Wellington Signs for 450,000-SF Office Campus

WOODBURY, MN-Wellington Management Inc. has signed a purchase agreement to acquire the vacant 450,000-square-foot Woodbury Corporate Campus, formerly fully occupied by State Farm. The purchase price was not disclosed, though sources say the company got a “strong discount” off the $32 million asking price.

The insurance firm had the facility constructed in 1996, but then moved out in 2006 with company consolidation. The company tried to sell the site to one user, as a corporate center, but there were no bites, said Dan Gleason with NorthMarq. Gleason, Tom Stella and Pete Rand represented State Farm in the sale.

“Their objective was to exit the property, and they wanted one buyer that would use the site or lease more than 51%,” Gleason tells GlobeSt.com. “Given the economic conditions, the thought was that a large number of users may be interested in the site, so they decided to identify a good strong buyer who will take that thought forward.”

Wellington hired NorthMarq to help market the property to users in the 20,000-square-foot to 200,000-square-foot range. “There’s a fair amount of corporate users out there in that range,” Gleason says. “Given our amenity package and location, and attractive rental rates, we think the multitenant plan can be successful.” He says the asking rent will be $17 to $18 per square foot, gross.

The team will also try to find interested parties for an adjacent 50 acres of undeveloped land at Radio Drive and Interstate 94, for possible build-to-suit office, hotel and retail uses. A portion of the site may be developed as a seniors housing campus.

Wellington owns and manages a portfolio of 16 offices and retail properties in this city. The company has a $375 million portfolio of 88 commercial properties for 625 tenants throughout the Twin Cities.