The sale by ING North America Insurance Corp. of its nearly 1 million-square-foot Minneapolis office complex is partly \u201can asset efficiency play,\u201d according to a party to the deal, and partly a response to a tightening office market in downtown Minneapolis.The campus, purchased by National Office Partners LP, an investment partnership between Hines and the California Public Employees\u2019 Retirement System, consists of three office buildings built over a 20-year span. ING\u2019s Minneapolis headquarters, 20 Washington Avenue, is a six-story, 148,000-square-foot office building designed by Minoru Yamasaki & Associates and completed in 1964. It\u2019s fully occupied by ING. The largest building, at 22 stories and 481,604 square feet, is 100 Washington Avenue, also designed by Minoru Yamasaki & Associates. Built in the 1980s, it\u2019s 82 percent leased to tenants including ING, Wells Fargo Bank N.A., Northwestern Mutual, Special Olympics Minnesota and Lockridge Grindal Nauen PLLP.The third building is 111 Washington Avenue, a 15-story, 359,237-square-foot office completed in 1987 and currently 48 percent leased to tenants including the FBI, Wells Fargo Bank N.A. and ING. A seven-level, 1,000-space parking ramp at 25 North First Street rounds out the complex. A source knowledgeable about the transaction pegged its value at approximately $120 million. Hines vice president John McDermott explained to CPN that although ING will be consolidating its occupancy almost entirely in the 20 Washington and 100 Washington buildings, and the 111 Washington building will be left \u201cpretty much vacant,\u201d there won\u2019t be any net reduction in ING\u2019s square footage. Rather, he said, part of the transaction\u2019s value will come from the fact that \u201cWe\u2019re getting big, large contiguous spaces to rent.\u201d The office market in downtown Minneapolis, he said, is particularly tight for spaces of 50,000 to 100,000 square feet and larger. McDermott told CPN that although the office vacancy rate in downtown Minneapolis is trending down, \u201cRents aren\u2019t high enough to support new construction yet.\u201d He estimates that the purchase price for the ING complex is one-third below the cost of new construction.<\/p>\n","protected":false},"excerpt":{"rendered":"
The sale by ING North America Insurance Corp. of its nearly 1 million-square-foot Minneapolis office complex is partly \u201can asset efficiency play,\u201d according to a party to the deal, and partly a response to a tightening office market in downtown Minneapolis.The campus, purchased by National Office Partners LP, an investment partnership between Hines and the…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21742],"tags":[],"class_list":["post-1003692585","post","type-post","status-publish","format-standard","hentry","category-latest"],"acf":[],"yoast_head":"\n