As part of the new lease, the tower will be renamed Capella Tower. Capella Education Co. is the parent company of Capella University, which is based online.
Hauschild and Dan Johnson represented Capella in the lease transaction. Bob Pfefferle and Mike Julius, both with Hines, represented building owner ASB Capital Management. Capella has leased space in the building since 2004 and currently occupies 203,000 sf.
The company is also currently leasing 92,000 sf in the Campbell Mithun Tower, 222 S. Main St., here, and will be consolidating into the building at 225 S. Sixth St. Capella will be moving into the expanded space in January 2009; at which point, more than 1,150 employees for the company will be located in the tower.
Capella chose to consolidate into the building at 225 S. Sixth St. for a few reasons, including the infrastructure, economics, property management, image and location, Hauschild tells GlobeSt.com. The building is located near public transportation, which a substantial amount of Capella's employees use, he says. ASB offered a "nice package of incentives at very competitive economics all the way around," he says.
The asking lease rate for the building ranges from $14 per sf to $20 per sf, net, Pfefferle says. The building is currently 85% occupied with major tenants including Price Waterhouse Coopers, Merrill Lynch, IBM, law firm Winthrop & Weinstine and account firm Virchow Krause, Pfefferle says.
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