Office portfolio brings in $ 91 million | Finance and Trade
A portfolio of Twin Cities office buildings traded for around $ 91 million, making it one of the largest single-story subway office deals to date.
DRA Advisors LLC bought the portfolio of seven buildings from Minneapolis-based Eagle Ridge Partners in a sale that closed in late September. The properties are a mix of office, warehouse and medical technology uses in Plymouth, Golden Valley and Minnetonka, according to electronic real estate value certificates released last week.
This is one of the largest single-story office property portfolio transactions in market history, according to Eagle Ridge.
“I think this is… a testament to the institutional interest in Minneapolis-St. Paul real estate market in general, ”said Shannon Van Gemert, Managing Director and Director of Eagle Ridge.
“The subway’s stable and diverse economy, home to many Fortune 500 companies, is driving this interest. It has also experienced predominantly high unemployment rates, Van Gemert said. “
“When you’re able to market something that big when we’ve done it and in a type of product that I think really gets a lot of attention… I think it was appealing to a handful of people.” , she said. “When you get up to $ 90 million and more… it’s not that everyone can write that check. But for those who understand the market and understand the product, I think it was a very worthwhile investment for them.
Eagle Ridge is a development, acquisition and asset management company with a portfolio of over 3 million square feet of space in the Twin Cities.
Northwest Business Campuses I, II and III in Plymouth were included in the sale. They are located at 2905 Northwest Blvd., 2800 Campus Drive and 2955 Xenium Lane N. in the northwest suburbs. The cluster of properties is northeast of the Interstate 494 and Highway 55 interchange.
Northwest Business Campus I sold for $ 12.069 million. The building is nearly 85,000 square feet. Built in 1985, the building is over 87% leased, according to information from CoStar and eCRV.
The second building in the Northwest, with less than 66,000 square feet, sold for $ 9.385 million. The 1986 building has several medical tenants. The third building on the approximately 25,000 square foot Northwest Campus was built in 1986 and sold for $ 3.546 million, according to information provided by eCRV and CoStar.
In Golden Valley, Golden Hills Business Park I, II and III changed hands in the portfolio transaction. Located at 5900-5980, 6100-6190 and 6105 Golden Hills Drive, the properties are north of Interstate 394 as well as in the West End shopping area in St. Louis Park.
Golden Hills Business Park I was sold for $ 18.17 million. It is over 92,000 square feet and was built in 1995. The second building in Golden Hills sold for $ 15.71 million and has nearly 80,000 square feet of office and industrial space in the 1999 building. The third building in Golden Hills has more than 87,000 square feet, which sold for $ 17.67 million, according to information from eCRV, CoStar and Eagle Ridge.
The Minnetonka property, located at 5600-5610 Rowland Road, sold for $ 14.5 million. The property, called Rowland Pond I and II, is less than 121,000 square feet and is almost 96% leased. Built in 1988, it is located east of Interstate 494. UnitedHealth Group offices are located directly south of the property.
Properties were able to retain most tenants during the pandemic, thanks to low operating expenses for tenants and their ability to reconfigure spaces to suit their needs. The portfolio, on the whole, was 96% occupied at the time of the sale, Van Gemert said.
“This type of product is viewed very favorably by the capital markets,” she said. “When you come in with the rental history, occupancy, building condition,… and the current tenants that we have there, I think our buyer or anyone reviewing it probably had very good financing. to do. with.”
DRA Advisors did not return a request for comment until the post time. It worked as variants of “G&I X Med Tech” in transactions. The New York-based investment advisory firm has a portfolio of $ 11.2 billion at the end of 2020. It provides real estate investment and management services to institutional and private investors, according to its website.
At the end of last month, DRA Advisors made another major purchase of Twin Cities with its acquisition of the Equinox Apartments in St. Anthony. He bought the complex of nine buildings and 266 units for $ 43.75 million. The property is located at 2808 Silver Lane and the seller was Chicago-based Laramar, according to eCRV and Costar reports.
Another portfolio of office buildings traded earlier this year for $ 113.2 million. Monarch Alternative Capital LP and Detroit-based Crestlight Capital have purchased the North Loop multi-story property portfolio from Swervo Development Corp. The buildings are located at 241 N. Fifth Ave., 411 Washington Ave. N. and 500 N. Third St., Finance and Commerce reported.
In an interview in May, Eagle Ridge President Kristin Myhre told Finance & Commerce that they are seeing “very high demand” for their flexible products.
“People are moving from a multi-tenant suburban office to what would be a one-story office,” Myhre said. “They want the ability to control what they do for the HVAC, how fast they change or how often they change the air filters. Are they ionizing? What are they doing for sanitation in their space? And then they know it’s just their own employees they interact with: you drive, you park, you walk through the front door.