Class A Office Tower
111 Cherry Street Mankato, MN 56001
Price: $11,300,000
Status: Sold
Cap Rate: Contact Broker
Year Built: 2014
NOI: $788,678
Lot Size: 0.26 acres
Price Per Foot: $328
Lease Type: NNN
Remaining Term: 4-7 Years
GLA: 34387 sqft
Property Intro
Lee & Associates and Northrock Real Estate are pleased to exclusively offer for sale the fee simple interest (land & building) in the Mankato Tower, a Class ‘A’ office building located in downtown Mankato, MN (the “Property”). Built in 2014, the Property consists of an approximately 34,387 square foot, five-story office building with rooftop deck.
investment highlights
- 100% LEASED CLASS ‘A’ OFFICE TOWER – DESIRABLE CREDIT TENANCY – ANNUAL RENT INCREASES
- The building is 100% leased to Alltech and Northwestern Mutual Life Insurance Company (S&P: AA+). Alltech occupies a total of 25,372 rentable square feet on the 3rd, 4th and 5th floors of the building. Northwestern Mutual occupies 9,015 square feet on the 2nd floor of the building. Both leases contain 2% and 2.5% annual rent increases respectively, providing an investor with an excellent hedge against inflation.
- BELOW MARKET RENTS – CONSTRAINED SUPPLY OF CLASS ‘A’ OFFICE SPACE IN THE MARKET – LOW VACANCY RATE FOR COMPARABLE SPACE
- Both tenants are paying below-market rents. Additionally, there is a constrained supply of Class ‘A’ office space in the market and a low 3.3% vacancy rate, as well as a shortage of new Class ‘A’ office space under construction in the Mankato submarket, ensuring the subject property will remain in demand.
- ADJACENT TO MANKATO PLACE/CITY CENTER – DESTINATION FOR SHOPPING, ENTERTAINMENT, HOTELS, GOVERNMENT SERVICES – KEY DRIVER OF DEMAND FOR OFFICE SPACE IN THE AREA
- The subject property is also ideally located adjacent to Mankato Place, a destination for shopping, entertainment, government services, and business. The Mankato Place development includes the historic Brett’s building and draws heavy traffic from the adjacent 7,300-seat Mayo Clinic Health System Event Center, Hilton Garden Inn, and 5,300-seat Mankato Event Center, which is home to the Minnesota State Mavericks hockey team and site of musical performances, conventions, and other events. Mankato Place is a crucial driver of tenant demand for office space in the area.
- STRATEGIC LOCATION ON SIGNALIZED INTERSECTION OF CHERRY ST & S. RIVERFRONT DR (22,000+ CPD) – EXCELLENT SIGNAGE & VISIBILITY – MAJOR TRAVEL ARTERY IN/OUT OF DOWNTOWN MANKATO
- The building is strategically located at the signalized intersection of Cherry Street and South Riverfront Drive, offering visibility and signage to combined traffic counts of 22,000 cars per day. The property features a high profile creative office buildout, extensive natural light, reserved parking in the adjacent 4-level parking garage (not part of the offering), and is strategically located just one-half mile from the on/off ramp to SR-169 for direct access to SR-14.
- AREA OF TREMENDOUS GROWTH – TOP LOCATION FOR BUSINESS – NEW DEVELOPMENTS IN PIPELINE
- The Mankato-North Mankato MSA saw 19% growth in GDP between 2010-2018 and its population grew by 3.48%. With a workforce of over 250,000 within a 60-minute commute, and a cost of doing business that is 11% below the national average, the region has become the site of expansive new development including over 230 apartment units, an 88,000-square-foot addition to Johnson Outdoors’ distribution center, a new Mayo Clinic facility, and a 118-unit assisted living facility.
- MANKATO: WITHIN ONE HOUR OF MINNEAPOLIS-ST PAUL – REGIONAL ECONOMIC HUB FOR SOUTHERN MINNESOTA – HOME TO MAJOR EMPLOYERS TAYLOR CORP., MAYO CLINIC HEALTH SYSTEM, JOHNSON OUTDOOR & KATO ENGINEERING
- The city of Mankato is located in southern Minnesota. The community is known for its exceptional quality of life, educated workforce and worker productivity. Mankato and North Mankato have experienced tremendous growth over the past decade, evolving into a regional center that provides services to a population of 1.6 million within a 60-mile radius. Greater Mankato’s strong, diverse economy is built around manufacturing, health care, services, agriculture, technology and retail.
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