LaSalle Buys Innovative Twin Cities Property
Amazon occupies about half of the modern, wood-based building.
MINNEAPOLIS—LaSalle Investment Management recently acquired T3, a 222,000-square-foot, class A, mixed-use office project in Minneapolis’ North Loop neighborhood. Amazon occupies about half the property, which LaSalle purchased on behalf of its US core open-end real estate fund, LaSalle Property Fund.
When completed in 2016, T3 was billed as the largest wood building constructed this century and it epitomizes many of the changes in the modern office market. More firms, especially in the tech world, aim to attract employees by providing comfortable brick-and-timber surroundings. Furthermore, most millennials prefer “cool” neighborhoods, such as North Loop or Chicago’s Fulton Market, that were formerly dedicated to warehouse and industrial uses. And today, North Loop is both an office hub and a real neighborhood that provides many living options.
“T3 is an excellent fit for our portfolio, enabling us to increase LPF’s exposure to high-quality creative office properties in desirable markets,” says Jim Garvey, portfolio manager for LPF. “Also, this property offers a durable income stream plus mark-to-market leasing opportunities that provide upside potential.”
The North Loop submarket has become a hub for mixed-use development given its strong access to shopping, entertainment, amenities and transit, LaSalle officials say. Amazon has a long-term lease and features roughly 10 years of weighted average lease term with strong future growth potential.
“This class A, modern timber office building is a perfect complement to the dynamic North Loop neighborhood, which has emerged as among the most attractive CBD submarkets given its vibrant mixed uses and superb access to mass transit, local amenities and major entertainment venues,” adds David Schreiber managing director of acquisitions at LaSalle. “T3 exemplifies the character and quality demanded by today’s tenants, while the property’s unique features and high occupancy position it well for strong long-term investment performance.”