Opus Northwest is building the office park, called ExcelsiorCrossings. Michael Fruchtman, director of real estate developmentfor RECP, tells GlobeSt.com that the buy was made to meet thefund's requirement of keeping the assets different in the fund, nowreportedly up to 15 properties for $800 million. "They want to havediversification in every way, including asset class, geographic,credit obligations and lease duration," Fruchtman says. "We knowthat Opus builds a good product, and Cargill is a terrific credittenant, we have the certainty of them paying the rent."


When completed, the park is supposed to total about 675,000 sfwith three buildings. Fruchtman says Cargill has also signed alease for another 200,000-sf building that Opus is about to buildon the site. "Who knows, we could try to buy that building aswell," he says. Cargill purchased the property for what was to bethe third building, reportedly for $15.5 million in December.


The purchase is the first foray into Minneapolis for the fund,Fruchtman says. "We've tried, but not succeeded, to enter the TwinCities previously," he says. "We really like this site because it'sclose to the airport and I-494, we're within a couple miles ofmajor corporations like General Mills, Supervalu and UnitedHealthGroup, and it's just a nice suburban area with high, executiveincomes."


Tom Holtz and Steven Buss with CB Richard Ellis represented Opusin the sale. Fruchtman did not divulge the Cargill lease rate, butthe average rate is about $27.25 for the popular SouthwestMinneapolis market, according to a market report by Grubb &Ellis.

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