Key Takeaways
- • LaSalle Investment Management, a Chicago-based real estate investment manager, acquired Mayo Clinic Square, a mixed-use property across from Target Center in downtown Minneapolis, with the purchase price undisclosed by the buyer.
- • Sources close to the deal told the Star Tribune the sale closed on a Friday for $98 million, which would represent a significant return for sellers Alatus LLC and Camelot LLC.
- • The sellers bought the property in 2010 for $14 million and invested $50 million in a 2015 redevelopment of the 220,000-square-foot, four-story asset.
- • The property is 96 percent leased to eight tenants, including Mayo Clinic, Taylor Sports Properties, Starbucks and Jack Links, and includes a 531-stall garage and digital billboard lease.
- • LaSalle acquired the asset on behalf of a client, with portfolio manager Mark McGruder describing it as an opportunity to grow exposure to high-quality infill urban property.
Summary
LaSalle Investment Management, a Chicago-based real estate investment management group, purchased Mayo Clinic Square, the mixed-use property across the street from Target Center in downtown Minneapolis. LaSalle did not disclose the purchase price for the roughly 220,000-square-foot complex, formerly known as Block E. According to sources close to the deal who spoke to the Star Tribune, the sale closed on a Friday with a $98 million price tag. Other reports noted that LaSalle announced the acquisition on a Monday without revealing the price.
If the reported figure is accurate, the transaction would represent a significant return for Minneapolis-based developers Alatus LLC and Camelot LLC. The companies purchased the space in 2010 for $14 million and invested $50 million in 2015 to redevelop and revamp its interior and exterior.
The four-story property is 96 percent leased to eight tenants: Mayo Clinic, Jack Links, HDR, Taylor Sports Properties (parent company of the Minnesota Timberwolves and Lynx), Starbucks, Jimmy John's, Kieran's Irish Pub and City Works. The asset also includes a 531-stall parking garage and a long-term lease to three digital billboards attached to the building.
In a statement, Mark McGruder, portfolio manager at LaSalle, said the firm was "very pleased to have completed the acquisition of this unique and exceptionally-positioned asset on behalf of our client." He described the property as a tremendous opportunity to grow the client's exposure to high-quality infill urban property, citing its amenity-rich location, tenant roster and durable income profile.
If the reported figure is accurate, the transaction would represent a significant return for Minneapolis-based developers Alatus LLC and Camelot LLC. The companies purchased the space in 2010 for $14 million and invested $50 million in 2015 to redevelop and revamp its interior and exterior.
The four-story property is 96 percent leased to eight tenants: Mayo Clinic, Jack Links, HDR, Taylor Sports Properties (parent company of the Minnesota Timberwolves and Lynx), Starbucks, Jimmy John's, Kieran's Irish Pub and City Works. The asset also includes a 531-stall parking garage and a long-term lease to three digital billboards attached to the building.
In a statement, Mark McGruder, portfolio manager at LaSalle, said the firm was "very pleased to have completed the acquisition of this unique and exceptionally-positioned asset on behalf of our client." He described the property as a tremendous opportunity to grow the client's exposure to high-quality infill urban property, citing its amenity-rich location, tenant roster and durable income profile.
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