BYRON, MINN. — Quantum Real Estate Advisors Inc. has arranged the sale of a freestanding medical office building located at 221 2nd Ave. SW in Byron, about 10 miles west of Rochester. The sales price was undisclosed. Bluestem Center for Autism occupies the property. Seth Gilford of Quantum represented both the seller and buyer, a South African medical acquisition fund. The seller was looking for capital to help fund expansion into new locations.
MINNESOTA AND NEBRASKA — Centerspace has sold nine multifamily communities in Minnesota and Nebraska for $144.3 million. The transaction included four properties in St. Cloud, Minn., totaling 692 units; two communities in the Omaha-Lincoln market comprising 498 units; and three properties in the Twin Cities market totaling 377 units. Proceeds from the sale will be used to pay down outstanding debt. CBRE served as the broker for the Minnesota assets, while MMG Real Estate Advisors was the broker for the Nebraska assets.
NEW YORK CITY — New York City-based International Workplace Group (IWG) has added 34 new flexible workspaces in the Midwest region in the last six months. Including these new locations, IWG has added roughly 150 locations nationwide across the U.S. since October 2022. IWG intends to add 1,000 new locations globally. IWG’s new locations stretch across brands such as Spaces, Regus and HQ, and are situated in both urban and suburban areas across markets such as Chicago; Columbus, Ohio; Jeffersonville, Ind.; Grand Rapids, Mich.; Lakeville, Minn.; and De Pere, Wis. The Midwest offices total more than 280,000 square feet. About 76 percent of the new workspaces are located in smaller towns and communities outside of metro areas. IWG is opening the vast majority of its new locations in partnership with commercial real estate owners, developers and franchisee investors.
MINNEAPOLIS — Cushman & Wakefield has negotiated nearly 45,000 square feet in office leases at The 15 Building, a downtown Minneapolis office building known for its mural of Bob Dylan. R2 and Goldman Sachs Asset Management own the property, which is now 70 percent leased. The building rises 12 stories, totals 130,000 square feet and features new speculative suites. New tenants for the spec suites include Fjorge, which leased the entire fifth floor; Arux, which leased the entire 11th floor; and Inspire11, which inked a lease for the entire ninth floor. Channel Z renewed its lease for 6,000 square feet and Chobani renewed its lease for 2,500 square feet. Tom Tracy and Katie Tufford of Cushman & Wakefield have worked as the leasing agents for the property since February 2020.
BROOKLYN PARK, MINN. — Sealy & Co. has acquired a newly constructed industrial building totaling 221,128 square feet in the Minneapolis suburb of Brooklyn Park. The purchase price was undisclosed. Located at 10600 Xylon Ave. N., the facility is fully leased to multiple tenants. The property features a clear height of 32 feet, 50 dock-high doors, two drive-in doors and abundant auto and trailer parking. Jason Gandy and Davis Gibbs represented Sealy on an internal basis. Scannell Properties was the seller.
MINNEAPOLIS — Infrastructure design firm HNTB has signed a 15,187-square-foot office lease at 60 South Sixth, an office tower in downtown Minneapolis formerly known as RBC Plaza. KBS Real Estate Investment Trust III owns the 40-story, 710,332-square-foot property. Since purchasing the building in 2015, KBS has invested over $24 million in renovations. In 2022, KBS spent more than $6.5 million on the refurbishment of common areas and the fitness center. KBS also plans to add another tenant lounge. Brent Robertson and Andrea Leon of JLL represented KBS in the lease, while Eddie Rymer of JLL represented HNTB.
EXCELSIOR, MINN. — Locally based Red Leaf Partners LLC and Monarch Development Partners LLC are developing One West Drive, a 49-unit apartment building in Excelsior, a western suburb of Minneapolis. The project site is situated near Lake Minnetonka and dozens of restaurants and shops. The development will include a 322-stall parking garage, of which 78 stalls will be dedicated to One West Drive residents. Andy Finn of Northmarq arranged equity and debt financing for the project. Denver-based Brue Baukol Capital Partners is the equity partner, and MidWestOne Bank is providing a construction loan. The loan features a 65 percent leverage on a three-year term with three years of interest-only payments.
EAGAN, MINN. — Mid-America Real Estate Corp. has brokered the sale of Cliff Lake Centre in the Minneapolis suburb of Eagan for an undisclosed price. The 74,182-square-foot shopping center is home to Dollar Tree, Davanni’s, Great Clips, The UPS Store, Snap Fitness and H&R Block. Target and Cub Foods shadow anchor the property. Joe Girardi and Amy Senn of Mid-America represented the seller, IRC Retail Centers/DRA Advisors. The asset sold to MVK Capital and True North Investments. Pine Tree was the property manager.
ST. PAUL, MINN. — Ryan Cos. will host a ribbon-cutting ceremony on Tuesday, March 7 for the opening of a two-story, 60,000-square-foot medical office building at Highland Bridge in St. Paul. The building is 85 percent leased by M Health Fairview, Dermatology Consultants, LifeStance Health, Highland Foot and Ankle Clinic and RAYUS Radiology. M Health Fairview’s clinic will occupy the second floor, with a pharmacy on the first floor. The clinic will provide primary care services, including family, women’s and general pediatric care. Urgent care with extended and weekend hours will also be offered to the community. M Health Fairview Rehabilitation Services, which offers physical therapy and sports medicine, will also be part of the new space. The existing M Health Fairview clinic at 2155 Ford Parkway is now operating out of the Highland Bridge location. Dermatology Consultants will occupy 12,000 square feet on the first floor and will move its practice from its existing St. Paul location at 280 Snelling Ave. in May. LifeStance Health will occupy 4,100 square feet on the first floor. Highland Foot and Ankle Clinic relocated its practice from 2221 Ford Parkway and will lease 1,600 square feet. RAYUS Radiology will occupy 6,400 square feet. …
MINNEAPOLIS — LSE Architects has opened a new 36,000-square-foot headquarters at 1401 Glenwood Ave. in North Minneapolis. The two-story office features 60 workstations, three private offices, an enclosed garage with 10 parking stalls and an exterior lot with 50 parking spaces. Kraus-Anderson served as construction manager. LSE projects near the new office include Hennepin County’s Sumner Library, the Washburn Center for Children, North Market, the MPS North High School Career and Technology Center renovation and the V3 Sports new aquatics center.