Volume 5, No. 1, Winter 2000

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Real Estate Transactions: Towle Building

Property: Towle Building, 330 2nd Avenue South, Minneapolis, Minnesota 55401

Buyer: HUB Acquisition Trust

Seller: Liberty Property Limited Partnership

Source: Buyer's Representative, public records

Sale Date: September 30, 1999

Sale Price: $18,816,785

Unit Price: $72.58 per square foot based on 259,241 square foot total gross building area

Gross Building Area: 259,241 square feet

Net Rentable Area: 197,541 square feet

Zoning: B4-1, Central Retail District

Utilities: All available

Topography and Soil: Level and assumed sound

Visibility and Access: Good

Age: 1980

Land Size: 43,741 square feet

Remarks: This class B multi-tenant office building sold with a 92% occupancy level. The year 2000 projected effective gross income, operating expenses and net operating income are as follows:

• Effective gross income $3,972,514
• Operating expenses $2,066,690
• Net operating income $1,905,824

At a projected net operating income of $1,905,824, the building sold at a 10.13% capitalization rate.