Artis REIT Continues Purchase Spree in MN

Artis Real Estate Investment Trust is purchasing an office building-605 Waterford Park-in Plymouth and a portfolio of five shopping centers in the Twin Cities for a combined $53.3 million.

Winnipeg-based Artis Real Estate Investment Trust is expanding its Minnesota property portfolio with two recent acquisitions-605 Waterford Park in Plymouth, for which it will pay $25 million, and five shopping centers, for which it will pay $28.3 million.

The Canadian company announced the acquisitions on Wednesday.

605 Waterford Park is a 12-story, 199,365-square-foot office building located near Interstate 394. According to Artis, the building is 87.3 percent leased to several national and regional tenants, including SHPS, Spanlink, Winmark, and U.S. Energy.

The acquisition, which is expected to close by June 1, will be financed using a combination of cash on hand and a five-year, $17.3 million mortgage. Utah State Retirement Fund is the seller.

The shopping center portfolio is being purchased from Ryan Companies, Inc., and includes five centers that are anchored by SuperTarget stores.

The five centers total 508,862 square feet of leasable space and are 98.7 percent occupied by mostly national tenants, including Home Depot, Best Buy, OfficeMax, PetSmart, and Caribou Coffee. That deal-which is being financed by cash and a five-year, $19.8 million mortgage-is expected to close by June 15. The locations of the acquired shopping centers were not disclosed.

Several media outlets report that Artis bought 25 commercial buildings last year in the Twin Cities from San Francisco-based AMB Property Corporation for $115 million. Those buildings, which were estimated to comprise half of AMB's local properties, total 2.3 million square feet.

A Friday morning phone call to confirm the detail of that deal with an Artis representative was not immediately returned, but Finance and Commerce reported that the final part of the deal closed in March.