CBRE Capital Markets’ Debt & Structured Finance team has arranged $1.76 million in permanent financing for the building at 11351 Rupp Drive in Burnsville, Minnesota.
The multitenant building, also known as “Burnsville Bluffs II,” is a mix of warehouse and office space totaling 45,000 square feet.
Ben Bastian and Jessica Burke of CBRE’s Minneapolis office represented the borrower, Agnitron Holdings LLC.
Caspian purchased the building as a value-add opportunity in mid-2016 with 18 percent vacancy, and outperformed its leasing goals by bringing the building up to 100 percent occupancy just a few months later. The building is leased to Data Listing Services, National Ground and the Star Tribune.
The 75 percent loan-to-value financing is for 10 years at a competitive sub 4 percent interest rate, fixed for five years. The longer-term loan allows the borrower to manage through the building’s tenant rollover in 2020. The borrower’s successful lease up of the property resulted in an increase in value in less than one year of ownership. This resulted in the borrower being able to harvest equity in the property and take the cashout proceeds and put them toward a new acquisition.
