Minneapolis skyline (Source: Shutterstock).

Five credit unions in Minnesota lent $31 million to a New York developer who bought a famous 17-story office building in the Minneapolis area last summer.

Topline Financial Credit Union of Maple Grove, Minnesota ($675 million in assets and 47,476 members as of June 30) has listed in Hennepin County records 31 million purchasers of 8400 Normandale Lake Boulevard properties. It is stated to offer a dollar leasehold. Bloomington, Minnesota.

The funding included two senior secured notes issued in June.

TopLine FCU is one of United Financials Capital, LLC’s four founding credit unions, and Minneapolis CUSO was established earlier this year to enable smaller credit unions to participate in commercial lending throughout Minnesota and the Upper Midwest. became.

UFC President and CEO Michael Dalglish said UFC has facilitated financing through Topline to acquire a 399,855-square-foot building called Normandale Office Park Three.

• Highway Credit Union, St. Paul, MN ($1.7 billion, 83,250 members), another of four founding UFC members.
• Centricity Credit Union, Hermantown, Minnesota ($234.9 million, 18,036 members).
• Members Cooperative Credit Union, Duluth, Minnesota ($1.1 billion, 53,415 members).
• Minnco Credit Union, Cambridge, Minnesota ($480.1 million, 30,350 members).

Last summer, five credit unions financed $31 million for the purchase of this 17-story office tower in Bloomington, Minnesota.

The buyer is New York investment firm Opal Holdings, which has purchased several large office buildings across the country over the past few years.

Tom Smith, president and CEO of TopLine, said the funding shows how credit unions can work together to close commercial loan financing deals.

“Partnering with United Financials Capital will give Minnesota credit unions access to opportunities they may not have tapped alone,” Smith said. “By working together, Minnesota credit unions can support each other and the local business community in providing competitive commercial lending opportunities.”

Two other UFC founders not participating in the deal are Affinity Plus Federal Credit Union of St. Paul, Minnesota ($3.9 billion, 239,461 members) and SPIRE Credit Union of Falcon Heights, Minnesota ($2.1 billion, 239,461 members). 151,494 members).

Dalglish said the UFC has a loan prospect for a credit union in Minnesota and is accepting credit unions that offer the UFC an opportunity to expedite the process.

Mike Dalglish

“This is just the beginning of the UFC,” Dalglish said. “We look forward to growing this lending platform that will serve communities throughout Minnesota and take advantage of the credit union’s resources and collaborative nature.”

MetLife Investment Management and Allstate sold the Normandale Lake office complex, which includes the 8400 Tower, to Opal Holdings, a privately held New York real estate investment firm, in June. The price of the deal this year was not disclosed, but MetLife and AllState said he bought the complex in 2014 for $369 million.

Cushman & Wakefield, the sales agent for this year’s deal, described it as one of the state’s largest “trophy office sales,” with five interconnected buildings covering 1.67 million square feet. The Class A suburban office development was built between 1983 and 2009 and leased 91% of it to tenants including Aon Benfield Global, Towers Watson, Schwan’s Consumer Brands and Dairy Queen in July.

In addition to the 8400 towers built in 1984, the deal included a 24-story 8500 tower covering 467,016 square feet and an 11-story 8200 tower covering 277,481 square feet. The 13-story 8300 Tower with 285,753 square feet and the 12-story office building with 242,598 square feet.

According to Opal Holdings’ website, it manages more than $4 billion in real estate. It says it “targets value-added or opportunistic properties in the office, retail, residential, and hotel sectors considering relocation or redevelopment.”

$140 million for AIG office towers in Islyn, New Jersey in July; $137.5 million for a 40-story building in Barnett Plaza, Fort Worth, Texas in April 2021; Paid $124.5 million for an office building. $150 million for Toll Brothers headquarters and office towers in Orange County, CA in 2020.