Hines Buys Local ING Complex for $120M

MINNEAPOLIS-Hines has purchased a three-building office campus here from ING North America Insurance Corp. for about $120 million, according to sources. The property, totaling almost one million sf, includes a seven-level parking garage. Hines bought the property on behalf of National Office Partners LP, the company’s investment partnership with the California Public Employees Retirement System.

The former Reliastar campus, which includes ING’s Minneapolis headquarters, is at Hennepin Avenue, Nicollet Mall and Washington Avenue. The properties include the 481,604-sf 100 Washington Ave., the 148,163-sf 20 Washington Ave. and the 359,237-sf 111 Washington Ave. ING acquired Reliastar in 2000.

John McDermott, a VP with Hines, says the property is an attractive purchase in a tight market. “It’s very expensive to build new in Downtown Minneapolis. Vacancy is down and rates are up. This property is well located at a good price,” he tells GlobeSt.com.

McDermott says ING wanted to sell because it only uses about 30% of the building space, and plans to consolidate its offices mainly in the 111 building. Currently, ING is the only tenant in the six-story, 48-year-old 20 building. The 22-story 100 building, built in the 1980s, is more than 80% leased to Wells Fargo. The 15-story 111 building, built in 1987, is about 48% leased to tenants such as the FBI and Wells Fargo.

Hines has been in the Minneapolis market since 1981. The firm owns and/or manages more than five million sf in the city, including 225 S. Sixth, 50 S. Sixth, Wells Fargo Center and US Bank Plaza.

Hines will manage and lease the property. CB Richard Ellis represented ING in the transaction.