DRA Advisors LLC, a New York-based real estate investment adviser, is expanding its Twin Cities presence through two unrelated transactions announced Tuesday.
The company partnered with San Francisco-based City Center Realty Partners LLC (CCRP) to purchase Wells Fargo Plaza in Bloomington for more than $46 million. The sale of the 450,000-square-foot office tower — one of the tallest in the suburbs — was finalized Monday, according to public records.
Meanwhile, DRA announced Tuesday it is acquiring Inland Real Estate Corp., a real estate investment trust based in the Chicago suburb of Oak Brook, Ill., for $2.3 billion. Inland has interest in about 130 properties across the United States, and its heaviest concentration is in the Chicago area and the Twin Cities, where it owns 26 retail properties or small shopping centers.
The company’s post-merger asset strategy wasn’t announced but is likely to have implications for the Twin Cities commercial real estate market. DRA is assuming Inland’s debt in the acquisition and will pay shareholders $10.60 per share — 6.6 percent higher than the stock’s trading price at Monday’s market close — to take the company private.
“We are excited to enter into an agreement to acquire Inland Real Estate Corporation,” said David Luski, president of DRA, in the announcement. “IRC is a company with quality assets, a strong management team and great long-term potential. We look forward to closing the transaction and adding the IRC platform to our portfolio.”
DRA has historically focused on office properties in the Twin Cities market, currently owning more than 1 million square feet, including 605 Waterford Park in Plymouth, the Colonnade in Golden Valley, as well as two other buildings near the West End in St. Louis Park. It also owns two retail buildings in Rogers: Gander Mountain and Goodwill.
Its purchase Monday of the 24-story Wells Fargo Plaza adds another office building to the list. As for its co-buyer, CCRP, this acquisition marks the fourth property in the Twin Cities. CCRP also owns the 335,000-square-foot Plaza Seven office building in the central business district of Minneapolis, which will be renamed once PricewaterhouseCoopers (PWC) moves in next year. The San Francisco firm sold the TractorWorks office building in the North Loop of Minneapolis to Goldman Sachs in 2014 for nearly $55 million and the former Superior Plating site earlier this year to Lennar Multifamily for more than $13 million.
“Our firm continues to be optimistic in general about the Twin Cities real estate market. We intend to pursue other opportunities as they arise,” said Eric Anderson, CCRP executive vice present.
Wells Fargo Plaza sits on 17 acres near the intersection of Interstate 494 and France Avenue and includes a three-story podium building, parking lot and the 100-stall underground parking garage. With 111,000 square feet available for lease, the property, located at 7900 Xerxes Av., is about 75 percent occupied.