Services Provided:

Brokerage, Facility Services, Property Management

Industries:

Office

Location

Edina, MN

Size

450,000 SF

Brokers:

Mike Gelfman, Kevin O'Neill

Project Summary

TOBY-AWARD-WINNING BUILDING

Overview

Southdale Office Centre is a 450,000-square-foot, four-building office complex on France Avenue, three blocks south of Highway 62 in Edina, Minnesota. It is a Class B office complex with an excellent amenity package, including three conference rooms with wi-fi, cafeteria, full-service restaurant, exercise facility with locker rooms and showers, and on-site management. It is well situated in the heart of the Southdale trade area, and is within walking distance to many area amenities such as The Galleria, Southdale Mall, and Fairview Southdale Hospital.

Challenge

Recently, a 33,000-square-foot tenant notified the leasing team of Kevin O’Neill and Mike Gelfman that they were purchased by a Dallas firm, and would be vacating the building within the year. Southdale Office Centre had not had this large of a block of space available since Kevin and Mike began working on the listing in 1998.

Strategy

Kevin and Mike immediately began canvassing the area, and identified a nearby tenant who was beginning their search for new office space due to their building being redeveloped. Kevin and Mike secured the tenant directly, and designed, negotiated, and signed a lease for the space, all before the space was vacated by the previous tenant. The only downtime was attributed to building out the vacancy. The combination of small tenant improvements, above-market rates, excellent credit, and a long-term lease resulted in an outstanding transaction for the building owner.

Results

Over the past ten years, Kevin and Mike have consistently outperformed the market with an average occupancy rate of over 90%. In addition to securing their largest new tenant, they recently reworked a ten-year early extension with a major tenant. Their efforts have increased the overall asset value by $15M over the past two years.

Awards

Southdale Office Centre has won The Outstanding Building of the Year (TOBY) Award from the Building Owners and Managers Association (BOMA) for multiple years. This is due in part to the entire Welsh and Colliers team, working together to provide first-class service to the building.