Southpoint Office Center sells for $47.8 million

Southpoint Office Center in Bloomington has been sold for $47.8 million, and the new owners said they would be investing in improvements to the property.

MSP Southpoint Equities LLC, based in Portland, Ore., bought the 15-story, three-building complex from FFII MN SP, a properties fund whose executive offices are in Minnetonka, according to a filing with the Minnesota Department of Revenue.

The fund that is selling the 366,807-square-foot complex on 82nd Street and Interstate 35W is associated with Founders Properties LLC, a privately held real estate investment company formed by Best Buy founder Richard Schulze and Opus founder Gerald Rauenhorst.

Since 1998, Founders has been involved in raising and managing 13 commercial real estate investment funds. Its portfolio of office, industrial, retail and mixed-use buildings spreads across 19 states and totals approximately 60 properties and more than 28.4 million square feet of space.

The buyer is part of Felton Properties Inc., a Portland-based real estate and ownership company with properties in five states, including Minnesota.

"From our standpoint, Southpoint offers tenants a prime location at the confluence of Highway 35 and 494. It is a landmark property in a location that is becoming more desirable with time," said Matt Felton, president of Felton Properties, in an e-mail.

Felton said the company would spend to improve its lobbies, entries, garage, fitness facility and cafe/lounge and will add more usable outdoor space.

"Felton Properties hopes to elevate the image of the property through a program of calculated improvements, along with an onsite office to enhance tenant service at the property," Felton added.

In 2016, Felton purchased the Berkshire Corporate Center, a Plymouth office center, for $23 million. Felton also owns the Braemar Office Park in Edina.

Earlier this year, Felton sold the 26-story Rand Tower in downtown Minneapolis to Chicago-based Maven Real Estate for $18.65 million.

Patrick Kennedy • 612-673-7926