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CLEVELAND, March 27, 2019 (GLOBE NEWSWIRE) -- Ten Capital Management (“TCM”), a privately held real estate investment management firm, today announced it has completed the acquisition of Atria Corporate Center (“Atria” or the “Property”), located in Plymouth, Minnesota, a highly coveted suburb of Minneapolis.
The highly-amenitized Property is a 358,941 square foot Class A, LEED Gold building, built in the late 1980’s and substantially renovated in 2017. Atria offers food service, a complimentary coffee bar, fitness center, locker room with showers, training center, updated common areas, on-site management, multi-level parking deck, and underground heated parking.
The Property is located in the West submarket of the Twin Cities Office Market, a 9M sf office market with a current vacancy rate of 11% (the lowest in the Twin Cities Office Market), and current Class A asking rents of $19.90 psf, which have increased 23% since 2011 in response to tenant demand for best in class assets with strong amenity packages similar to Atria. There is a strong corporate presence in Minneapolis, with an average of 18 Fortune 500 companies located there at any point in time. The diverse economy offers a low unemployment rate, which has been 200-300 bps below the national average, a highly skilled workforce (40% of people have bachelor’s degree or higher) and a high standard of living (5th most affordable city in America).
“We’ve been focused on Minneapolis for quite some time due to its strong fundamentals and diverse economy; consistently ranking as one of the top performing economies in the United States,” said Paul DiSandro, a TCM partner and Portfolio Manager. “It’s a steady market that’s demonstrated continued growth. Atria represents a true Class A asset in a strategic location in Minneapolis’ premiere medical device/technology corridor. The Property has demonstrated high historic occupancy and tenant retention, and its strong occupancy and mix of high-quality tenants is expected to generate durable cash flow to our investors.”
Ben Adams, TCM’s CEO, added, “Our focus has been and will always be to seek excellent real estate at a fair price, with high margins of safety in place. In this case, our margin of safety is a function of acquisition price, the quality and stability of in-place cash flows, the high degree of operational efficiency, and flexibility it provides tenants of all sizes to have access to best-in-class amenities at fair rental rates in space that is highly customizable to fit specific tenant requirements.”
TCM is a privately held real estate firm investing across a broad spectrum of strategies and seeks to deliver consistent, superior risk-adjusted returns to its global investor base, while remaining proactive, adapting quickly to changing market fundamentals and opportunities. TCM makes equity investments between $10 and $25 million, targeting transactions which fall “below the radar” of larger institutional investors. For more information, please go to www.tencapmanagement.com.
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