Twin Cities-based Water Street Partners has closed on the purchase of a flex/tech building in Eagan, Minnesota, for $35.5 million.
The property at 1000 Blue Gentian Road includes 290,000 square feet of flex/tech space with an 870-stall parking structure atop the roof. With this acquisition, WSP has acquired four buildings in the last 12 months.
The building is about 46% occupied, leaving roughly 160,000 square feet to lease. To realize the property’s full potential, WSP has plans that include a full rebrand of the property, the completion of several deferred maintenance projects and an aggressive leasing and marketing plan that includes ample tenant improvement and leasing commission packages to attract prospective tenants. The team WSP assembled to execute the plan includes CBRE for leasing and Ryan Companies for management.
The building is nationally recognized for its sustainability. Palanisami & Associates, the general contractor and engineer on the project, designed the structure to incorporate hundreds of recycled concrete panels from a decommissioned parking deck from Minneapolis/St. Paul International Airport. The building is believed to be one of the largest recycled material projects in the country.
Water Street Fund II, LLC is a closed-end, discretionary real estate fund targeting commercial and multifamily investments in the Minneapolis-St. Paul and Raleigh-Durham markets. WSP expects to acquire five to seven investments on behalf of Fund II during the next six to12 months through a variety of sources. WSP is led by Managing Partners Joe Boone and Jim Hegedus.