Online university's rapid growth drives decision to move

Capella will initially inhabit more than 150,000 square feet to house its more than 550 employees, making it the largest occupant in this building. As the university adds employees, it will increase its square footage in the building. Terms of the lease were not disclosed.

"To accommodate Capella's rapid growth and more effectively serve our more than 10,000 adult learners, this move is a necessary 'next step' in the continued growth of our university," said Steve Shank, founder, chairman and CEO of Capella. "Since Capella began in 1993 with three employees, we've grown dynamically because we deliver high-caliber education in an online learning environment. Downtown Minneapolis continues to provide the most attractive qualities available for Capella to obtain high-performing employees to best serve our learners."

The 53-story 225 South Sixth Street building is the largest (in terms of square footage) and one of the tallest buildings in downtown Minneapolis. Locally, it is described as "the building with the crown on its top" in the city's skyline.

"I'm pleased that Capella University will continue to be a prominent feature in downtown Minneapolis," said Minneapolis Mayor R.T. Rybak. "Capella's growth over the past decade has been phenomenal, and I'm excited that the company has chosen to make such a landmark Minneapolis building the focal point of its future plans."

Capella's Minneapolis headquarters include administrative offices for admissions, learner services, financial aid, registrar, and the executive directors of its five schools in business, technology, education, human services and psychology. Capella faculty members are located throughout the United States and abroad.

"We're thrilled to partner with Capella in providing the university with a lease that will accommodate Capella's healthy rate of growth. We believe Capella will be an excellent addition to the many professional service and financial firms already in 225 South Sixth," said William D. Chopp, vice president of Hines, the owner, property manager and leasing agent for 225 South Sixth. Hines is one of the largest privately held real estate development, investment, and management companies in the world.

For real estate consulting services pertaining to its new lease, Capella retained the Minneapolis office of CRESA Partners, led by Jim Vos, principal. CRESA Partners is a national real estate advisory firm specializing in tenant representation, project management and capital markets on behalf of local, national, and international organizations.

In 2003, Capella Education Company, the parent corporation of Capella University, was recognized for the fifth consecutive year on the Inc. 500 list of fastest-growing private companies in America, as well as the Inc. 500 Hall of Fame. Capella also ranked 11th on the Twin Cities' Growth 50 List of Privately Held Companies by The Business Journal.

Capella University offers innovative corporate programs that allow companies to offer their employees customized, for-credit courses that meet both individual and organizational goals. More than 1,400 U.S. employers offer tuition reimbursement to their employees enrolled at Capella and more than 80 organizations, including Fortune 500 and 1000 corporations, are Capella Corporate Alliance Program members.

About Capella University:
Capella University is an on-line academic institution accredited by the North Central Association of Colleges that serves adult learners and employers. Founded in 1993, Capella University offers degree programs and certificates in business, technology, education, human services and psychology. The university serves 6,000 adult learners in 50 states and in 40 countries. Capella University is affiliated with the for-profit Capella Education Co., headquartered in Minneapolis, Minn. For more information, visit Capella University at http://www.capella.edu/ or call 1.888.CAPELLA.

www.ncahigherlearningcommission.org

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