Northmarq’s Minneapolis office secures $28,820,000 in acquisition financing for Capital Partners

MINNEAPOLIS, MINNESOTA (April 13, 2022) – Bill Mork, vice president of Northmarq’s Minneapolis office, secured acquisition financing of $28,820,000 for the Centre Pointe Business Park in Mendota Heights, Minnesota. The eight-building, single-story, professional suburban office park is located at 2060 Centre Pointe Boulevard. CBRE represented the seller in the transaction. 

The permanent-fixed loan was arranged for the buyer, Edina-based Capital Partners, which is aggressively seeking out investment opportunities in the Twin Cities. The firm owns and operates more than 10 million square feet of commercial real estate and is ranked #5 on the Minneapolis/St. Paul Business Journal’s list of the “Largest Commercial Property Management Firms” in the Twin Cities.

The transaction was structured with a 10-year term with an interest-only period on a 25-year amortization schedule. NorthMarq arranged the permanent-fixed loan for the borrower through its relationship with a local credit union.

“This was a very competitive deal, and a lot of that was driven by the borrower, who is a strong leader in the market,” Mork said. “Lenders know Capital Partners and want to work with them, so we were able to get creative in our financing. While we sourced a large range of quotes for this acquisition, our relationship with this local credit union presented the most attractive terms.”

Additionally, Northmarq was able to meet its client’s requirements for high-leverage acquisition financing with future funding for capital expenditures, tenant improvements, and leasing commissions.

Centre Pointe Business Park, which totals 263,279 square feet, was built in three phases beginning in 1997, with the last phase completed in 2019. Eighteen tenants call the park home including Permasteelisa North America Corp.’s corporate headquarters and HealthPartners, Inc.

The portfolio was 95 percent leased at the time of the sale with 4.20 years of weighted average lease terms (WALT) remaining. “This long-term fixed rate deal was very compelling to the borrower, as it pushed them past the 4.20 WALT years with no escrows,” Mork explained.

“In a challenging office lending market, we were able to provide a competitive 3.35 percent interest rate with IO, which is something we may not see in the market for a long time to come.”

The park’s location makes it attractive to tenants, as it is easily accessible to major freeways and convenient to both downtown St. Paul and Minneapolis and the Minneapolis–Saint Paul International Airport. 

“This business park is an excellent addition to Capital Partners’ growing portfolio,” Mork added.