The Excelsior Group has given itself a foothold in Minnetonka’s Opus II business park with the purchase of a nearly full office building.

The St. Louis Park-based Excelsior Group recently paid $18.45 million for the three-story Pondview Plaza at 5850 Opus Parkway, according to a certificate of real estate value made public on Friday. The 109,296-square-foot building is in the Opus II park in the northwest quadrant of highways 212 and 169.

The seller is Boston-based Little Britain Holdings. The building last sold in 2007 for $21.5 million, according to Hennepin County property records.

The transaction, which closed Oct. 3, works out to $168.81 per square foot of space. The county values the property at $15.7 million. The Twin Cities office of Cushman & Wakefield represented the seller in the transaction. The brokerage did not respond immediately Monday to a request to comment on the deal.

Vital Imaging Group, a subsidiary of Japan-based Canon, is the building’s anchor tenant with about 52,000 square feet of space on the second and third floors, according to CoStar. The rest of the building is leased to tenants with 1,000 to about 8,600 square feet of space, including insurance offices and business services providers.

The Excelsior Group liked the building for that list of tenants, as well as the overall condition of the property, said company President Ted Glasrud.

“It’s a very well located with solid tenancy,” he said in a Monday interview. “The building is in very good shape.”

Minnetonka-based Opus Group built Pondview Plaza in 1997. The building is The Excelsior Group’s only property at Opus II, according to the company’s website.

The building is about 95 percent occupied, Glasrud said. That compares with an average office vacancy rate of 11.3% in the Interstate 394 submarket, according to the Minneapolis office of CBRE. The submarket includes the Opus II park.

The purchase adds to a busy year for The Excelsior Group. The company, along with Minneapolis-based Ryan Cos. US Inc., recently broke ground on a 343,000-square-foot, 11-story speculative multitenant office building at 1601 and 1603 Utica Ave. Excelsior also opened the 283-unit Rafter apartments at 333 Hennepin Ave. E. in Minneapolis earlier this year along with co-developer M.A. Mortenson Co.

November 20, 2019  |  By Finance & Commerce |  Original Article