Medica Leases 225,000 Square Feet, Others Sign Leases
for 301 & 401 Carlson Parkway

Carlson Real Estate Company has signed a lease with Medica to move its headquarters to 401 Carlson Parkway, a 213,000 square foot mid-rise office building in Carlson Center. Additionally, Medica will lease 13,000 square feet at Carlson Business Center for a related use. Medica plans to relocate to Carlson Center in April of 2004, or sooner if possible.

To accommodate this, tenants in 401 Carlson Parkway, including Michael Foods, Inc. (44,000 square feet), will relocate to 301 Carlson Parkway. These leases bring the total occupancy of 301 & 401 Carlson Parkway to 99%.

The lease with Medica required multiple steps before a deal could be finalized, including negotiating leases or lease modifications for 14 tenants.

The first step in the transaction was attracting Medica to 401 Carlson Parkway. "We really focused our marketing efforts on the unique benefits that 401 Carlson Parkway has to offer" said Matt Van Slooten, President of Carlson Real Estate Company, "They clearly valued the location, amenities and functionality of the building. It was a tremendous opportunity for Medica to lease a building that was designed to offer the very best."

The next step was the relocation of the existing and prospective tenants of 401 Carlson Parkway. To provide the entire building for Medica, the team at Carlson Real Estate Company had to find locations for six tenants in 301 Carlson Parkway. Three companies had already occupied the building and three others were committed to moving to 401 Carlson Parkway. To make room for these tenants, Carlson worked with tenants in 301 Carlson Parkway who were either not fully utilizing or had completely vacated their space. Carlson arranged space reductions for BORN, Inc. and Provell, and a lease buyout and termination for SBC Telecom. Additionally, Carlson Real Estate Company and Tonkawa, its sister company, are relocating their offices within 301 Carlson Parkway to accommodate one of the former 401 Carlson Parkway tenants. The construction and moving for these tenants will take place between January and September of 2003.

A final step in the process was related to Medica's requirement that a 240-stall parking ramp be added to the site. This required approvals from the Minnetonka Planning Commission and City Council, which have now been granted.

Matt Van Slooten, President of Carlson Real Estate Company, credited the success of this project to the relationships that Carlson Real Estate Company has with their tenants. "Our property management, maintenance staff and everyone in our office helped to make this possible. Without their daily positive interaction with our clients, I don't know if this could have been accomplished."

What happens between now and the time Medica moves in? "A well-orchestrated game of musical chairs," said Van Slooten.