07/03/2013

Cargill Offices in Minnesota Up for Grabs

A German investment company is shopping two office buildings in suburban Minneapolis that are fully leased to commodities giant Cargill.

The 503,000 square feet of Class-A space in Hopkins, Minn., could attract bids of about $140 million, or $279/sf. At that value, a buyerís initial annual yield would be 6.6%. Cargill leases both buildings through 2020.

CBRE is marketing the properties for IVG Institutional Funds, which is advised by Real Estate Capital Partners of New York. IVG purchased the buildings in separate transactions from Minneapolis developer Opus Northwest before they were completed in 2008 and 2009. Both had been pre-leased to Cargill, the nationís largest private company. Cargill is graded single-A by the major rating agencies.

The seven-story buildings, along with a third that isnít being offered, serve as the Excelsior Crossings campus of Cargill, which is headquartered in nearby Wayzata, Minn.

The listed buildings, each with approximately 250,000 sf, are at 9350 and 9380 Excelsior Boulevard, just off Highway 169 and adjacent to a planned light-rail stop. They have garages and surface lots with a combined total of 2,200 spaces. Each building has LEED gold certification, the second-highest rating for energy efficiency.

The third building in the complex was completed in 2010. Houston-based Hines Global REIT bought it in January 2012 for $69.5 million, or $273/sf. Cargillís lease on that building runs until 2023.

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