Minnesota's Carlson Real Estate makes risky investment pay off

by Midwest Real Estate News Reports

April 8, 2010 - Sometimes it pays to take a risk, even in a challenging real estate market. Carlson Real Estate, based in Minnetonka, Minn., offered proof of this when it invested millions of dollars into what was then an obsolete building in a challenging real estate market.

Today, that building, located in Plymouth, Minn., is 78-percent occupied thanks to the improvements that Carlson made.

Assurant Health, an affiliate of Assurant, Inc., will relocate to Carlson Real Estate Company's Plymouth Corporate Center in Plymouth, Minn., this October. The company will occupy a 70,650-square-foot second-floor office space to be designed by Edina, Minn.-based architect BDH & Young Space Design.

Plymouth Corporate Center was converted from a single-tenant property to a multi-tenant facility in late 2009 when Carlson Real Estate took back 275,000 square feet of space, reducing the building occupancy to 56 percent. This lease with Assurant will increase occupancy at the facility to 78 percent.

Kris Harris, senior director with Carlson Real Estate, felt this transaction confirmed that Carlson made the "right move" by investing nearly $2.5 million of capital in an obsolete building in a tumultuous real estate market.

"The property now offers sleek and modern interior and exterior finishes and an amenity-rich package which includes a cafe, on-site daycare, sundry shop, fitness center, conference and training rooms and a large commons area," Harris said. "The updates made in late 2009 continue to make Plymouth Corporate Center an attractive option for companies looking for highly attractive corporate space at affordable lease rates."

Jim Freytag, first vice president, and Dave Marschinke, senior vice president, both with CB Richard Ellis, represented Carlson Real Estate Company in leasing the building. Mark Evenson and Rory Johnson of UGL Equis represented Assurant.

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Carlson Real Estate Company is an affiliate of Carlson, a global group of integrated companies providing hotel, marketing, restaurant and travel services directly to consumers, corporations and government entities. Carlson Real Estate Company is dedicated to developing long-term client relationships by operating with caring and integrity and providing innovative and accommodating solutions. Its portfolio of office and flex/industrial space concentrated in Minnesota, Arizona, and North Carolina exceeds 6 million combined square feet. For more information about Carlson Real Estate Company, visit www.carlsonrealestate.biz.