A San Francisco-based real estate investment and development firm has bought the former Edina headquarters of Regis Corp. and plans to renovate the 11-acre campus.
City Center Realty Partners LLC purchased the three-building office complex from Regis Corp. for $9.6 million, according to an electronic certificate of real estate value available Wednesday. The site is composed of about 180,000 square feet of office space spread across 11 acres on Metro Boulevard off Hwy. 100 and W. 70th Street.
Marc Nanne and Steve Buss of JLL represented City Center in the deal. Jim Vos and Steve Strom at Cresa represented Regis Corp.
City Center plans to extensively renovate two of the three buildings on the campus. Regis Corp. is leasing back the nine-floor building at 7201 Metro Boulevard through May 2020 as well as a portion of the three-story 7151 Metro Blvd. building through March. Both buildings will be renovated once Regis Corp. moves out. The third building at 7101 Metro Blvd. is 85% occupied by PCL Construction, which has a long-term lease.
"We see a great opportunity to fill a void between the class A office projects along 494 and the dated Class B office projects along Highway 100 in Edina," said Eric Anderson, City Center's Minneapolis partner, in a statement. "Our strategy with this acquisition aims to serve a niche, offering high-end amenities at a competitive price point."
City Center Realty Partners has experience with renovating and repositioning other Twin Cities offices, including the TractorWorks Building in the North Loop of Minneapolis and Plaza Seven, a downtown Minneapolis office building that saw its occupancy increase from 58 to 97% after $5 million in renovations.
Regis Corp. announced in March that it planned to move its headquarters from Edina to Target Corp.'s former west corporate campus along Interstate 394 in Minneapolis. Regis, which franchises and owns more than 8,000 hair salons worldwide, said it planned to occupy the top four floors at the renovated campus.
Regis had owned its Edina headquarters since 1992.