Tom O’Brien featured on panel of CRE experts

Tom O’Brien, ​Executive Director-Capital Markets, was among the industry leaders featured on the panel of experts at the CCIM Minnesota-Dakotas Investment Real Estate Symposium this past week.

Along with leaders of other brokerages with Twin Cities presences, Tom weighed in on the state of the CRE investment industry, biggest surprises of this real estate cycle, the ongoing impact of Millennials on the industry and more.

Among the highlights: Tom said that investors from top markets continue to like Minneapolis-St. Paul for its solid fundamentals and yields that are often higher than you can find in primary markets such as New York or Los Angeles. He also opined that today’s market rests on more realistic underwriting and better fundamentals than it did at the top of the last cycle.

The panel also featured an economic update from Dr. Mark Dotzour, a Real Estate Economist. The event was hosted by Casey Hankinson, Vice President of Development for Ryan Cos. and former United Properties employee.

By: Adam Rae Voge

Cushman & Wakefield Completes Sale of 1101 on Main in Northeast Minneapolis

The Cushman & Wakefield team of Director Lance Steiger and Associate Robert Dulin represented Catholic Eldercare in the $10.9 million sale of 52 apartment units in the 1101 on Main building in Northeast Minneapolis. The sale closed July 29.

Steiger and Dulin sold 52 of the 56 units in the building, at 1101 Main St. NE, just east of the Mississippi River and a few blocks south of the Northeast Minneapolis Arts District. The property, previously known as the Crescent Trace Condominiums, had been operating primarily as rental units since Catholic Eldercare purchased the building in 2009. Four of the units in the building remain under independent ownership. Retail on the property’s ground floor was not included in the sale.

“This was a complex transaction, but we received significant interest from a range of local and national investors,” said Steiger. “The property sits in an ideal urban location, is well maintained and appeals to a wide variety of renters.”

The buyer, local apartment investor Scott Weber, plans to run the property as an apartment complex.

Wells Fargo Place in St. Paul for sale

The Wells Fargo Place office tower, a landmark in downtown St. Paul, is for sale after the $90 million loan on the building was sent to special servicing a couple months ago.

The 37-story building, located at 30 E. 7th St., has been owned by an affiliate of Unilev Capital Corp. since 2006. The 656,000 square-foot building has several tenants including AgriBank, Minnesota State Colleges and Universities, Wells Fargo, the Internal Revenue Service and Larson King.

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Cushman & Wakefield Completes Sale of 108-Unit Apartment Building in St. Paul

Cushman & Wakefield’s multifamily capital markets team of Lance Steiger and Robert Dulin represented Minneapolis-based Oaks Properties, LLC in the $7.5 million sale of California Drive Apartments, a 108-unit complex at 1203 California Ave West, St. Paul, Minn. to Hornig Companies, Inc., a family-owned real estate investment and management company located in Minneapolis, Minn. This transaction closed on February 27, 2015.

According to Associate Director Steiger, the complex was highly sought after and garnered interest from both in-state and out-of-state investors. “During our three-week marketing period, we toured the property with 30 investors and received 15 offers,” said Steiger.

California Drive Apartments is comprised of nine separate buildings with 108 apartment homes and is located in St. Paul between Como Park and Rosedale Shopping Center. The property won four Minnesota Multi-Housing awards, including the most prestigious MADACS Award for overall property excellence in 2000 and again in 2003.

Westin Minneapolis sold to N.Y. investment firm for $66M

Carey Watermark Investors Inc. bought the 214-room Westin Minneapolis hotel for $66.4 million, marking one of the highest sale prices per room in the city’s history.

This is the first hotel property in Minnesota for the New York-based real estate investment trust. The sale, at $310,280 per room, is more than the July purchase of the 251-room Graves 601 Hotel, now called Loews Minneapolis Hotel, for $65 million, or nearly $259,000 per room.

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Minnesota’s biggest office complex changes hands again

The largest — and most expensive — office complex in Minnesota has a new owner.

A partnership led by MetLife paid an undisclosed sum for the Normandale Lake Office Park, a 1.7-million-square-foot complex in Bloomington, from an entity led by Chicago developer Sam Zell.

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