– Finance & Commerce
Chicago-based LaSalle Investment Management said Monday that it has purchased the 222,000-square-foot Mayo Clinic Square in downtown Minneapolis, the complex formerly known as Block E and at one time nicknamed Block Empty.
LaSalle and seller Camelot LLC, an entity connected to Minneapolis-based developer Alatus LLC, closed the deal on Friday, said LaSalle spokesman Matt Schuler. LaSalle and Schuler declined to state the purchase price. But it likely is well north of the $64 million Alatus invested in the 2010 property acquisition and 2015 redevelopment. The property is nearly full. No certificate of real estate value for the sale had been made public as of Monday afternoon.
Camelot and Alatus principals did not respond immediately Monday to requests for comment on the sale. LaSalle said it was attracted to the building’s proximity to Target Center, among other attributes.
“The building’s synergistic mix of high-quality tenancy and onsite amenities within immediate proximity to local attractions, mass transit and readily available parking will help drive overall asset performance,” David Schreiber, managing director of acquisitions at LaSalle, said in the announcement.
Camelot paid $14 million for the Block E complex at 600 Hennepin Ave. in July 2010 from a lender that had taken control of the property, Finance & Commerce previously reported. Camelot gave the building a $50 million makeover in 2015, transforming its exterior design, interior layout and most of the tenant spaces.
Last week at an event at the University of St. Thomas in Minneapolis, Alatus Principal Bob Lux said Mayo Clinic Square was seeing success with leasing, despite a rough start after the partnership bought it.
“The real estate market was absolutely in the toilet,” he said last Wednesday. “That asset has now done a full circle.”
Mayo Clinic Square was once home to a multi-screen movie theater and numerous restaurants including the Hard Rock Café. The renovation brought in new tenants, including the Mayo Clinic, and the Minnesota Timberwolves and Lynx basketball teams. Mayo opened its Mayo Sports Medicine Clinic in the building, and the teams occupied 107,000 square feet for their training center and corporate headquarters, according to Finance & Commerce archives.
Other new tenants include Starbucks, Jimmy Johns, Kieran’s Irish Pub, and City Works. Link Snacks, maker of Jack Link’s snacks, will open an office and retail store in the building in the near future.
Mayo Clinic Square is 96 percent leased, according to a LaSalle news release.
The property is linked to Target Center and City Center via skyways. It also features a 531-stall parking garage. A Loews Hotel shares the block with Mayo Clinic Square. Before settling on a multitenant, multiuse concept at Mayo Clinic Square, the Camelot group proposed a $352 million overhaul to convert it into a gambling complex. Block E was built in 2001. The block had previously been the site of older retail buildings and the Schubert Theater, and later a surface parking lot.
By: Matt Johnson
Date: Apr 3, 2017
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