The seller was Zeller Realty Group, a privately held company based in Chicago. Behringer Harvard, a real estate investment trust based in the Dallas area, retained Zeller to manage One Financial Plaza.
"One Financial Plaza provided us with an attractive opportunity to acquire a stabilized asset in the vibrant central business district of Minneapolis," says Robert Behringer, the chairman and chief executive officer of Behringer Harvard.
One Financial Plaza, originally constructed for First National Bank in 1960, received a $23-million renovation program in 1991 and additional capital improvements of $3.8 million in 1996. The property is located across the street from a light rail transit station, and various skyways provide convenient access from the Plaza to other structures across Second Avenue, Fifth and Sixth streets, and Marquette Avenue.
Behringer cited the building's minimal tenant rollover in the next three years as well as the resurging market seeing increased leasing activity as additional factors that attracted the purchase.
Behringer Harvard put $2.5 million down on its purchase offer July 12, and then paid another $2.5 million Aug. 1 just prior to completing the deal, according to filings with securities regulators.
Behringer Harvard, through its REIT or funds, also owns other properties in the Twin Cities area, including Minnesota Center at 7760 France Ave. S in Bloomington, Lawson Commons at 380 St. Peter St. in St. Paul and an office building at 601 Second Ave. S. in Hopkins. Behringer Harvard has commercial real estate properties in Atlanta, Baltimore, Denver, Houston, Los Angeles, St. Louis and Washington, DC.
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