By Ioana Neamt, Associate Editor
In an effort to expand its Twin Cities portfolio, Artis Real Estate Investment Trust of Winnipeg, Manitoba, has struck a deal to buy Canadian Pacific Plaza, a Class A office building located in downtown Minneapolis.
The REIT purchased the 393,884-square-foot asset from New York-based Ladder Capital Corp. at a price of $68.6 million and a 7.5 percent cap rate. Artis will also assume the mortgage on the property, which carries a 3.39 percent effective interest rate and matures in November 2023.
“We are pleased to demonstrate our ability to prudently recycle capital, disposing of non-core assets at attractive capitalization rates and strategically redeploying the proceeds to high quality, accretive acquisitions in our target markets,” said Artis CEO Armin Martens in a statement.
Formerly known as One Financial Plaza, the 26-story tower at 120 S. Sixth St. was renamed in 2012 when the Canadian Pacific Railway moved its U.S. headquarters and 400 employees there from the adjacent Soo Line Building. The Canadian company currently occupies 23 percent of Canadian Pacific Plaza under a long-term lease that expires in 2027.
The 55-year-old skyscraper is connected to the Minneapolis Skywalk System and is adjacent to dual Light Rail Train stations connecting it to Minneapolis-St. Paul International Airport and the Mall of America. Amenities include a 147-space parking garage, conference center, fitness center and 24-hour security card access.
Last month, Artis REIT also completed the sale of 605 Waterford Park, a 12-story office asset in Plymouth, Minn., for $31.5 million.
Photo courtesy of Hempel Companies