MINNEAPOLIS — Canadian company Artis Real Estate Investment Trust has completed two acquisitions in the greater Twin Cities area totaling $117.2 million. The deals include the acquisition of an office park and the closing of part of a previously announced industrial portfolio purchase.
In the first transaction, Artis purchased Stinson Office Park, a five-building, 307,405-square-foot office complex, for $44 million. The properties are located at 323, 400, 500 and 601 Stinson Blvd. as well as 400 Roosevelt St. in Minneapolis. The campus also includes a 1,703-space parking structure. The property is 97 percent occupied by two tenants with leases expiring 2017 or later. Artis took out a $28.6 million loan to fund the purchase. It includes a 5-year term with a floating interest rate currently set at 3.25 percent.
In addition, Artis closed on the second tranche of a previously announced portfolio acquisition. The $73.2 million transaction includes 9 properties totaling 1.5 million square feet of office, flex, warehouse and light manufacturing space. Occupancy is currently 88.5 percent. Artis is funding the purchase with cash on hand and through a $49.6 million mortgage that carries a 5-year term and a floating interest rate currently set at 2.5 percent. The portfolio includes a total of 25 properties located throughout the Twin Cities area. Constructed between 1977 and 2008, the buildings contain a total of 2.29 million square feet of space. Major tenants include Magno International, FedEx, Smartpost, Navarre Corp., Pomerantz Diversified and Return Inc.
The majority of Artis' holdings are located in Canada, but 22.4 percent of the REIT's portfolio is based in the United States. According to the company, these most recent transactions make it one of the top 5 industrial landlords in the Twin Cities market.
— Coleman Wood