Eagle Point II - SOLD

Realized Gross Returns:
IRR: 21%
Equity Multiple: 2.5x
Hold Period: 5.8 Years

8550 Hudson Blvd, Lake Elmo, MN 55042
Strategy: Current Yield
Status: Realized
Purchase Price: $4,650,000
Acquisition Date: 8/13/2009
Sale Price: $5,350,000
Sale Date: 6/19/2015
SqFt: 30,578
Repeat Broker, 1031 Tax-Deferred Exchange

Eagle Point II is a Class A office building just off I-94, immediately east of I-494/694, in the high-growth Lake Elmo in the Northeast Metro.

We acquired Eagle Point II at over a 10% cap rate capitalizing on the distress in the market.

Our team secured a long-term renewal from Foth & Van Dyke, LLC which occupied nearly 65% of the building. We also pulled Agstar Financial Services, an $8 billion banking institution, from a competing building. Agstar replaced two smaller tenants in Eagle Point II, improving its value.

Our ownership group ultimately decided to sell the property to reallocate the money into a project we thought had better longer-term potential or a more immediate upside. We executed a 1031 tax-deferred exchange, with all proceeds rolling into the Park Commons property.