Office

Morgan Stanley Center

14 2nd St SW, Rochester, MN 55902

Listing Price: $11,500,000

Cap Rate
6.16%
Gross SF
43,984
Rentable SF
43,984
Price/Gross SF
$261.46
Lot Size
0.35 acres
Year Built
1950

Investment Overview

Rarely do properties like this in Rochester, MN come to market. This 43,984 asset is ideally located on the hard corner of Broadway and 2nd Street SW. It features Morgan Stanley and Mayo Clinic as it's tenants, both having NNN leases.
The property has direct skyway access to the downtown business network which includes Mayo Clinic's downtown campus, The Government Center, Mayo Civic Center, Public Library, parking ramps, University of Minnesota, Shops at University Square, Rosa Parks Pavilion, numerous hotels and banks as well as an abundance of retail and professional office locations.
Located in the heart of Rochester within Mayo Clinic's Destination Medical Center (DMC) $6 Billion expansion area, this is one of the more prominent and highly desired locations in all of Rochester. Mayo Clinic plans to add in excess of 30,000 new employees to it's Rochester campus by the time DMC is completed. With Rochester's 2016 population in the range of 114,000, the DMC is expected to result is unprecedented growth for the City of Rochester, which potentially means unprecedented opportunity for investors in the real estate market.
With current rents below market rate and the property being located in the Opportunity Zone, there is tremendous upside potential with this asset.
With DMC initiative being in full swing, there are an abundance of major projects currently happening, or scheduled to happen in Rochester, many of which are within just a few blocks of this property. Current projects underway include:
The Berkman: A $125M, 14-story, 350 unit tower at 217 14th Ave. SW being developed by Alatus. It includes 350 luxury apartments, a street-level best-in-class restaurant, 24,000 square feet of retail space, a fifth-floor rooftop dog park and spa, a penthouse-level club room, a fitness center, and work-from-home suites. Underground parking will be provided for residents.
The Hilton Rochester: An upscale, luxury 264 room hotel including two grand ballrooms, conference rooms, retail space and the already committed Pittsburgh Blue Steakhouse 5-Star restaurant concept.
One Discovery Square: A $35M, 90,000 square foot, four-story, one-of-a-kind medical office building is THE ONLY place where tenants have the ability to collaborate with Mayo Clinic and other leading scientists. According the Star Tribune, as of October 8th, 2018, 60% of the building is leased with another 30-35% spoken for.
Holiday Inn Downtown: 173 Room undergoing renovation and conversion to high-end Hotel Indigo boutique hotel concept.
Urban on 1st: 154 Upscale market rate apartments with 9,000 square feet of retail, dining and/or office space.
Mayo Civic Center: recently completed
Reportedly upcoming projects include:
Wells Fargo Building is scheduled to undergo a $26M renovation.
Former American Legion: Reportedly to undergo $35M project for new hotel.
Day's Inn Hotel: Site is said to be demolished and redeveloped.


Investment Highlights

  • RARE NNN Investment Opportunity with Morgan Stanley & Mayo Clinic as tenants.
  • Hard Corner of Broadway & 2nd ST SW - VERY Prominent & Desired Location.
  • Significant Upside Opportunity.
  • Property is in the Opportunity Zone.
  • Located in the heart of downtown Rochester & Mayo Clinic's $6 Billion DMC expansion.
  • Below Market Rents.

Exclusively Listed By

Listing Price: $11,500,000

Cap Rate
6.16%
Gross SF
43,984
Rentable SF
43,984
Price/Gross SF
$261.46
Lot Size
0.35 acres
Year Built
1950

Investment Highlights

  • RARE NNN Investment Opportunity with Morgan Stanley & Mayo Clinic as tenants.
  • Hard Corner of Broadway & 2nd ST SW - VERY Prominent & Desired Location.
  • Significant Upside Opportunity.
  • Property is in the Opportunity Zone.
  • Located in the heart of downtown Rochester & Mayo Clinic's $6 Billion DMC expansion.
  • Below Market Rents.

Investment Overview

Rarely do properties like this in Rochester, MN come to market. This 43,984 asset is ideally located on the hard corner of Broadway and 2nd Street SW. It features Morgan Stanley and Mayo Clinic as it's tenants, both having NNN leases.
The property has direct skyway access to the downtown business network which includes Mayo Clinic's downtown campus, The Government Center, Mayo Civic Center, Public Library, parking ramps, University of Minnesota, Shops at University Square, Rosa Parks Pavilion, numerous hotels and banks as well as an abundance of retail and professional office locations.
Located in the heart of Rochester within Mayo Clinic's Destination Medical Center (DMC) $6 Billion expansion area, this is one of the more prominent and highly desired locations in all of Rochester. Mayo Clinic plans to add in excess of 30,000 new employees to it's Rochester campus by the time DMC is completed. With Rochester's 2016 population in the range of 114,000, the DMC is expected to result is unprecedented growth for the City of Rochester, which potentially means unprecedented opportunity for investors in the real estate market.
With current rents below market rate and the property being located in the Opportunity Zone, there is tremendous upside potential with this asset.
With DMC initiative being in full swing, there are an abundance of major projects currently happening, or scheduled to happen in Rochester, many of which are within just a few blocks of this property. Current projects underway include:
The Berkman: A $125M, 14-story, 350 unit tower at 217 14th Ave. SW being developed by Alatus. It includes 350 luxury apartments, a street-level best-in-class restaurant, 24,000 square feet of retail space, a fifth-floor rooftop dog park and spa, a penthouse-level club room, a fitness center, and work-from-home suites. Underground parking will be provided for residents.
The Hilton Rochester: An upscale, luxury 264 room hotel including two grand ballrooms, conference rooms, retail space and the already committed Pittsburgh Blue Steakhouse 5-Star restaurant concept.
One Discovery Square: A $35M, 90,000 square foot, four-story, one-of-a-kind medical office building is THE ONLY place where tenants have the ability to collaborate with Mayo Clinic and other leading scientists. According the Star Tribune, as of October 8th, 2018, 60% of the building is leased with another 30-35% spoken for.
Holiday Inn Downtown: 173 Room undergoing renovation and conversion to high-end Hotel Indigo boutique hotel concept.
Urban on 1st: 154 Upscale market rate apartments with 9,000 square feet of retail, dining and/or office space.
Mayo Civic Center: recently completed
Reportedly upcoming projects include:
Wells Fargo Building is scheduled to undergo a $26M renovation.
Former American Legion: Reportedly to undergo $35M project for new hotel.
Day's Inn Hotel: Site is said to be demolished and redeveloped.


Exclusively Listed By

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