MINNETONKA, MN-KBS Real Estate Investment Trust II, based in Newport Beach, CA, has closed on the buy of the 15-story 601 Tower for a reported $54.4 million. The 288,458-square-foot property, 90% leased, was purchased from TIAA-CREF.

The tower is in the Carlson Center, a master-planned office park along Interstate 394. Tenants include One Beacon Insurance, Conopco, Wachovia, RBC Capital Markets, Robert Baird, Pine River Capital and HQ Global Workplaces. The property is part of a two-building complex that also encompasses a 22-acre lake with an amphitheater, health club, cafeteria and other services.

Bill Rogalla, an SVP and director of acquisitions for KBS Realty Advisors, says the tower is one of the best properties in the Twin Cities. “This is a trophy asset, and has consistently maintained a high level of occupancy due to its quality, location, amenities and strong ownership. Plus, we like the Minneapolis market, and especially the I-394 Corridor.”

Vacancy hovers around 20% in the southwest area of Twin Cities. However, the submarket that also includes Eden Prairie, MN has some of the region’s highest lease rates, averaging about $24.14 per square foot, according to a Grubb & Ellis fourth quarter report.

Tom Holtz with CB Richard Ellis represented the seller in the transaction.