Normandale Lake Office Park Fetches $268M in JV
- Sep 04, 2012
By Lynn Armitage, Contributing Editor
If you do business in the Twin Cities, you’ve undoubtedly heard of Normandale Lake Office Park, the premiere business complex in Bloomington, Minnesota, that is home to more than 85 companies, including Oracle Corporation and Prime Therapeutics.
Last Thursday, an affiliate with Equity Group Investments, the private investment firm founded by Chicago billionaire Sam Zell more than 40 years ago, acquired Normandale Lake, the largest Class A office asset in the Minneapolis market, in a joint venture for $268 million — exceeding the $255 million estimate industry sources had expected the office complex to command in the sale.
“Normandale is the premier office environment in the Minneapolis market,” said David Helfand, EGI’s co-president who led the joint venture with GEM Realty Capital Inc., and Perennial Investments and Advisors. “We are committed to maintaining the park’s premium market position and exceptional reputation.”
So what will EGI get for its considerable investment? Normandale Lake is a 1.5 million-square-foot office complex that consists of five towers connected by enclosed skyways –- each with an attached parking garage. The entire campus sits on 23 acres overlooking a 2,500‐acre recreational area. Stand-out amenities within the office park include first-class restaurants and delis, child care, conference centers, exercise facilities, convenience stores, and nearby walking trails and paths.
With such attractive bells and whistles, it’s easy to see why Normandale Lake is already 84 percent leased, and many of the largest tenants have been leasing for more than 20 years.
“The complex has a long track record of successfully serving the needs of the area’s most prestigious tenants,” said Helfand.
Normandale Lake Office Park currently has available floor-plates ranging from approximately 20,000 to 28,000 square feet, and contiguous spaces of up to 75,000 square feet. The entire campus is easily visible from I-494 and Highway 100 in Bloomington, and is 10 minutes from the Minneapolis airport, 13 miles south of downtown Minneapolis.
Its new owner, Equity Group Investments (EGI), has a diverse portfolio spanning industries and continents with interests in real estate, energy, logistics, transportation, communications and health care.