Real Estate Office Lease Report Fiscal Year 2017
Total Page:16
File Type:pdf, Size:1020Kb
Real Estate Office 451 Donhowe Building 319 - 15th Avenue SE, Minneapolis, MN 55455 Phone: 612-625-5345 Fax: 612-624-6345 [email protected] www.realestate.umn.edu Land O'Lakes Center for Excellence Photo Credit: Landolakes.umn.edu Lease Report Fiscal Year 2017 Real Estate Office 451 Donhowe Building th 319 – 15 Avenue S.E. Minneapolis, MN 55455 Office: 612-625-5345 Fax: 612-624-6345 February 2018 This University of Minnesota Fiscal Year Lease Report documents the University's real estate leasing activity during Fiscal Year 2017 (July 1, 2016 – June 30, 2017). Approximately 4,075 leases and easements involving the University as landlord or tenant, including the PUF leases, were in existence during the fiscal year and are included in this report. During Fiscal Year 2017, the total cost of 376 long-term leases, providing for the University’s use of 772,479 square feet (SF) of building space plus numerous apartments which are not measured, and 2,299 acres of land, air-rights and subsurface rights, plus 425 short-term use agreements, was approximately $20.3 million. This compares to 408 long-term leases and 490 short- term use agreements in existence during Fiscal Year 2016 covering 806,143 SF and 2,657 acres at an approximate total cost of $21 million. The University’s total leased building space in Fiscal Year 2017 was relatively unchanged from the previous year as there were no significant new lease transactions that occurred. However, the Leased space in Minneapolis shows a decrease of approximately 34,000 SF from the previous fiscal year. This is primarily attributed the termination of a 21,000 SF lease at the Murphy Warehouse Facility which is now a University owned facility. The number of leases, short term agreements and easements involving the use of University real estate by others during Fiscal Year 2017 totaled 3,308. This compares to 4,008 in Fiscal Year 2016. Funds 1000, 1026 and 1020-1150, except 1030, (General Operations and Maintenance, Miscellaneous, Other-Unrestricted), provided approximately $15.4 million, or 85%, of the University’s $18.1 million total cost for long-term rental facilities during Fiscal Year 2017. Funds 3000-3015 (Sponsored Research-Restricted) provided $277,924 for leased real estate during Fiscal Year 2017, or 1.5%. Other-Restricted funds provided $2.4 million or 13% of the total expended for the University’s use of real estate owned by others during the past fiscal year. This Fiscal Year 2017 lease report reflects the number of square feet leased as of June 30, 2017, or as of the termination date if the lease terminated during the fiscal year prior to June 30, 2017. The rents reported in this document reflect rents paid (leases and other agreements involving the University as tenant) and rents received (leases and other agreements involving the University as landlord) attributable to Fiscal Year 2017. Occupants identified are those housed in the leased premises at the end of the fiscal year (or at the end of the lease if the lease terminated during the fiscal year). Occupants of certain leased facilities may have changed since June 30, 2017. Several internal leases for the University’s use of University space that are managed through the Real Estate Office are included in this report. Questions and comments concerning this document are welcome and should be directed to me at 612/626-9402 or [email protected]. Sincerely, Jon Dostal Assistant Director Leasing & Facility Management Lease Report – Fiscal Year 2017 Table of Contents • Overview • Long Term Leases for Space to the University o Minneapolis/Hennepin County o St. Paul/Ramsey County o Outstate • Subleased Space with University Leased Space • Long Term Leases for Land to the University o Minneapolis/Hennepin County o St. Paul/Ramsey County o Outstate • Short Term Leases for Space to the University • Short Term Leases for Land to the University • University Owned Real Estate – Long Term Leases • University Owned Real Estate – Short Term Leases • University Owned Real Estate – Oil and Gas Leases • University Owned Real Estate – Easements • Permanent University Fund Lands – Leases • Internal University Leases • Spreadsheets and Footnotes Overview UNIVERSITY OF MINNESOTA LEASE OVERVIEW Fiscal Year 2017 NUMBER OF LEASES - LONG TERM LEASES TO THE UNIVERSITY Total Number of Leases 376 Total Square Footage Leased: * 772,479 Total Acres Leased: ** 2,299 Total Cost of Facilities: $18,166,803 SHORT TERM SPACE LEASED TO THE UNIVERSITY Total Number of Leases 425 Total Cost of Facilities $2,149,050 NUMBER OF LEASES - UNIVERSITY OWNED REAL ESTATE Total Number of Long Term Leases: 421 Total Number of Short Term Leases: 2,203 UNIVERSITY OIL AND GAS LEASES Total Number of Leases: 14 UNIVERSITY EASEMENTS Total Number of Easements: 567 UNIVERSITY PUF LEASES Total Number of PUF Leases: 103 * Excludes area for those leases which do not specify number of square feet in the leased premises (apartments, etc.) ** Excludes area for those leases which do not specify number of acres in the leased premises (and area for air rights, sub-surface, etc.) Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA REAL ESTATE LEASED TO THE UNIVERSITY BY GEOGRAPHIC AREA Fiscal Year 2017 BUILDINGS: No. of Leases Square Footage Leased* Rent Paid Minneapolis: 40 348,916 $10,395,498 St. Paul: 13 30,502 $510,465 Greater Minnesota: 121 393,061 $6,973,705 (Coordinate Campuses & other) Total 174 772,479 $17,879,670 LAND (AND AIR RIGHTS, SUB-SURFACE, ETC): No. of Leases Acres Leased ** Rent Paid Minneapolis: 115 1.617 $32,880 St. Paul: 22 15.864 $77,407 Greater Minnesota: 65 2,281.910 $231,076 (Coordinate Campuses & other) Total 202 2,299.391 $341,363 * Excludes area for those leases which do not specify number of square feet in the leased premises (apartments, etc.) ** Excludes area for those which do not specify number of acres in the leased premises (and area for air rights, sub-surface, etc.) Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA BUILDINGS AND LAND LEASED TO THE UNIVERSITY - LONG TERM SOURCE OF FUNDS FOR LEASED FACILITIES Fiscal Year 2017 1000 General Operation & Maintenance Funds - Unrestricted $8,797,676 1026 Miscellaneous - Unrestricted $1,013,622 1020-1151 Other - Unrestricted $5,647,360 (excludes 1026 & 1030) 3000-3015 Sponsored Research - Restricted $277,925 1030, 1500-1916 Other - Restricted $2,398,606 9000 Agency Funds $29,056 ---------- Miscellaneous (unidentified sources of funds) $2,558 Total funds spent on long term rent for FY17 $18,166,803 Prepared by University of Minnesota Real Estate Office UNIVERSITY OF MINNESOTA RENTAL COSTS FOR LEASES WITH UNIVERSITY AS TENANT LONG TERM Fiscal Year 2007 through Fiscal Year 2017 20,000,000 18,315,915 18,407,333 18,292,766 17,937,507 18,166,794 18,000,000 17,496,156 16,000,000 14,577,643 14,182,942 13,841,673 14,000,000 13,477,105 12,000,000 11,374,255 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 UNIVERSITY OF MINNESOTA FUNDING SOURCE FOR LEASES WITH UNIVERSITY AS TENANT Fiscal Year 2007 through Fiscal Year 2017 10,000,000 FY07 FY08 FY09 9,000,000 FY10 FY11 8,000,000 FY12 FY13 FY14 7,000,000 FY15 FY16 FY17 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 General Operating Other - Misc - Unrestricted Other - Restricted Sponsored Miscellaneous - Agency Funds & Maintenance Unrestricted Research - Unidentified Funds Restricted Source of Funds NOTE: Miscellaneous column show rents for which sources of funds were not provided UNIVERSITY OF MINNESOTA NUMBER OF LONG TERM LEASES WITH UNIVERSITY AS LANDLORD Fiscal Year 2007 through Fiscal Year 2017 500 492 484 480 476 465 466 462 460 456 451 440 424 421 420 416 400 380 360 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 UNIVERSITY OF MINNESOTA NUMBER OF LEASES WITH UNIVERSITY AS TENANT BUILDINGS AND LAND - LONG TERM LEASES Fiscal Year 2007 through Fiscal Year 2017 250 211 211 204 202 197 200 187 179 175 174 160 162 155 Buildings 156 148 148 151 Land 144 139 150 134 142 140 138 100 50 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Long Term Leases for Space to the University Mpls – Hennepin County As Of Date : 06/30/2017 UNIVERSITY OF MINNESOTA Page 1 REAL ESTATE OFFICE SPACE LEASED TO THE UNIVERSITY: LONG TERM From 07/01/2016 To 06/30/2017 Lease Lease Term Area Lessee M&O Source of Number Start Date End Date (S.F.) Rent Rent/S.F./Yr. M&O M &O/S.F./Yr. Obligations Funds L-237 A 01/01/1961 $1.00 00-0-00000-00000 Leased Premises: BRIDGE #9, OVER MISSISSIPPI RIVER (FURTHER LEGAL DESCRIPTION NEEDED) Building: BRIDGE #9 Address: 55455 Occupant: VP FOR UNIVERSITY SERVICES/FACILITIES MANAGEMENT Lessor: FORMERLY NORTHERN PACIFIC RR (NOW BNSF); BRIDGE SOLD TO CITY OF MINNEAPOLIS L-357 B 08/01/2012 07/31/2022 20,484 $540,600.72 $26.39 1000-10044-21119 Leased Premises: SECOND FLOOR Building: MINNESOTA TECHNOLOGY CENTER Address: 1100 WASHINGTON AVENUE SOUTH, MINNEAPOLIS, MN 55415 Occupant: VP FOR HEALTH SCIENCES/AHC/SCHOOL OF PUBLIC HEALTH/EPIDEMIOLOGY & COMMUNITY HEALTH Lessor: PHYSICIANS & SURGEONS CAPITAL CORPORATION, ATTN: TOMMY SCALLEN L-380 B 08/01/2012 07/31/2022 19,318 $509,924.56 $26.40 1000-10044-21119 Leased Premises: FIRST FLOOR Building: MINNESOTA TECHNOLOGY CENTER Address: 1100 WASHINGTON AVENUE SOUTH, MINNEAPOLIS, MN 55415 Occupant: VP FOR ACAD AFFAIRS & PROVOST/COLLEGE OF HUMAN EDUCATION & HUMAN DEVELOPMENT/INSTITUTE FOR TRANSLATIONAL RESEARCH IN CHILDREN'S MENTAL HEALTH Lessor: PHYSICIANS & SURGEONS CAPITAL CORPORATION, ATTN: TOMMY SCALLEN L-1008 10/01/1994 09/30/2020 10,486 $148,401.28 $14.16 1026-10723-20533 Leased Premises: SUITE 290, STORAGE SPACE & 15 PARKING STALLS Building: MILL PLACE Address: 111 - 3RD AVENUE SOUTH, MINNEAPOLIS, MN 55401 Continuation: THREE (3) SUCCESSIVE 3-YEAR OPTION TO RENEW WITH 90-DAY NOTICE Occupant: VP FOR ACAD AFFAIRS & PROVOST/GRADUATE SCHOOL/UNIVERSITY PRESS Lessor: ICM (VII) MILL PLACE LP, ATTN: ANDREW WEBB As Of Date : 06/30/2017 UNIVERSITY OF MINNESOTA Page 2 REAL ESTATE OFFICE SPACE LEASED TO THE UNIVERSITY: LONG TERM From 07/01/2016 To 06/30/2017 Lease Lease Term Area Lessee M&O Source of Number Start Date End Date (S.F.) Rent Rent/S.F./Yr.