The complex--now called the Waters Corporate Campus--has been on the market since the fall of 2002. Given its layout (four interconnected buildings) and parking constraints, the complex is designed for use by one user, Carlson says. Also, there was a lack of buyers interested in moving to Minnesota due to taxes and labor costs, he says.
Although the terms of the deal were not revealed, Ecolab officials said the Eagan complex was "reasonable--very reasonable." The complex had been listed at $38.5 million on the Welsh's Web site. Nancy Miller of United Properties, the Bloomington, MN-based commercial real estate firm, represented Ecolab in the deal.
In 1989, Cray paid about $100 million to build the complex. The building became an asset of Silicon Graphics when that firm bought Cray in 1996, and Silicon Graphics sold it for $38 million to an Internet company called WamNet, an Internet transporter of large corporate data files. WamNet then sold the complex to J.P. Morgan, and signed a 20-year lease on it, Carlson says.
WamNet last summer sold its main business to Virginia-based Savvis Communications, and no longer occupies any space in the building. According to Dakota County assessor records, the building's market value last year was $27 million.
The building has one tenant, Bull Services, a subsidiary of Integris, which leases about 20,000 sf, Carlson says. The tenant is on a year-to-year lease, according to Ecolab. Ecolab officials say they hope to finalize the deal by the end of this month.
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