Real Estate Transaction: Health Partners

Property: HealthPartners

Buyer: Bloomington Corporate Center, LLC

Seller: ROC Data, Inc. and Prudential Insurance Company of America

Source: Buyer

Sale Date: December 21, 2001

Sale Price: $26,527,524

Unit Price: $56.51 per Sq. Ft. Net Rentable Area

Net Rentable Area: 469,424 Square Feet

Gross Building Area: 589,033 Square Feet

Zoning: CO-1 (Commercial-Office/Mixed Use Development)

Utilities: All on Site

Topography and Soil: Level and Stable

Visibility and Access: Good

Age: 1971

Land Size: 43.45 Acres Net of Street Right-of-Ways

Remarks: This property was developed in 1969 and 1971 as the former Control Data Headquarters. In 1985, a 15-year sale lease-back transaction was executed that placed the property with UTF II, an entity of United Trust Fund in Miami, Florida. The buyer secured a mortgage and note for $40,500,000 through Prudential Insurance Company of America in July, 1985. The property was resold to I. Reiss & Son. I. Reiss & Son in turn resold the building to Fortune Funding Company in December 1985 but retained the land. Fortune Funding leased the land with an option to buy. In December of 1993, Fortune Funding exercised its option on the land. Subsequent to that, Fortune Funding transferred title to ROC Data, Inc. ROC Data, Inc. defaulted on the mortgage and Prudential Insurance Company of America foreclosed. On December 21, 2001, ROC Data, Inc. sold its redemption rights to the foreclosed property to Bloomington Corporate Center LLC for $11,425,000. In addition, Bloomington Corporate Center LLC purchased the foreclosed mortgage from Prudential for $15,102,524 for a total property purchase price of $26,527,524. At the time of purchase, the property contained a 14-story office tower and three low rise office buildings. The three low rise buildings will be demolished. The office tower, which has significant repair issues, will undergo a $14,565,700 repair program which will include removal and replacement of the building's exterior glass skin. At the completion of the repair program, the entire building will be leased to a single tenant. The buyer was aware that future impacts on the property include a halving of the site by light rail transit tracks.

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