Shorenstein Properties Acquires Minneapolis City Center for $202.5M
- Nov 26, 2012
Shorenstein Properties has closed on the acquisition of Minneapolis City Center, a 50-story mixed-use complex located in the heart of downtown Minneapolis. Shorenstein made the purchase on behalf of Shorenstein Realty Investors Ten L.P., a commingled fund formed in 2010 and with $1.2 billion of committed capital.
Located at 33 S. Sixth St., the complex occupies an entire city block bounded by Nicollet Mall, Hennepin Avenue and Sixth and Seventh Streets. The 1.6 million-square-foot complex features a 50-story tower with 1.1 million square feet of Class A office space on top of a 489,000-square-foot, four-level retail podium. The anchor tenant is Target Corp., occupying 72 percent of the office space under a lease that expires in December 2023. Overall, the property is 95 percent leased. The transaction also included a 687-stall, three-story parking structure and a ground lease encumbering the 583-room Minneapolis Marriott City Center Hotel adjacent to the complex.
Shorenstein Properties acquired Minneapolis City Center from Brookfield Office Properties Inc. for $202.5 million gross. Net proceeds to Brookfield were around $106 million. Eastdil Secured advised Brookfield on the sale.
Shorenstein Properties chairman & CEO Douglas Shorenstein said: “This property is in a superior office and retail location in a dynamic city. Minneapolis is growing faster than many larger metro areas, and it has wisely invested in its future success by developing the infrastructure necessary to attract more businesses and residents to downtown. We are pleased to have Target, which has done so much for Minneapolis, as our major tenant. We plan to work with our tenants and the community to add value to the city and to this important property by using our extensive expertise operating Class A office properties.”
For more market data on Minneapolis, please click here.
Photo Courtesy of: www.brookfieldofficeproperties.com