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Wednesday, 27 October 2010

Hines' Minneapolis Office Purchase is 94 Percent Leased

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The 698,606-square-foot office building in Minneapolis that Hines Global REIT is buying for $180 million is 94 percent leased to 32 tenants. Its two largest tenants, which occupy a total of 68 percent of the building, pay $8.1 million in annual base rent.

The 29-story building, 50 South Sixth, is being purchased from KanAm US-grundinvest Fonds, a German open-end fund that is being liquidated, through Eastdil Secured.

Hines Global is a non-traded REIT that through last month had raised $276.5 million of equity from shareholders. In a regulatory filing, it said its purchase of the Minneapolis building was subject to it lining up debt financing. It did not say how much debt it was looking for. It said that if it were unable to line up financing, it would forfeit a $25 million deposit.

The building's main tenant is Dorsey & Whitney, which occupies 333,264 sf under a lease that runs through 2016 and pays $6.8 million in annual base rent. Deloitte & Touche USA occupied 142,435 sf through 2024 and pays $3.1 million in base rent.

Last year, effective annual rent in the building averaged $33.29/sf. That's up from $28.86/sf a year earlier, when the building was 77.2 percent leased.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.

Copyright © 2010 Commercial Real Estate Direct www.crenews.com


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Minneapolis
  • States: Minnesota
  • Sector: Office
  • Subject: Leases (LSE), Property Acquisitions (ACQ)
  • Deal Name: Bear Stearns Commercial Mortgage Securities Trust, 2006-PWR12
  • Company: Home Properties of New York
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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