601 Tower at Carlson Center
601 Carlson Parkway, Minnetonka, MN 55305
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%