ST. PAUL, MN-The Piper Jaffray Plaza building, one of the landmarks in the Downtown office landscape, was sold recently for $16.3 million to an investment group including MOT Partners and United Properties, a Bloomington, MN-based commercial real estate firm. The St. Paul Port Authority, which sold the 224,000-sf building, thought it was a good time to sell given the recent rise in occupancy rates and property values Downtown, as well as the uncertainly facing the market now.

“The Saint Paul office market has seen, over the past six to seven years, a dramatic growth in occupancy, rental rates and values,” says Bill Morin, the port’s director of real estate. “And we were able to take advantage of that growth in value to the benefit of our bondholders.”

Since the “future real estate market is difficult to predict,” Morin says the sale is in the range of what the net present value of future cash flows could be.

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