IDS Center Hits the Market; Landmark Could Fetch $300M
- Jul 27, 2012
Inland American Real Estate Trust Inc. is marketing the 2 million-square-foot IDS Center in Downtown Minneapolis, a signature feature of the city skyline for four decades. Designed by Philip Johnson, the post-modern landmark encompasses a 57-story office tower with an eight-story annex, a two-story retail center, a 19-story Hilton hotel and the eight-story, 24,000-square-foot Crystal Court.
“The decision to market this asset for sale is consistent with the execution of our long-term strategy to reposition the portfolio and focus on retail, student housing and lodging investments,” commented Jeff Manno, Inland American’s vice president of acquisitions.
Since acquiring IDS Center in 2006 for $277 million, Inland American has invested more than $20 million in upgrades, the Minneapolis / St. Paul Business Journal reports. Although Inland American hasn’t disclosed an asking price, the asset is expected to fetch between $290 million and $300 million.
IDS Center’s diverse tenant roster includes law firms, financial firms, Globe University, retailers and restaurants. Law firms occupying the tower include: Briggs & Morgan (123,000 square feet), Lindquist & Vennum (120,000 square feet) and Gray Plant Mooty (110,000 square feet).
To market IDS Center, Inland American has retained a team from HFF that includes senior managing directors Jeff Bramson and Jaime Fink, along with director Mark Katz. “Given the stability of the Minneapolis market, the property’s high occupancy rate and the historically low interest rate environment, we feel this is the opportune time to be able to drive value on this asset,” Bramson said.
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Photo Courtesy of: www.ids-center.com