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CBRE <br />MARKETVI <br />EW MINNEAPOLIS/ST. PAUL OFFICE <br />Plymouth Corporate Center <br />Location: 1405 Xenium Lane, Plymouth <br />Total RBA: 628,436 sq. ft. <br />Buyer: Wildamere Capital Management <br />Seller: Carlson Real Estate <br />Price: $62.5 Million <br />Key Tenants: TCF Bank, Polaris Industries Inc., <br />Time Insurance Company, Comm -Works LLC, <br />Meritain Health <br />Plymouth Corporate Center is a well located, <br />suburban asset that was originally built in <br />1973 as a warehouse and converted to <br />creative office space in 1998. It was most <br />recently renovated in 2009 to bring Class A <br />finishes to the exterior and interior. This two <br />story office building boasts high ceilings, large <br />floor plates, full service cafeteria, fitness center <br />and abundant parking options. <br />Figure 4: Notable Sale Transactions <br />LARGE SUBURBAN SALE AND PORTFOLIOS KICK <br />OFF CAPITAL INVESTMENTS IN Q2 2015 <br />The CBRE Institutional Properties team completed the <br />largest suburban sale to date in 2015: Plymouth <br />Corporate Center at a price tag of $62.5 million. The <br />building is a 628,436 -sq. -ft. office property which will <br />soon be home to 200 TCF bank employees. Following <br />interior renovations, employees will be relocating from <br />the Minneapolis CBD. The building will be 96% leased <br />following the move. <br />Minneapolis saw three office portfolio sales in Q2 <br />2015, the first being a three building portfolio owned <br />by Minneapolis-based Swervo Development. For over a <br />decade, Swervo has been investing in the downtown <br />area of Minneapolis with the goal of acquiring, re- <br />purposing and holding assets for the long term. Prior <br />to renovation and lease up, the 510 Marquette building <br />sold for $6.7 million in 2013 or $32 per sq. ft. The <br />other two buildings are located in the North Loop: <br />Colwell Building at 123 N. 3rd St. and the 3001st Ave. <br />N. building. <br />A Texas-based REIT was busy buying up local <br />properties this quarter as well. Lone Star Funds which <br />has capital commitments of $5.8 billion, purchased a <br />628,436 -sq. -ft. office portfolio. The sale works out to <br />$91 per sq. ft. <br />Hillcrest Development sold six of its Northeast <br />Minneapolis properties to a Wisconsin -based investor. <br />The buildings were primarily office and warehouse <br />properties. One asset, the Crown Center, had recently <br />completed major renovations that created a truly <br />unique aesthetic. <br />Property/Portfolio <br />Size (Sq. City <br />Ft.) <br />Buyer Price <br />Price (per sq. <br />ft.) <br />Swervo Portfolio <br />420,150 Minneapolis <br />Spear Street Capital <br />$85,000,000 $208 <br />Plymouth Corporate Center <br />628,436 Plymouth <br />Wildamere Capital Management $62,500,000 $99 <br />Equity Common Wealth Portfolio 614,838 Multiple <br />Lone Star Funds <br />$56,000,000 $91 <br />Hillcrest Portfolio <br />300,000 Minneapolis <br />Sara Investment Real Estate $25,600,000 $85 <br />Source: CBRE Research, Q2 2015. <br />Q2 2015 CBRE Research <br />© 2015 CBRE, Inc. 3 <br />