MINNEAPOLIS—The CBD of Minneapolis has seen a couple of big sales just this spring including the RBC Plaza and the iconic IDS Center, which sold in April for $253 million. Now the Oracle & International Centre at 900-920 2nd Ave. South has also gone up for sale, another opportunity to see how attractive investors find the burgeoning downtown.
The Centre has 622,173-square-feet in two Class A towers. Currently, 90% of the development is occupied. Oracle America anchors the development, taking up 136,969-square-feet of space, or about 45% of the space with a lease that runs through 2020. CBRE is handling the sale and has not put forward an asking price. A bid due date will be set at a later time, the company says.
The office market in the Twin Cities has shown a good deal of strength for several years. The Minneapolis CBD has experienced positive net absorption during 11 of the last 12 quarters. Furthermore, CBRE Econometric Advisors projects increased rental rates of a cumulative 30% over the next five years, additional declines in the vacancy rate, and an absence of speculative new construction for the foreseeable future.