Shoreview Complex Faces Foreclosure
- Aug 05, 2011
The former headquarters of Deluxe Corp. is now facing foreclosure. The lender on Shoreview Corporate Center, a 553,000-square-foot office and industrial campus located in the suburb of Shoreview, has started foreclosure proceedings. Since 2005, the mortgage debt on the property has increased from $54.8 million to $67.4 million. The Star-Tribune reported that the lender is LaSalle Bank N.A.
The property was acquired for $72 million in 2005 by a tenant-in-common group sponsored by Argus Realty Investors, reported Finance & Commerce, a local business newspaper. Thompson National Properties L.L.C. bought Argus three years later. The Minnesota Commercial Association of Realtors data indicates that rental rates on the property are between $13 and $16 per square foot.
Like other office properties in the area, Shoreview Center faces stiff competition in a soft market. At midyear, office vacancy for the Northeastern submarket hit a record 20.8 percent, according to NorthMarq Real Estate Services. Overall vacancy for the Twin Cities improved from 19.9 percent to 19.2 percent during the first half of 2011. NorthMarq estimates that the office market will absorb 950,000 square foot of office space in the second half of 2011.