 922,444-square-foot industrial facility in St. Cloud, Minn. The seller was Electrolux Group, which had used it as a freezer manufacturing and production plant until late 2019. Savills Senior Managing Director Paul Danko brokered the deal.

Built in 1950 at 701 33rd Ave. N., the one-story Class B facility includes 28-foot clear heights, 31 dock doors, 9 drive-in doors and 980 parking spots.

Phoenix Investors plans to secure new tenants at the property and help the St. Cloud community with its economic recovery. Executive Vice President & Managing Director Anthony Crivello and Assistant Vice President Luke Herder are marketing the rail-served facility for lease.

The 50.6-acre property is close to state routes 15 and 23. St. Cloud Regional Airport is 8 miles east, while the Minneapolis-St. Paul area is some 70 miles away.

Recent additions to Phoenix Investors’ portfolio

Phoenix Investors specializes in the acquisition, renovation and releasing of former manufacturing facilities across the U.S. The firm’s portfolio totals approximately 71 million square feet.

Recent investments include a 5 million-square-foot industrial portfolio and excess land sites in North Carolina and Mississippi. The seller, United Furniture Industries, had closed all business operations in late 2022.

In July, Phoenix Investors made another acquisition in the Midwest. The company picked up a 365,640-square-foot property in West Burlington, Iowa, planning to transform it into a high-quality industrial product.

The post Phoenix Investors Buys Former Electrolux Plant appeared first on Commercial Property Executive.

50 South Sixth was designed by Skidmore, Owings & Merrill. Image courtesy of CommercialEdge

Mapletree Investments has tapped Transwestern Real Estate Services to lease 50 South Sixth, a 698,606-square-foot office building in downtown Minneapolis. Principal Reed Christianson and Vice President Trinette Wacker will lead the leasing efforts.

Mapletree acquired the building in 2017 for $253.5 million, according to CommercialEdge data. The owner recently implemented extensive capital improvements adding features that regulate indoor air quality and maximize energy efficiency, as well as an enhanced visitor management system.

Designed by Skidmore, Owings & Merrill, the 29-story tower came online in 2001, featuring 32,000-square-foot floorplates, along with 40,000 square feet of retail space. Amenities include a lounge, conference center and fitness center. Located at 50 S. Sixth St., the property is within Minneapolis’ central business district, being surrounded by retail and public transport options.

The Minneapolis office market registered a vacancy rate of 20.2 percent in the second quarter of this year, according to a CBRE report. Leasing activity totaled 1.2 million square feet, up 37 percent year-over-year, the majority of deals involving Class A space, the same data reveals.

Transwestern also handles leasing and management at other Mapletree properties, including assets in Oakland, Calif., and Richardson, Texas. Recently, the firm was selected by Stonebridge to lease a 370,000-square-foot office tower in the Washington, D.C., area.

The post Transwestern to Lease Minneapolis Office Tower appeared first on Commercial Property Executive.

The new building in Maple Grove, Minn., will be near Boston Scientific’s existing campus. Image courtesy of CommercialEdge

Boston Scientific Corp. has received city council approval to build a 400,000-square-foot life science and office building in Maple Grove, Minn., a suburb of Minneapolis, according to public filings. The project will occupy 46 acres and is set to serve as a divisional headquarters campus. It is valued at $170 million, as reported by multiple sources.

The building will take shape in the city’s gravel mining area and may include a 150,000-square-foot expansion in the future. It will be located between Hemlock Lane and Highway 169, within access range of interstates 94 and 694. It will be roughly 20 miles northeast of Minneapolis.

Creating medical tech jobs in Minnesota

The proposal developed under the alias “Project Black Bear,” but the medical technology manufacturer confirmed to CCX Media its role behind the project. The company is aiming to obtain $4.2 million in state funds and almost $1.8 million from the Job Creation Fund, the same source shows, after having received $6.4 million in tax-increment financing from the city. The development is slated to create 109 jobs through 2025, with an additional 147 jobs in the following two years. The company is the largest employer in the city, already employing some 4,000 people, the Mass Device reports.

Boston Scientific already has a research & development and manufacturing facility in Maple Grove, which spans 697,866 square feet and was completed in 1993, according to CommercialEdge data. As the company has been expanding nationally and growing its operating capabilities, it had recently signed a long-term prelease for a manufacturing and supply chain facility spanning 207,000 square feet in Atlanta.

The post $170M Life Science Project Gets Green Light appeared first on Commercial Property Executive.

RBC Gateway Tower. Image courtesy of CBRE

Spear Street Capital has purchased 525,000 square feet of office space within the mixed-use RBC Gateway Tower in Minneapolis. United Properties sold the asset for $225 million.

CBRE Executive Vice Presidents Ryan Watts, Greg Greene and Tom Holtz, Executive Director Brandon McMenomy, Director Steven Ward and First Vice President Harrison Wagenseil worked on behalf of United Properties.

The transaction also included the ground-floor lobby and 296 parking spaces. The office component was 99 percent leased at the time of the sale—the tenant roster included RBC Capital Markets, United Properties and Pohlad Cos.

Smallwood, Reynolds, Stewart, Stewart & Associates Inc. designed the skyscraper, while McGough served as the project’s general contractor and Kimley-Horn as engineer. U.S. Bank provided a $261.1 million construction loan, according to CommercialEdge data.

Completed last year, the 1.2 million-square-foot, mixed-use asset features restaurant, office, hotel, residential and green spaces. The 37-story building comprises the 222-key Four Seasons Hotel Minneapolis, 34 luxury Four Seasons Private Residences, three restaurants and 17,000 square feet of plaza space.

The RBC Gateway Tower is located at 250 Nicollet Mall in the Minneapolis Central Business District. The property is within walking distance of numerous of dining options, entertainment venues and metro stations.

The post Spear Street Pays $225M for Minneapolis Office Space appeared first on Commercial Property Executive.

Rendering of Arbor Lakes Business Park Building VI. Image credits of Harris Architects, courtesy of Endeavor Development

MAS HVAC, an air-conditioning equipment manufacturer, has signed a 150,000-square-foot lease at Endeavor Development’s Arbor Lakes Business Park in Maple Grove, Minn. The tenant will use the space as its new headquarters, in addition to manufacturing and logistics operations, starting in January 2024.

Cushman & Wakefield Executive Director Brent Masica negotiated on behalf of the tenant. According to the owner’s website, CBRE is in charge of marketing the property.

READ ALSO: Trends That Will Shape Industrial Real Estate in 2023

MAS HVAC will move in the upcoming Building VI—a 203,020-square-foot facility that is currently under construction within the Arbor Lakes Business Park. The building is planned to include a 15,000-square-foot office component. Construction started earlier this year, as part of the project’s second phase of development.

Arbor Lakes is a 50-acre master-planned industrial park, slated to include nine buildings comprising 1.9 million square feet, according to CommercialEdge data. Endeavor is developing the park in a joint venture with PCCP.

The first phase included buildings I and II, currently leased by several tenants—ILLUME, Industrial Netting, Sensiva, Dane Technologies and Mikros Engineering—CommercialEdge also shows. Subsequent phases will potentially see the construction of five more buildings.

Other industrial developments in the region include The Opus Group’s recent projects, totaling 380,000 square feet. In February, the company completed the 130,439-square-foot Nordeast Business Center in Minneapolis, the 137,178-square-foot Sanctuary Business Center in Blaine, Minn., and the 111,820-square-foot Johnny Cake Business Center in Apple Valley, Minn.

The post MAS HVAC Signs for 150 KSF in Minneapolis appeared first on Commercial Property Executive.

Rendering of North Loop Green. Image courtesy of Hines

Alternative investment company Värde Partners has signed a 12-year lease for approximately 28,000 square feet of office space at North Loop Green, a mixed-use project under construction in downtown Minneapolis. The company will relocate its office from the AT&T Tower, with the move scheduled for March 2025. JLL negotiated on behalf of both parties.

Hines, together with partners AFL-CIO Building Investment Trust and Marquee Development, are the owners and developers of North Loop Green. The project, which is expected to be completed in the first quarter of 2024, is partially financed by Hines U.S. Direct Investments, a private placement program offering financial professionals development opportunities. The development team also includes ESG Architects as the project’s designer.

In December 2022, Hines inked a 15-year lease with Piper Sandler & Co. for 133,000 square feet of office space at North Loop Green. The investment banking firm will anchor the property.

READ ALSO: Hines’ Trifecta for Carbon Emissions Reduction

Located at 350 N. Fifth St., the project will comprise a 14-story building, which will include 350,000 square feet of office space with 28,000-square-foot floorplates and 17,000 square feet of retail space, as well as another 36-story building, which will include 350 luxury apartment units, 100 hospitality units and 15,000 square feet of dining capabilities.

Common-area amenities will feature a swimming pool, sauna, fitness center, outdoor lounge, terrace with locker rooms and sky lounge, all located on the office building’s rooftop. Additionally, the mixed-use project will include The Green, a 1-acre green space that will host year-round artistic, community-based and cultural events and offer direct access to Cedar Lake Trail.

JLL Senior Associates Laura Farrell and Teig Hutchison and Managing Director Brent Robertson represented the future tenant. The landlord was represented by both Hines and JLL.

Hines makes progress on office pipeline

Hines continues to move forward with several office projects across the country. In April, the company, together with Ivanhoé Cambridge and McCaffrey, topped out a 235,000-square-foot mass timber office development in Denver. T3 RiNo is planned as a fully recyclable, renewable and non-toxic building. The project is expected to be one of the most sustainable and environmentally friendly projects in that city.

The building is part of Hines’ T3 line of office properties, which focus on incorporating the use of timber, new tech innovations and transit efficiency. In May 2022, Hines broke ground on another T3 project, T3 Eastside, a mass timber mixed-use project in Austin.

The post Hines JV Continues to Attract Tenants at Minneapolis Project appeared first on Commercial Property Executive.

Maple Grove Specialty Center. Image courtesy of Davis Healthcare Real Estate

Davis Healthcare Real Estate has completed Maple Grove Specialty Center, a 44,000-square-foot medical office building in Maple Grove, Minn. The Class A property is fully leased.

Timco Construction acted as general contractor, while Minneapolis-based Architecture Studio was project architect. Davis provides property management and leasing services.

Davis first announced the development of the health-care facility in June 2021. The project broke ground two months later. The two-story building sits on 4.2 acres on the southern end of the 8.1-acre site. The remaining acreage will be used for future retail and office space on the northern side of the property.

The facility is close to the intersection of Highway 610 and Maple Grove Parkway at 105th Avenue and Niagara Lane, 20 miles from downtown Minneapolis. The medical facility is anchored by MNGI Digestive, which occupies the second floor, while Minnesota Oncology leases the entire first floor of the property. Other medical service providers in the surrounding area include North Memorial Health Clinic, Grove Circle Medical and Allina Health Maple Grove Clinic, among others.

Davis Healthcare Real Estate has completed 36 Class A medical office buildings, with combined development costs of those properties exceeding $440 million. The company has completed 57 investment transactions totaling $726 million, according to the company. In the last two years, Davis expanded its Minneapolis portfolio with the acquisition of a 42,467-square-foot facility in Woodbury, Minn., and opened Xchange Medical, a 78,000-square-foot medical center in St. Louis Park, Minn.

The post Davis Expands Minneapolis MOB Portfolio appeared first on Commercial Property Executive.

Crossroads Center of Roseville. Image courtesy of JLL Capital Markets

HJ Development has acquired Crossroads Center of Roseville, a 357,115-square-foot retail power center in the Twin Cities suburb of Roseville, Minn.

JLL Capital Markets brokered the deal on behalf of the seller, identified by CommercialEdge as CalSTRS. The same source reveals that the asset previously traded in 2007 for $31.7 million.

Constructed in 1985, the property was 97 percent leased at the time of sale. The tenant roster includes fast-casual dining establishments, cosmetics shops, sporting goods outlets and fitness centers, including Best Buy, Dick’s, Kohl’s and the U.S. Government, among others.

A well-positioned Twin Cities retail center

The property is situated along a retail corridor at 1643-1663 County Road, some 8 miles from downtown Saint Paul, Minn., and downtown Minneapolis. Crossroads Center of Roseville is off the exit from Snelling Avenue, being exposed to a daily car traffic of 38,000 vehicles, according to JLL.

Additionally, the property is in proximity to Minnesota State Highway 36, where an estimated 80,600 vehicles pass by on a daily basis. The retail center serves a population of more than 82,000 within a 3-mile radius, averaging a household income of $112,000, JLL also shows.

The JLL Retail Capital Markets team that represented the seller included Senior Directors Matt Hazelton, Cory Villaume, Bill Krebsbach and Dave Monahan, along with Director Michael Nieder.

Despite challenges in the debt markets, Twin Cities’ retail assets continue to enjoy robust occupancy rates and remain highly attractive to investors, said Hazelton in a prepared statement. Earlier this year, a joint venture between MVK Capital and True North Investments purchased Cliff Lake Centre, a 74,182-square-foot retail asset in Eagan, Minn.

The post HJ Development Buys 357 KSF Twin Cities Retail Asset appeared first on Commercial Property Executive.

SPS Tower. Image courtesy of Transwestern

Sumitomo Corp. has signed three new leases totaling 45,000 square feet at SPS Tower, its 655,070-square-foot office building in the Minneapolis CBD. Transwestern Real Estate Services Vice President Jim Montez and Principal Reed Christianson brokered the agreements on behalf of the landlord.

Property law firm Kinney & Lange signed a 10-year, 13,000-square-foot lease at SPS Tower and will relocate from its previous offices at 312 S. 3rd St. Cushman & Wakefield Executive Directors Jaclyn May and Paul Donovan represented tenant in the negotiations.

Insurance consulting company Mercer, who has been a tenant at the property since 2013, extended its current footprint to 24,242 square feet, for two years. Transwestern Partner Kevin Salmen brokered the deal on behalf of the firm.

Navitaire, an e-commerce platform for airlines and rail systems, inked a five-year, 8,000-square-foot commitment at the property, with the assistance of Savills Senior Vice President Bruce Schuman.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

The 31-story, LEED Gold-certified SRS Tower is currently 90 percent leased. According to CommercialEdge, the office building was completed in 1986 and underwent cosmetic renovations in 2015. Sumitomo picked up the asset in 2019 for $144 million, the same source reveals.

Accenture, SPS Commerce, Strong Tower Wealth Management, Goldberger Law Office, Pine Grove, GS Investments and Churchill Cos. are part the property’s roster, the same data provider shows.

Office leasing in the Twin Cities area

Located at 333 S. 7th St., SPS Tower is connected to the 701 Building, Ameriprise Financial Tower and the Two22 Building through skybridges. The property features concierge services, a fitness center, conference center, on-site parking, as well as 3,000 square feet of retail.

As of February, the Twin Cities market had a vacancy rate of 15.5 percent, outperforming the national average of 16.5 percent, as revealed by the latest CommercialEdge report. Additionally, asking rates within the market averaged at $26.1 per square foot, a decrease of 0.8 percent from the previous year. The metro ranks among the top five lowest listing rates in the country.

Earlier this month, KBS Realty Advisors signed a lease with infrastructure design firm HNTB to occupy 15,187 square feet at its 60 South Sixth in downtown Minneapolis.

The post Sumitomo Corp. Inks 45 KSF in Minneapolis appeared first on Commercial Property Executive.

NorthPark VII rendering. Image courtesy of Sealy & Co.

Sealy & Co. has acquired NorthPark Business Center VII, a 221,128-square-foot industrial asset in the Minneapolis suburb of Brooklyn Park, Minn. Scannell Properties sold the fully leased property in an off-market deal.

The purchase came on the heels of another transaction that involved both companies: Last month, Sealy acquired two Memphis, Tenn., industrial properties from Scannell. The Class A buildings were fully occupied as well at the time of sale.

Managing Director of Investment Services Jason Gandy and Director of Investment Services Davis Gibbs led both deals on behalf of Sealy & Co.

A Minneapolis-area industrial facility

According to CommercialEdge data, NorthPark VII came online in 2021 on some 73 acres of land within NorthPark Business Center, a 230-acre master-planned campus that could include up to 19 industrial buildings when fully developed.

Situated at 10600 Xylon Ave. N., the rear-load facility features 32-foot clear heights, two drive-in doors, 50 dock-high doors, ESFR sprinklers and parking for cars and trailers. Situated in Minneapolis’ Northwest submarket, the property provides easy access to highways 169 and 610, as well as to Interstate 94.

The Twin Cities has seen negative absorption of industrial space in two of the last 20 quarters, according to a quarter four 2022 report by Avison Young. Despite posting a high net absorption, last year’s leases recorded the lowest activity since 2010. The area’s industrial supply totaled 6.3 million square feet at the end of December, with the quarterly average has been climbing each year since 2018.

The post Sealy & Co. Grows Minneapolis Footprint appeared first on Commercial Property Executive.

60 South Sixth. Image courtesy of KBS Realty Advisors

Infrastructure design firm HNTB has signed a lease with KBS Realty Advisors to occupy 15,187 square feet at 60 South Sixth in downtown Minneapolis. The tenant will relocate from the city’s West End neighborhood to the 38th floor of the Class A office building. JLL brokered the agreement on behalf of both parties.

According to CommercialEdge information, HNTB will join the existing roster at the 710,332-square-foot building, including Fredrikson & Byronhe, Prudential Capital Group, Harvard Services Group, Capital Real Estate, Hessian & McKasyat and Stifel, among others.

The same data provider reveals that KBS acquired the asset back in 2013 for $126.5 million, through the firm’s KBS Real Estate Investment Trust III. The property is also subject to a $613.2 million loan provided by Bank of America, set to mature in 2031.

JLL Managing Director Brent Robertson and Vice President Andrea Leon brokered the lease signing on behalf of KBS, while Senior Vice President Eddie Rymer represented HNTB. Earlier this month, the landlord signed another 49,490-square-foot lease at the recently renovated Northland Center office park in Bloomington, Minn.’s commercial district.

A revamped workspace

60 South Sixth spec suites. Image courtesy of KBS Realty Advisors

Since the acquisition, KBS invested more than $24 million in upgrading the property that dates back to 1991. Last year, the company allocated more than $6.5 million to the modernization of the fitness center and common areas. KBS is also in the process of designing a new tenant lounge area, indicating that further improvements are underway.

At the beginning of this year, KBS unveiled a pair of fully furnished spec suites spanning two floors at 60 South Sixth. Positioned on the 11th and 12th floors, the seven suites feature a range of amenities, including café spaces, collaboration hubs, private phone areas, shared meeting spaces and a wellness room.

60 South Sixth is located on the Nicollet Mall, offering access to nearby dining and retail options. Minneapolis−Saint Paul International Airport is some 13 miles from the property, while University of Minnesota is less than 3 miles away.

Leasing office space in Minneapolis

60 South Sixth lobby. Image courtesy of KBS Realty Advisors

A recent JLL report reveals that in the fourth quarter of 2022 the amount of office space leased in the Minneapolis-St. Paul market reached a total of over 900,000 square feet, exceeding the 820,000-square-foot average since the second quarter of 2020. Piper Sandler’s 113,000-square-foot commitment on the top four floors of North Loop Green played a leading role in this increase.

The same source shows that at the end of 2022 total office vacancy  in the market reached 19.5 percent. The region’s negative absorption for the year hit almost 3 million square feet. Class A office space wasn’t immune to negative absorption, although it outperformed other asset classes, bearing a vacancy rate of 17.7 percent.

The post KBS Secures New Tenant at Minneapolis Office Tower appeared first on Commercial Property Executive.

Cliff Lake Centre. Image courtesy of Mid-America Real Estate Corp.

MVK Capital and True North Investments have purchased Cliff Lake Centre, a 74,182-square-foot retail center in Eagan, Minn. Mid-America Real Estate Corp. brokered the transaction on behalf of the seller, DRA Advisors.

Shadow-anchored by Target and Cub Foods, the shopping center features a mix of local and national retailers including Dollar Tree, Snap Fitness, The UPS Store, Davanni’s, H&R Block and Great Clips. The property previously traded for $420,000 back in 1999, CommercialEdge data shows.

Cliff Lake Centre occupies a 14.8-acre site at 1960 Cliff Lake Road, in the North Dakota County submarket. The property is near the intersection of Interstate 35E and Route 77, in an area where the daily car traffic reaches nearly 94,000 vehicles. The retail center serves more than 65,000 residents within a 3-mile radius, having average household incomes of $111,000. Downtown Minneapolis is some 16 miles north.

Mid-America Vice President Amy Senn and Principal Joe Girardi negotiated the deal on behalf of the seller. At the end of last year, the company represented PMAT Cos. in the sale of a 178,784-square-foot retail center in Milwaukee through a 1031 exchange.

The post MVK Capital JV Buys Minneapolis-Area Shopping Center appeared first on Commercial Property Executive.

Rendering of Highland Bridge Medical Office. Image courtesy of Ryan Cos.

Ryan Cos. has completed the development of Highland Bridge Medical Office, a 60,000-square-foot health-care facility in St. Paul, Minn. The property is part of the 122-acre Highland Bridge mixed-use development which was the former home of Ford Motor Co.’s Twin Cities assembly plant.

The project broke ground in December 2022, with Ryan A+E Inc. as architect of record, providing architectural, civil engineering, landscape architectural and interior design.

The two-story medical office building, aiming for LEED Silver certification, is 85 percent occupied and Transwestern oversees leasing, CommercialEdge data shows. There are currently 8,000 square feet of remaining space for future tenants. The clinics offer a variety of medical services, including primary care, physical therapy, dermatology, skin cancer diagnosis and surgery, and imaging. The tenant roster includes M Health Fairview, Dermatology Consultants, LifeStance Health, Highland Foot and Ankle Clinic and RAYUS Radiology.

The property is located at 2270 Ford Parkway, 8.6 miles from downtown St. Paul and 6 miles from downtown Minneapolis. Other medical facilities in the surrounding area include the Minneapolis VA Health Care System and Regions Hospital, 7.4 miles away. The medical facility will have access to other features of the mixed-use community, including parks, retail shops and nearby amenities.

As of March, The Minneapolis-St. Paul market had a supply pipeline of 20 medical office buildings in various stages of development, set to add approximately 1.8 million square feet to the existing inventory, CommercialEdge data shows.

Optimistic views for the health-care sector

At the end of 2022, the medical office market had an occupancy level of 92.3 percent and consistent rent growth, outperforming the traditional office sector, where the average occupancy was 11.4 percent lower, according to a JLL report.

Despite strong fundamentals given the nature of the asset type, the report shows that there might be some concern due to rising interest rates and development costs. Nevertheless, the health-care sector still proves resilient in the face of economic struggles.

The post Ryan Cos. Opens Twin Cities-Area MOB appeared first on Commercial Property Executive.

The Northland Center in Bloomington, Minn. Image courtesy of KBS

SFM Mutual Insurance Co. has renewed its lease at the KBS-owned Northland Center office park in Bloomington, Minn.’s commercial district.

Northland Center, which is located at 3500 and 3600 American Blvd. West, consists of two buildings totaling 492,514 square feet of Class A office space.

The insurance firm occupies 49,490 square feet at the complex, which sits on a 13-acre site in the Minneapolis suburb. Located next to Interstate 494 and near I-35W, Highway 100 and Crosstown 62, the project is in close proximity to the Twin Cities and the Greater Minneapolis-St. Paul region, including the Minneapolis-St. Paul International Airport.

A new look

The project recently underwent almost $1 million in renovations, which included refurbishing both buildings’ lobbies and adding 25,000 square feet of office suite space.

The LEED Silver-certified corporate center includes a 5,000-square-foot fitness center, a full-service café with catering services, training and conference facilities, bicycle storage, on-site carwash and auto spa, as well as dry-cleaning services.

Cushman & Wakefield represented KBS on the lease renewal.

The post KBS Signs Insurance Firm to Minneapolis Lease Renewal appeared first on Commercial Property Executive.

The Nordeast Business Center in Minneapolis. Image courtesy of The Opus Group

The Opus Group has completed three industrial developments in the Minneapolis area. Construction on the Nordeast Business Center in Minneapolis, the Sanctuary Business Center in Blaine, Minn., and the Johnny Cake Business Center in Apple Valley, Minn., wrapped up in early 2023. Opus developed, designed and built all three projects, also acting as architect and structural engineer.

The 130,439-square-foot Nordeast project, which sits at the corner of University and 37th avenues, is near the city’s border with St. Paul, as well as interstate 694 and 94. With a 32-foot clear height and multiple loading doors, the project has space for multiple tenants. Greentech Renewables and Consolidated Electrical Distributors are the first lessees at the property, occupying more than 90,000 square feet. CBRE is marketing the remaining 40,439 square feet.

Sanctuary Business Center, meanwhile, is located 15 miles north of Minneapolis, right off of Interstate 35W in the Twin Cities suburb of Blaine. The 137,178-square-foot building similarly has a 32-foot clear height and loading options. Industrial wholesaler ORS Nasco has leased 45,642 square feet at the site, with Cushman & Wakefield seeking lessees for the remaining 91,536 square feet.

Colliers is marketing all of the available space at Johnny Cake Business Center, which is located at 6175 147th Street W. in the suburb of Apple Valley. Situated near Interstates 35W and 494, the 111,820-square-foot building has a 28-foot clear height and 26 dock doors.

Minneapolis industrial performs despite headwinds

Industrial demand in the Minneapolis market remains strong, despite headwinds caused by higher interest rates and uncertainty in the capital markets, Phil Cattanach, senior vice president & general manager at Opus, said in a statement.

The Minnetonka, Minn.-based developer announced the construction of 13 industrial projects in 2022, including two in its home state. The Climate by Design International Headquarters in Owatonna, Minn., and the River Valley Business Park in Shakopee, Minn., are due online in August and December 2023, respectively.

The company is also constructing Deer Valley 30, a three-building, 356,000-square-foot speculative industrial project in Phoenix and Sun Empire, a 3.9 million-square-foot industrial park in Aurora, Colo. Opus expects to complete the construction of Deer Valley in October and to finish the first phase of Sun Empire at some point later this year.

The post Opus Group Wraps Up Work on Minneapolis Trio appeared first on Commercial Property Executive.

4440 Round Lake Road W. Image by Randy Hoepner, courtesy of Saltbox

Saltbox has expanded its co-warehousing portfolio to the Minneapolis metro with its latest 76,000-square-foot location.

Saltbox will manage the Arden Hills, Minn., property as a flexible co-warehousing facility that provides spaces for small businesses. A company spokesperson told Commercial Property Executive that Saltbox’s business model is asset light and mostly done through programmatic agreements with real estate partners. Saltbox has a few direct leases, but most of the locations are management agreements with the property owner, the company spokesperson also told CPE.

READ ALSO: Will CRE Construction Hold Steady in 2023?

Saltbox Arden Hills will include 211 flexible warehouse suites, along with a photo studio, conference rooms and access to loading docks. Most of Saltbox’s current clients across its locations are e-commerce companies that sell physical goods directly to customers.

4440 Round Lake Road W. Image by Randy Hoepner, courtesy of Saltbox

Located at 4440 Round Lake Road W, Saltbox Arden Hills has nearby access to Highways 10, 35 and 694, making for a roughly 20-minute commute to both downtown Minneapolis and downtown St. Paul, Minn. Tyler Scriven, CEO & co-founder of Saltbox, said in prepared remarks that the Twin Cities region has been a top priority market for Saltbox since the metro is a major Midwestern hub.

Growing demand for co-warehousing model

With its Arden Hills facility, Saltbox is now up to its 10th co-warehousing location in the U.S. following an active 2022. Last year, the company doubled its footprint by opening locations in Alexandria, Va., Duarte, Calif., Carrollton, Texas, as well as another location in Atlanta’s Upper Westside neighborhood that would be used to support its flagship facility that opened in 2019.

”Saltbox has seen significant demand across its locations,” the company spokesperson told CPE. “We’re always open to considering expansions or opening new locations to serve small and medium-sized businesses in the cities that we operate.”

Saltbox opened up its first fulfillment hub in Dublin, Ohio, which lets its clients reach 67 percent of the U.S. population with two-day shipping. The company has also expanded to the Denver, Dallas-Fort Worth and Seattle metros in 2021. That same year, Saltbox expanded to the Los Angeles metro with a location in nearby Torrance, Calif. The 45,000-square-foot facility is divided into 100 flexible warehouse units and offers office suites.

The post Saltbox Opens Co-Warehousing Facility in Greater Minneapolis appeared first on Commercial Property Executive.

6744-6866 33rd St. N. Image courtesy of JLL

Link Logistics has sold a seven-building, 376,218-square-foot industrial portfolio spread across Oakdale, Woodbury and Roseville, Minn., to Biynah Industrial Partners. JLL Capital Markets represented the seller, procured the buyer and also arranged an acquisition loan.

The seven properties feature 17- to 20-foot clear heights, vehicle parking spots, office finishes and an average of seven dock doors per building. Five properties are located in Oakdale:

• 6744 33^rd St. N.
• 6866 33^rd St. N.
• Granada I Business Center, 3350 Granada Ave. N.
• Granada II Business Center, 3400 Granada Ave. N.
• Granada III Business Center, 3220 Granada Ave. N.

The other two assets—Carver Lake and Gateway Business Center—are in Woodville and Roseville, respectively. At the time of the sale, 96 percent of the portfolio was occupied by 18 tenants, specializing in a diverse range of industries, from manufacturing to medical technologies.

READ ALSO: Trends That Will Shape Industrial Real Estate in 2023

All the facilities are situated in infill submarkets, roughly 19 miles from Minneapolis and within 12 miles of St. Paul, Minn. Due to the portfolio’s location, present tenants have access to major cities within the area, including Milwaukee and Madison, Minn.

JLL Capital Markets Debt Advisory team led by Managing Directors Matthew Schoenfeldt and Scott Loving, together with Director Lucas Borges, negotiated on behalf of the borrower, while the company’s Investment Sales Advisory team including Senior Managing Directors Colin Ryan and David Berglund, as well as Senior Director Erin Fitzgerald, worked on behalf of Link Logistics.

Past deals

In May 2022, Link Logistics was involved in a high-scale disposal in Broward County, Fla. The company sold a fully occupied three-building industrial portfolio, encompassing almost 740,000 square feet. The company got $170.1 million for the Amazon-anchored portfolio.

Later last year, Link Logistics paid $82.3 million for an eight-building industrial portfolio in the Minneapolis-St. Paul area.

The post Link Logistics Sells Twin Cities Industrial Portfolio appeared first on Commercial Property Executive.

North Loop Green. Image courtesy of Hines.

Piper Sandler & Co. has signed a 15-year lease for 113,000 square feet at North Loop Green, a mixed-use development currently under construction in Minneapolis.

The investment banking firm will anchor the property and plans to relocate its headquarters to the North Loop District building in the summer of 2025. Braman & Associates’s Tom Braman represented the tenant in the lease negotiations.

Hines, alongside partners Marquee Development and AFL-CIO Building Investment Trust, broke ground on North Loop Green in 2021. ESG Architecture and Design is in charge of the project design, while Kraus Anderson is the general contractor. Completion is planned for spring 2024.

The development is rising on a 3.4-acre site at 350 N. 4th St. and will encompass two buildings, connected via a skyway. The taller, 36-story residential building is slated to comprise 100 hospitality units and 350 apartments, while the other, 14-story structure will feature office and retail space. The property will also include a 1-acre green area that will host cultural, artistic and community-based events.

Developing office space across the country

North Loop Green’s office portion will feature flexible workspaces, parking, terraces on every floor, optimized indoor air quality and a rooftop amenity terrace. A wellness center, a rooftop pool, locker rooms, three restaurants and a coworking lounge will also be available for tenant use.

Recently, Hines moved forward on several other office projects that are in various stages of development across the country. Earlier this month, the company topped out One Madison Avenue, a 1.4 million-square-foot office redevelopment in Manhattan’s Midtown South neighborhood. In September, the firm entered the next construction phase of the expansion and preservation of South Station in Boston. The project will create a 51-story, 680-foot mixed-use tower above the transportation hub.

Back in May, Hines also topped out a 60-story, 1.2 million-square-foot office tower in Chicago. Salesforce is the anchor tenant, to occupy 500,000 square feet at the downtown location.

The post Hines JV Lands Anchor Tenant at Minneapolis Mixed-Use Development appeared first on Commercial Property Executive.

Woodlake Medical Building

Davis Healthcare Real Estate has acquired Woodlake Medical Building, a 42,467-square-foot property in Woodbury, Minn., through its Davis Medical Investors LLC fund. The company paid $18 million for Class A asset, with Bridgewater Bank providing the acquisition financing. According to CommercialEdge data, the previous owner was MFC Properties.

The two-story medical building came online in 2003 on a 4.7-acre site. The property features an outpatient surgery center and has a parking ratio of 4.5 spaces per 1,000 square feet, CommercialEdge data shows.

Woodlake Medical Building was completely leased at the time of closing. All three tenants—Woodlake Surgery Center, St. Paul Eye Clinic and Midwest ENT—have signed a lease extension for 15 more years, in conjunction with the acquisition.

Located at 2080 Woodwinds Drive, in the Eagle-Woodwinds neighborhood, the asset is 17 miles from downtown Minneapolis and has access to Interstate 494. M Health Fairview Woodwinds Hospital is 1 mile south of the building. Other medical facilities in the area include Minnesota Urology, Health East Cancer Care, Reynolds Audiology and Creekview Dental, among others.

Health-care real estate, still a good investment

The transaction marks the 13th acquisition for the Davis Medical Investors LLC. Established two years ago, the fund currently owns 567,356 square feet in assets across Minnesota, Tennessee, Connecticut, Maine and Ohio, investments totaling roughly $230 million.

Stewart Davis, executive vice president at Davis, mentioned in prepared remarks that, this year, the company acquired four medical office buildings so far, adding to a portfolio in which the properties are 96 percent leased.

A JLL report shows that medical office buildings are still a key alternative asset class, even if facing certain challenges influenced by economic woes. Regardless, this sector’s fundamentals were less disrupted by the pandemic; in 2021 and 2022, absorption outpaced new deliveries and drove occupancy above 90 percent on a national level. Sales reached $9.2 billion in the first half of 2022 and JLL estimates 2022 to close at another record year.

The post Davis Adds Minneapolis-Area MOB to Growing Portfolio appeared first on Commercial Property Executive.

The Dayton’s Project. Image courtesy of JLL Capital Markets

601W Cos., the owner and developer of The Dayton’s Project, a historic redevelopment of the former Dayton’s and Macy’s stores into Class A office, retail and dining space, has secured $250 million in new financing for the 1.2 million-square-foot project at 700 Nicollet Mall in downtown Minneapolis. The Telos Group and United Properties are part of the development team.

READ ALSO: Where New Office Projects Get Funded

JLL Capital Markets arranged the three-year, floating-rate loan through a joint venture between Winthrop Strategic Real Estate Fund and funds managed by affiliates of Fortress Investment Group LLC. The JLL Capital Markets team working exclusively for 601W Cos. was led by Senior Managing Directors Jaime Fink, Jeffrey Bramson, Bruce Miller and Keith Largay.

The new financing paid off a $145.6 million construction loan from JPMorgan Chase & Co. and a $78 million mezzanine loan held by Monarch Alternative Capital that was at the heart of a recent legal dispute between 601W Cos. and Monarch, according to the Twin Cities Business.

Monarch, a New York City-based hedge fund which acquired the mezzanine loan in February, claimed the developers were in default on their financing for missing leasing deadlines. The only tenant announced for the $350 million redevelopment project is national accounting firm Ernst & Young. The firm said in March it was leasing 30,000 square feet and expects to move 800 employees into the 12-story building in November, the Minneapolis/St. Paul Business Journal reported. The project’s leasing efforts have been hampered by the pandemic and fallout from the killing of George Floyd in Minneapolis.

In June, 601W Cos. sued Monarch, which then advertised an Aug. 23 foreclosure sale of 601W’s equity interests in the property. A Hennepin County district judge granted 601W a temporary injunction in early August to secure new financing.

Redevelopment plans

Now that the legal wrangling has been completed, 601W is moving forward with its repositioning plans. The New York-based company that currently owns and manages about 21 million square feet of commercial properties across the U.S. acquired the property in March 2017 from Macy’s Inc. for $59 million. The property was originally a Dayton’s department store which opened in 1902. It operated as Marshall Field’s from 2001 to 2006, when Macy’s took over.

The building is on the National Register of Historic Places and the developers and architecture firm Gensler have retained and restored many of the original features such as the Art Deco bathrooms and JB Hudson Jewelers space. The property includes about 850,000 square feet of office space, including speculative pre-built office suites, and more than 200,000 square feet of dining and retail space with a 45,000-square-foot food hall and market. Office amenities include a 10,000-square-foot fitness center, library, private lounge and rooftop terrace with a Winter Lounge.

The Dayton’s Project is located in the heart of downtown Minneapolis along the famed skyway. It is surrounded by retail, cultural, hospitality and entertainment offerings as well as numerous corporate neighbors. The property is convenient to major thoroughfares including Interstates 394, 94 and 35W that provide connectivity throughout the Greater Minneapolis and St. Paul area.

The post 601W Cos. Secures $250M Loan for Historic Mixed-Use Project appeared first on Commercial Property Executive.

Cash Corporate Life Sciences Park. Rendering courtesy of JLL

Oppidan Investment Co. and Rockpoint Group have formed a $157.3 million joint venture equity partnership for the development of 1.6 million square feet of industrial and life science projects across Minneapolis-St. Paul and Raleigh-Durham, N.C. JLL Capital Markets arranged the partnership on behalf of Minneapolis-based Oppidan.

The venture will create three separate developments, comprising a total of nine buildings. With five structures expected to begin construction this year, the buildings are slated for a gradual delivery through 2023.

Slated to rise in southern Minneapolis–St. Paul, Chaska Creek Industrial Park in Chaska, Minn., will encompass two bulk warehouses. Moving toward the northern part of the metro area, in Ramsey, Minn., the partnership is planning to erect the three-building Bunker Lake Business Park, marking the suburb’s single current speculative industrial investment.

Cash Corporate Life Sciences Park will comprise four life science buildings at 2100 Production Drive in Apex, N.C., southeast of central Raleigh. The 121-acre site is in proximity of three higher education campuses, including the University of North Carolina and Duke University.

JLL’s Senior Managing Directors Colin Ryan, John Huguenard, David Berglund and Pete Pittroff, along with Managing Director Patrick Nally, represented the developer. The Oppidan team comprises President Blake Hastings, Senior Vice President of development Jay Moore and Executive Vice President – Southeast Tim Brent.

In early 2021, Rockpoint joined forces with industry veteran Benjamin Harris, former CEO of Blackstone’s Link Logistics Real Estate, to invest in industrial assets across the country. The exclusive strategic partnership will target high-quality assets in gateway and growth industrial markets.

The post Oppidan Investment, Rockpoint Group Form $157M Equity Partnership appeared first on Commercial Property Executive.

Plymouth Ponds Business Park

In an $82.3 million deal, Link Logistics purchased Plymouth Ponds Business Park, an eight-building, multi-tenant light industrial park in the Minneapolis suburb of Plymouth, Minn. JLL Capital Markets advised and represented Link in the off-market transaction. The seller was United Properties.

READ ALSO: How the Economic Recovery Is Shaping CRE’s Future

The 60-acre park, built from 1997 to 2001, is at 17100 Medina Road, at the intersection of Highway 55 and County Road, providing quick access to I-394 and I-494. The location is about 13 miles west of downtown Minneapolis and 25 miles from the Minneapolis-Saint Paul International Airport.

Plymouth Ponds is a master-planned business park consisting of seven 24-foot clear buildings totaling 715,000 square feet and one 18-foot clear 83,000-square-foot showroom building, according to CommercialEdge. The park is 95 percent occupied overall.

The JLL Capital Markets team that represented Blackstone affiliate Link was led by Senior Managing Directors Colin Ryan and David Berglund.

“This is another example of the strength of infill industrial,” Ryan said in a prepared statement, adding that Plymouth Ponds sold at “a price well below replacement cost” and that the firm continues to see “more and more capital chase secondary markets like Minneapolis-St. Paul because of the higher yields when compared to the smile states.”

The definition of “smile states” varies, but generally it refers to the Sun Belt as a whole, the region from the Southeast to Phoenix, or a coast-to-coast swath across the South.

JLL was unable to provide requested additional information by deadline, and Link did not respond to Commercial Property Executive’s request for additional information. The seller was not disclosed.

Accelerating development

Both build-to-suit and speculative development in Minneapolis’ industrial sector ramped up during the first quarter, according to a recent report from Cushman & Wakefield. A bit more than 1.8 million square feet was underway in the first quarter, with a further nearly 2.0 million square feet slated to break ground and hit completion by the end of this year.

The Northwest submarket is the strongest in the Minneapolis metro. The submarket has an overall vacancy of 4.7 percent on an inventory of 78.9 million square feet. The weighted average net rent for warehouse/distribution space is $4.87 per square foot, also according to Cushman & Wakefield.

In January, Link made a notable acquisition, buying the brand-new Hargrove Industrial Campus in Lanham, Md., just east of Washington, D.C. The 400,455-square-foot asset sold for $135 million; the seller was CGMG Development.

The post Link Logistics Pays $82M for Suburban Business Park appeared first on Commercial Property Executive.

Pewaukee Commerce Center II. Image courtesy of Alex. Brown Realty Inc.

Alex. Brown Realty Inc. and Biynah Partners have benefited from the blossoming seller’s market in the midwestern industrial sector with the disposition of a collection of assets totaling nearly 1.3 million square feet in Wisconsin and Minnesota.

The joint venture partners sold the six-building portfolio, which had an occupancy rate of 100 percent at closing, to Platform Ventures for an undisclosed figure.

READ ALSO: Industrial Real Estate Clear Leader in Moody’s Report

Neither ABR nor Biynah has disclosed very many specifics about the properties, but the partners note that the assets are well-located and have recorded high occupancy levels since their acquisition. One of the buildings is Pewaukee Commerce Center II, an approximately 80,000-square-foot warehouse at the intersection of Paul Road and Redford Blvd. in Pewaukee, Wis., roughly 20 miles west of Milwaukee. Pewaukee Commerce was among a 423,000-square-foot group of five Milwaukee-area assets that ABR and Biynah acquired together in 2013, with the value-add ABR Chesapeake Fund IV investing $5.7 million in the venture.

ABR and Biynah are longtime partners, having completed nine transactions together since 2007, including the acquisition of an approximately 1.2 million-square-foot portfolio of three properties in the Greater Minneapolis area in 2016. The partners relied on Colliers International to broker the sales transaction with Platform Ventures.

Midwest rising

It does not carry the big-ticket, industrial-sector cachet of the Inland Empire or the Port of New York and New Jersey, but the Midwest has been quickly moving up on the investment community’s radar. “Midwest markets are seeing an unprecedented amount of investment from tenants, developers, and investors that may have once considered the region ‘fly over country,’ according to JLL’s  2021 Midwest Industrial Outlook report. “Our [report] confirms that Midwest markets are officially on the map of major institutional players, and more are destined to follow.”

Sellers have been pocketing the big bucks and investors have been expanding or even establishing a footprint in increasingly vital Midwestern markets. Recent notable transactions include Investcorp’s $280 million purchase of a 3.5 million-square-foot portfolio in the metropolitan Chicago, Cleveland, Columbus and Cincinnati markets in the fourth quarter of 2020. And more recently, in the first week of February 2021, Raith Capital announced the $140 million sale of 12 assets totaling 3 million square feet in metropolitan Cleveland, as well as Fort Wayne and Bloomington in Indiana.  

The post Alex. Brown, Biynah Sell 1.3 MSF Midwest Portfolio appeared first on Commercial Property Executive.

RBC Plaza at 60 South Sixth. Image courtesy of KBS

Fredrikson & Byron has signed a 178,000-square-foot lease at RBC Plaza at 60 South Sixth, a 710,332-square-foot office tower in downtown Minneapolis. The regional law firm will occupy almost nine floors at the KBS REIT III property starting with 2023, according to KBS Senior Vice President Dan Park. The REIT purchased the Class A, LEED Gold-certified asset for $126.5 million from Brookfield Properties in 2013, according to CommercialEdge.

Completed in 1991, the 40-story building at 60 S. Sixth St. underwent cosmetic renovations in 2014. The BOMA 360-certified asset features 12,000- to 30,000-square-foot floorplates, 40,000 square feet of retail across two floors and three climate-controlled skyway connections. Amenities include a conference center, a fitness center, bicycle storage and underground public parking, as well as a tenant lounge with wine lockers and a pool table.

Situated on more than 1 acre along the Nicollet Mall, RBC Plaza is also within walking distance of a bevy of retail options, entertainment venues and hotels. The location is easily accessible via public transportation, having several bus stations and the 5th Street light rail station nearby.

JLL’s Brent Robertson, Andrea Leon and Jon Dahl represented the landlord in the lease, while Mike Salmen, Larry Serota and Will McDonald of Transwestern negotiated the deal on behalf of the tenant. In November, a Transwestern team arranged a lease renewal and extension to 216,000 square feet at another Minneapolis high-rise located less than 1 mile from RBC Plaza.

The post KBS Secures 178 KSF Tenant at Minneapolis Tower appeared first on Commercial Property Executive.

SPS Tower. Image courtesy of Transwestern

Transwestern has completed a lease renewal at SPS Tower, a 655,070-square-foot office high-rise in Minneapolis. President Jim Montez and Principal Reed Christianson negotiated on behalf of the owner, Sumitomo Corp. Pete Kostroski and Chris Rohrer of Rokos Advisors assisted the building’s namesake tenant, SPS Commerce Inc.

In 2018, the company occupied 168,000 square feet spread across seven floors in the 31-story tower. Following a lease extension and renewal, the firm became the largest tenant in the building, which was rebranded as SPS Tower. The global retail supply chain company currently occupies 216,000 square feet on floors three through 10, as well as the high-rise’s 16th floor.

Located on 3 acres at 333 S. Seventh St. in the city center, the LEED Gold-certified building was completed in 1986 and renovated in 2015. Recently, the owner has invested in further upgrades, adding touchless elevators and electrostatic disinfecting cleaning protocols. The property has subterranean parking, a conference center, 3,000 square feet of retail space and a gym. 

Sumitomo Corp. paid $144 million for SPS Tower in February 2019. CalSTRS sold the asset after 19 years of ownership, according to CommercialEdge data.

The post Transwestern Brokers Minneapolis Anchor Lease Renewal appeared first on Commercial Property Executive.

Mercy Healthcare Center

CBRE U.S. Healthcare and Life Sciences has brokered the sale of Mercy Healthcare Center, a 91,767-square-foot medical office building in Coon Rapids, Minn. Chris Bodnar, Lee Asher, Ryan Lindsley, Jordan Selbiger, Sabrina Solomiany and Zack Holderman, together with Ryan Watts and Sonja Dusil, represented the seller. According to Yardi Matrix data, The Excelsior Group sold the Class A asset after four years of ownership. 

Completed in 1977, the facility occupies more than 4 acres at 3960 Coon Rapids Blvd. NW, within Allina’s Mercy Hospital campus. The four-story building underwent major renovations between 2012 and 2014, when The Excelsior Group invested more than $6 million to upgrade common areas, the HVAC system and the elevators, among others.

Anchored by Allina Health System and DaVita Dialysis, the property was roughly 70 percent occupied at the time of sale, according to CBRE. The tenant roster also includes ENT Specialty Care, Handi Medical Supply and Winkley Orthopedics.

Located some 17 miles north of Minneapolis, the property is 4 miles west of downtown Coon Rapids, just north of the Mississippi River. Various shopping and dining amenities are within a 2-mile radius.

In early November, CBRE’s Bodnar and Asher assisted The Sanders Trust and Harrison Street in the $240 million sale of an 11-property portfolio encompassing medical office buildings and inpatient rehabilitation facilities. The collection of assets totaling 474,100 square feet is located across Texas, Ohio, Maryland, Georgia, Mississippi and Iowa.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

The post CBRE Arranges Minneapolis-Area MOB Sale appeared first on Commercial Property Executive.

Two22. Image courtesy of Lingerfelt CommonWealth Partners

Principal Financial Group has leased 45,500 square feet at Two22, the 729,638-square-foot office tower previously known as Campbell Mithun Tower in downtown Minneapolis. Principal will use the space mainly for the employees of the former Wells Fargo Institutional Retirement & Trust, a business they acquired last year, according to Minneapolis/St. Paul Business Journal.

The landlord is Lingerfelt CommonWealth Partners, which purchased the 41-story asset for $81 million in 2019.

Located at 222 S. Ninth St., the LEED Gold-certified Two22 was completed in 1983 and renovated in 2007. The fifth-tallest building on the Minneapolis skyline, the property features 23,500-square-foot floorplates, 10,500 square feet of ground-floor retail and a skyway connected to 121 S. Eighth St. and SPS Tower. Amenities include a two-story tenant lounge with conference facilities, fitness center and 60-rack bike storage facility. Commonwealth Commercial Partners manages the property which is currently undergoing complete renovations on the first floor and skyway level.

The skyscraper rises in the city’s central business district, less than 2 miles from Principal’s Minneapolis office. The location is easily accessible through public transportation, with several bus stations nearby and the Government Plaza light rail station within walking distance.

The post Principal Financial Signs 46 KSF Minneapolis Lease appeared first on Commercial Property Executive.

Northland Center. Image courtesy of KBS Realty Advisors

KBS Realty Advisors has negotiated a 26,000-square-foot lease renewal at Northland Center, its 492,500-square-foot Class A office property in Bloomington, Minn. Cushman & Wakefield assisted the owner in the transaction with tenant Avtex, a customer experience consulting firm, which extended the lease for its headquarters.

Located on 13 acres at 3600 American Blvd. W., the LEED EBOM Silver-certified office park encompasses two seven-story buildings completed in 1979 and 1982 and renovated in 2010, Yardi Matrix shows. Situated close to France Avenue and Interstate 494, the site is 11 miles from Minneapolis-Saint Paul International Airport.

The property’s amenity package includes conference rooms, a modern gym, bike storage and a full-service café. The office park has housed Avtex’s headquarters since 2010, according to Cushman & Wakefield Executive Director Bill Rothstein. Northland Center’s tenant roster includes NorthMarq, FPA Multifamily, Cushman & Wakefield and Hance Financial, and the asset also has a 7,000-square-foot retail component.

In June, KBS finalized the $95.2 million disposition of two Class A office properties totaling 142,710 square feet in San Jose, Calif. EXAN Group was the buyer of the 142,720-square-foot portfolio.

The post KBS Inks 26 KSF Minneapolis Office Lease appeared first on Commercial Property Executive.

CityPlace Medical II. Image courtesy of Davis Healthcare Real Estate 

Davis Healthcare Real Estate has opened CityPlace Medical II and CityPlace Medical III, two medical office buildings totaling 57,000 square feet in Woodbury, Minn. The developer broke ground on the Class A assets last year. Synergy Architecture Studio provided architectural services, while Timco Construction was the general contractor.

Located at 2015 and 2017 Radio Drive, the buildings are adjacent to CityPlace Medical, a 50,500-square-foot facility developed by Davis between 2017 and 2018. The three-asset campus is part of CityPlace, the 100-acre mixed-use development which includes health care as well as an office park, retail, housing and hospitality.

CityPlace Medical II comprises 42,000 square feet across two stories. Shriners Children’s, a nonprofit specialized in pediatric orthopedic services, leased the building’s entire first floor. Another tenant is Adrefis & Toppin Women’s Specialists, a full-range obstetrics and gynecology practice.

The neighboring CityPlace Medical III is a 15,000-square-foot building fully leased to Midwest Ear, Nose & Throat. The health-care practice provides multiple ear, nose, and throat services, as well as facial plastic surgery and aesthetic skin care.

CityPlace Medical campus is some 3 miles northeast of downtown Woodbury just south of Interstate 94, within walking distance of Courtyard by Marriott and Residence Inn by Marriott St. Paul Woodbury. The immediate area also includes numerous shopping and dining options.

The post Twin Cities-Area MOB Campus Opens Doors appeared first on Commercial Property Executive.

1110 Hazeltine Blvd. Image courtesy of Hanley Investment Group

Hanley Investment Group has facilitated the sale of a 23,201-square-foot, single-tenant ALDI supermarket property in Chaska, Minn. Executive Vice Presidents Bill Asher and Jeff Lefko negotiated on behalf of the seller, TOLD Development Company. A Santa Barbara, Calif.-based private investor purchased the absolute triple-net ground lease for $3 million.

Located on 2 acres at 1110 Hazeltine Blvd., the store opened its doors in April 2019, according to Southwest News Media. The developer acquired the parcel for $1.1 million from Sand Cos. in August 2018, documents recorded in Carver County show.

Situated at the junction between Hazeltine Boulevard and Highway 41, the property is close to the Hazeltine National Golf Club. Chaska’s city center is 3 miles south of the site and downtown Minneapolis is 25 miles to the northeast. Other retailers with stores in the Highway 41 corridor include The Home Depot, Target and Kohl’s.

ALDI-leased properties continue to be in high demand among grocery assets, according to Lefko. In June, Asher and Lefko arranged the $7.7 million disposition of an 11,142-square-foot retail property in Marysville, Wash.

The post Hanley Investment Completes Minneapolis Retail Deal appeared first on Commercial Property Executive.

3021 124th Ave. Image courtesy of Metro Storage

Metro Storage has begun the development of a new 95,000-square-foot facility in Coon Rapids, Minn. The company expects to deliver the climate-controlled property in 2021. The firm acquired the land parcel for $2.2 million from Shamrock Development Inc., according to Anoka County records.

Located on 6 acres at 3021 124th Ave., the three-story building will encompass 908 units. The facility will have motion-sensor LED lighting, drive-thru access, security cameras and a communication system between the management office and the storage units.

This is the company’s eighth property in the Twin Cities metro, according to President Marty Gallagher. The facility is close to Riverdale Commons and Riverdale Village, two shopping destinations along Main Street and Highway 10. There are at least three other self storage properties within a 3-mile radius. Additionally, the site is 19 miles north of downtown Minneapolis.

Last year, Metro Storage landed a $123 million refinancing package for 22 facilities in Florida, Georgia and Illinois. Talonvest secured the 10-year, fixed interest rate loan from a national bank.

The post Metro Storage Kicks Off Construction in Twin Cities appeared first on Commercial Property Executive.

Bank of America. Image courtesy of Hanley Investment Group

Hanley Investment Group has arranged the disposition of a newly built Bank of America property in Brooklyn Center, Minn. The absolute triple-net ground lease asset traded for $2.7 million in an all-cash transaction.

Axia Real Estate Group’s Carlos Aguilar assisted the buyer, a private investor. Hanley Investment Executive Vice Presidents Jeff Lefko and Bill Asher brokered the deal on behalf of the seller and developer, TOLD Development Co. The firm acquired the land in 2018 for $750,000 from the Economic Development Authority of Brooklyn Center, according to Hennepin County records.

Located on 1 acre at 2545 County Road 10, the free-standing, 4,370-square-foot building opened in late 2019. The property is close to Shingle Creek Crossing, an 800,000-square-foot retail center anchored by LA Fitness, TJ Maxx and a Walmart Supercenter. Additionally, the site is 7 miles north of downtown Minneapolis.

Last month, Hanley Investment brokered the sale of a 174,136-square-foot retail asset in Lincoln, Neb. The company assisted the seller, Perkins Properties.

The post Hanley Investment Closes Minneapolis Retail Deal appeared first on Commercial Property Executive.

Image via Pixabay

COVID-19’s impact on the energy market fueled also by the Saudi Arabia-Russia oil price war creates new ripples in the industry. Xcel Energy, the first large investor-owned utility to set a goal of 100 percent carbon-free energy by 2050, has announced its intention to sell the Mankato Energy Center, a 760-megawatt natural gas-fired power plant located southwest of Minneapolis.

The announcement comes just three months after Xcel Energy had acquired the facility from Atlanta-based Southern Co. for $650 million. Mankato Energy Center is a natural gas-fired 2×1 combined-cycle facility contracted with Northern States Power through 2026. The utility had first filed to acquire the asset in 2018, asserting that the plant was an important step in achieving its clean energy goals. Now it will sell it to Denver-based Southwest Generation for $680 million.

The deal is anticipated to close in the third quarter, without material impact on short- or long-term earnings, according to the utility. Current employees will continue working at the plant and Xcel Energy will maintain its power purchase agreement with the facility. Xcel Energy will use the proceeds from the sale to reduce its overall financing needs during these unprecedented times, which prove challenging even for the largest players in the industry.

The post Xcel Energy Sells Natural Gas-Fired Plant for $680M appeared first on Commercial Property Executive.

3070 White Bear Ave. Image courtesy of The Boulder Group

The Boulder Group has closed the sale of a 4,305-square-foot AT&T building in Maplewood, Minn. A private individual investor paid $3.3 million for the asset. Partner Jimmy Goodman and President Randy Blankstein assisted the seller, Oakridge Realty, which acquired the land for $1.2 million in 2017, according to public records.

Located on 0.6 acres at 3070 White Bear Ave., the property was built in 2017. The telecommunications company moved to the building in 2017 and signed a 10-year net lease. Terms of the contract include two five-year renewal options and a 10 percent rent increase with each extension.

Situated close to Interstate 694 and across the street from Maplewood Mall, the building sits in a crowded retail corridor, with such neighbors as ALDI, Verizon and Macy’s. The closest AT&T store is located some 10 miles away in Roseville. Additionally, the property is roughly 17 miles from the AT&T Tower in Minneapolis.

The Boulder Group is active throughout the Midwest. Earlier this month, the same brokerage team negotiated the $25 million sale of a Whole Foods-anchored property in Kildeer, Ill.

The post Boulder Group Closes Sale of AT&T Building appeared first on Commercial Property Executive.

Stuart’s Crossing. Image courtesy of Sterling Org.

Citing the quality of the assets, Sterling Organization has acquired a nine-property, 1.2 million-square-foot shopping center portfolio from DRA Advisors. The sale includes eight grocery-anchored properties and one power center, all located within the Minneapolis and Chicago MSAs. The portfolio was purchased on behalf of two of Sterling’s managed funds for $202 million.

Six of the properties are in metro Minneapolis, while the remaining three are located within Chicagoland. The list includes Stuart’s Crossing, an 85,529-square-foot retail center in St. Charles, Ill., anchored by Jewel-Osco, Chicago’s largest grocery chain.

The portfolio has an average population base of more than 76,000 people, with an average household income exceeding $114,000 within a 3-mile radius, according to Sterling Organization. Tenants anchoring the properties include: Cub Foods (4), Jewel-Osco (2), Lunds & Byerlys, Tony’s Fresh Market, Michael’s (2), Home Depot, HomeGoods, PetSmart, Petco, Office Depot and Five Below (2).

Brian Kosoy, managing principal, president & CEO of Sterling Organization, noted in a prepared statement that each property in the portfolio acquired on behalf of the firm’s investor partners was a quality asset on a standalone basis. He called that a rarity in a portfolio transaction.

Sterling deals

The West Palm Beach, Fla.-based buyer, along with its principals and investment partners, now owns 67 properties across the U.S. The assets comprise more than 12 million square feet and have a collective value of more than $2 billion.

Last month, Sterling acquired Town Center Colleyville, a 244,917-square-foot asset in Colleyville, Texas, that was 85 percent leased at the time of the transaction. Located 21 miles northwest of Dallas’ central business district, the center is anchored by Market Street and includes Studio Movie Grill, Great Clips and a FedEx office.

In June 2019, Sterling paid $27 million for a 109,455-square-foot shopping center in the San Diego suburb of Poway, Calif., anchored by LA Fitness. Both the Texas and California retail centers were purchased on behalf of the Sterling Value Add Partners III LP fund.

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Moxy Minneapolis Uptown. Image via Google Street View

Graves Hospitality has obtained $12.3 million in financing for Moxy Minneapolis Uptown, a 125-key boutique hotel in the Twin Cities. The borrower will use loan proceeds to refinance the original construction loan for the Marriott-branded property. JLL Capital Markets arranged the five-year, fixed-rate mortgage with a flexible pre-payment structure with a newly formed debt fund.

Located at 1121 W. Lake St., the hotel is close to Minneapolis’ Target Field, Target Center, U.S. Bank Stadium and Orchestra Hall. Moxy Minneapolis Uptown was built on the site of a former two-story building and parking lot as the first ground-up, purpose-built Moxy hotel in the Americas. Graves Hospitality broke ground on the development in October 2016, with Collage Architects serving as designer. The pet-friendly property includes a fitness center, business center, lounge, bar and valet parking.  

Executive Managing Director Gerard Sansosti, Executive Vice President Jeff Bucaro and Vice President Nicole Aguiar were part of the JLL team that worked on behalf of the borrower. In January, Bucaro, Aguiar and other JLL professionals arranged a $57.6 million refinance loan for the Home2Suites by Hilton Chicago River North.

The post Graves Hospitality Obtains $12M Refi for Uptown Minneapolis Hotel appeared first on Commercial Property Executive.

7101 Metro Blvd. Image via Google Street View

A joint venture between City Center Realty Partners and Contrarian Capital Management has acquired a 180,000-square-foot, three-building office campus near Minneapolis from Regis Corp. JLL represented the buyer. 

The business park currently serves as the seller’s headquarters. Regis will lease back part of the campus from the new owner.

Located at 7101, 7151 and 7201 Metro Blvd., the 11-acre complex is alongside State Route 100 in Edina, Minn. The business park is 10 miles from downtown Minneapolis and the Minneapolis-St. Paul International Airport. Various retail options are in the nearby area, including the Galleria Edina shopping center.

The owner plans to renovate two of the buildings—7151 and 7201 Metro Blvd.—once Regis’ lease agreements expire in March and May 2020, respectively. The third building, 7101 Metro Blvd., is 85 percent occupied by PCL Construction on a long-term lease.

JLL’s Marc Nanne and Steve Buss represented the buyer. In January, the brokerage arranged a $53 million refinancing package for one of Contrarian’s office assets in Houston.

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CommonGrounds Minneapolis Skyway Workplace. Image courtesy of CommonGrounds Workplace

CommonGrounds Workplace has opened two coworking office properties: CommonGrounds Minneapolis Skyway Workplace, a 27,478-square-foot flexible office space in Minneapolis and The CommonGrounds Pearl Workplace, a 14,239-square-foot property in Portland, Ore.

Located at 801 Marquette, in the heart of downtown, CommonGrounds Minneapolis Skyway Workplace offers convenient access to various dining, shopping and entertainment venues. The 84-year-old building was transformed by Perkins+Will in 2017 into a four-story coworking office space. Common-area amenities include a rooftop deck for events, a training and conference center, fitness center and Zip Car access. The property will serve 423 members with private offices, team rooms and coworking areas and will also include eight acoustically sound, video-enabled conference rooms, a communal pantry and living room, and phone rooms. Meet Minneapolis is the other tenant in the building.

The CommonGrounds Pearl Workplace is located at 630 Northwest 14^th Ave., in Portland’s Pearl District submarket. The property is part of Irving Street Lofts, an eight-story, 140,000-square-foot condominium building, and includes the entire ground floor and a second level of the property. The flexible office space features common-area amenities including private offices, team rooms and coworking spaces, with four video-enabled conference rooms, casual meeting and collaboration spaces and an Invita barista.

These locations mark CommonGrounds Workplace’s second and third ones opened this year as part of its $100 million Series A funding expansion program. The company recently signed an 11-year lease for 29,509 square feet of Class A office building in Washington, D.C.

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Two22. Image courtesy of Lingerfelt CommonWealth Partners LLC

Ryan Watts, Judd Welliver, Sonja Dusil and Tom Holtz of CBRE Minneapolis worked on behalf of Principal Real Estate Investors in the transaction. Atlantic Real Estate Capital arranged acquisition financing for the property.

READ ALSO: Lingerfelt CommonWealth Buys Kansas City Office Tower

Located at 222 S. Ninth St., in the heart of Minneapolis’ Skyway System, Two22 is close to various hotels, dining and business venues. Additionally, US Bank Stadium is situated a few blocks away. Built in 1985 and then renovated in 2007, the property was previously known as the Piper Jaffray Tower and most recently as the Campbell Mithun Tower. Two22 is currently 51 percent occupied and includes common-area amenities such as a conference center with two conference rooms, underground parking, fitness center, secure bicycle storage, coffee shop, hair salon and a catering service.

Lingerfelt plans to invest $20 million in renovations. Upgrades will include improving the elevator, a first-class amenity package, a first-floor lobby renovation and an outdoor terrace. Two22 includes 10,500 square feet of retail space. According to Yardi Matrix, the property last traded in 2005, when Principal Global Investors acquired the asset for $96.5 million.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.  

The post CBRE Secures $81M Minneapolis Office Sale appeared first on Commercial Property Executive.

Three Paramount Plaza

Ryan Cos. has purchased Three Paramount Plaza, a 75,602-square-foot Class B office building near Minneapolis for $6 million. Seller Lone Star Funds acquired the property from Investors Real Estate Trust in 2015 as part of a $250 million, 2.5 million-square-foot national portfolio deal, according to Yardi Matrix data.

Located at 7831 Glenroy Road in Bloomington, Minn., the asset is 12 miles south of downtown Minneapolis. The building is adjacent to both Interstate 494 and Minnesota Route 100, with close public transportation links and a variety of nearby hotels, shops and dining venues.

Completed in 1982, the four-story building is home to tenants including BIS Corp., Northland Group, ESI Engineering and a local law office. Parking is available near and underneath the structure at a ratio of 4 spaces per 1,000 square feet.

Earlier this year in Atlanta, Lone Star Funds sold Piedmont Center 14 for $58 million to The Ardent Cos. The 300,454-square-foot Class A office tower is part of the Piedmont Center office park.

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Osborn370. Image courtesy of Transwestern

Transwestern Commercial Services has been tapped to provide leasing services for Osborn370, a 170,000-square-foot, Class A office property in St. Paul, Minn.

Located at 370 N. Wabasha St., in the St. Paul Central Business District along the Mississippi River, the tower offers easy access to various dining, shopping and entertainment venues including the Minnesota Museum of American Art, Rice Park, Minnesota Children’s Museum, Landmark Center, Xcel Energy Center and Minnesota History Center.

Osborn370 includes tenants such as Bridgewater Bank, Smart Care, American Public Media and other start-ups and emerging businesses. The 30-story office building offers 10,000-square-foot floors with space available ranging from 3,000 to 20,000 square feet. Additionally, a Flex Floor accommodating one to 10 people organizations is available.

The property underwent major renovations last year. Common-area amenities include collaborative environments with flexible suites, custom-build open floorplans, open work areas, private offices, meeting rooms, common gathering spaces, outdoor patio, lobby coffee, beer and wine bar.

TCS Managing Principal Mike Salmen, Principal Mike Honsa and Vice President Tate Krosschell were part of the leasing team. In another recent lease, the company represented iMentor for the lease and expansion of nearly 95,000 square feet at 199 Water St. in Lower Manhattan. 

The post Transwestern to Lease MN Office Tower appeared first on Commercial Property Executive.

Lexington Shoppes

Mid-America Real Estate Corp. has facilitated the sale of Lexington Shoppes, a 34,000-square-foot retail center in Saint Paul, Minn. The company’s Minnesota Principal Mark Robinson, who was the exclusive listing broker, represented the seller, while Virginia Ng of Coldwell Banker worked on behalf of the buyer. The deal closed at $3.1 million.

The shopping center is located at 458-478 N. Lexington Parkway, at the intersection with University Avenue, and directly outside the Green Line. It is home to nine tenants, franchise and local firms, which include UnBank, UnLoan and Scale Model Supplies.   

The new $200 million Allianz Field and Midway Marketplace are just blocks away. Concordia University is also nearby, right across Interstate 94. Due to its location, half way between Minneapolis and Saint Paul, the Midway neighborhood has been attracting a lot of interest from retail and office investors. Co-working companies such as Work It have also been making a presence in the area. 

Image courtesy of Mid-America Real Estate Corp.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

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Home2 Suites Brooklyn Park

Midas Hospitality has opened a 107-key Home2 Suites by Hilton in Brooklyn Park, Minn. The property is part of a $28 million development that includes a 100-key Hampton Inn opened last September. The two assets are the only new hotels to be delivered in the area for the past two decades.

Located at 9490 W. Broadway Ave., the all-suite, 58,000-square-foot hotel provides rooms with fully equipped kitchens meant for extended stays. Amenities include an indoor pool, business center, fitness room and patio with fire pit.

The asset is situated across from Target’s Northern Campus and Technologies America’s Olympus Surgical Innovation Center. The property is 15 miles from downtown Minneapolis.

MC Hotel Construction, Midas Hospitality’s sister company, developed Home2 Suites by Hilton and Hampton Inn, while Trevor Armstrong provides general management services for both properties. Last month, Hilton launched the 206-key Home2 Suites by Hilton Chicago River North. The opening marked the brand’s 300th location.  

Image courtesy of Midas Hospitality

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Oracle Centre and International Centre

Investcorp has sold International Centre and Oracle Centre in Minneapolis to DRA Advisors for $73.7 million, according to Yardi Matrix. The high-rise office assets contain 622,173 square feet of Class A space. The properties last changed hands in September 2013, when CrossHarbor Capital Partners traded them for $72.5 million.

Rising 20 stories at 900 Second Ave. S. in downtown Minneapolis, the 343,314-square-foot Oracle Center is home to a mix of tenants, from Oracle to Special Olympics Minnesota. Built in 1984, the high-rise has a 17.4 vacancy rate, per Yardi Matrix data. In addition to its office component, the building contains 5,000 square feet of retail on the first floor, occupied by three restaurants and a convenience store.

Sharing a podium next door at 920 Second Ave. S., International Centre is a 278,859-square-foot, 17-story office tower. Tenants include Cresa, Guardian Life Insurance and Corporation Service Co. Like its neighbor, the high-rise contains retail space on its lower levels—some 10,000 square feet. Parking is available underground at a ratio of 0.66 spaces per 1,000 square feet, accessible to tenants of both buildings.

The new owner has selected Wildamere to manage property operations for both buildings. Nils Snyder and Mike Doyle of Colliers International are spearheading leasing efforts.

In March, a joint venture led by DRA Advisors sold a Class A office property in Fort Lauderdale, Fla., for more than $41 million. The buyer has plans to invest in capital improvements at the 1984-built asset.

Image courtesy of Yardi Matrix

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Rendering of Tennant Co.’s new HQ

Tennant Co., a major industrial cleaning equipment manufacturer, has acquired an office campus in Eden Prairie, Minn., where it plans to move its corporate headquarters in 2020. Tennant’s partners in the deal included Oppidan Investment Co. and Gensler.

The new office is located at 3 Capital Drive, about 12 miles from the company’s current headquarters in Golden Valley, a neighborhood of Minneapolis. Element Fleet, a global fleet management company, currently occupies the office complex. A purchase price was not disclosed.

The move will consolidate 500 employees who are currently spread between three separate properties within Tennant’s current headquarters. Around 700 employees will remain working at the Golden Valley campus, where the company will continue to maintain a significant presence.

“Now is the right time for a move. We’re at capacity for office space on our Golden Valley campus, limiting our options for how to use our existing facilities.” said Chris Killingstad, president & CEO of Tennant Co., in prepared remarks. “This move creates the ability to optimize our Golden Valley location to be a dedicated manufacturing and engineering campus.”

In January, another company made headquarters moves in the St. Paul–Minneapolis market: Tech company Alula announced plans to relocate its headquarters from Hudson, Wis., to St. Paul, Minn.

Image courtesy of Tennant Co.

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Hampton Inn & Suites Downtown St. Paul

Apple Hospitality REIT has purchased the 160-key Hampton Inn & Suites by Hilton in downtown St. Paul, Minn., for $31.7 million, or roughly $198,000 per key. The seller was an entity connected to Vista Host.

Built on the site of the former Seven Corners hardware store, a city landmark since 1933, the hotel opened in November 2016.  Located at 200 7^th St., the asset includes a business center, fitness room, indoor pool and on-site convenience store.

The hotel is close to Xcel Energy Center, Saint Paul RiverCentre, Roy Wilkins Auditorium and Ordway Center for the Performing Arts. Additionally, the property is within walking distance of a variety of restaurants and retail options.

“St. Paul is a vibrant city with a diversified economy, home to numerous corporate offices, including 3M, Ecolab, The Travelers Cos. and Securian Financial Group,” said Nelson Knight, executive vice president & CIO of Apple Hospitality, in prepared remarks. Last July, the REIT purchased a Hampton Inn & Suites hotel in Atlanta for $29.5 million.

The RevPAR for the Minneapolis/St. Paul market increased by 4.5 percent in the 12 months ending in January, compared to the prior 12-month period, according to STR data.

Image via Google Street View

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Sales activity was steady throughout the year, with several large deals closed during the first half of the year—Capella Tower and the 1.3 million-square-foot tower at 33 S. Sixth St. The second half was as dynamic as the first one in terms of number of sales, with investors focusing more the aforementioned value-add plays for suburban assets.

5. T3

323 Washington Ave. North

A Hines-developed mixed-use property, T3 is located in the Minneapolis Central Business District and is anchored by Amazon. The seven-floor, 246,300 square-foot building was completed in 2016 at 323 Washington Ave. N., combines timber and brick as materials and includes 12,300 square feet of retail space on the first floor. Amenities include a number of conference rooms, a fitness center and a roof deck. LaSalle Investment Management became the owner of the building last summer, when it acquired it from Hines for $87 million. Nearly 16 percent of the asset was vacant, the tenant roster including New York-based co-working company Industrious as well as a number of tech, finance and consulting firms. When it was delivered, Architect Magazine named it the first modern tall wood building in the U.S.

4. Marquette Plaza

After more than 20 years under the ownership of Base Management, the 15-story LEED Platinum-certified building at 250 Marquette Ave. changed hands in March 2018. The new owner, KBS Realty Advisors, paid $88.4 million for the asset in a transaction negotiated by CBRE. The 523,000 square-foot property was completed in 1970 and underwent renovations in 2002. It features an arch design on its façade, complete with a curtain wall made of aluminum and glass with granite fixtures. The building also encompasses a 1.5-acre park at the entrance, a rare feature for an office development in the CBD, and a 40,000 square-foot data center. The property also includes a direct connection to the Skyway, an enclosed sidewalk covering 9.5 miles, and benefits from proximity to the popular Nicollet Mall, the Washington Avenue Riverfront and North Loop.  

3. 50 South 10th Street

50 S. 10th St.

The largest sale completed during the year’s second half was Menlo Equities’ purchase of the former Retek Building. The $171 million transaction closed in December 2018 and represented Menlo’s first office purchase in the Twin Cities. The seller, Germany-based Union Investment, let go of the asset after four years of owning it. The 590,000 square-foot property was completed in 2001 and encompasses 11 floors. The entire first floor and a portion of the second floor–175,000 square feet–are designed for retail use. The building hosts News Room restaurant and a CVS pharmacy among other retail businesses.

2. Capella Tower

Located at 225 S. Sixth St., Capella Tower is distinctive office high-rise on Minneapolis’ skyline, standing 58 stories tall. Shorenstein Properties bought it from ASB Real Estate Investments in February 2018, together with the adjoining Star Tribune Building. The total transaction cost the investor $255 million, $10 million more than what ASB paid for the asset in 2006. Part of the purchasing cost, $186 million, was covered via a loan with Metropolitan Life Insurance Co. ASB disposed of Capella Tower on behalf of its $7.4 billion Allegiance Fund. The LEED Gold-certified tower provides 1.4 million square feet of office space, which includes the space in the Star Tribune Building. Completed in 1990, the building underwent renovations in 2014.

1. 33 South Sixth

33 S. Sixth St.

South Korea-based Samsung Electronics America emerged as the metro’s top buyer with the acquisition of the 1.3 million-square-foot tower at 33 S. Sixth St. in the Minneapolis CBD. The seller, HNA Property, disposed of the tower for $320 million. By acquiring the tower, Samsung also assumed an existing loan in the amount of $205 million with Metropolitan Life Insurance Co., which HNA contracted in 2016. The 48-story office building was completed in 1981 and completely renovated in 2005. A LEED Silver-certified asset, it includes 250,000 square feet of retail space on the first and second floors.

The list of top 10 largest office deals close in the Twin Cities in 2018 was compiled using data provided by Yardi Matrix. 

Images courtesy of Yardi Matrix

The post Top 10 Office Sales in Minneapolis-St. Paul in 2018 appeared first on Commercial Property Executive.

SPS Tower

New York-based Sumitomo Corp. of Americas makes its entrance into the Minneapolis office market with the acquisition of SPS Tower in the central business district. The real estate investment company, a subsidiary of Tokyo’s Sumitomo Corp., acquired the approximately 655,000-square-foot office property from CalSTRS in a $144 million transaction.

“We were looking for an asset in a stable market with good returns,” a spokesperson for SCOA told Commercial Property Executive of the company’s reasons for setting its sights on Minneapolis.

Located on a 2.5-acre site at 333 S. Seventh St., SPS Tower first opened its doors to tenants in 1986. The 31-story high-rise is linked via skywalk to three adjacent buildings and offers a 630-space underground parking facility and 3,000 square feet of retail space. SPS Tower is 84 percent occupied, with retail software company SPS Commerce Inc. and global professional services firm Accenture LLP serving as anchor tenants.

SCOA plans to achieve improvements at SPS Tower by employing building management methods it has honed over the years since its first investment in the U.S.

Target markets

The investment community made a solid showing in the Twin Cities in 2018, according to a Minneapolis/St. Paul report by commercial real estate services firm Cushman & Wakefield. “Out-of-state investment groups were attracted to the strong economy and higher yields compared to peer metropolitan areas,” per the report. “A majority of that capital was focused on acquiring assets in the Minneapolis central business district.”

Most of the top office trades of 2018 took place in the CBD. Samsung Life Insurance garnered attention with the $320 million purchase of 33 S. Sixth St., a 1.6 million-square-foot property. Shorenstein acquired the 1.4 million-square-foot Capella Tower for $255 million, and Menlo Equities bought the 498,800-square-foot building at 50 S. 10th St. for $171 million, or a notable $343 per square foot.

Having established a presence in the City of Lakes, SCOA plans to continue the expansion of its geographic footprint, which currently encompasses Atlanta, Chicago, Miami and San Diego. “Los Angeles, Phoenix, D.C., Denver, Boston—these are some markets which currently seem to offer the right sized/priced assets we are looking for,” the spokesperson said.

Image courtesy of Sumitomo Corp. of Americas

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An aerial view of the IDS Center

When Deb Kolar first learned that a polar vortex was on its way to the Midwest with her city, Minneapolis, primed to take the hardest hit, it was just business as usual for the real estate veteran.

Kolar is the general manager of operations at the IDS Center, the tallest building in Minneapolis. The mixed-use property in the heart of downtown houses more than 2 million square feet, including a 57-story office tower with an 8-story annex, a retail center and a four-star hotel. She has worked in management at the building, which is owned and operated by Accesso Partners, for the past 25 years, enduring many a brutal Minneapolis winter. But nothing compared to the Arctic blast of last week’s polar vortex.

“This was truly something we had not ever experienced before,” Kolar told Commercial Property Executive. Sub-zero temperatures are nothing out of the ordinary during a Minneapolis winter, but often when the mercury dips very low overnight, it comes back up during the day. That was not the case last week.

Deb Kolar

“This was long and dangerous,” she said of the frigid temps, which at one point hit a low of 50 degrees below zero with the wind chill factored in.

But Kolar and her team were prepared. Once she knew what was coming, she immediately reached out to the retail component of the property, as they oversee their own equipment and systems, to make sure they were prepared to withstand the cold.

She also made a big decision on heat at the IDS Center: they would run the building 24/7 during the polar vortex.

“It’s so hard to make up that temperature once the spaces get cold and it also eliminates the potential for freezing,” said Kolar, who knows from experience the kind of damage burst pipes and sprinkler systems can do to a building.

And the big heating bill they’d get hit with afterwards? Worth it.

“It’s so much cheaper than a sprinkler pipe freezing,” she said. Kolar and her team usually keep the IDS Center at around 72 degrees on a normal business day, but during an event like the polar vortex, they strive to keep the temperature from dropping too much below 67, not an easy task in a tower with a glass curtain wall.

PREPARATION IS THE BEST DEFENSE

Kolar’s biggest advice for building owners and managers bracing for severe winter weather?

Number one: make sure emergency procedures are in place. And if something does happen, like a burst pipe or an HVAC system issue, know the right people to call.

“The ability to have great vendor partners available, like an HVAC guy or clean response company on speed dial so you’re first in line—that’s key,” said Kolar.

That ties in to another crucial piece of advice—communication. In Minneapolis, the city has a radio link that connects city agencies to private sector companies in a seamless two-way radio conversation. That lifeline, plus staying in contact before, during and after an event with vendors, tenants and other operations staff, helps get out information fast.

Kolar recommends managers proactively check equipment throughout the year to make sure everything’s up and running and functioning properly. And with major snow and ice accumulation, have a plan and think ahead. For Kolar, that means making sure all the procedures are in place, especially at Crystal Court, the 8-story indoor park in the middle of the IDS Center.

“You have to be prepared, because it’s just plexiglass ceilings there,” she said. “So we have all the procedures in place to make it safe.”

A city that’s long learned to adapt to frigid weather, Minneapolis also has the benefit of enclosed skyways throughout downtown, allowing pedestrians to get around the city safely, without even having to step outside.

In New York City—where temperatures hit 5 degrees last week—the Department of Buildings (DOB) sends weather advisories for the real estate community whenever wind speeds are expected to exceed 35 miles per hour or higher, or weather events with potential to cause unsafe conditions arise, including icing and major snowfall.

Among the precautions the DOB urges building owners to take: always bring inside loose objects like garbage cans, lawn furniture and potted plants, anchor objects like gas grills or propane tanks, secure retractable awnings and remove aerial antennas and satellite TV dishes.

The DOB also advises property owners to properly “winterize” their buildings, by taking measures like having proper insulation around pipes and meters, carefully thawing pipes and meters when they freeze and not using a flame, avoiding fire hazards and making sure smoke alarms and carbon monoxide detectors are working.

For Kolar, it was smooth sailing for her building during the recent polar vortex. The heat stayed on and the pipes remained intact. But other buildings nearby weren’t so fortunate. One property not far from the IDS Center experienced significant water damage, one of several incidents that kept damage restoration companies “very busy” last week, according to Kolar.

“You see that and you just knock on wood and are thankful you didn’t experience it,” she said.

Images courtesy of Deb Kolar

The post How to Prepare for the Next Polar Vortex appeared first on Commercial Property Executive.

Burnsville Market

HFF has arranged a $7 million, three-year loan for Burnsville Market, a more than 137,000-square-foot grocery-anchored retail center in Burnsville, Minn. The company worked on behalf of the borrower, Sterling Org., to secure the floating-rate bridge loan with RGA Reinsurance Co.

The property is located at 1750 County Road 42 W., on approximately 16.5 acres along the retail corridor that serves the southern Minneapolis MSA. Within a 3-mile radius, more than 69,000 residents earn an average income of more than $87,000. Burnsville Market is anchored by Cub Foods, a supermarket chain with 77 stores in Minnesota and Illinois.

Sterling Org. plans to redevelop the property. Senior Managing Director Chris Drew, Senior Director Nat Scarmazzi, Associate Matthew McCormack and Managing Director Jules Sherwood were part of the debt placement team that represented the borrower.

“The Sterling Org. purchased the asset opportunistically and will begin to reposition the center to capitalize on the phenomenal market fundamentals and stellar demographics,” Scarmazzi said in a prepared statement. “RGA understands the market and, more importantly, the quality of the sponsorship, which allowed them to execute in a compressed closing timeline.”

The deal comes after HFF secured a $60.2 million loan for Somera Road Inc.’s acquisition of City Center Square.

Image via Google Street View

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1600 Rio Grande St. Image via Google Street View

1600 Rio Grande St.

Location: Austin, Texas

Price: $2,900,000

Property Type: Office

Year Built: 1895

Highlights: Historic property dating from the late 19th century, originally a Victorian mansion; recently renovated and redesigned; can be used as office, event center or corporate lodging; hardwood floors, 11-foot ceilings, large granite kitchen and four fireplaces; located in downtown Austin and blocks from the Texas Capitol, the University of Texas and court buildings; offers access to a variety of restaurants and entertainment venues. 

Contact: McAllister & Associates; Tel. 512-472-2100

200 Carleton Ave. Image via Google Street View

200 Carleton Ave.

Location: East Islip, N.Y. (Long Island/Suffolk County)

Price: $3,400,000

Property Type: Office/MOB

Building Size: 17,000 square feet

Highlights: Building strategically located on busy corner with traffic light, could be ideal for law or medical practice; more than 8,000 square feet of contiguous space; anchor tenant is Davita Medical, which occupies 52 percent of the building and has a triple-net lease with 2 percent increases through 2026. 

Contact: Michael Murphy and Anneta Sarkisyan with Douglas Elliman; Tel. 631-858-2460 and 631-858-2475

5319 Topanga Canyon Blvd. Image via Google Street View

5319-5325 Topanga Canyon Blvd.

Location: Woodland Hills, Calif. (Los Angeles)

Price: $2,600,000

Property Type: Retail 

Building Size: 5,150 square feet

Highlights: Located in Los Angeles’ San Fernando Valley, the building offers two distinct spaces: one used as a recording studio and a second space destined for retail; high-end improvements as well as easy walking access to amenities and restaurants; close to the freeway, which is approximately four blocks away; estimated population within a one-mile radius exceeds 20,000 and is expected to grow at 3 percent annually; average household income within a three-mile radius is $111,000.

Contact: Karl Niehaus with Commercial Real Estate Investments LA; Tel. 310-880-7900

2101 S. Broadway St. Image via Google Street View

Best Western Plus

Location: 2101 S. Broadway St., New Ulm, Minn.

Price: $7,800,000

Property Type: Hotel 

Number of keys: 117 

Highlights: Recently renovated property, including the restaurant, which was converted to a Green Mill; features a new outdoor patio equipped with a fireplace; several meeting spaces and banquet facilities totaling more than 5,000 square feet.

Contact: Timm & Associates Inc.; Tel. 952-932-9987

14000 S.W. 119th Ave. Image via Google Street View

14000 S.W. 119th Ave.

Location: Miami, Fla.

Price: $6,313,500

Property Type: Office 

Building size: 25,254 square feet

Year Built: 1986

Highlights: Very well-maintained building with two floors and 94 parking spaces; the second floor is leased to a national tenant; two separate entrances and building signage opportunity; nestled in a commercial corporate park setting; easy access to Florida turnpike. 

Contact: Century 21 Dorar Realty; Tel. 305-264-6000

All information is property of the respective brokerage firms or broker.

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Midway Innovation Center I

Tech company Alula is preparing to move its Hudson, Wis., headquarters and production center to St. Paul, Minn. The firm has leased 68,000 square feet at CSM Corp.’s Midway Innovation Center I, which has been vacant since May 2018. Avison Young represented the tenant, while Colliers worked on behalf of the landlord.

“The Twin Cities market has proven to be a dynamic place to scale a tech company,” said Alula CEO Brian McLaughlin, in a prepared statement.

Midway Innovation Center I was completed in 2005 at 2340 Energy Park Drive, just off Highway 280. In addition to the 68,000 square feet leased to Alula, the property also encompasses more than 32,000 square feet of industrial space, according to Yardi Matrix real estate data. The center is approximately 3 miles from the University of Minnesota, the location being one of the main factors which impacted the tech company’s decision to relocate.

The brokers involved in the deal included Eddie Rymer, Phil Kluesner and Jack Storry from Avison Young, and Eric Rapp, Eric Batiza and Brian Bruggeman from Colliers International.

Image courtesy of Yardi Matrix

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Plymouth Corporate Center

CBRE’s Minneapolis-based Debt and Structured Finance Group has arranged a $47 million loan for Plymouth Corporate Center, a 630,000-square-foot office campus in Plymouth, Minn. Senior Vice President Joel Torborg secured the 10-year refinancing, which will cover the existing loan with Wells Fargo Bank. According to Yardi Matrix data, Wildamere Capital Management, the owner of Plymouth Corporate Center, took a $49.6 million loan from Wells Fargo in 2015, when it acquired the asset from Carlson Real Estate.

The two-story building is located at 1405 Xenium Lane and is almost entirely occupied. Major tenants include TCF Bank, Comm-Works, Aetna Health and LLSC Holdings Corp. The property was completed in 1974 and functioned as an industrial facility until 1998, when it was converted into office. However, a portion of it—approximately 135,000 square feet—continues to be used as industrial space.

Plymouth Corporate Center can be accessed via interstate 494 and is approximately 10 miles from downtown Minneapolis. The building includes acres of parking space, which can accommodate more than 2,200 vehicles. The corporate center was fully renovated in 2009.

The transaction comes a few days after CBRE’s Minneapolis Capital Markets closed a $26 million sale of a two-building, core-plus logistics portfolio in Rogers, Minn.,

Image courtesy of CBRE

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12999 Wilfred Lane

Cabot Properties Inc. has acquired a two-building, core-plus, Class A logistics portfolio in Rogers, Minn., totaling 386,295 square feet, for $26.1 million from The Meritex Company.

The two buildings include 12999 Wilfred Lane, located about 25 miles from downtown Minneapolis. CBRE Capital Markets facilitated the deal. 

“The offering received a very positive response from high profile capital sources supporting a renewed interest in the Rogers submarket from institutional industrial investors,” said Judd Welliver, CBRE’s senior vice president, in a prepared statement. “This is a re-entry into Minneapolis for Cabot and allows Meritiex to reposition its industrial portfolio for continued growth in development and newer generation properties.”

CBRE’s team representing the sellers in the deal also included Ryan Watts, Sonja Dusil and Tom Holtz.

Both properties in the portfolio feature 32-foot clear institutional quality space. At the time of the deal, the Class A buildings were 88 percent leased. 

Logistics Are Strong

In JLL’s most recent U.S. industrial market statistics, trends & outlook report, the industrial market throughout the U.S. continues the momentum seen in the first half of 2018, with annual rental increases of 6.3 percent.

CBRE’s third quarter Midwest Industrial MarketView Snapshot noted new construction activity is strong in the industrial segment, with 40.2 million square feet completed in 2018 year-to-date. 

In September, Cabot Properties acquired Bridge Point 290 Business Park, an 899,278-square-foot, three-building industrial property in the Chicago area from Bridge Development Partners and its joint venture partner, Banner Oak Capital Partners.

Image courtesy of CBRE

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3701 Wayzata Blvd.

After several months of negotiations, The Opus Group has acquired the former Target West Campus building in Minneapolis. The company plans to convert the 10-story asset at 3701 Wayzata Blvd., which has been empty since 2016, into a multi-tenant office property by spring 2019. A team of brokers with CBRE Minneapolis, which represented Target in the sale, will also lead leasing efforts at the building.

The team behind the project will be made up of Opus Development Group as developer, Opus Design Build as design builder and Opus AE Group as architect and engineer of record. They will collaborate with Perkins+Will for interior design consulting services.

Planned upgrades are expected to include:

• new cafeteria with indoor and outdoor seating
• rooftop deck
• clubhouse with a bar
• entertainment space
• pool table
• conference room
• daylight on the western side of the building

The 310,000 square-foot development is part of the office corridor along Interstate 394 and spans 24 acres. According to Yardi Matrix, it was originally completed in 1953 and underwent cosmetic renovations in 2012. Target bought it in 1994 for $9 million.  

The project comes a few months after Opus broke ground on a 125,000 square-foot mixed-use development in downtown Overland Park, Kans.

Image courtesy of The Opus Group

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Ann Marie Woessner-Collins, Executive Vice President & Head of Minneapolis office, Savills Studley

Savills Studley has hired Ann Marie Woessner-Collins as its new executive vice president & head of its Minneapolis office. She will be responsible for assisting the firm’s clients in finding the best locations for the lowest operating and talent costs. 

“Municipalities and state governments now face immense pressure to develop talent, add jobs and attract companies. Our practice capitalizes on strategic location and economic opportunities to help clients reduce upfront capital, along with ongoing operating expenses and taxes,” said Woessner-Collins, in a prepared statement. “I look forward to supporting our clients in creatively selecting the location of their operations to best maximize value.”

Wide range of skills 

Woessner-Collins brings close to 30 years of experience to her new role, with skills such as site selection, negotiation and implementation, business and tax incentives, and structuring and implementing large-sum tax incentive packages. Her expertise includes food and beverage, aerospace, e-commerce, financial, energy, automotive, technology, medical devises and insurance. Her team will support clients in identifying opportunities for cost savings through people optimization, creative logistics and tax strategies that leverage location. 

Prior to joining Savills Studley, she was ranking within the top 5 percent of all brokers for 10 years in a row at JLL and The Staubach Co. There, Woessner-Collins founded and led the company’s Site Selection, Business and Economics Incentive team in North America. Before that, she was a partner in KPMG’s State and Local Tax practice, as well as the director of Purchasing, Energy and Economic Incentives at Frito-Lay. 

Woessner-Collins received an MBA in Finance from the University of St. Thomas and a Bachelor of Science and Psychology from Texas A&M University.

In September, Savills Studley made another change in leadership. The firm appointed Mitchell Rudin as president for its New York offices. He is succeeding Michael Colacino, who will step down from his role after 27 years with the firm, with plans to create his own proptech company.

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Juhl Energy has selected GE Renewable Energy to supply equipment for the first commercial integrated solar-wind hybrid power generation project in the U.S. The Minnesota-based energy company developed the 2 MW community-based renewable energy project to provide low-cost, locally generated energy to the Lake Region Electric Cooperative of Pelican Rapids, Minn.

Bank of America handled the financial support for the project, agreeing to purchase the project’s renewable energy certificates (RECs). The acquisition will cover the bank’s electricity usage in the state and will contribute to its 2020 environmental operations goal of purchasing 100 percent renewable energy. 3Degrees facilitated the connection between Juhl Energy and Bank of America.

Juhl is partnering with Menasha, Wis.-based Faith Technologies Inc. to construct the project and collaborate on building additional hybrid projects. The project, anticipated to be operational before the end of 2018, will be owned by a subsidiary of Juhl Energy that pools together capital from the company and outside private investors. 

Combining powers

The project will use one 2.0-116 wind turbine from GE Renewable Energy’s Onshore Wind business, supported by 0.5 MW of photovoltaic solar. It uses GE’s Wind Integrated Solar Energy (WiSE) technology platform—developed through GE’s global research center—to directly integrate the solar panels through the wind turbine’s converter so both wind and solar share the same balance of plant, increasing system net capacity by 3-4 percent, and annual energy production by up to 10 percent. The hybrid design enables this type of projects to produce power when it is most needed—solar providing summer peak energy, and wind providing winter peak energy.

“Distributed generation will play a major role in the implementation of renewable energy in the U.S. electrical market in the years to come,” Dan Juhl of Juhl Energy said in prepared remarks. “Projects such as this one, with Juhl Energy’s package design and GE hybrid technology, will economically blend clean, renewable energy into the electric grid at a lower cost, plus add reliability to the system.”

Image courtesy of GE Renewable Energy

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The Tannery

R2 Cos. has expanded its footprint in Minneapolis and Milwaukee by half-a-million square feet in one fell swoop. The real estate investment firm acquired the Midwest Creative Office Portfolio, a group of properties totaling approximately 525,000 square feet, from Sara Investment Real Estate LLC in a transaction valued at approximately $60 million.

The Midwest Office Portfolio features 11 buildings, ranging from brick-and-timber warehouse facilities to post-industrial office structures. “These are unlike anything else that currently exists in Minneapolis and Milwaukee,” Max Meyers, principal & chief investment officer with R2 Cos., said in a prepared statement. “Creative office tenants demand non-commodity space. This is difficult to replicate in traditional office towers. This portfolio includes some of the most striking buildings in each of these markets.”

The Minneapolis segment of the Midwest Creative Office Portfolio encompasses two multi-structure campuses, The Crown Center and 1515 Central, totaling roughly 176,400 and 99,900 square feet, respectively. Located in the Northeast Arts District, the historic buildings are home to a host of tenants, including Tactile Medical, Anagram International, Object Partners, AON, Sociable Cider Werks, Bauhaus Brew Labs and Dogwood Coffee.

In Milwaukee, the Midwest Creative Office Portfolio features The Tannery, a 251,000-square-foot complex in the city’s Walker’s Point submarket. The tenant roster includes Advocate Aurora Health, which anchors the property.

R2 will capitalize on demand for creative office space in both metros through a renovation program that will include cosmetic upgrades, the modernization of mechanical systems and the addition of restaurants, cafés and other coveted amenities.

Look on the upside

All told, the Midwest Creative Office Portfolio is 95 percent leased, but the collection of office buildings offers more than a steady income stream. The portfolio provides upside potential, given that in-place rents are 40 percent below market-rate in Minneapolis and Milwaukee, where office rental rates continue on an upswing.

“Relentless economic growth and a landlord-favorable market,” are responsible for rising rates in Minneapolis, as are recent improvements at a handful of properties, per a third quarter 2018 report by commercial real estate services firm JLL. In Milwaukee, ongoing rent growth resulted in the highest rents in the market in the last two years, according to JLL.

R2, which acquired the Midwest Creative Office Portfolio through the first close of a new $150 million fund targeting creative office properties in the Midwest, will add the properties to its joint holdings with private investment firm Skydeck LLC. R2 and Skydeck’s previous joint venture purchases include Milwaukee’s 1.1 million-square-foot Main Post Office building, which R2 designated for an adaptive reuse plan immediately following the 2015 acquisition. The partners also acquired the 100,000-square-foot Keller Building in Minneapolis and the Morton Salt factory, a 150,000-square-foot facility in Chicago.

Image via Google Street View

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MInnesota Center

CBRE has represented Jostens, a manufacturer of memorabilia for K-12 schools, colleges and professional sports teams, in relocating its Minneapolis headquarters. The company’s custom-designed office will span across three floors at Minnesota Center in Bloomington, Minn. First Vice President Brian Fogelberg and Executive Vice President Mark McCary directed the 58,600-square-foot lease on behalf of the tenant.

Jostens previously occupied 67,000 square feet at France Place. While the new office represents a 16 percent space reduction, it is designed to be more efficient as it encompasses flexible workspaces, collaborative areas, fewer private offices and several small conference rooms.

Located at 7760 France Ave. S., Minnesota Center is a LEED certified building providing 276,500 square feet of office and 5,000 square feet of retail space, according to real estate data provider Yardi Matrix. Transwestern bought the property at an auction in 2014 paying $31.5 million for the 14-story asset. The building offers a number of amenities which include a conference center, a fitness center and covered parking.

Last month, CBRE brokered another headquarters relocation for Adolfson & Peterson Construction.   

Image courtesy of Yardi Matrix

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As of July 2018, average vacancy in the Twin Cities was 12.6 percent and more than 9.5 million square feet of office space was listed. Large employers and well-established tenants such as TCF Financial Corp., Northeast Bank or OptumHealth vacated entire buildings and campuses, relocating closer to the urban core. Office vacancy is expected to climb especially in downtown Minneapolis, as more than 650,000 square feet of premier office space is expected to come online by year’s end. Yardi Matrix lined up the office buildings with the highest vacancies in the metro as of September 2018.

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10. Rosedale Corporate Plaza – Building C, Roseville, Minn.

The 76,300-square-foot property is part of Rosedale Corporate Plaza, a five-building office campus in Roseville, Minn. Essjay Investments acquired Buildings A, B and C in March 2017 and, while the first two are largely occupied by tenants from the health-care sector, Building C has a 64,601-square-foot vacancy. Completed in 1986 and sited at 2665 Long Lake Road, the four-story asset has availabilities ranging between 6,540 and 23,766 square feet. Data analytics company FICO, a tenant since 2012, occupies a little over 11,000 square feet at the property.

9. The Atrium@801, Minneapolis

The Atrium@801

Franklin Steet Properties, which sold a Kansas City, Mo., office tower last July, owns and manages the historic 125,099-square-foot office building. The Atrium@801 comprises 108,935 square feet of vacant space. Completed in 1931, it formerly housed TCF Financial Corp., which in 2016 relocated more than 1,000 workers from Minneapolis to Plymouth, Minn. According to Yardi Matrix, the landlord renovated the asset in 2017, which resulted in open floorplans, upgraded amenities, new building systems, a five-story atrium which connects the building to the adjacent 17-story TCF Tower and a shared 215-stall parking ramp. Located at 801 S. Marquette Ave. in the Commercial Business District of Minneapolis, the pedestrian-friendly building sits in the immediate vicinity of retailers, hotels, eateries and mass-transit options.

8. Globe University Woodbury Campus, Woodbury, Minn.

Globe University’s office campus in Woodbury, Minn., is largely vacant since 2016, when the state of Minnesota stopped the for-profit university from operating in the state. The first building, located at 8089 Globe Drive, was built in 2006. It encompasses 68,581 square feet across three stories and sits completely vacant. The other asset has a total of 25,871 square feet and a 14,053-square-foot availability, with Woodbury Spine Wellness Center leasing the rest of the space.

7. 700 N. 5th St., Minneapolis

Schafer Richardson, best known for its apartment and condo developments, converted the former industrial site into a 56,000-square-foot office building in April 2018. The single-story, Class A asset was originally completed in 1910 and previously served as a Weather-Rite warehouse. Following the redevelopment, it features new building infrastructure, locker rooms, bike storage and 250 on-site surface parking spots.

6. Commerce Building, Bloomington, Minn.

Commerce Building

The Recruit Masters-owned office building encapsulates 50,475 square feet of leasable space, or three stories of 16,825 square feet each. The company purchased the distressed property in 1993 from the now-defunct Norwest Bank. Amenities include flexible floorplates, storage space, on-site management and conference space. Commerce Building is located at 8200 Humboldt Ave. S., near the intersection of interstates 35W and 494, which is currently undergoing a $400 million renovation.

5. Northeast Business Center, Columbia Heights, Minn.

Another office building purchased in a distressed sale, Swervo Development’s Northeast Business Center has a 94,129-square-foot, full-building vacancy. The six-story asset was erected in 1979 and underwent a $1.5 million renovation plan in 2008. Additionally, it features a 10,000-square-foot open-air plaza. After it had occupied the asset since its completion, Northeast Bank vacated the building in 2015. Situated at 3989 Central Ave. NE, the property is a 15-minute drive from downtown Minneapolis.

4. 2800 N. Wayzata Blvd., Minneapolis

2800 N. Wayzata Blvd.

The 101,359-square-foot building has been vacant since telecommunications company CenturyLink sold it last year to an entity affiliated with Nedal Abdul, president of Swervo Development. Northwestern Bell built the three-story property on 9 acres in 1956 along the north side of the Interstate 394 corridor. The company officially became Qwest in 2000 and ten years later, it merged with the building’s last tenant, CenturyLink. Redevelopment plans call for renovations, as well as affordable and senior housing units on each side of the property.

3. Midway Corporate I, St. Paul

Midway Corporate I

CSM Corp. developed the two-building Midway Corporate office campus in 2005 and 2007. The 107,344-square-foot Midway Corporate I was formerly leased to Intel, which vacated the premises this summer and is working on a $7 billion project in Phoenix. The building features high ceilings and large floor plates and is connected to Midway Corporate I through an enclosed walkway. Situated at 2340 Energy Park Drive, the asset offers easy access to mass transit options, Highway 280, Interstate 94 and St. Paul International Airport.

2. Shoreview Corporate Center – 1050 & 1080 County Road F West, Shoreview, Minn.

Shoreview Corporate Center, a 533,000-square-foot suburban office and industrial campus, changed hands in 2011, when Eagle Ridge Partners acquired it through a foreclosure sale from U.S. Bank. Two of its buildings are located at 1050 & 1080 County Road F W. and total 189,338 square feet. The site used to house Deluxe Corp.’s headquarters.

1. Golden Valley Business Center, Golden Valley, Minn.

Golden Valley Business Center

UnitedHealth Group’s 340,258-square-foot office building is one of the many assets sitting vacant at the intersection of Highway 55 and Douglas Drive in Golden Valley, Minn. OptumHealth left the premises in 2016 and Golden Valley Business Center has been vacant ever since. The two-story building was completed in 1985 and underwent renovations in 2005. Located at 6300 Olson Memorial Highway, it sits adjacent to the Golden Valley Country Club, schools, banks, parks and communities.

Images courtesy of Yardi Matrix

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Concorde Executive Center

Hempel Cos. has expanded its office portfolio in the Twin Cities area by acquiring Concorde Executive Center, a 104,063-square-foot asset in the Northwest submarket. According to real estate data provider Yardi Matrix, the company paid AtWater Group $5.5 million for the property, after having secured almost half of the price via an acquisition loan.

One-third of the property has been vacant and Hempel plans to upgrade the asset to attract new tenants. The renovation will include adding a new conference center, as well as a fitness center and tenant lounge. Cushman & Wakefield is currently in charge with managing and leasing the office building.

Located at 6160 Summit Drive N. in Brooklyn Center, the six-story development was completed in 1986 and underwent cosmetic renovations in 2014. Earle Brown Heritage Center and Embassy Suites by Hilton Minneapolis North are among the property’s neighbors. Nearby attractions also include the new Topgolf in Brooklyn Center and the Edinburgh Golf Course.

Hempel has reasons to be optimistic about securing new tenants to Concorde Executive Center. According to Claire Roberts, senior associate with Marcus & Millichap, urban areas “continue to garner strong corporate attention due to public transportation and high-end amenities. Availability of labor is definitely a key factor, as well as space being collaborative and inviting.”

Image courtesy of Yardi Matrix

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TriTech Center

Novel Coworking has purchased the TriTech Center, a nine-story office building in downtown Minneapolis. According to real estate data provider Yardi Matrix, the company paid $8.6 million to DCI Technology Holdings for the asset, with the former owner continuing to provide management services for the building. TriTech marks Novel’s second acquisition in Minneapolis, after the company purchased the four-story LaSalle Building.

The TriTech Center is located at 331 2nd Ave. S., close to the upcoming Cambria Hotel Downtown Minneapolis. The property offers more than 115,000 square feet of office and retail space, a 21,000-square-foot data center, as well as skyway connectivity. TriTech Center was built in 1982 and renovated three times since its delivery, with the latest upgrades added in 2014. Novel plans additional improvements for the asset, which will include all the amenities offered at its other Minneapolis location: 24/7/365 access to the building, fast direct fiber internet, an espresso bar, local beer on tap, modern workspaces and community events.

“The demand for flexible and budget-friendly workspace in Minneapolis has been impressive, and we’re excited to be able to offer small businesses and entrepreneurs even more options downtown,” said Bill Bennett, founder of Novel Coworking.

The glass-and-concrete building was half occupied at the time of sale. All tenants will remain at the location.

Image courtesy of Yardi Matrix

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Mark Ghermezian, Fourpost founder & CEO

Fourpost is launching its new retail concept, a curated collection of micro-stores and eateries that want a turnkey brick-and-mortar presence without a long-term lease, on Nov. 1 at two of North America’s biggest shopping centers—The Mall of America in Minnesota and West Edmonton Mall in Alberta, Canada.

Founder & CEO Mark Ghermezian told Commercial Property Executive the goal is to connect shoppers and brands, ranging from local businesses and startups to established digital natives, through community, experiences and a member SaaS dashboard, which will provide the data, analytics, business resources, billing, communication and support. In addition to renting space within the Fourpost Studio Shops, the business owners will also be able to host events and participate in workshop programs.

Ghermezian stressed these will not be pop-up shops, which are gaining popularity in many malls. Fourpost has long-term leases with the mall owners for 10,000 square feet at the Mall of America and about 5,000 square feet at West Edmonton. Going forward, the plan is to lease between 10,000 and 25,000 square feet at shopping centers and eventually standalone street retail spaces. The brand owners will lease their spaces from Fourpost for six to 12 months and can choose from several layouts—a standard cube, rectangle and triangles or even combine shapes, he said. Each Studio Shop comes with fixtures, signage, lighting, POS hardware and Wi-Fi, as well as access to various amenities such as event space, making it easy to open a brick-and-mortar shop in about 24 hours.

“Pop-ups are great for a quick marketing run,” Ghermezian told CPE. “But they don’t work for a majority of brands.”

He also noted the brands want to be part of a community, but don’t want to lock into 10-year leases. “We changed the whole model, turned it on its head and focused on what brands want, what they need to be successful,” Ghermezian said.

Careful brand curation

The New York City-based Fourpost is starting with about 22 brands in the Mall of America and 16 in the West Edmonton Mall. There are only three food and beverage brands in each location and Ghermezian said that is by design. They don’t want the Studio Shops to become food halls. The other brands are carefully selected, he said, and include apparel, accessories, jewelry, gifts, wellness and beauty, pet accessories and furniture.

“I was very particular with the curation of the spaces,” Ghermezian said. “Who are you? What’s your story? What’s your product? What’s your purpose and how can you contribute to the community we’re creating? We want to be sure you’re successful as well.”

Family ties

Ghermezian, an entrepreneur whose family owns Triple Five Group, the owners of the Mall of America and West Edmonton Mall and the soon-to-open mega-mall American Dream Meadowlands in New Jersey, said Fourpost is an independent company that has $5 million in funding from a number of venture capital firms along with individual investments from the CEOs of companies like Warby Parker, Parachute, Rubrik and InVision. While he said he’s fortunate to have the relationship with the Mall of America and West Edmonton to launch his new company, he plans to be looking at other locations and hopes to eventually have at least 10 to 20 in the U.S.

For now, Ghermezian said Fourpost is focused on getting the first two locations up and running.

“We have to be thoughtful about where we go next,” he said. “Each market will be looked at independently.”

Image courtesy of Fourpost

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Claire Roberts, senior associate, Marcus & Millichap

The office market in Minneapolis-St. Paul is about to welcome the largest wave of new development during the last decade—2 million square feet—while 3 million square feet is in permitting stages, according to real estate data provider Yardi Matrix. The activity reflects the constant economic growth in the Twin Cities and hints to its investment potential in the future.

Although average rents have been rising across the metro, they still remain under the $30 per square foot mark, making office assets very appealing to corporations and start-ups. Low rents are not the only advantage for the latter. They also have access to convenient transportation options and a wide range of co-working spaces in core areas. 

Overall, real estate market fundamentals look positive, in both the office and multifamily segments, but Marcus & Millichap Senior Associate Claire Roberts says this is expected from cities like Minneapolis-St. Paul. In an interview with Commercial Property Executive, Roberts points out that one of Minneapolis’ strongest advantages as a real estate market has been its stability and the fact that it grew slowly, but constantly over time. 

What types of businesses are being drawn the most to the metro right now and why?

Roberts: Currently, businesses seeing the most job growth in the Twin Cities are in healthcare and education. Medical device company Relievant Medsystems has recently closed on $58 million in venture capital and has just completed its move to Normandale Lakes in Bloomington, Minn. With current unemployment at 3 percent for the state, the Twin Cities employment growth is being hurt by the labor shortage. Most companies in the Twin Cities cite central location—which is especially great for logistics companies—well-educated labor force and quality of life as factors for being located in Minnesota, particularly the Twin Cities.

How is the Twin Cities’ tight job market influencing the office sector?

Roberts: The Twin Cities has experienced positive absorption in the first half of 2018. The number varies—brokerage reports post space absorption ranging between 407,000 square feet and 672,093 square feet—but all sources are reporting positive gains. We have seen construction activity in the past couple of years resulting in new corporate headquarters such as those of Wells Fargo, Xcel Energy, Ryan Cos. and Kraus Anderson Construction to name a few. This resulted in large blocks of space coming back into the market. Overall, the office market has been steady and stable and will continue to remain so as low unemployment continues to hold job growth at bay.  

Which submarkets are the most sought-after and why?

Roberts: The Minneapolis CBD continues to garner strong corporate attention due to public transportation and high-end amenities. Availability of labor is definitely a key factor as well as space being collaborative and inviting. Much of the changes occurred around recently renovated buildings such as Baker Center, Fifth Street Towers, Capella Tower and 121 South Eighth. As more multifamily housing is built, it will be easy for employers to attract talent and grow within the CBD.

At the same time, submarkets such as the Southwest and West End are seeing an uptick in demand. The Southwest has been getting a lot of attention with the addition of the new Vikings Campus and the 400,000-square-foot Prime Therapeutics headquarters. West End has also seen much growth and development over the past several years. Excelsior Group has plans for two developments, 10 West End and 20 West End on a 7-acre parcel, which are expected to total 700,000 square feet of office space.

Generally speaking, investors look at the suburbs as they offer ease of access, free on-site parking and lower overall occupancy costs. Activity in the suburbs is expected to keep up the pace, especially as major road construction projects impede travel into the downtown CBD.

How does the development pipeline look like? 

Roberts: There are two noteworthy projects under construction in the Twin Cities. MoZaic East, a 198,000-square-foot, eight-story office building in Uptown, which started off as a speculative development, is expected to deliver its first building before year-end. More than half of the space is preleased. The second project is the 400,000-square-foot Prime Therapeutics building, which is fully leased to Prime Therapeutics. Several other projects are in different phases of development. However, preleasing efforts haven’t garnered enough interest to date to put the shovel in the ground.

How is coworking performing?

Roberts: Coworking is definitely making an impact in the Twin Cities. WeWork has recently expanded its initial lease at MoZaic East from 46,000 to 102,000 square feet, which adds to its 53,000 square feet at Capella Tower. Industrious occupies 34,000 square feet at T3 in the North Loop, while CoCo has recently expanded its space at the Minneapolis Grain Exchange by 15,000 square feet for a total of 37,000 square feet.

Some of the additional coworking spaces throughout the metro include: Work It in St. Paul’s Midway area; Coven in the North Loop, which is a women-only co-working space; FLOCK, which features a “creatives-only” concept in Minneapolis’ Whittier neighborhood and Studio CoWork in Golden Valley. At the same time, WeWork is working on two additional spaces in the metro.

What should we expect from Minneapolis-St. Paul going forward?

Roberts: Having moved to the Twin Cities almost 12 years ago, one of the first things that I noticed is that the economy stays very “flat” here. Some people may see that as a negative thing. However, being from southeast Michigan, I view this as a positive thing. The Twin Cities has several sectors of economic revenue and varied industries—compared to southeast Michigan where the only industry was the auto industry—which employ individuals. Therefore, when one industry suffers, the whole market doesn’t collapse.

Our number one tourist attraction in Minnesota is Mall of America and that in and of itself employs thousands of people, not to mention the impact it has on restaurants, car rentals, air fare, hotels etc. What’s more, as soon as you get outside of the metro proper, you have agriculture all around you. Therefore, I see nothing but positive, steady growth. We will have growth pains, but I personally don’t see any shock waves coming to the Twin Cities in the near future. 

Image courtesy of Marcus & Millichap

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Carlson World Headquarters

Carlson Real Estate has begun upgrading its world headquarters at 701 Carlson Parkway in Minnetonka, Minn. The multimillion-dollar project is expected to be completed by the summer of 2019, when, for the first time, space in the trophy tower will be available for tenants outside of the company.

JLL Agency Leasing Group’s Jon Dahla, Brent Robertson, Sam Maguire and Andrea Fischer will direct the leasing efforts. The company told Commercial Property Executive that they have already signed one lease for the 14th floor and are currently in discussion with several other potential tenants.

The 16-story office property is LEED certified to the Silver level and encompasses 268,000 square feet. The upper floors—approximately 60,000 square feet—will be available for lease as the company decided to decrease space per employee and invest more in top-of-the-line amenities. Building upgrades will include a new lobby, fitness facility with possible adjoining outdoor area, conference and training center and a new cafe. RSP Architects, which has recently coordinated the design work at the newly opened InterContinental hotel near MSP Airport, will lead the renovation process.

Carlson’s world headquarters came online in 1988, according to real estate data provider Yardi Matrix, and is connected to downtown Minneapolis via Interstate 394. The nearby area hosts a great variety of shopping centers and dining options as well as The Island Residences at Carlson Center, a 174-unit luxury community.

Image courtesy of Yardi Matrix

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InterContinental MSP

InterContinental has opened a new signature hotel near Minneapolis-St. Paul airport, the first property to be attached to the airport via skybridge. The team behind the project includes developers Graves Hospitality and IREC, designer RSP Architects and general contractor PCL Construction.

The 291-key property includes a luxury spa, three restaurants, courtyard with firepit, fitness center and 30,000 square feet of event space. All hotel rooms feature a modern design with warm, neutral tones contrasting with stone and wood finishes and gold accents.

On the 12th floor, which also hosts the Altitude Observation Bar, there are two spacious suites—the 1,865-square-foot Wingspan Suite and the 1,383-square-foot Pinnacle Suite—both of which offer panoramic views. In addition to the top-floor bar, guests have access to La Voya, a French Brasserie, and Bradstreet Crafthouse, a gaming hall-style restaurant.

The space designated for meetings and events is divided into 19 rooms, the majority being located on the second floor of the property. The largest one, the Passport Ballroom, has more than 10,000 square feet and can seat up to 800 people.

The InterContinental MSP is approximately 10 miles from the downtown areas of both Minneapolis and St. Paul and 5 miles from Mall of America. Its launch comes less than two months after the opening of Staybridge Suites near Miami International Airport.

Image courtesy of InterContinental

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1801 19th Ave. S.W.

Montecito Medical Real Estate has expanded its MOB portfolio by acquiring a 31,775-square-foot medical office building in Willmar, Minn. The Class A asset represents the flagship location for two practices—Fischer Laser Eye Center and Janning Ear, Nose and Throat Center—and marks the company’s first purchase in the Minneapolis-St. Paul metro area. Newmark Knight Frank facilitated the transaction.

The two-story building is located at 1801 19th Ave. S.W. and was completed in 2005. The majority of the space—80 percent—is leased to Fischer Laser, which has six other locations in central Minnesota. Its Willmar office includes an 8,000-square-foot ambulatory surgery center where patients can receive LASIK, cataract, cornea and refractive procedures. Janning ENT, which provides services addressing disorders of the ear, nose, throat, head and neck, occupies the rest of the space.

Including this MOB, Montecito completed 15 transactions this year. Another recent acquisition was for a 36,796-square-foot office building in Phoenix, the headquarters of Retinal Consultants of Arizona.

Image via Google Street View

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The Colonnade

Adolfson & Peterson Construction is getting ready to move into its new headquarters in Golden Valley, Minn. The company announced it plans to occupy the entire sixth floor of the iconic The Colonnade by the end of the year, due to continued growth of its 200+ employee base. The new office encompasses 23,633 square feet and will be subleased from Pentair. CBRE brokered the transaction on behalf of both the tenant and the landlord, Starwood Capital Group.

The Colonnade is a 16-story, LEED Gold-certified office tower located at 5500 Wayzata Blvd. According to real estate data provider Yardi Matrix, it was completed in 1988 and changed hands several times. Starwood bought it from DRA Advisors in August last year, around the same time it acquired West Hollywood Hotel in Los Angeles. The deal closed for $100 million, twice the price DRA paid for the asset in 2011. The building encompasses 356,349 square feet and features a small retail component of approximately 1,500 square feet.

AP’s move will leave vacant the company’s home of more than 50 years in St. Louis Park. The two-story building at 6701 W. 23rd St. was completed in 1962 and upgraded several times over the years.

Image courtesy of Yardi Matrix

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160 International Parkway. Image via Google Street View

Heathrow International Business Center

Location: 160 International Parkway, Lake Mary, Fla.

Price: $3.7 million

Building Size: 24,500 square feet

Property Type: Office

Year Built: 1997

Highlights: The two-story multi-tenant property is located in one of the most desirable submarkets in the Orlando metro area and offers 12 office units; a value-add opportunity, the office building is 85 percent occupied and features a Cap Rate of approximately 8 percent; located off Interstate 4 and providing superior access to areas throughout Central Florida.

Contact: Anthony Bernabe, Equity Inc. – 407-634-2813 

Raising Cane’s Restaurant

Location: 13001 Round Lake Blvd. N.W., Minneapolis

Price: $5.1 million

Building Size: 2,780 square feet

Property Type: Retail

Year Built: 2018

Highlights: The property is a brand-new construction located near a signalized entrance to the Riverdale Crossing Shopping Center; features a 15-year NNN lease with fixed increases every 5 years with Raising Cane’s restaurant; the surrounding area has strong demographics, with more than 154,000 people earning an average household income of over $95,000 living within a 5-mile radius.

Contact: Jeff Lefko & Bill Asher, Hanley Investment Group – 949.585.7682 and 949.585.7684

6505 Shiloh Road. Image via Google Street View

Point Corporate Business Park

Location: 6505 Shiloh Road, Alpharetta, Ga.

Price: $4.7 million

Building Size: 38,100 square feet

Property Type: Office

Year Built: 2006

Highlights: The property comprises two buildings which total more than 80,000 square feet, but the part that is offered for sale consists of 20,000 square feet in the 6505 building and 5,500 square feet in the 6525 building; the area across the street is home to the 135-acre Halcyon development which provides access to retail, office, hospitality and entertainment venues; the new owner will have the opportunity to increase rents by roughly 20 percent and also the annual NOI by $60,000. 

Contact: Mark Attaway, Marcus & Millichap – 678.808.2700

8020 W. Sahara Ave. Image via Google Street View

8010 & 8020 W. Sahara Ave.

Location: Las Vegas

Price: $6.2 million

Building Size: 48,200 square feet

Property Type: Office

Year Built: 2001

Highlights: The two-building, multi-tenant office park consists of two buildings whose total occupancy nears 70 percent; the tenant roster includes names such as Premier Realty Group, Nevada Golf Association and Dr. Gregory Bowman; the property featured manicured courtyards,

Contact: Charles Moore & Marlene Fujita, CBRE – 702 369 4820 and 702 369 4862

31111 Via Colinas. Image via Google Street View

31111 Via Colinas

Location: Westlake Village, Calif.

Price: $5.5 million

Building Size: 14,000 square feet

Property Type: Industrial

Year Built: 1978

Highlights: The property is an established winery renovated in 2013 which encompasses two units, a wine storage facility and the winery itself, and features three loading docks; it is located across the street from a Four Seasons hotel and is surrounded by several corporate headquarters; it can be accessed via the 101 Freeway, which is two blocks away.   

Contact: James DeBuiser, Marcus & Millichap – 805 351-7144

All information is property of the respective brokerage firms or broker.

The post On the Market: 5 Interesting Listings for September appeared first on Commercial Property Executive.

Homewood Suites by Hilton Edina Minneapolis

A joint venture between Noble Investment Group and Simon has opened Homewood Suites by Hilton Edina Minneapolis, a 146-key hotel at the Southdale Center mixed-use complex in Edina, Minn.

The all-suite property is close to the corporate headquarters of major employers, including Best Buy, Dairy Queen, United Health, General Mills and Regis Corp. Several well-known hospitals such as Methodist Hospital and Fairview Hospital are also nearby. The site is less than 10 miles from downtown Minneapolis and Minneapolis-St. Paul International Airport.

“Being an important piece of Southdale Center’s mixed-use complex, as well as being close to the headquarters of numerous corporations, makes this location an excellent value for both the business and leisure traveler with amenities to help them feel at home whether for a night or extended stay,” Scott Eisenach, the hotel’s general manager, said in a prepared statement.

The hotel is one of many recent additions completed or planned at the Southdale Center, the nation’s first indoor regional shopping mall. Macy’s anchors the center, which opened in 1956 and includes 120 specialty stores, a full-service movie theater and a wide variety of dining options. Simon, the owner and operator of the property, is adding Shake Shack this fall and popular home furnishing retailer RH next year. Future plans include the opening of a three-story Life Time athletic resort featuring healthy lifestyle programs, entertainment, a rooftop pool and beach club, Life Time Work, shared workspaces, and Life Time Sport, an organized pick-up play complex. In 2015, One Southdale Place, a 232-unit luxury apartment development opened at the site.

“The opening of this terrific hotel represents the latest phase of our redevelopment of the Southdale mall complex,” Michael McCarty, chief operating officer of Simon Malls, said in a prepared statement. “Our ‘densification’ program has been very successful and we are excited about future development at this historic property.”

Hotel amenities

The hotel will be managed by Concord Hospitality. It features studio and one-bedroom suites each with separate living and sleeping areas and a fully-equipped kitchen. The hotel offers more than 600 square feet of multi-function meeting space, a 24-hour business center, fitness center, heated indoor pool, a lobby bar and outdoor courtyard with fire pit and grill. Complimentary amenities include Wi-Fi, hot breakfast and drinks and snacks at a nightly evening social Monday through Thursday. The site also has a 24-Suite Shop with additional food and drink options.

A Hilton hotel, the Homewood Suites brand now has nearly 450 locations in the United States, Canada and Mexico. In May, the 108-key Homewood Suites by Hilton Raleigh Cary 1-40 opened in Cary, N.C.

Last week, Simon announced it was teaming up with Macerich to co-develop and jointly lease Los Angeles Premium Outlets in Carson, Calif. The 566,000-square-foot retail center is expected to open in fall 2021. Simon recently announced it was spending about $4 billion at its various retail properties to offer more mixed-use, experiential-oriented centers.

Noble, an investment firm that specializes in upscale select service and extended-stay hotels affiliated with Marriott, Hyatt, Hilton and Intercontinental, has had a busy summer. In July, Noble sold the 481-key, full-service Hyatt Regency Milwaukee to Cambridge Landmark for a reported $37.3 million. Noble had owned the hotel since 2007.

In June, Noble acquired Westin Reston Heights, a 191-key full-service hotel in the Washington, D.C., area. Located in Reston, Va., the hotel is 10 minutes from Dulles International Airport and within walking distance of the future Reston Town Center Metrorail Station, which is expected to be completed next year.

Image courtesy of Noble Investment Group

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195 W. Sycamore St.

Marcus & Millichap has brokered the sale of an 87,044-square-foot industrial property in St. Paul, Minn. The asset sold to a private, out-of-state investor for $4.7 million. Sean O’Brien and John Godwin, with the firm’s Chicago Oak Brook and Michigan offices, marketed the property and closed the deal on behalf of the seller. Matthew Hazelton, the broker of record in Minnesota, assisted in closing the transaction.

The asset is located at 195-215 Sycamore St., off Rice Street and less than 2 miles from Interstate 35E. It comprises two free-standing buildings and a paved and fenced outside storage space. The property is net-leased to Allied Building Products, which closed an eight-year lease extension prior to the sale. According to a Marcus & Millichap study, one of the advantages of single-tenant net-leased properties is that tenants have more control over expenses and more autonomy in managing the facility.

The nearby area is home to several auto stores and other warehouses in the industrial region north of West Pennsylvania Avenue. Downtown St. Paul is approximately 2 miles away, while Minneapolis-St. Paul International Airport is 13 miles to the south.

Image via Google Street View      

The post Marcus & Millichap Arranges MN Industrial Deal appeared first on Commercial Property Executive.

JLL closes sale of 6-property self-storage portfolio in Minneapolis

Public Storage, a Glendale, Calif.-based self-storage company, acquired a six-property portfolio in the Minneapolis-St. Paul metropolitan area from the Pegasus Group.

JLL’s Capital Markets team of Brian Somoza and Steve Mellon facilitated the transaction.

“This acquisition increased the buyer’s footprint in Minnesota by 12 percent,” Somoza told Commercial Property Executive. “With an average occupancy of approximately 90 percent, these six extremely well-maintained assets were in strong and growing submarkets throughout the Minneapolis-St. Paul MSA with high barriers to entry and attractive demographics.”

The properties consist of 425 Washington Ave. N, in Minneapolis; 150 81st St. W, in Bloomington; 21002 Heron Way in Lakeview; 5040 Winnetka Ave., in New Hope; 7225 Bush Lake Road in Edina; and 407 School Road NW/1015 Highway 7 in Hutchinson.

Top features

Overall, the properties total more than 360,000 square feet and 3,243 units. The self-storage units boast climate control, interior drive-thru loading, electronic access control, 24-hour video surveillance and retail-oriented customer service offices.

“Recent sales along with strong cash flows—more than 28 percent of the tenant base have rented at the locations for more than three years—and demand for stabilized cash flowing portfolios were the high-level factors that made this the right time for this deal,” Somoza said. “There was a tremendous amount of interest from publicly traded companies, private equity, regional operators and private investors.”

All six properties are situated in downtown Minneapolis and nearby popular cities, within an average 3-mile population ring of more than 91,000 residents, which is estimated to rise more than 5.3 percent by 2022. Located along major thoroughfares, the facilities also offer excellent visibility and signage.

The buyer plans to rebrand all six properties to Public Storage by changing out signage and colors (when possible). 

In June, the JLL team of Somoza and Mellon represented Weiss Realty Group in Merit Hill Capital’s acquisition of Safe Keeping Self Storage, a 76,485-square-foot facility in Baytown, a suburb of Houston.  In February, the team arranged the sale of a 951-unit sustainably designed self-storage facility located in Austin.

Image courtesy of JLL

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Cambria Hotel Minneapolis-Saint Paul Airport

Choice Hotels International Inc., in partnership with C&O Bloomington, will develop the Cambria Hotel Minneapolis-Saint Paul Airport, a five-story, 170-key hotel in Bloomington, Minn.

“This hotel will be the second Cambria coming to the Minneapolis-St. Paul area and represents Choice Hotels’ dedication to expanding the brand to key markets throughout the country,” Mark Shalala, Choice Hotels’ vice president, upscale development, told Commercial Property Executive. “This agreement further cements Choice’s longstanding relationship with Ceres Enterprises & the Orlean Company.”

Upscale amenities at the new hotel will include plush bedding, a state-of-the-art fitness center and indoor pool, spa-style bathrooms and 4,000 square-feet of multi-function meeting space. Dining options will include local craft beer, wine, specialty cocktails and more.

Expanding in the Twin Cities

The area is important to Choice Hotels. In addition to the Cambria Hotel Minneapolis Maple Grove, the company is also developing the 100-key Cambria Hotel Downtown Minneapolis, set to open in 2020.

“The Minneapolis area continues to grow and has a thriving business community with rich history and culture, making it an ideal location to bring the Cambria Hotels brand,” Shalala said.

Located at 8001 28th Ave. S., the Cambria Hotel Minneapolis-Saint Paul Airport will open in 2019, situated in a mixed-use corridor adjacent to the Mall of America. This will allow guests convenient access to plenty of dining, retail and entertainment options.

The hotel is also a 10-minute drive to the Minneapolis-Saint Paul Airport and is within walking distance to the Light Rail. The Twin Cities also has one of the nation’s highest concentrations of Fortune-500 companies, including Ecolab, General Mills, Target and U.S. Bancorp.

In July, Choice Hotels teamed up with Brookwood Hotels and Nationwide Hotel Management Co. to open two North Carolina hotels: WoodSpring Suites Charlotte Northlake, located at 9420 Statesville Road in Charlotte; and WoodSpring Suites Charlotte Mathews, situated at 1424 Matthews-Mint Hill Road in Matthews, each offering 122 keys.

Ceres Enterprises LLC and the Orlean Company will own and operate the Cambria Hotel Minneapolis-Saint Paul Airport.

“The Cambria Hotel Minneapolis-Saint Paul Airport hotel is the fourth Cambria property to join our portfolio and is a testament to our confidence in the brand and the strength of our continued collaboration with Choice Hotels,” David Crisafi, Ceres Enterprises’ president, said in a prepared release. “Minneapolis boasts the second-largest economy in the Midwest, making it an attractive location for Cambria development. We’re fortunate to be a part of the brand’s rapid expansion in key markets throughout the country.”

Image courtesy of Choice Hotels

The post Choice Hotels to Develop 170-Key Project in Twin Cities appeared first on Commercial Property Executive.

MidAmerican Energy Co. has selected Minneapolis-headquartered Mortenson to build two wind farms in Iowa as part of the company’s Wind XI Project. The facilities—Arbor Hill and Ivester—are set to add 341 megawatts to Iowa’s electrical grid.

MidAmerican Energy Co.’s plan consists of the installation of 2,000 megawatts of wind energy in the state by 2019. The two new wind projects, marking Mortenson’s 16^th and 17^th wind projects, will raise the developer’s installed volume to roughly 3,000 megawatts of wind energy for MidAmerican Energy, and to more than 4,000 megawatts in Iowa over the past 23 years.

Iowa is the second wind energy producer in the U.S., after Texas. Its growth was supported by decades of investment, the 1983 adoption of a renewable portfolio standard and Production Tax Credit (PTC).

Arbor Hill will be located in Adair County. It will consist of 125 Vestas turbines with tower hub heights of 312 feet and with a 250-megawatt output.

Ivester will be developed in Grundy County, which is approximately 130 miles from Arbor Hill. It will encompass 35 Siemens Gamesa turbines with a combination of tower heights of 279 feet and 262 feet totaling 91 megawatts.

Image courtesy of Mortenson

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2256 Citygate Drive, Columbus (Courtesy B+E)

The Wesco Distribution Center

Location: 2256 Citygate Drive, Columbus, Ohio

Price: $3.75 million

Building Size: 33,197 sqft

Property Type: industrial

Year Built: 2000

Highlights: the distribution center was renovated in 2007 and carries a Cap Rate of approximately 7 percent; Wesco International is the only tenant, with a 5+ years of remaining lease; the surrounding area is home to FedEx Shopping Center, U.S. Postal Service, Trane Supply and MacNaughton –McKay Electric.

Contact: Daniel Zimmerman, B+E, 305-717-8473

775 Park Ave., Huntington, New York (via Google Street View)

775 Park Ave.

Location: Huntington, New York

Price: $9 million

Building Size: 80,000 sqft

Property Type: Office

Year Built: 1988

Highlights: approximately 70 percent of the building is available for sale; the three-story property comes with premium amenities; three conference rooms, a café and pharmacy are available on site; the property spans 4 acres.

Contact: Century 21 American Homes office in Levittown, NY

4 E. 24th St., Minneapolis (via Google Street View)

4 24th St. E.

Location: Minneapolis, Minn.

Price: $2.3 million

Building Size: 17,700 sqft.

Property Type: Office/Residential

Year Built: 1914

Highlights: this three-level church can be transformed into office or residential space; it is located close to bus stations and downtown Minneapolis; it can be accessed via Interstate 94, off Hennepin Ave. N.

Contact: Edina Realty, 952-928-5563

15088 22nd Ave. N.E., Little Falls, Min. (via Google Street View)

15088 22nd Ave. N.E.

Location: Little Falls, Min.

Price: $10 million

Building Size: 12,777 sqft

Property Type: Office

Year Built: 2006

Highlights: This office building features CAD-IT, separate cold weather air conditioning unit for the IT room, electronic access, 4 zones for the air conditioning and heating, kitchn-break room with lounge area, conference room, board room, private offices as well as a 60+ cubicle-room.

Contact: RE/MAX (via Edina Realty, 952-928-5563)

4740 Dacoma St., Houston (via Google Street View)

4740 Dacoma St.

Location: Houston

Price: $1.8 million

Building Size: 13,200 sqft

Property Type: Retail

Highlights: the land surrounding the property encompasses 50,757 square feet, allowing for shopping center expansion; property is located across from Karbach Brewery and has an excellent visibility; the parking lot includes 58 vehicle spaces

Contact: Ashley Casterlin, Davis Commercial, 713-528-9776

All information is property of the respective brokerage firms or broker.

Images courtesy of B+E and via Google Street View

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Choice Hotels International has partnered with Hawkeye Hotels to deliver the 100-key Cambria Hotel Downtown Minneapolis by 2020. Earlier this year, Texas’s fourth Cambria property, a 177-key adaptive reuse hotel, opened in Dallas.

Rendering of Cambria Hotel Downtown Minneapolis

The six-story property will be situated close to the Minneapolis’s theater district, as well as near the corporate headquarters of General Mills, 3M and Target. Additionally, Target Field, Target Center and U.S. Bank Stadium are within close proximity.

The Cambria Hotel Downtown Minneapolis will feature 1,300 square feet of meeting and common-area amenities such as:

• spa-style bathrooms
• fresh food and beverage options
• business center
• fitness center

“Minneapolis has something to offer every traveler: several Fortune-500 companies, scenic riverfront skylines, professional sports, theatres, excellent park systems, and a thriving food and craft-beer scene,” Jay Bhakta, managing partner of JR Hospitality, said in a statement. “The Cambria Hotel Downtown Minneapolis hotel is in a prime location for travelers to experience the city and take advantage of the property’s upscale amenities.”

Rendering courtesy of Choice Hotels International

The post Hawkeye, Choice to Open 100-Key Minneapolis Hotel appeared first on Commercial Property Executive.

Radisson Blu Minneapolis Downtown

Hospitality Properties Trust (HPT) has acquired the Radisson Blu Minneapolis Downtown, a 360-key hotel in Minneapolis. An affiliate of KKR sold the asset after the company first bought it in 2014. This property ranks as the ninth hotel owned by HPT and managed by Radisson Hotel Group. This deal comes after another Radisson hotel was opened in Lawrence, Kan., back in March. 

Located at 35 S. Seventh St., Radisson Blu Minneapolis Downtown is close to major transportation options such as Minneapolis—St. Paul International Airport 12 miles away and the Fifth St. light rail station two blocks away. Other nearby attractions include the Minneapolis Convention Center, Nicollet Mall, the NBA’s Timberwolves at the Target Center and the NFL’s Minnesota Vikings at U.S. Bank Stadium. Additionally, the University of Minnesota is three miles away. 

The pet-friendly hotel features 29,000 square feet of meeting and event space, a 24-hour business center, fitness center on the 17^th floor, parking spaces and Wi-Fi. Additionally, laundry and valet services are available for an additional charge. 

“This aligns with our five-year plan and the commitment we are making, along with our partners like HPT, for significant investments in rebranding or repositioning our hotels in the Americas,” Ken Greene, president, Americas, Radisson Hotel Group, said in prepared remarks.

Image via Google Street View

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Barrel House, 111 Third Ave. S., Minneapolis

ICM Realty Group has retained Transwestern to lease Barrel House, an 85,000-square-foot office building in downtown Minneapolis. The asset, a former barrel factory, is 86 percent leased, with approximately 12,000 square feet available. The vacant space includes the top floor overlooking the Mississippi River and the landmark Stone Arch Bridge.

In 2017, just around the time it purchased the 118,000-square-foot Jefferson Plaza in Norcross, Ga., the owner completed a multimillion-dollar renovation of the building. The upgrades consisted in redesigning the atrium centerpiece, meeting spaces and rooftop deck, as well as adding building-wide Wi-Fi. The property’s location at 111 Third Ave. S. provides easy access to walking trails along the Mississippi River and a wide range of restaurants, stores and hotels.

A project to create a Water Works park within walking distance from Barrel House is currently in the works, which will bring more cultural and recreational amenities to the area. Mill Ruins Park, Mill City Museum, Walden University and the Minnesota Museum of American Pattern Glass are also within walking reach.

The Transwestern team of brokers that will oversee the leasing efforts at Barrel House is made up of Vice President Jim Montez and Associate Nick Sveen. They both joined the company earlier this spring after transferring from Cushman & Wakefield.

Image courtesy of Transwestern  

The post ICM Realty Taps Transwestern to Lease Minneapolis Office appeared first on Commercial Property Executive.

Timbercrest at Lakeville

Viking Partners Fund III has acquired two retail properties—one in the eastern suburbs of Columbus, Ohio, and the other in southern suburban Minneapolis. The shopping centers have a combined surface area of more than 93,000 square feet.

Market at Morse is a 33,827-square-foot retail asset located at the intersection of Hamilton and Morse roads in Columbus. The property features three freestanding restaurants—Starbucks, Raising Cane’s and Bob Evans—totaling almost 11,000 square feet.

Located in Lakeville, Minn., Timbercrest at Lakeville is at the junction between Interstate 35 and 185th Street. Marshalls anchors and Super Target shadow anchors the 59,269-square-foot shopping center, which is part of a larger development that incorporates restaurants, retail space and medical offices.

“Market at Morse provides Viking with the opportunity to create additional value through the lease of 6,200 square feet of existing available space and we are currently in negotiations with a well-recognized national retailer to lease 20,000 square feet of the 26,000 square feet of available space at Timbercrest,” said Bret Caller, principal with Viking Partners, in a prepared statement.

Image via Google Street View

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DoubleTree by Hilton Helena Downtown

Hilton has opened three new DoubleTree by Hilton brand properties: DoubleTree by Hilton Helena Downtown in Helena, Mont., DoubleTree by Hilton Phoenix North in Phoenix, and DoubleTree by Hilton St. Paul in St. Paul, Minn.

Located at 22 N. Last Change Gulch, between Glacier National Park and Yellowstone National Park, the DoubleTree by Hilton Helena Downtown is close to a mix of shopping, restaurants and entertainment venues including the Holter Museum of Art, Reeder’s Alley and Original Governor’s Mansion. Additionally, the Helena Regional Airport is a 12-minute drive away. The seven-story hotel features 23 one-bed and 49 two-bed guestrooms, three meeting rooms and other common area amenities such as:

• indoor swimming pool
• hot tub
• 24-hour fitness center
• ballroom
• on-site Italian restaurant
• 24-hour lobby market

DoubleTree by Hilton St. Paul

DoubleTree by Hilton Phoenix North is a 284-key hotel at 10220 N. Metro Parkway East, in close proximity to major employers such as UnitedHealthcare, Cognizant and Liberty Mutual Phoenix. Additionally, the Phoenix Sky Harbor International Airport is just 20 minutes away. The pet-friendly property offers 14,000 square feet of event space and other amenities such as:

• outdoor courtyard with fireplace
• heated pool and whirlpool
• ballrooms
• meeting rooms for up to 300 people
• fitness center
• 24-hour business center

Located at 2201 Burns Ave., off Interstate 94 and four miles from downtown, the 195-key full-service hotel offers convenient access to the 3M Campus, Global Headquarters, Travelers Insurance, Ecolab, Comcast and Securian Financial Group. Additionally, the MSP Airport is a 20-minute drive away. The DoubleTree by Hilton St. Paul features:

• 10,500 square feet of event space
• indoor pool
• whirlpool
• fitness center
• business center
• coin laundry
• baggage storage

Images via Google Street View

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1828 Buerkle Road, White Bear Lake, Minn.

Westport Properties Inc., in partnership with Harrison Street Real Estate Capital, has purchased a two-property self-storage portfolio in White Bear Lake and Lake Elmo, Minn. from Wasatch Storage Partners. JLL’s Capital Markets team arranged the sale of the portfolio. CubeSmart serves as property manager of both assets, according to Yardi Matrix.

The portfolio encompasses 1,438 storage units totaling nearly 153,000 square feet of space. Both properties feature climate-controlled storage spaces, electronic access control, 24-hour video surveillance and offer retail-oriented customer services.

Located at 1828 Buerkle Road, the White Bear Lake facility is situated alongside Interstate 694, roughly 15 miles east of downtown St. Paul. Approximately 65,000 people live within a three-mile radius, and the average household income is more than $63,000. Completed in 2017, the 83,624-square-foot, Class A facility features 818 units ranging in size from 20 to 300 square feet.

9200 Hudson Blvd., Lake Elmo, Minn.

The Lake Elmo facility occupies nearly 10 acres at 9200 Hudson Blvd., alongside Interstate 94, approximately 15 miles from downtown St. Paul. Completed this month, the 69,000-square-foot facility comprises 620 units and offers 175 RV parking spaces.

“Both of these properties boast new, institutional quality construction and prime, highly visible locations,” said Steve Mellon of JLL’s Capital Markets team, in prepared remarks. “The quality of this portfolio coupled with the overall health of the Twin Cities’ economy made this an attractive offering to investors.”

Mellon together with Brian Somoza brokered the sale of the properties.

Images courtesy of JLL

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Rendering of the Gateway

RBC Wealth Management has signed a lease at United Properties’ Gateway, a mixed-use tower in downtown Minneapolis. United Properties revealed a new design for the 33-story building. According to StarTribune, the million-square-foot tower—valued at approximately $330 million—will include office space, a Four Seasons hotel and residential condos.

Located on 3^rd St., between Nicollet and Hennepin avenues, RBC will occupy approximately 310,000 square feet. The Gateway will feature a 275-key, five-star hotel, Class A office space, approximately 18 condominiums on the top floors, outdoor swimming pool, fitness center, street-level retail space, underground parking and a private outdoor terrace.

“There is still work to do to get this done, but I would say it’s a breakthrough … for downtown. It’s been many years since it has had a tower with Class A office (space), hotel and condos,” President & CIO of United Properties Bill Katter told StarTribune.

Construction is slated to begin in spring 2019 and be completed in 2021. In June 2017, United Properties developed a 400,000-square-foot, two-phased Minnesota facility for Prime Therapeutics LLC.

Rendering courtesy of RBC Wealth Management

The post RBC Wealth Signs 310 KSF Office Lease appeared first on Commercial Property Executive.

StorageMart, Chaska, Minn.

StorageMart has acquired an 89,000-square-foot self-storage facility in the Chaska suburb of Minneapolis from a private investor. The new StorageMart facility will also serve the communities of Shakopee, Minn.

Located at 1900 Stoughton Ave., the property is near State Route 212, approximately 25 miles from downtown Minneapolis. More than 83,000 people live within a five-mile radius in this densely populated area, with an average household income of roughly $88,000. Additionally, the region offers 6.2 net rentable square feet of storage space per capita, Yardi Matrix data shows.

Built in 1988, the 10-building storage facility comprises 544 climate- and non-climate-controlled units, ranging in size between 25 and 360 square feet. Other characteristics of the facility include a gate, drive through loading bays, parking and long-term parking for RVs, security camera, individual PIN-code access and exterior lighting.

“Bringing easy, clean storage service to Chaska is a great move, and we’re thrilled to offer new self-storage service to the community,” said Cris Burnam, president of StorageMart, in prepared statements. “This new location is also a great Shakopee storage solution.”

Image courtesy of Yardi Matrix

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Phil Kluesner

Avison Young has hired Phil Kluesner and Eddie Rymer as leading tenant-representation and corporate-services specialists, following the appointment of Chrstine Battist as principal & CFO of Avison’s Chicago office. Kluesner will serve as principal and Rymer as senior vice president, and they both will be based in the company’s Minneapolis office.

With more than 32 years of experience in commercial real estate, Kluesner served as senior vice president at the Carlson Commercial in Minneapolis before joining Avison Young. He represented more than 600 businesses, including United Forrest Products, Robert W. Baird & Co., Cort Business Services, Normark Corp. and Crane Worldwide Logistics. In 2004, Kluesner started his own firm, Gannett Peak Partners. Prior to that, he worked as vice president for Duke Realty and as associate with The Welsh Cos. He holds a Bachelor of Arts degree in education and business from the St. Mary’s University in Winona, Minn.

Eddie Rymer

Rymer has more than 15 years of experience in the industry, having facilitated roughly 250 transactions. Prior to joining Avison, he worked at Carlson Commercial, as a senior vice president. Rymer holds the Certified Commercial Investment Member designation and has a Bachelor of Arts degree from Saint John’s University in Collegeville, Minn.

Images courtesy of Avison Young

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