A joint venture led by Equity Group Investments is purchasing an office park in Minneapolis from TIAA-CREF. According to Real Capital Analytics, the venture between the Sam Zell-led private equity firm and Perennial Investments & Advisors is buying Normandale Lake Office Park from the New York-based retirement organisation for approximately $255 million.
Normandale Lake Office Park is a five-building, 1.7 million-square-foot office park located at 8000 Norman Center Drive in Minneapolis. The property currently is 83 percent occupied by tenants that include Weber Shandwick, Morgan Stanley Smith Barney and Merrill Lynch.
According to various media reports, TIAA-CREF originally acquired the office park in 1990 from Dallas-based developer Trammell Crow. Since taking control of the campus, TIAA-CREF has expanded the park, adding a 200,000-square-foot building in 2001 and a 275,000-square-foot tower in 2009.
This sale follows TIAA-CREF’s sale of two other large suburban office buildings — The Colonnade in Golden Valley and the 601 Tower in Minnetonka — last year for a total of $106 million as part of the firm’s broader strategy to redeploy its capital on the East and West coasts.