MINNEAPOLIS — Golub & Co. and Oaktree Capital Group LLC have acquired RSM Plaza in downtown Minneapolis for an undisclosed price. The building, formerly known as McGladrey Plaza, is a 415,000-square-foot office tower. The duo also acquired an 850-stall parking garage at the corner of 8th Street and Nicollet Avenue. The asset was purchased from United Properties and the building represented the largest company-owned asset that United Properties has sold in its nearly 100-year history. Tenants in the RSM Plaza include RSM (formerly McGladrey), Amec Foster Wheeler, Unilever, the Clorox Company, Abbott Nutrition, Portico Benefits, First American Title Insurance Co., Panera Bread and Barnes & Noble. Golub and its partners plan to conduct a $10 million renovation, which is slated for completion in mid-2017. The renovation will include improvements to the building common areas as well as the addition of amenities such as a fitness center, conference center, tenant lounge and improvements to the parking garage and retail areas. Scott Pollock of Cushman & Wakefield/NorthMarq represented United Properties in the transaction. Adam Short of Cushman & Wakefield/NorthMarq represented the Golub acquisition team.
PLYMOUTH, MINN. — Duke Realty Corp. has agreed to develop a 134,384-square-foot office and warehouse build-to-suit facility for Intereum Inc. in Plymouth, a western suburb of Minneapolis. Intereum supplies commercial office and healthcare furniture, floor coverings and related products to corporations and government entities. As part of the deal, Intereum has entered into a long-term lease agreement with Duke Realty, which will develop the facility on nearly 14 acres that it owns adjacent to Waterford Ponds, an office and retail complex. The building will include nine dock doors, one drive-in door, 152 automobile parking spaces, a 125-foot truck court and a 30,000-square-foot showroom. Construction on the facility is slated to begin in May 2016 and be completed in March 2017. This development marks the fifth time in the last 18 months that Duke Realty has undertaken an industrial build-to-suit project in Minneapolis. Jon Yanta and Brent Erickson of NorthMarq represented Intereum in the build-to-suit transaction. Matt Oelschlager of CBRE represented Duke Realty.
EDINA, MINN. — Brookdale Senior Living has completed a $30 million renovation to Brookdale Edina, formerly Edina Park Plaza. The seniors housing community is located in Edinborough Park in the Minneapolis suburb of Edina. Brookdale remodeled the independent living and assisted living apartments and added 36 memory care units. The project also adds a new main lobby, bistro, library, dining room and activity area to the community. The new and renovated units will be available for residents in January. Based in Brentwood, Tenn., Brookdale Senior Living is the largest owner and operator of seniors housing in the United States, managing more than 110,000 units, according to the American Seniors Housing Association’s ASHA 50 rankings.
MINNEAPOLIS — Dougherty Mortgage LLC has closed a $15.1 million HUD 221(d)(4) loan for the rehabilitation of two conjoined warehouses in Minneapolis. The property, 700 Central, will be converted into 80 market-rate housing units. The apartment buildings will also feature 5,600 square feet of ground-floor retail. The project has been placed on the National Register of Historic Places, and the borrower, 700 Central Owner LLC, was able to utilize equity from the sale of historic tax credits for the project.
BROOKLYN PARK, MINN. — Marcus & Millichap has arranged the $2.6 million sale of a 17,927-square-foot shopping center in Brooklyn Park, a northwestern suburb of Minneapolis. Jefferson Plaza is located at 8501-8511 Jefferson Lane North. Mike Marzinske, Matthew Hazelton, Adam Prins, Sean Doyle and Cory Villaume of Marcus & Millichap represented both parties in the transaction. Both the buyer and seller were private investors.
ST. PAUL, MINN. — Bloom Commercial Real Estate has arranged the sale of a 25,000-square-foot retail building in St. Paul. Salvation Army purchased the building for an undisclosed price and will occupy the space. M and J Investments LLC was the seller. The property is situated on two acres and is located at 1905 Suburban Ave. Josh Bloom and Tim Bloom of Bloom Commercial Real Estate represented the seller in the transaction. The Salvation Army was self-represented in the deal.
EAGAN, SHAKOPEE AND MINNEAPOLIS, MINN. — Mid-America Real Estate-Minnesota has arranged three retail leases. In the first transaction, New Bohemia signed a lease for 4,209 square feet at Eagan Towne Centre in Eagan. Cub Foods, Big Lots and Dollar Tree anchor the 153,781-square-foot center. Andrea Christenson and Blaine Beety of Cushman & Wakefield represented the tenants in the transaction, and Mid-America represented the landlord. In the second deal, Title Boxing Club will occupy 3,495 square feet at a retail property in Minneapolis. The 4,736-square-foot center is shadow-anchored by Walgreens, Midas, Enterprise and Kowalski’s. Ian Halker of Colliers International represented the tenant in the transaction and Mid-America represented the landlord. In the third transaction, Starbucks Coffee signed a 2,025-square-foot lese at Southbridge Crossing in Shakopee. The landlord was self-represented, and Mid-America represented the tenant in the transaction.
MAPLEWOOD, MINN. — Evans Senior Investments has arranged the $30 million sale of The Shores of Lake Phalen, a seniors housing community located in the Twin Cities suburb of Maplewood. A non-traded REIT purchased the property at a price of $285,714 per unit. The Shores of Lake Phalen features 22 independent living units, 51 assisted living units and 32 memory care units. Constructed in 2011, the Class A community is adjacent to the Gateway State Trail for walking or biking. The new owner plans to lease the facility to a national operator. The final capitalization rate was 6.3 percent based on a 2015 budgeted net operating income of $1.9 million. Evans Senior Investments is a Chicago-based seniors housing investment banking firm.
COTTAGE GROVE, MINN. — Marcus & Millichap has arranged the sale of a 24-unit apartment property in Cottage Grove, a southeastern suburb of St. Paul. Cottage Grove Estates sold for $2.1 million and is located at 7505 79th St. South. The property consists entirely of three-bedroom / two-bathroom units. Each unit has an attached tuck under garage and two balconies. The complex was built in 1986 and was 100 percent occupied at the time of sale. Mox Gunderson, Dan Linnell and Annie Arneberg of Marcus & Millichap represented the seller, a private investor. Gunderson and Linnell also secured and represented the buyer, also a private investor.
COON RAPIDS, MINN. — Fairbridge Properties has sold a 261,805-square-foot flex facility in Coon Rapids, a northern suburb of Minneapolis, for $14 million. The industrial and research facility is located at 8840-8880 Evergreen Blvd. and is occupied by Honeywell Aerospace and MEDRAD. Shopoff Realty Investments purchased the property. Fairbridge realized an internal rate of return of 75 percent. After obtaining ownership of the building in 2013, Fairbridge made renovations including repainting the building’s exterior, replacing windows, resurfacing a portion of the parking lot and retrofitting the parking lot lighting. Fairbridge sold the property as part of a 1031 exchange, and the company is in the process of identifying a new investment to complete the exchange.