Mayo Clinic Square Sells To Chicago-based LaSalle Investment Management
A Chicago-based real estate investment management group purchased Mayo Clinic Square, the mixed-use property across the street from Target Center in downtown Minneapolis.
LaSalle Investment Management did not disclose how much it paid for the 220,000-square-foot space, which was formerly known as Block E. However, sources close to the deal told the Star Tribune the sale closed on Friday with a $98 million price tag.
If true, it would mean a significant return on investment for two Minneapolis-based real estate developers, Alatus LLC and Camelot LLC. After purchasing the space in 2010 for just $14 million, the companies put $50 million into redeveloping the space in 2015, revamping its interior and exterior.
Altogether, the four-story property is 96 percent leased with eight tenants: Mayo Clinic, Jack Links, HDR, Taylor Sports Properties (parent company of the Minnesota Timberwolves and Lynx), Starbucks, Jimmy Johns, Kieran’s Irish Pub and City Works.
The space also includes a 531-stall parking garage and a long-term lease to three digital billboards that are attached to the building.
“We are very pleased to have completed the acquisition of this unique and exceptionally-positioned asset on behalf of our client,” said Mark McGruder, portfolio manager at LaSalle, in a statement. “Mayo Clinic Square represents a tremendous opportunity to grow our client’s exposure to the high-quality, infill urban property market, with this amenity-rich location, exciting tenant roster, and durable profit income.”