United Properties Market Activity

(July 1 through September 30, 2005)

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OFFICE

INDUSTRIAL

RETAIL

INVESTMENTS

OFFICE MARKET

West

Spanlink took 40,000 sq. ft. at 605 Waterford Park and will occupy November 1, 2005. This is a new deal for the building and represents 40,000 sq. ft. of positive absorption for the West submarket.
Syngenta Seeds renewed its lease for 43,000 sq. ft. at Valley Square Corporate Center. The renewal was completed in September 2005.
5353 Wayzata Boulevard was sold by an institutional pension fund advisor to Northco Real Estate and private partners for $13.5 million, or $120 per sq. ft. The transaction closed in August 2005.

Southwest

H&R Block Small Business Resources signed a five-year lease with an average rent of $15.25 per foot at 7650 Edinborough Way in Centennial Lakes Office Park in Edina.
Wells Fargo Financial leased 110,000 sq. ft. at the former ADC corporate campus in Eden Prairie. The company plans to take occupancy on November 1, 2005.
Regis Hair Products leased 102,000 sq. ft. at Centennial Crossings in Edina with a lease commencement of October 2005 (the tenant is expected to take occupancy in March 2006).
Stellent signed a lease for 50,000 sq. ft. at 7500 Flying Cloud Drive in Eden Prairie.
C.H. Robinson signed a long-term lease for a new 150,000-sq.-ft. building in Eden Bluff Business Park in Eden Prairie. United Properties plans to break ground on the project in fall 2005.
BioScrip, Inc. (formerly Chronimed, Inc.) took 65,000 sq. ft. at 10050 Crosstown Circle in Eden Prairie.

Southeast

State Farm Insurance signed a long-term lease for 85,000 sq. ft. at American Corporate Center on Northland Drive in Mendota Heights. The lease commences in January 2006. State Farm plans to consolidate various sites in the metro area into the space, including its corporate headquarters site in Woodbury.
Prime Therapeutics signed a long-term lease for 90,000 sq. ft. at 1305 Corporate Center Drive in Eagandale Corporate Center. The company was located in a single-story building in Eagan and is experiencing significant growth.
Carlson Wagonlit Travel renewed its least for 30,000 sq. ft. in Mendota Office Center I located at 1250 Northland Drive.

Northwest

Catalog Marketing Service leased 34,000 sq. ft. at Brookdale Corporate Center I and will occupy the space this fall.
Cummins Power Generation also leased 25,000 sq. ft. at Brookdale Corporate Center I and occupied its space as of July 1, 2005.
McData (who acquired CNT) began marketing up to 80,000 sq. ft. of sublease space at 6000 Nathan Lane in the Bass Creek Business Park in Plymouth.

Northeast

Imation is marketing 100,000 sq. ft. of space on its corporate campus in Oakdale.

St. Paul CBD

No significant transactions to report.

Minneapolis CBD

Xcel Energy consolidated its US Bancorp and Renaissance Square offices into 150,000 sq. ft. in Marquette Plaza at 250 Marquette Avenue.
Principal purchased the 724,000-sq.-ft. Campbell Mithun Tower at 222 South Ninth Street from TIAA-CREF.
The 366,000-sq.-ft. One Financial Plaza at 120 South Sixth Street was sold to Behringer Harvard by Zeller Realty Group.

Medical Office

Dermatology Specialists, P.A. signed a 15-year lease occupying almost 70% of the Edina East Professional Building (former American Cancer Society building) at 3316 West 66th Street in Edina (off-campus in the Southwest submarket). The practice is relocating from the 6363 Physicians Building on the Fairview Southdale hospital campus and plans to take occupancy in their new location in first quarter 2006. The space will house their clinic, business support services, and a medical spa which will offer non-invasive cosmetic services, including laser hair removal, microdermabrasion and photo rejuvenation.
Gillette Children's Specialty Healthcare is building a new ambulatory center in Westminster Business Park (I-35E at Maryland Avenue across from Regions Hospital in the Phalen corridor). Gillette and Regions Hospital will be co-tenants in the 120,000 sq. ft., four-story medical office building. Gillette will occupy the first floor and half of second. The building will be developed by Westminster Junction Venture, a collaboration between Frauenshuh Companies and the St. Paul Port Authority. Gillette expects occupancy in third-quarter 2006.
IRET purchased two buildings from Nath Management, Inc. in a package deal for $19.75 million. The two buildings are the Low Back Building at 2800 Chicago Avenue (on the Abbott Northwestern Hospital Campus in Minneapolis) and the Ritchie Building at 310 Smith Avenue (on the United Hospital Campus in St. Paul). The transaction closed in June 2005.

INDUSTRIAL MARKET

Northwest

Pneumadyne leased 30,000 sq. ft. (including 10,000 sq. ft. of office space) at 14325 23^rd Avenue in Plymouth. The transaction included $350,000 in improvements and six months of gross free rent.
MMDI signed a lease for 20,000 sq. ft. in Parkens Lake Business Center III in Plymouth.
Osborne Construction purchased a 68,576 sq. ft. building from Thorpe Distributing at 600 Clydesdale Trail in Medina.
McCombs Frank Roos & Associates leased 20,000 sq. ft. at Tech West 55 in Plymouth.

Northeast

City Cargo signed a 61-month lease for 82,500 sq. ft. at 3070 Long Lake Road.
Warren Shade Company leased 80,000 sq. ft. at 600 Hoover Street in Minneapolis.
A 15-year lease was signed by ATS Systems for 17,000 sq. ft. in the Hiawatha Business Center at Hiawatha Avenue and 28^th in Minneapolis.

Southwest

Cross Telecom bought the former Awardcraft facility at 10900 Nesbitt Avenue South in Bloomington from Degonda Corporation for $3.75 million ($45.73 per square foot).
Fastenal signed a 60-month lease for 7,719 sq. ft. of industrial and retail space in the former Midwest Mastercraft facility at 8600 Excelsior Boulevard. The deal included $39,000 in improvements and no free rent.
Cardiocom signed a 63-month lease for 25,398 sq. ft. with Steiner Development at 7972 Century Boulevard in Chanhassen.

Southeast

Local company Asset Recovery sold its 41,688-sq.-ft. single-tenant building at 150 State Street in St. Paul to national company ABC Supply. The structure houses 20-foot clear height office/warehouse space. United Properties represented ABC Supply in the transaction.
Cut Fruit Express purchased a 46,066-sq.-ft. refrigerated food manufacturing building at 11585 Courthouse Boulevard in Inver Grove Heights. United Properties represented the seller, Pabst Meat Supply, in the transaction.
Restaurant Technologies signed a 28,000-sq.-ft. lease at the recently completed Cedar Bluffs Business Center I in Eagan. This marks the first lease for the 81,000 sq. ft. speculative Opus project.

RETAIL MARKET

Pad sites at Argonne Village at County Road 50 and 176^th Street in Lakeville were sold to Culver's (1.6 acres), M&I Bank (1.3 acres) and Tires Plus (1.07 acres). United Properties developed the Rainbow-anchored development.
Lowe's purchased 15 acres from the City of Hibbing for a new store at Highway 169 and 9^th Avenue West.
Eq-Life leased 24,000 sq. ft. next to Kowalski's Market in Oak Park Ponds at Highway 5 and Highway 36 in Oakdale. The store is expected to open in November.
The former Schneiderman's in Maple Grove was cut in half to accommodate Goodwill in the back portion of the building and multi-tenant space in the front. Goodwill will occupy 23,754 sq. ft. The company received excellent signage, and their drive-through and access face Wal-Mart.

INVESTMENT MARKET

Office

Campbell Mithun Tower, a 725,587-sq.ft., Class A high rise located at 222 South Ninth Street in the Minneapolis CBD, was sold to Principal Realty Investors by TIAA-CREF. The building is 80% occupied; major tenants include Capella Education Company, Berkeley Risk Administration and Campbell Mithun.
MSP Investors sold Prairie Lakes Corporate Center at 11000 Prairie Lakes Drive in Eden Prairie to Kraus Anderson. This two-building, 202,270-sq.-ft. Class A property is located on Anderson Lake across from Eden Prairie Center. It's 89% occupied, and major tenants include Long-Term Care Group, Gelco, Sedgwick and GE Capital.
The 366,470-sq.-ft., Class B One Financial Plaza building at 120 South Sixth Street in the Minneapolis CBD was sold to Behringer Funds by Zeller Realty.

Industrial

Creekview Business Center, located at 7101 Ohms Lane in Edina, sold for $3.3 million in late September with a 9.8% cap rate. The building is 100% leased; tenants include Time Warner and Ritz Camera.
Duke Realty sold 2.15 million square feet of Twin Cities-area property to a joint entity formed by First Industrial and California State Teachers Retirement System. The 19 local properties included in the transaction are part of a larger, nationwide $1 billion deal.

Retail

No significant transactions to report.

Multi-Family

The following three transactions were part of a multi-property, multi-state portfolio sale by General Investment and Development, serving as advisor to California Public Employee Retirement System (CALPERS).

Cornerstone Real Estate Advisers purchased the 282-unit Windsor at Promenade Oaks located at 1160 Northwood in Eagan. This is a well-located, Class A apartment complex built in 1997.
The 282-unit Windsor at Regency Woods on Sherwood Drive in Minnetonka was sold to RREEF. This premier, Class A property located near Ridgedale Shopping Center was built in 1987.
RREEF also purchased the 504-unit Windsor at Eden Place complex in Eden Prairie. This high-quality, Class A property is located on Magnolia Trail, near U.S. Highway 212 and Anderson Lakes Parkway.