MINNEAPOLIS-Invesco Ltd., joined by minority investors WL Ross & Co. LLC and Zeller Realty Corp., have a plan to lease up the 65% occupied Fifth Street Towers here. The venture purchased the 1.1-million-square-foot office complex at 100 and 150 S. Fifth St., for $110.7 million at a foreclosure auction.
CBRE Investors Inc. sold the two-tower complex, built in the mid-1980s, to Strategic Real Estate Advisors for $186 million in 2007. Quest Communication vacated 200,000 square feet, leaving the site at 75% occupied in 2009.
The Invesco-led venture is planning to reposition the property by providing capital necessary for leasing, according to a statement. James Gearen, president of Zeller, said his firm’s experience in Minneapolis should also help with leasing up the buildings. “Most recently, we took LaSalle Plaza from 65% to 95% occupancy,” he said.
Invesco and WL Ross teamed together on the Invesco Mortgage Recovery Fund to provide most of the capital for the Towers buy. Zeller will assume management and leasing responsibilities for the property.
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