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CBRE DOWNTOWN SALES CONTINUE IN Q1 2016 In the largest sale of Q1 2016, the Lawson Commons building at 380 St. Peter Street sold for $68.4 million ($157 per sq. ft.) to Bloomington -based Frauenshuh Commercial Real Estate. Dallas -based Tier REIT had originally bought the building in 2005 after buying it from Frauenshuh. Travelers relocated from its tower to Lawson Commons Q1 2016 to bring the occupancy of the building to 96.7%. The Internet Exchange building in the downtown Minneapolis North Loop submarket also sold this quarter in a joint venture between CPM Development and Swervo Development Corporation. The $10 million sale included an adjacent surface parking lot. SUBURBAN SALES INCLUDE OWNERSHIP BUY- OUTS, NEW HEADQUARTERS Southdale Office Center in Edina sold for $55 million Q1 2016 as Minnetonka -based Wildamere Properties bought out majority stakeholder, GE Capital, and became the sole owner of the four building, 447,042-sq.-ft. complex. GE Capital has been selling off real estate interests over the last year mainly to Blackstone. This transaction allowed ownership to remain in the Minneapolis/St. Paul metro. The Excelsior Group bought the former Delta Airlines Headquarters in Q3 2015 for $10.4 million. Q1 2016 saw the property trade again as multiple Figure 6: Notable Sale Transactions joint ventures purchased the two building, 190 acre site for $18.6 million. Because of the high proportion of land on the transaction, a true price per sq. ft. is difficult to determine. The Minnesota Vikings and team owners were among the parties on the sale. The site in Eagan is slated to become the new headquarters and practice facility for the team along with the possibility of other mixed use multifamily housing, office space and a hotel development. Minnetonka Corporate Campus I, formerly occupied by Cargill, was purchased by Associated Financial Group, subsidiary of Green Bay, WI -based Associated Banc -Corp. The building was vacant at the time of the $9.2 million sale. Associated Financial plans to relocate its employees from three separate buildings in Edina, Eden Prairie and Minnetonka once a build out is complete. Figure 7: Minnetonka Corporate Campus I Source: CBRE Research, Q12016. Property/Portfolio Size (Sq. Ft.) City Buyer Price Price (per sq. ft.) Lawson Commons 436,478 St. Paul Frauenshuh $68,400,000 $157 Southdale Office Centre * 447,042 Edina Wildamere Properties $55,000,000 $123 Future Minnesota Vikings Campus * 550,000 Eagan Multiple $18,660,000 N/A Internet Exchange 78,000 Minneapolis CPM Development JV Swervo $10,000,000 $128 Minnetonka Corporate Campus I 91,761 Hopkins Associated Bank $9,200,000 $100 Source: CBRE Research, Q12016. *Figures reflect entire portfolio. Q1 2016 CBRE Research © 2016 CBRE, Inc. I 4