601 Tower at Carlson Center

601 Carlson Parkway, Minnetonka, MN 55305

Property Overview

KBS REIT II signed new, renewal, or expansion leases covering nearly all of the project’s rentable area.

From acquisition to disposition, KBS REIT II increased occupancy from 90% to 99%, in-place rents from just above $17/sf/yr to more than $19/sf/yr, and annual NOI by more than 20%.

Extended the average remaining term of major tenants with more than five percent of the net rentable area from 42 months at acquisition to 64 months at disposition – a more than 50% increase.

Held building capital expenditures more than 50% below pro forma through preventative maintenance of building systems and a focus on aesthetic improvements to support the marketing and leasing of the asset.

Market leading rental rates with recent deals completed at or above $20/sf/yr.

Investment at a Glance

Location: Minnetonka, MN

Property Type: Class A Office

Acquisition Date: February 3, 2011

Purchase Price: $54,403,000

Sale Date: June 11, 2014

Sale Price: $75,000,000

No. of Buildings: 288,458 SF

Leased Percentage (at the time of Acquisition): 90%

$54,403,000 Total Purchase Price
288,458 square feet Total Rentable Area
Class A Building Class