Wells Renews at Metropoint, Loss Coming

The company needs more occupancy at Metropoint. Brant Glomb, a BPG VP, says that Allianz Life Insurance will vacate about 107,000 sf of the 170,000-sf North Building by the end of this month. "This is creating an opportunity for us to lease almost a full building."

The property consists of four office buildings on 20 acres, including a 20-story tower of 360,000 sf, two eight-story buildings of 170,000 sf each and a 10-story building at 200,000 sf. Situated on the northwest corner of Interstate 394 and Highway 169, the property is across from the world headquarters of General Mills Inc. in St. Louis Park.

At 75% leased when it was purchased, Metropoint's major tenants include Wells Fargo, Prudential Financial and Corporate Benefit Services of America. Other new leases at the park since August include space for Plus Relocation; Cummings, Keegan & Co. and Epicor. Glomb refused to divulge the exact lease rates for the recent leases, but says the average asking rate at the property is $12-$16 per sf, net.

The property is about 78% leased now, he says, before the Allianz move out. "We knew it was coming when we bought the property," Glomb says. "We're not terribly concerned, we've had substantial activity."

The owners are also looking to create two new retail pads at the site. "We tore down a 20,000-sf theater at the entrance to the park," Glomb tells GlobeSt.com. "We're considering service retail. We're talking to Starbucks, and also looking for a bank." The pads are roughly 5,700 sf, and could include a drive-thru, he says.

In addition to investing $10 million into common-area capital improvements designing a master plan for the redevelopment, which will include elevator and HVAC upgrades, refurbished public spaces, improved tenant suites, significant new amenities including new fitness and conference centers, upgraded dining facilities, new landscaping and park signage. Each building already has its own parking garage, and Glomb says the entranceways to each facility will be redesigned and more clearly marked.