Sale points to rising investor interest in Twin Cities
CHICAGO (December 18, 2015) – Chicago-based Golub & Company, an international real estate investment and development firm, and Oaktree Capital Group LLC, a global investment management company, announced the acquisition of RSM Plaza (formerly McGladrey Plaza), a 415,000-square-foot office tower and 850-stall parking ramp at 8th Street and Nicollet Avenue in downtown Minneapolis. Golub purchased the building from United Properties in a transaction that represents the largest company-owned asset that United Properties has sold in its nearly 100-year history. Broker Scott Pollock of Cushman & Wakefield/NorthMarq represented United Properties in the building sale, while Vice President Adam Short led the Golub acquisition team.
“Our office sector investment strategy is focused on well-located properties that have outperformed the broader market in terms of occupancy and offer attractive income growth opportunities,“ said Michael Newman, President and CEO of Golub & Company. “RSM Plaza aligns with this strategy, offering high occupancy and stable rental income.“
“RSM Plaza has been an important investment asset for us for two decades,” said John Saunders, senior vice president, United Properties, who managed the sale. “The sale is part of our strategy to redeploy assets toward recent development projects.”
United Properties’ CEO Frank Dutke handled the December 1994 purchase – when it was known as Midwest Plaza – from lender Goldman Sachs, which had repossessed the property in the late 1980s during the savings and loan crisis. United Properties then carried out a major renovation and upgrade to the building, common areas and systems.
Tenants in RSM Plaza include RSM (formerly McGladrey), Amec Foster Wheeler, Unilever, the Clorox Company, Abbott Nutrition, Portico Benefits, First American Title Insurance Company, Panera Bread, and Barnes & Noble, among others. Golub and its partners will conduct a $10-million renovation, expected to be completed in mid-2017. The renovation will include improvements to the building common areas as well as the addition of modern amenities such as a fitness center, conference center, tenant lounge and improvements to the parking garage and retail areas. Together with the building’s ‘Main and Main’ location, the renovation is expected to increase the building’s appeal to Minneapolis office users.
About United Properties
United Properties, based in Minneapolis, specializes in commercial real estate development and investment. Since 1975, United Properties has provided development services for the retail, residential, office, medical and industrial sectors. In addition to a large presence in the Minneapolis-St. Paul market, United Properties’ Colorado division develops retail, office and industrial buildings. Formed in 1916, the United Properties investments group acquires, manages, finances and disposes of the company’s real estate investments, which includes nearly 50 office, medical, industrial and retail assets in Minnesota, Wisconsin, Illinois and Colorado. For more information, visit www.uproperties.com or follow on Twitter at @UPDeepRoots.
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of September 30, 2015. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 17 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com.
About Golub & Company LLC
Chicago-based Golub & Company and its affiliates are active internationally in real estate development, acquisitions, asset and property management, leasing and corporate real estate services. Since its founding more than 55 years ago, the company has owned, leased or managed more than 50 million square feet of commercial and multi-family real estate properties valued in excess of $10 billion. For more information visit www.golubandcompany.com.
For Golub & Company
Patricia Agos, Akrete
For United Properties: