Carlson May Sell 5.5M-Sq.-Ft. Real Estate Portfolio

Carlson Real Estate Company is working with an investment banking firm to assist it in exploring "strategic alternatives" regarding its real estate portfolio, which includes a 36-story complex in Minneapolis containing the Radisson Plaza Hotel and Plaza Seven Office Tower.

Carlson Real Estate Company (CREC) said Friday that it is exploring the sale of a 5.5-million-square-foot real estate investment portfolio.

The Minnetonka-based company has engaged Eastdil Secured, a New York-based investment banking firm, to assist it in examining “a full range of possibilities,” which could include a sale of the entire portfolio or just portions. The company said it is also open to the possibility of joint-venture ownership arrangements.

CREC is a subsidiary of Carlson, a global hospitality and travel company and Minnesota's third-largest private company based on revenue, which is estimated to exceed $4 billion annually.

CREC's portfolio includes office and industrial properties in Minnesota, Arizona, and North Carolina. In Minnesota, it includes several properties at the Carlson Center, a business park surrounding Carlson's Minnetonka headquarters. It also involves a 36-story complex in Minneapolis containing the Radisson Plaza Hotel and Plaza Seven Office Tower.

There is currently no listing price for the portfolio, and the company declined to comment on its value.

The 5.5-million-square-foot portfolio that CREC is considering selling represents most of its holdings: CREC spokeswoman Josie Hemmingsen told Twin Cities Business on Monday that CREC's holdings encompass more than 6 million square feet.

CREC said that the move is meant to help align its future real estate investments with Carlson's enterprise-wide objectives.

“This is an exciting time for Carlson Real Estate,” Matt Van Slooten, president of CREC, said in a statement. “We are exploring new forms of financial arrangements from what we've had in the past, with the goal of maximizing the potential of our real estate business.”