After sitting vacant for five years, the former State Farm regional headquarters in Woodbury could start seeing new development by next spring if its sale closes by December. Wellington Management Inc. of St. Paul has agreed to buy the behemoth 95.5-acre property and building at the corner of Radio Drive and Hwy. 94.
Wellington, which owns and manages nine other Woodbury properties, submitted an informal letter of intent to buy the property a few years ago. Wellington had offered about $25 million for the complex, where 1,500 employees once worked.
Wellington plans to divide the 458,094-square-foot building into spaces to lease to office tenants. The firm said the high quality of the building and the prime location could draw corporate tenants from outside Washington and Ramsey counties looking for 50,000 to 100,000 square feet. Some of the excess land could be sold in portions.
"We've always been intrigued by the site," said Tanya Bell, Wellington's vice president of acquisitions and development. Few so-called Class A sites -- higher-end, with nicer and newer amenities -- exist in the east-metro market outside of downtown St. Paul, she said.
Bell declined to reveal the final purchase price but said it's less than the previous offer. The property was listed at $32 million.
The sale is expected to close in December after Wellington Management inspects the property and conducts feasibility studies.
"Our focus is on places to work with good-paying jobs," Mayor Bill Hargis said of the pending sale. "This would be a positive move if they're able to get that property used."
State Farm once was the largest employer in Woodbury. In 2003, the insurance giant announced it would merge the Minnesota-Wisconsin region with the regional headquarters in Lincoln, Neb. Although the city hasn't taken a huge financial hit from the property sitting empty, Hargis said, "Psychologically it's a key location. It's a reminder of the tough economy."
