U.S. Bank and Artis, a Winnipeg, Canada-based REIT, announced today they have closed on a $43M loan that will finance Artis’ acquisition of the MAX at Kierland office building in Scottsdale.
The 258,312 SF, Class-A Max at Kierland building was built in 2008 and consists of consists of six stories of class A office space on 6.7 acres. The building has been Shell and Core LEED-certified and received a 100% Energy Star designation.
This is the third deal U.S. Bank has closed with Artis.
According to HFF, a commercial real estate capital intermediary, Canadian investors made up 35% of all foreign investments in U.S. commercial real estate in 2011. That’s up from only 19% in 2007.
“During the recession, Canadian REITs, which previously didn’t have much exposure to U.S. real estate, remained healthy,” said John Besse, EVP of Commercial Real Estate for U.S. Bank. “Today, they are well positioned to acquire new real estate and the best opportunities to add to their portfolios are in the U.S. We are pleased to partner with Artis to execute that strategy.”
Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in Canada and the U.S., with a major focus on Western Canada. Artis’ commercial property comprises more than 20.4 million square feet of leasable area in 196 properties.
“We continue to be successful in sourcing and acquiring high-quality assets, such as MAX at Kierland, that increase both the size and caliber of our portfolio,” said Armin Martens, CEO of Artis.
