Sale Attracts Record Price for Single Office Asset in Minnesota, Marks HNA Group’s Entry Into the Minneapolis-St. Paul Office Market
Minneapolis – November 9, 2016 – CBRE Capital Markets’ Institutional Properties team announced that it has arranged the sale of 33 South Sixth–City Center, a 51-story, Class A office tower and mixed-use complex in downtown Minneapolis, to HNA Holding Group Co., Ltd., a subsidiary of conglomerate HNA Group, for an undisclosed amount.Tom Holtz, Ryan Watts, Judd Welliver and Sonja Dusil of CBRE’s Minneapolis office represented the seller, Shorenstein Properties LLC. The sale, which closed November 9, is HNA Group’s first office acquisition in the Minneapolis-St. Paul market.
“This sale further demonstrates the health of the Twin Cities market and its attractiveness to foreign capital such as HNA,” said Mr. Holtz, executive vice president, CBRE Capital Markets.
HNA also hired CBRE’s Asset Services team in Minneapolis, led by Managing Director Dan O’Neill, to manage the newly acquired asset.
Located at 33 South Sixth Street alongside the Nicollet Mall, the 1.6 million-square-foot mixed-use complex is the largest building in the Minneapolis CBD and is currently 95 percent occupied. Minneapolis-based Target Corporation occupies 73 percent of the 1.2 million-square-foot office tower on a long-term lease. The property also includes City Center, a 272,767-square-foot urban retail destination, and a 687-stall parking structure.
Shorenstein originally acquired 33 South Sixth in November 2012 on behalf of its tenth investment fund, Shorenstein Realty Investors Ten, L.P., and repositioned the retail portion of the asset which included bringing in new retailers such as Saks Off Fifth; negotiating a 15-year lease with Target for 73 percent of the building’s office space, and implementing a series of measures designed to improve the tenant experience. Late last year, Shorenstein separately sold a ground lease within the City Center complex to Host Hotels & Resorts. The ground lease is occupied by the Minneapolis Marriott.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About HNA Group
HNA, a Fortune 500 Company and a leader in aviation and tourism, was founded in 1993. Over the past two decades, it has grown from a local aviation transportation operator into a multinational conglomerate encompassing tourism, holding, capital, logistics and EcoTech. In 2015, HNA had revenues of nearly RMB190 billion (USD29.5 billion), total assets of over RMB600 billion (USD93.3billion) and employed nearly 180,000 employees worldwide. HNA Group has ranked 353 according to Fortune Magazine released in July, 2016.
About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm active nationally in the ownership and management of high-quality office properties, with offices in San Francisco and New York. Starting in 1992, Shorenstein has sponsored eleven closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. Shorenstein uses its integrated investment and operating capabilities to take advantage of those opportunities which, at the particular time in the investment cycle, offer the most attractive risk-adjusted returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 63.2 million square feet in transactions with a gross investment value in excess of $14.9 billion.
