RCA in the commercial property press:

Minneapolis Office Market Defrosts

Finance & Commerce reports: The Minneapolis office market has seen some marked improvement over the past year as entities on the buy- and sell-sides alike have returned. Finance & Commerce cited data aggregated by Real Capital Analytics (RCA) to state that nearly $250 million of Minneapolis office sales valued above $2.5 million traded during the first quarter of 2011. During the same period in 2010, RCA tallied zero sales above the same threshold in the market.

Finance & Commerce attributed the return of activity to buyers becoming interested again in secondary markets, such as Minneapolis, and sellers responding in kind by eagerly placing more desirable properties on the market. Minneapolis is following the national office market’s upward trend, as RCA Managing Director Dan Fasulo told Finance & Commerce that, "We’ve not only seen a significant recovery in transaction activity for office properties, we’re starting to see a wave of new listings, which is going to be the fuel for the fire in the fall.” Mr Fasulo added that investors are looking for stabilized assets in less-pricy secondary markets: “…secondary markets, that’s where the appetite is right now today.”

Among the most prominent office assets to hit the market in Minneapolis this spring are:

Marquette Plaza (LEED-Platinum Certified; 85% Leased; assessed value of $44 million)

33 South Sixth/City Center (1.1 million-square-feet of office space, 371,000 square feet of retail space; mainly leased to Minnesota-based Target Corp; City Center assessed value of $108 million)

Riverview Office Tower (235,000 square feet; last sold for $20 million in 2005)

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Posted by: Nina Turner

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