MINNEAPOLIS, MN, February 27, 2008 – GE Real Estate announced today it provided a $28.5 million fixed-rate, on-book loan to City Center Retail for the acquisition of a mixed-use property located in the historic Warehouse District submarket of downtown Minneapolis, MN.
The property, originally built in 1902 as a John Deere factory, was renovated in 1999 and now contains 316,375 square feet of office and retail space. It also has a five-level parking garage, built in 2001, with a covered walkway to the main building. The more than 40 tenants include design firms, modeling agencies, architects and other creative and professional firms.
City Center Retail’s strategy is to bring the property’s below-market rents and occupancy to market levels. As part of this plan it will invest $4 million in renovations and upgrades, and has hired United Properties, the top leasing company in Minneapolis, to help them build a strong tenant base.
This is the first transaction between GE Real Estate and City Center Retail, whose principals have been involved with the development, redevelopment and acquisition of more than $1 billion of commercial real estate transactions nationwide. The deal was brokered by Scott McMullin, an executive managing director, and John Crump, an associate director; both with Holliday Fenoglio Fowler, L.P.
“We had done other deals with Scott before, who felt 800 Washington was a good fit for GE’s on-book fixed-rate program,” said Sig Anderson, a principal at City Center Retail. “It was a great experience working with the GE Real Estate team and we look forward to growing this relationship.”
“This building is a unique asset located along the main artery in the Warehouse District, where vacancies have been declining,” said Nathan McElmurry, director, GE Real Estate. “City Center has the track record and strategy to take advantage of the property’s high upside potential.”
GE Real Estate’s North America Lending division offers financing for retail, industrial, self-storage, multifamily, office, student housing, regional malls and outlet centers. North America Lending is also a provider of financing solutions for niche asset classes including affordable housing, golf, hospitality, vacation ownership, manufactured home communities and RV resorts.
GE Contact:
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John Oliver
Office: 203/750-3089
Cell Phone: 203/984-7757
john.oliver@ge.com
For other inquiries please call 1-888-GE-First extension 333
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Richard Ringer
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About GE Real Estate
GE Real Estate (
www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$79 billion in assets and a presence in 32 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (
www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$310 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of GE (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.
About HFF
HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.
