KBS Strategic Opportunity REIT, a publicly registered non-traded real estate investment trust, has purchased Marquette Plaza, a Class A office tower in Minneapolis, for $88.4 million.
Marquette Plaza is an architectural landmark comprised of 15 floors and totaling 523,000 square feet. The property sits on a 1.5-acre park, the largest green space in the Minneapolis Central Business District submarket.
Marquette Plaza has an underground parking garage and direct connection to the Skyway, an enclosed sidewalk covering 9.5 miles. The property is located at the cross-roads between the North Loop neighborhood and the Nicollet Mall, which is currently undergoing a $50 million renovation.
“We’ve seen such a lure to the Minneapolis market in recent years, which is likely due to the large amount of economic investment in the area and employers’ desire to attract and retain top talent that want to work in a thriving, vibrant neighborhood,” said Shep Wainwright, senior vice president for KBS and asset manager for the property.
Wainwright noted that KBS plans to add a new tenant lounge, a state-of-the-art fitness facility, and updated lobbies and common areas.
In related news, the company recently disclosed plans to purchase City Tower, a nearly 430,000-square-foot office building in Orange, California, for approximately $147.3 million.
KBS Strategic Opportunity REIT went effective in November 2009 and closed its primary offering three years later after raising $574 million in investor equity. As of the third quarter 2017, the company owned 20 properties with an investment cost of $1.2 billion, according to Summit Investment Research.