Rasmussen and Tom Immen, a vice president of Grubb & Ellis/Northco, represented Fairview in the deal while Doug Fulton of Northstar Partners represented Qwest.
The move will consolidate into one location some of the nonprofit healthcare company's administrative functions, such as finance, real estate and data center and alleviate overcrowding at its Fairview-University Medical Center in the Riverside area of Minneapolis, says Steve Borgstrom, vice president and treasurer at Fairview. Some of the space will be converted to medical uses. The new deal will also allow the healthcare company to exit about 60,000 sf of leased space in various locations spread throughout Minneapolis, Borgstrom says.
"It's an intermediary move," says Rasmussen, who worked as Fairview's broker. At the end of the lease, Fairview will review its options, she adds.
Borgstrom says the move would buy time for the company to find a site to consolidate all of its some 1,200 corporate employees. A key issue yet to be resolved is whether a new headquarters campus should be close to its hospital operations, he adds.
The move will be done in two phases, with the first beginning early this summer and the last to be completed by October. The second phase will include some construction work that will be done by Carlson-LaVine Inc., a contractor based in St. Paul.
Two buildings are involved--a 60,000-sf data center at 323 Stinson and office space at 400 Stinson, Rasmussen notes. The "very economical" deal included furniture, fixtures and equipment, she adds.
Qwest, which has been shedding real estate since the bust of the telecommunications boom, will retain its lease with Rreef, the owner of the buildings. The telecommunications company will have to relocate some staff that is currently occupying some of the space, Rasmussen says.
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