SARA Midwest Office Portfolio
- 1,146,091 Square Feet
- For Sale
The SARA Midwest Office Portfolio is a 1,146,091 square foot Office Portfolio consisting of four unique assets, including over 527,000 square feet of irreplaceable urban, infill, creative office, a 100% occupied 328,000 SF iconic glass and steel office tower located on
20 acres along the banks of the Mississippi River, and a 289,000 square foot “main & main” affluent suburban office campus. The four properties, located in Minneapolis and St. Paul, Minnesota, Milwaukee, Wisconsin and St. Louis, Missouri, are all located within the
most desirable submarkets of each individual city.
INVESTMENT HIGHLIGHTS SUMMARY
The Portfolio is comprised of value-add, creative office buildings, a stable CBD office tower, and a Class A suburban office complex in three of the Midwest’s most recognizable markets. This diverse Portfolio allows investors to execute a balanced investment strategy in a single transaction.
SIGNIFICANT CAPITAL DEPLOYMENT
Investors can achieve a sizable capital outlay in a single transaction across a mix of office categories in top tier Midwest markets.
SUBSTANTIAL RENT GROWTH
The Portfolio experiences a 19.2% increase in proforma net operating income between years 1 and 5 with a modest investment of less than $9.00 per square foot in tenant improvements and commissions over the same 5-year period.
Each property in the Portfolio is either located in a market experiencing significant absorption and increasing rental rates or has achieved 100% occupancy because of its “Best in Market” status.
MIDWEST RETURNS & VALUE
The Portfolio provides an opportunity for investors to achieve superior returns compared to similar properties in coastal markets. In 2017, Midwest office cap rates averaged 100 to 150 basis points higher than coastal markets with an average price per square foot that is 55% lower.
The Midwest is known for its stable investment environment with limited fluctuations in market conditions, including unemployment rates that are 17% to 34% below the national average.
BELOW REPLACEMENT COST
Expected pricing will be at a level that is significantly below the cost to replace the Portfolio in today’s high construction cost environment.
Area Available: 1,146,091 Square Feet