LaSalle Completes Acquisition of Premier Mixed-Use Property in Downtown Minneapolis
CHICAGO (April 03, 2017) — LaSalle Investment Management (“LaSalle”), announced that it has closed on the acquisition of Mayo Clinic Square, a 222,000 square-foot, Class-A mixed-use complex located directly adjacent to Target Center within the Warehouse District of the Minneapolis CBD.
Originally developed as a vertical mall, the property underwent a comprehensive $50 million redevelopment in 2015, which transformed the building’s exterior design, interior layout and almost all tenant spaces. Sharing a city block with the award-winning Loews Hotel, the property spans four floors and comprises medical office, traditional office, specialty space and ground-level retail, including some of the city’s most popular restaurants and establishments. The vibrant mixed-use property is further complemented by a 531-stall parking garage and three large digital billboards under a long-term lease with one of the world’s largest outdoor advertising companies.
David Schreiber, Managing Director of Acquisitions at LaSalle, commented: “The Warehouse District is undergoing transformative change that continues to make this area increasingly relevant to tenants and local residents, and Mayo Clinic Square represents a key driver of this evolution. The building’s synergistic mix of high-quality tenancy and onsite amenities within immediate proximity to local attractions, mass transit and readily available parking will help drive overall asset performance.”
Currently 96% leased to eight tenants with a weighted average remaining lease term exceeding 11 years, 80% of the property is leased to three prominent tenants under long-term leases with considerable financial strength, each of which have made substantial capital investments in their spaces. The upper levels of the building include Mayo Clinic, Link Snacks, HDR and Taylor Sports Properties, parent to the Minneapolis Timberwolves and Lynx, while the ground level is occupied by Starbucks, Jimmy Johns, Kieran’s Irish Pub and City Works.
Mark McGruder, Portfolio Manager at LaSalle, added: “We are very pleased to have completed the acquisition of this unique and exceptionally-positioned asset on behalf of our client. Mayo Clinic Square represents a tremendous opportunity to grow our client’s exposure to the high-quality, infill urban property market, with this amenity-rich location, exciting tenant roster, and durable income profile.”
CBRE Minneapolis/St. Paul provided brokerage services on behalf of LaSalle and the seller.
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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