O’Brien-Staley Partners (OSP) collaborated with Dry Creek Capital Partners to successfully complete a $61 million refinancing of a loan secured by two Class A, seven-story office buildings known as Excelsior Crossings. These properties, located in Hopkins, MN, cover 519,228 net rentable square feet (NRSF). Constructed in 2008, the buildings recently underwent an amenity enhancement program to earn LEED Gold certification. They offer a coffee shop, cafeteria, fitness center, and indoor and outdoor common areas. OSP is positive about select office properties and highlights the importance of credit in its investment strategy. Excelsior Crossings has an impressive rent roll, with a 98% occupancy rate. Notably, a money center bank occupies half the space, alongside four other corporate tenants.
Kari Johnson, Managing Director on the investment team at OSP and lead on the deal commented, “I know the property intimately, having worked there myself years ago. We conducted extensive due diligence to understand the post-COVID landscape and are confident in our investment.”
In 2024, the focus on commercial real estate office investments has shifted from the traditional mantra of “location, location, location” to “credit, credit, credit” prioritizing lease terms and counterparties. OSP’s strategy underscores the critical role of credit in navigating current market dynamics.
OSP was represented by Alison Bure of Faegre Drinker Biddle & Reath LLP.
