KBS Real Estate Investment Trust III announced this week that it had acquired RBC Plaza, a 40-story building that contains 609,368 square feet of office space and 68,677 square feet of retail and amenity space above an underground parking structure. The full contract price for the sale was reported at $126.5 million, according to a CoStar report. Tom O'Brien and Terry Kingston with Cushman & Wakefield / NorthMarq, along with Mike Winn and Tim Richey with Cushman & Wakefield / Denver, represented the seller, Brookfield Office Properties. KBS Realty Advisors handled the acquisition in-house.
"Brookfield, the seller, has done a wonderful job of running the asset, however the pending closing of one of the anchor retailers provides an exciting opportunity to rethink the four-story retail section of this project," said Rodney Richerson, KBS regional president. "We believe we have a great opportunity to convert some of the upper-level retail floors into creative office space, along with creating a primary entrance off of Nicollet Mall and improving the overall retail mix. In addition to these improvements, we anticipate adding stronger office amenities, conference rooms, a fitness facility and some lobby renovations that will cost approximately $3 million dollars."
RBC Plaza is a 678,045-square-foot mixed-use property in downtown Minneapolis located at 60 South 6th Street. The building is strategically located in Minneapolis' financial district along Nicollet Mall, downtown's most popular and well-known shopping district. Built in 1991, the building was 83% leased to 34 tenants who pay a total of about $8.6 million in rent annually, as of January 1. Tenants include RBC Wealth Management, Marquette Financial Companies, and Fish & Richardson. KBS plans to invest approximately $26.6 million in renovations over the next four years, which will include converting about 32,000 square feet of retail space into office space, KBS said in its SEC filing.
For more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment