Click here to download a PDF of Valuation Viewpoint Fall 2009
Property: Syngenta Seeds Headquarters Building, 11055 Wayzata Blvd, Minnetonka, MN
Buyer: RT Crest Ridge LLC
Seller: Opus Northwest LLC
Source:Seller
Sale Date: July 22, 2009 (Purchase agreement); August 17, 2009 (Closing)
Sale Price: $28,418,725
Unit Price: $244.28 (NRA)
Net Rentable Area: 116,338 square feet
Zoning: PID-394
Utilities: All available
Topography & Soil: Good
Visibility & Access: Excellent
Age: Completed July 2009
Land Size: 306,963 square feet
Remarks: This is a build-to-suit with Syngenta Seeds signing a ten-year lease for 100% of the building. Syngenta is one of the world's leading companies with more than 24,000 employees in over 90 countries focusing on field crops, herbicides, and seed car products. Last year the company reported sales of more than $11.6 billion. The building is a three-story structure with a glass curtain wall and underground parking as well as a 431-stall parking ramp. The buyer purchased the building using an 8.7% capitalization rate.
The 8.7% capitalization rate provides market evidence of the increase in these rates over the last year as we contrast this sale with a single-tenant office building transaction that occurred one year earlier. TRT Flying Cloud Dr, LLC purchased an office building, 100% occupied by Alliant Techsystems ($4.6 billion FY 2009 sales) under a 15-year lease. The date of the purchase agreement was July 7, 2008 and the closing was October 3, 2008. This 105.385 square foot three-story building sold at a capitalization rate of 7.2%.
