Minneapolis Suburban Office Case Studies

One Southwest Crossing

One Southwest Crossing

The Challenge

Colliers and Welsh took on a receivership assignment for One Southwest Crossing, a distressed Class A multi tenant office building comprised of 239,119-square-feet on eight acres in Eden Prairie, Minnesota. Although the building was fully leased, the current owner, a TIC entity with 36 owners, was not servicing their debt.

CIGNA Behavioral Health, Inc., the largest tenant in the building occupying 75% of the space, had a lease expiring at the end of 2012. The building’s loan was coming due and the Welsh and Colliers team needed to move quickly with a strategy and solution. The team was further challenged with incomplete files and minimal paperwork from the prior management company.

Strategy

Transform the property with successful asset and property management in the form of debt restructuring, expense reduction and lease negotiations. Stabilize the asset and add long-term value for both the owners and tenants.

Services

The team studied the asset operationally, pieced together the history and challenges, and jumped in to implement cost-saving solutions. Recognizing that tenant, CIGNA, was the key to stabilizing the value of the building, the team worked diligently to improve the asset’s appeal and to secure a renewal. The loan-to-value ratio on the property was upside down, however, Welsh Capital successfully negotiated a loan extension for the property. Welsh Construction and Genesis Architecture were tapped to design and build a $3 million parking facility to improve the building’s functionality and to meet the needs of the increasing density of CIGNA employees.

The Results

CIGNA signed a long-term lease to renew their existing 177,058-square-foot space and to expand into a total of 211,105 square feet. The Building Owners and Managers Association (BOMA) of Greater Minneapolis awarded Colliers and Welsh with the Outstanding Building of the Year (TOBY) Award for the management of One Southwest Crossing. Every division of Welsh and Colliers was involved in this project. Our vertically integrated platform and ability to collaborate with all team members under one roof contributed to the success in restoring the value of this prominent asset.

The Building Owners and Managers Association (BOMA) awarded Colliers and Welsh with the Outstanding Building of the Year (TOBY) Award.

The Minnesota Society of Association Executives

MSAE

The Challenge

The Minnesota Society of Association Executives occupied a space in a deteriorating Class C historic building on University Avenue in St. Paul. Kathy had concerns about the image of the building, employee safety and escalating rents. She wanted to take advantage of market conditions and relocate to a central suburban location near amenities with an improved image and easy access to the highway system. Finding a space with build out in place that would reduce build out costs on the first floor was also a consideration. 

The Results

Through a search process that took us to other parts of St. Paul (including Energy Park) and Bloomington, we zeroed in on Roseville as the ideal market moving forward and negotiated for an efficient space at Roseville Office Plaza near Rosedale Center. The space and the amenities have been an upgrade for MSAE while keeping costs in-line.

KDV

KDV

The Challenge

KDV is a growing firm in the Twin Cities accounting marketplace. Based out of St. Cloud, the firm had an office at the Quadrant Office Building in Brooklyn Park when they selected Colliers as their tenant representative. I assisted them in relocating their Twin Cities operations to Northland Plaza, a Class A office tower located at France and 494 in Bloomington. The move across town was driven by the acquisitions of other firms in the Southwest suburban market, the desire to upgrade image and locate near potential clients and talent. 

The Results

Our process supported their internal decision making by providing the information needed to determine the ideal new location. The negotiations delivered KDV a space built to suit with a concession package offering better-than-market rent abatement designed to help offset a two-year lease overhang with their Brooklyn Park location. We further supported KDV by marketing and ultimately subleasing 100% of their Brooklyn Park space in spite of challenging local market conditions. 

Hamline University

Hamline

The Challenge

In 2008 Hamline University, the oldest school in the state of Minnesota, was renting space in Minneapolis as part of their overall campus expansion in the Twin Cities. With the main campus in St. Paul, Hamline was renting temporary space in Minneapolis, and found the need to expand their square footage in the Minneapolis area, as they were quickly running out of room. 

Strategy

Select a facility within the Minneapolis and surrounding metropolitan area to meet all requirements of the client.

Services

Colliers International utilized their in-house research capabilities to undergo an extensive search of the area, analyzing all available spaces and the possibility of converting spaces to accommodate Hamline’s MBA program. The Colliers team negotiated lease rates and other deal terms. In addition, the team provided advisory assistance through the duration of the project by working with the architects to design potential layouts and working with the construction contractor through project completion.

The Results

Hamline University signed a 10 year lease on 32,473 sq.ft. in the 1600 Tower located at highways 394 and 100 in Saint Louis Park. The Colliers team was also able to get building signage for this new location for the Hamline MBA program. The new space is allowing Hamline to better serve their MBA students and expand into the future.

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