January 24, 2020— Bridge Investment Group LLC’s (Bridge) subsidiary Bridge Office Fund Manager (Bridge Office) announced today the acquisition of West End Office Park (“WEOP”), 568,000-square-foot, six-building creative office portfolio located in the high-performing West End submarket of Minneapolis, Minnesota.
Centrally located at the intersection of Interstate 394 and Highway 100, the portfolio is within walking distance of an abundance of amenities and just a short drive away from Downtown Minneapolis and the Minneapolis-Saint Paul International Airport. The transaction marks Bridge Office’s entry into the Twin Cities market, with the firm now having a presence in 15 states.
Originally developed between 1968 and 1980, WEOP has undergone more than $27 million in capital improvements since 2015. Recent renovations include upgrades to common areas, elevators, restrooms, the building’s exterior and roof, parking areas, landscaping and signage. WEOP’s contemporary amenity package features on-site dining, a modernized fitness center complete with locker rooms and showers, shared conference facilities and training rooms, covered parking and bike storage. In line with its proven value-add strategy, Bridge will continue to invest significant capital across the campus to maximize tenant satisfaction, attraction and retention.
Tenants at WEOP benefit from an unrivaled live-work-play-stay environment in suburban Minneapolis. The Shops at West End, a lifestyle center with a diverse mix of dining, retailers and entertainment, is adjacent to WEOP and there are more than 1,800 luxury multi-family units and 1,300 hotel rooms nearby. WEOP has retained 82% of tenants since Fall 2015. WEOP is 86% occupied and possesses a diverse tenant roster that includes HealthPartners, nVent, Horizontal Integration and CoBank.
“With a unique blend of urban and suburban attributes, WEOP has everything today’s workforce is seeking: a highly accessible location, walkable amenities and vibrant workplaces that foster collaboration and a sense of community,” said Nicholas Nigro, Director at Bridge Investment Group. “By applying Bridge’s proven business strategy, we are confident that WEOP will cement its position as the premier suburban office destination for years to come.”
A fast-rising player in the U.S. commercial office market, Bridge Office has acquired more than 3 million square feet across the country since January 2019, including recent acquisitions in key submarkets surrounding Raleigh, Miami, Phoenix, and Atlanta.
Of the West End submarket’s total 2.9 million square feet of office space, 95% is occupied. According to a recent quarterly report from CBRE, the I-394 corridor had the highest asking rental rate among the Twin Cities’ suburban submarkets.
Bridge Commercial Real Estate LLC, the operating company for Bridge Office, will oversee property management and redevelopment work at WEOP. Improvements at WEOP will begin immediately.
Tom O’Brien and Sam Maguire of Cushman & Wakefield represented the seller in the transaction.