Minneapolis, Minnesota (February 16, 2023) – KBS, one of the largest owners and operators of premier commercial real estate buildings in the nation, announces a renewal at Northland Center, a two-building, 492,514 square-foot, Class A office park located in Bloomington, Minnesota, a submarket in Minneapolis.
The agreement was inked by SFM Mutual Insurance Company, which has renewed its lease for 49,490 square feet of space.
The transactions demonstrate the enduring appeal of high-quality, well-located, and expertly managed office properties in key markets throughout the country, according to Giovanni “Gio” Cordoves, Western Regional President for KBS.
“KBS has seen a consistent pattern of companies discovering that bringing teams together in easily commutable and well-amenitized office space promotes collaboration and company culture that translates into business success,” says Cordoves. “This realization is driving long-term office occupancy in markets nationwide by firms who are focused on being at the top of their game.”
The Bloomington submarket of Minneapolis continues to rebound from the pandemic with a 2.70% unemployment rate as of December 2022. The desire to attract and retain high-level talent in a candidate’s market is fueling a flight to quality there, says Ryan Pires, asset manager for Northland Center and assistant vice president of KBS, who notes that the asset recently underwent nearly $1 million in renovations.
“As KBS implemented significant improvements at Northland Center, office users in the area have increasingly expressed interest in this property,” says Pires. “The renovation plan included refreshing the lobbies of both buildings and the addition of 25,000 square feet of innovative spec suite space—a turnkey solution for start-ups and companies rebuilding their businesses after the pandemic. These upgrades have established Northland Center as one of the most desirable office properties in Minneapolis.”
Northland Center is a BOMA International Award-winning office asset located along the border of the highly affluent Edina, Minnesota, close to public transportation. The property provides convenient access to shopping, dining, hospitality, and entertainment options including the Edina Galleria. World-class amenities at the office park include a 40,000 square-foot concourse level offering spacious, naturally lit public areas; a 5,000 square-foot fitness center; a full-service café with catering services; training and conference facilities; a sky-lit atrium lounge with WiFi; on-site carwash and auto spa; heated VIP parking; and a sundry shop with dry cleaning service. The asset, which is LEED-Silver certified and has achieved the UL Verified Healthy Building Mark for Indoor Air, also features secured bike storage, a wellness room, and an outdoor plaza with grill station.
“As ESG grows in importance, office users are increasingly seeking locations like Northland Center, which truly walks the walk as a sustainable property with a positive impact on the environment,” says Bill Rothstein, executive director of Cushman & Wakefield, which represented KBS in the leasing transactions. “KBS’ deep expertise in asset management ensures this property provides the location, amenities and service tenants are seeking in this market.”
Northland Center is located at 3500 & 3600 American Boulevard West, Bloomington, Minnesota.
Please find photos of the property here.
KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $44.5 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates prime commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships, and its constant focus on exceeding the expectations of its investors, partners, and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS’ ability to invest in and manage a diverse portfolio, and the performance of Northland Center and of the Minneapolis, Minnesota real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause Northland Center’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.