Rasmussen University - Brooklyn Park, MN
5555 & 5565 96th Avenue North, Brooklyn Park, MN, 55443, US
₩14,856,757,000 | 3,706 m²
Jones Lang LaSalle Americas, Inc. (“JLL”), is pleased to exclusively offer for sale the fee-simple interest in Town Centre Plaza located at 1185 Town Centre Dr in Eagan, Minnesota. The 43,649 SF medical office building asset is 90.2% leased and has a WALT of 5.1 years. The property also has an assumable loan with a below-market interest rate of 3.25% and a maturity in 2031. With a weighted average occupancy of over 16 years, this asset offers the unique opportunity to acquire a proven asset with value-add opportunity in one the strongest medical office markets in the country.
The largest tenant, MNGI, recently signed an early five-year renewal, bringing their remaining term to over seven years. The rent roll has a diverse, complimentary mix of medical tenants ranging from dermatology and counseling to gastroenterology and endocrinology. With an average PSF rent rate under $18.00 and 10% vacancy, the investment provides ample opportunity for income growth.
The property is strategically located within the primary commercial corridor of the southeast Twin Cities metro. The property is also supported by affluent demographics and a strong medical market. Minnesota is home to the headquarters of UnitedHealth Group, Mayo Clinic, Medtronic, and has more than 1,000 other health care companies that employ more than 500,000 Minnesotans and millions more worldwide. Within a one-mile radius, the average household income is an impressive $162,000, 43% higher than the national average. Within a one, three, a five-mile radius, the population and average household income are projected to grow steadily over the next five years.
VALUE-ADD MULTI-TENANT MEDICAL OFFICE WITH ASSUMABLE DEBT
• Town Centre Plaza provides ample value-add opportunity with below-market rents and 90% occupancy
• The debt is assumable and features favorable terms including a 2031 maturity and well-below-market 3.25% interest rate
5-YEAR EARLY RENEWAL FROM ANCHOR TENANT AND STRONG HISTORICAL OCCUPANCY
• The anchor tenant for the investment, MNGI, recently signed a five-year extension, securing their tenancy through 2031
• The weighted average occupancy of the property is over 16 years, signaling the stability of the investment
DIVERSE MEDICAL TENANT MIX WITH 5+ YEARS OF WALT
• The tenant mix includes tenants from across the medical field, including dermatology, imaging, gastroenterology, counseling, and more
• With 5.1 years of WALT, the property is positioned to provide stable cash flows while allowing for value-add opportunity
AFFLUENT DEMOGRAPHICS WITH ROOM TO GROW
• Within a one-mile radius, the average household income is an impressive $162,000, 43% higher than the national average
• Within a one, three, a five-mile radius, the population and average household income are projected to grow steadily over the next five years