(For more retail coverage, click GlobeSt.com/RETAIL.)
MINNEAPOLIS-Geneva Exchange Inc. has purchased International Market Square, a 301,000-sf mixed-use office and retail property, for $27.6 million. The seller was Market Square Real Estate Inc., an investment group led by Mark Reiling, a principal in Colliers Turley Martin Tucker's Minneapolis office.
Dawn Campbell, Geneva's executive vice president of sales and marketing, says the unique property is a good fit for Geneva's portfolio, which comprises stable assets primarily located in the upper Midwest. International Market Square, which was redeveloped into a design center in the mid-80s, is currently 98% leased to a mix of interior designers and decorators, architects, builder/contractors and developers.
"There is tremendous demand in the TIC marketplace for stable assets like International Market Square," she says. "Historically, the property has maintained leasing in the mid to high 90% range, which translates into a stable stream for investors looking for predictable cash flow under a passive ownership system." Geneva has retained Colliers Turley Martin Tucker to continue leasing the property, which is on a 7.6-acre site at Glenwood and Lyndale avenues.
The deal includes four buildings of a five-building complex built between 1905 and 1915. It does not include the Lofts at Market Square, a 96-unit residential project, Campbell says. The complex originally served as a manufacturing facility and corporate headquarters for Munsingwear Inc.
Geneva Exchange Inc. is an affiliate of the Geneva Organization, a locally based sponsor of TIC investment opportunities. Campbell says that Geneva, which currently owns about $500 million in TIC assets, has plans to add $300 million in assets to its portfolio in 2007.
The company recently announced plans to open regional sales offices in New York City and Los Angeles to better serve investors on the coasts. Those offices are expected to be fully operational by the second quarter.
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