DC-Based Investment Company Trimming Workplace Holdings as Part of Portfolio Rebalancing Effort
San Francisco-based Shorenstein has bought the Capella Tower, one of the most distinctive buildings in downtown Minneapolis, from ASB Realty Investments.
Washington D.C.-based ASB on Friday announced the deal to sell the 58-story Class A structure at 225 S. Sixth St., which it has actually owned since 2006. The sale included an adjoining 20-story structure occupied by the Star Tribune newspaper.
The 2 structures cover 1.4 million square feet, which exercises to about $182 per square foot. Capella Tower was valued at $244.6 million for taxes payable in 2018, according to Hennepin County records.
The tower’s illuminated crown has actually beautified the city’s horizon because building on the structure involved the early 1990s. Its namesake, Capella University, occupies about 348,000 square feet and has actually had naming rights to the structure given that 2008.
The building is 86% occupied, inning accordance with recent CoStar information.
ASB bought the structure for $245 million from then-owner Hines, based in Houston. Executives from ASB and Shorenstein were not immediately readily available for remark, but in the announcement, ASB stated the company was encouraged to offer in an effort to rebalance its portfolio. Workplace stock made up about 36.3% of its holdings since Dec. 31, inning accordance with the ASB website, which also indicated that the companies is looking to cut that proportion down to 20%.
“Capella had become a less tactical investment from a portfolio diversity standpoint, and the current market characteristics provided a great chance to sell and redeploy capital,” Larry Braithwaite, senior vice president and portfolio manager of ASB’s Allegiance Fund, stated in the release.
This seems the 3rd big workplace sale by ASB in 2018. In late January, ASB offered 900 G Street, a 112,635-square-foot office complex in Washington DC’s East End submarket for $144 million to an affiliate of Masaveu Real Estate US. ASB likewise is under contract to offer the 1.6 million-square-foot Infomart data center and office complex in Dallas to Equinix for $800 million. Nevertheless, ASB also purchased an office building at 64 New York Ave. NE in Washington DC in December for $186.3 million.
Shorenstein owns two other residential or commercial properties in Minneapolis in addition to Capella: Washington Square, a 1.1 million-square-foot workplace complex at 100 Washington Ave. S., and the Maverick Apts., a 168-unit high-end apartment in the North Loop district.
Please describe CoStar Compensation # 4144482 for additional information on this transaction.