Zeller Realty Secures Refinancing for LaSalle Plaza
- May 29, 2012
By Gabriel Circiog, Associate Editor
Chicago-based Zeller Realty has secured refinancing for LaSalle Plaza from a unit of Minneapolis-based U.S. Bancorp, U.S. Bank Commercial Real Estate. While terms of the deal were not disclosed, the Minneapolis / St. Paul Business Journal reports the loan is estimated to be worth around $92 million.
Located at 800 LaSalle Ave., the 30-story Class A office tower was acquired by Zeller Realty Group in November 2006 for an estimated $100 million. LaSalle Plaza has 588,908 rentable square feet, and offers easy access to Nicollet Mall, expressways and mass transit. The property, which includes three levels of parking with 343 spaces, is around 95 percent leased; it was just 65 percent occupied when Zeller acquired the property.
As previously reported by Commercial Property Executive, Zeller and Dallas-based Invesco recently acquired the 1.1 million-square-foot Fifth Street Towers at a sheriff’s auction for approximately $111 million. Zeller plans to relocate its Minnapolis office from LaSalle Plaza to Fifth Street Towers sometime this summer.
Coupled with the fact that the company has secured permanent debt financing for LaSalle Plaza and with the pent-up demand from buyers to own well-leased office properties, it would be safe to assume Zeller plans to cash out on LaSalle. Jim Gearen, president of Zeller, however, insisted LaSalle Plaza is part of the permanent portfolio and wont’ be sold. He explained the company is relocating from LaSalle due to a huge demand for space in the tower. The two office buildings, which make up Fifth Street Towers, are between 60 and 65 percent occupied.
Photo Courtesy of: www.zellerrealty.com
For more market data on Minneapolis, please click here.