German fund manager has extended its strategy to invest in US secondary cities through a $165m (鈧�126m) office acquisition in Minneapolis.
Union has bought 50 South 10th Street from US real estate investment trust (REIT) Franklin Street Properties.
The property was bought for the open-ended UniImmo Europa fund. The deal comes one year after Union invested in a fully let office complex in Austin, Texas for the same fund, which now has seven US assets.
Union said it was looking to increase its investment in 鈥渉igh-growth regional centres鈥� and was attracted to the region by its low unemployment level.
Martin Bruehl, head of investment management at Union Investment Real Estate, said: 鈥淯S secondary markets represent an excellent alternative to traditional gateway cities for our international funds.
鈥淲e intend to significantly extend the scope of our investment in core properties in America.鈥�
Minneapolis, in the state of Minnesota, Bruehl added, benefits from a sustainable outlook for jobs growth.
鈥淛ust like Austin, it鈥檚 a perfect fit with the requirements of our secondary-city strategy for the US,鈥� he said.
The 500,000sqft building is home to the US retailer, the Target Corporation, which occupies almost 80% of the asset鈥檚 rental space.
