Mingtiandi

Asia real estate and outbound investment news

  • Facebook
  • LinkedIn
  • RSS
  • Twitter
Sign Up / Login Logout

Lost your password?
Register
Forgotten Password
Cancel

Register For This Site

A password will be e-mailed to you.

  • Capital Markets
  • Events
    • Mingtiandi 2022 Event Calendar
    • APAC Residential Forum 2022
    • Asia Logistics Forum 2022
    • Asian Capital in Australia Forum 2022
    • Asia REIT Forum 2022
    • APAC Data Centre Forum 2022
    • Singapore Focus Forum 2022
    • Office Strategies Forum 2022
    • More Events
  • MTD TV
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail
  • Research & Policy
  • Advertise

Singapore’s Mapletree Buys Minneapolis Office Tower for $259M

2018/01/08 by Greg Isaacson Leave a Comment

Mapletree boss Edmund Cheng may need that sweater to visit his company’s latest acquisition

Minnesota’s record-breaking spell of arctic weather may have prompted a state of emergency last month, but it didn’t stop Singapore’s Mapletree from venturing into the midwestern US state for a major property deal.

The US unit of the real estate group has purchased 50 South Sixth, a 29-storey office tower in downtown Minneapolis, from Hines Global REIT for $258.5 million. The transaction closed on December 20, according to a certificate of real estate value cited by Minnesota business publication Finance and Commerce.

The deal is one of the largest-ever acquisitions of a downtown property in the city, after China’s HNA Group scooped up 33 South Sixth Street (City Center) just across the street for $315 million in 2016.

Mapletree Buys a Piece of Downtown Minneapolis

Completed in 2001, the grade A tower is located at Sixth Street on the Nicollet Mall, a pedestrian and shopping street in the city’s downtown core. The Skidmore, Owings & Merrill-designed building is the 18th-tallest in Minneapolis and spans 698,606 square feet (64,903 square metres) of grade A space.

Built in 2001, 50 South Sixth changed hands for more than a quarter-billion dollars

Mapletree Investments, which is backed by Singapore’s Temasek Holdings, purchased 50 South Sixth via its subsidiary Mapletree US Management LCC, paying the equivalent of about $370 per square foot. Houston-based Hines Global REIT had purchased the building in 2010 from Germany’s KanAm Grund for $180 million, after the latter acquired it from Sixth & Nicollet in 2005. The local county estimated the building’s market value at $145 million in 2018 for tax assessment purposes.

The tower in the US’ most arctic major city is about 93.4 percent leased by tenants including law firms Dorsey & Whitney and Stinson Leonard Street, BMO Harris Bank and consultancy Deloitte, according to data from CoStar. Stinson Leonard Street recently took up 108,000 square feet on a 16-year lease, which is said to have boosted the property’s value, creating an opportune moment for the disposal.

Mapletree’s deal represents one of the highest prices ever paid for a property in the Twin Cities market of Minneapolis and Saint Paul, topped in recent years only by Hainan-based HNA Group’s purchase of 33 South Sixth Street in November 2016. The acquisitive mainland conglomerate bought the 50-storey tower, the fourth tallest building in Minneapolis, from San Francisco’s Shorenstein Properties — and reportedly may soon put its North Star State asset on the market again as the company looks to reverse a $6 billion global deal spree.

Singaporean Firm Builds US Presence

Mapletree is not new to Minneapolis, having bought a trio of residential properties in the city from Kayne Anderson Real Estate Advisors as part of a North American portfolio deal in June 2017. Through that transaction, Mapletree acquired eight student housing assets and four multi-family assets primarily in the US, including two student communities located near the University of Minnesota in Minneapolis.

Mingtiandi Membership 320x320 v2

Also included in Mapletree’s earlier deal was Latitude 45, a 318-unit luxury apartment project on downtown Minneapolis’ Washington Avenue. The sale formed part of a $1.6 billion series of transactions with Kayne Anderson since November 2016, as Mapletree expands its overseas portfolio.

The Singaporean giant has acquired a taste for other niche property assets abroad, buying a portfolio of 18 data centres in the US for $750 million last October in partnership with Mapletree Industrial Trust (MIT), a listed vehicle it manages. As of March 2017, Mapletree owns and manages S$39.5 billion ($28.3 billion) of properties across a wide range of asset classes worldwide.

Share this now

  • LinkedIn
  • Share
  • Tweet
  • Email

Filed Under: Outbound Investment Tagged With: Featured, Hines, Mapletree Investments, Minnesota, weekly-sp

https://player.vimeo.com/video/644203510?h=bc8945e2fd

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Mingtiandi Delivered

MTD TV

mtd tv dc forum north asia panel thumbnail

Hyperscalers Shaping Data Centre Demand in North Asia: MTD TV

MTD TV proptech show

COVID-19 Accelerates Proptech Adoption in Asia: Watch on MTD TV

More MTD TV Videos

Latest Stories

Matthew Zann Big Screen 3

EQT Exeter Eyeing Logistics-Focused APAC Fund, Regional Boss Tells MTD TV

Japan Logistics Panel

Japan Logistics Offers a Safe Haven During a Bumpy 2022: MTD TV

Li Sze-lim

Guangzhou R&F Delays 2021 Results for 3rd Time, Sets August General Meeting

Sponsored Features

Rosanna Tang Colliers

Office Upgrades Jump After Omicron Slowed Hong Kong Market in Q1 Sponsored Feature

Bernie Devine

Is Your Building a Device? Sponsored Feature

Vietnam’s BW Acquires First Assets in Long An Province as Growth Continues Sponsored Feature

More Sponsored Features>>

MTD-QR-Code-320

Connect with Mingtiandi

  • Facebook
  • LinkedIn
  • RSS
  • Twitter

Real Estate News

  • Capital Markets
  • 2022 Event Calendar
  • MTD TV Archives
  • People
  • Logistics
  • Data Centres
  • Asia Outbound
  • Retail

More Mingtiandi

  • About Mingtiandi
  • Contact Mingtiandi
  • Mingtiandi Membership
  • Newsletter Subscription
  • Advertise
  • Terms of Use
  • Privacy
  • Join the Mingtiandi Team


© 2007-2022 China Advertising Media Ltd (Samoa). All rights reserved.