Tempus Realty Partners Secures $66 Million Acquisition of Premier Office Campus in Minnesota
Tempus Realty Partners, a real estate investment firm headquartered in Arkansas, recently made headlines with the announcement of its $66 million acquisition of Excelsior Crossings, a premier Class A office campus located in Hopkins, Minnesota. This acquisition represents a significant addition to Tempus' expanding national portfolio and showcases their commitment to investing in high-value real estate opportunities.
The Excelsior Crossings campus spans an impressive 546,548 square feet, distributed across two well-designed buildings situated at 9350 and 9380 Excelsior Boulevard. The property, which is 98% leased, is strategically positioned within the I-394 corridor, recognized as one of the most robust office submarkets in the Twin Cities. Such a location guarantees not only high occupancy rates but also the potential for long-term investment growth.
One of the standout features of this acquisition is its cornerstone tenant, U.S. Bank, which occupies one of the buildings and accounts for around 54% of the total square footage. U.S. Bancorp, the parent company of U.S. Bank, proudly stands as the fifth-largest commercial bank in the country and carries a commendable A/Stable credit rating from S&P. This partnership with a stable and reputable financial institution significantly enhances the investment appeal of the property.
The second building of the campus houses several notable tenants, including Element Fleet Management Corporation, Digi International Inc., Michael Foods Inc., and Sovos Compliance LLC, further diversifying the client base and increasing the reliability of rental income from the property.
The site features not only state-of-the-art facilities but has also achieved LEED Gold certification, underscoring its commitment to sustainability. The buildings are set on over 20 acres of picturesque land surrounding a central lake, offering a serene environment alongside essential amenities. The campus includes covered parking, heated sidewalks that ensure accessibility even during harsh Minnesota winters, and over $1.4 million invested in recent capital upgrades.
Isaac Smith, partner of acquisitions at Tempus, expressed enthusiasm regarding the property's standout qualities, stating, "Excelsior Crossings is a true institutional campus, and it shows the moment you walk in. From the lake and courtyard at its center to the fitness center, cafeteria, and heated sidewalks, every detail here was built for tenants to stay long term." Such investment in tenant comfort and satisfaction is likely to yield valuable returns in the long run.
In discussing the broader implications of this acquisition, Clay Ramey, partner and vice president of capital markets at Tempus, highlighted the strategic nature of this investment. "Excelsior Crossings is an impressive, well-located asset with a roster of credit-rated tenants, and our attractive basis positions investors for strong upside," he remarked. This acquisition aligns perfectly with the current trend of recovery seen in Class A office spaces across the market, securing the property’s attractiveness for long-term investment.
Tempus Realty Partners was established in 2016 and has successfully acquired over $1.2 billion in property across 26 states to date. The firm focuses on providing superior risk-adjusted returns by identifying and developing unique commercial real estate opportunities specifically within the South and Midwest regions.
The acquisition of Excelsior Crossings marks a notable milestone for Tempus Realty Partners, highlighting their continued growth and ability to secure prime commercial real estate ventures. As such, it not only reinforces their presence in the competitive commercial real estate landscape but also reflects their ability to navigate the complexities of investment in today's economic environment, setting them apart as a formidable player in the field.
The Excelsior Crossings campus spans an impressive 546,548 square feet, distributed across two well-designed buildings situated at 9350 and 9380 Excelsior Boulevard. The property, which is 98% leased, is strategically positioned within the I-394 corridor, recognized as one of the most robust office submarkets in the Twin Cities. Such a location guarantees not only high occupancy rates but also the potential for long-term investment growth.
One of the standout features of this acquisition is its cornerstone tenant, U.S. Bank, which occupies one of the buildings and accounts for around 54% of the total square footage. U.S. Bancorp, the parent company of U.S. Bank, proudly stands as the fifth-largest commercial bank in the country and carries a commendable A/Stable credit rating from S&P. This partnership with a stable and reputable financial institution significantly enhances the investment appeal of the property.
The second building of the campus houses several notable tenants, including Element Fleet Management Corporation, Digi International Inc., Michael Foods Inc., and Sovos Compliance LLC, further diversifying the client base and increasing the reliability of rental income from the property.
The site features not only state-of-the-art facilities but has also achieved LEED Gold certification, underscoring its commitment to sustainability. The buildings are set on over 20 acres of picturesque land surrounding a central lake, offering a serene environment alongside essential amenities. The campus includes covered parking, heated sidewalks that ensure accessibility even during harsh Minnesota winters, and over $1.4 million invested in recent capital upgrades.
Isaac Smith, partner of acquisitions at Tempus, expressed enthusiasm regarding the property's standout qualities, stating, "Excelsior Crossings is a true institutional campus, and it shows the moment you walk in. From the lake and courtyard at its center to the fitness center, cafeteria, and heated sidewalks, every detail here was built for tenants to stay long term." Such investment in tenant comfort and satisfaction is likely to yield valuable returns in the long run.
In discussing the broader implications of this acquisition, Clay Ramey, partner and vice president of capital markets at Tempus, highlighted the strategic nature of this investment. "Excelsior Crossings is an impressive, well-located asset with a roster of credit-rated tenants, and our attractive basis positions investors for strong upside," he remarked. This acquisition aligns perfectly with the current trend of recovery seen in Class A office spaces across the market, securing the property’s attractiveness for long-term investment.
Tempus Realty Partners was established in 2016 and has successfully acquired over $1.2 billion in property across 26 states to date. The firm focuses on providing superior risk-adjusted returns by identifying and developing unique commercial real estate opportunities specifically within the South and Midwest regions.
The acquisition of Excelsior Crossings marks a notable milestone for Tempus Realty Partners, highlighting their continued growth and ability to secure prime commercial real estate ventures. As such, it not only reinforces their presence in the competitive commercial real estate landscape but also reflects their ability to navigate the complexities of investment in today's economic environment, setting them apart as a formidable player in the field.
Topics General Business）
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