RCA in the commercial property press:

CRE Investment Picks Up in Minnesota Despite National Trend

Finance & Commerce reports: Property investment has picked up in Minnesota with a flurry of 4th quarter deals and the recently closed deal for the Blue Cross and Blue Shield of Minnesota campus in Eagan, the largest recent office sale in the area.

However, national commercial real estate trends point toward a slowing of investment sales despite a 57 percent year-over-year increase in 2011. The market remains bifurcated between highly sought-after trophy deals like the Blue Cross campus and highly distressed properties like Atlanta's Bank of America Tower, which was purchased in 2006 at $436 million and was only recently sold at auction.

Dan Fasulo, managing director for global commercial property research firm Real Capital Analytics, said that deal activity started to slow at the end of the year because of fresh concerns about the stability of the economy.

“We did see activity start to temper in the fourth quarter. Lenders are being more cautious,” said Fasulo. “It’s a flight to quality, and it’s happening in every market nationwide right now. Investors need to see the uncertainty clear up. They need to see clear signs that the economy is improving before they put their money at risk.”

Statistics from Real Capital Analytics tracked $2.27 billion in commercial sales in the Twin Cities last year, an increase of 70 percent compared with 2010.

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Posted by: Nina Turner

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