Mixed-Use Tower in Minneapolis CBD Changes Hands
- Jun 08, 2016
Minneapolis—Franklin Street Properties Corp. has acquired the office and underground parking components of Plaza Seven, a 36-story, Class A mixed-use tower in downtown Minneapolis, from a partnership between City Center Realty Partners and Angelo, Gordon & Co., for $82 million.
Located at 45 S. 7th St., strategically positioned within the core of the Minneapolis Central Business District, the tower also includes a 360-room Radisson Blu hotel on floors 1-17 that was not part of the acquisition.
The office component consists of approximately 325,796 rentable square feet and comprises floors 18 through 36, including 311 underground parking stalls.
CCRP acquired the office tower in 2013 when the property was 58 percent leased. Since then, it has invested close to $5 million in capital improvements, including the installation of the city’s first destination dispatch elevator system in a multi-tenant building.
Over the past three years, it’s also negotiated an easement within the neighboring Macy’s store to provide a clear and branded entrance into Plaza Seven from the skyway system; renovated the skyway-level lobby; and transformed the view-obstructing, heavy build-outs into white box condition.
The developer also completed more than 140,000 square feet of leasing, increasing Plaza Seven’s occupancy to 97 percent. Credit tenants added to the building include Epsilon, Associated Bank, and Faithful & Gould. Earlier this year, it was announced that PwC will move its offices to the tower.
“We couldn’t be happier with how our strategy performed,” Sigurd Anderson, CCRP’s founding partner and CEO, said in a prepared release. “We acquired a building that was nearly 50 percent vacant, recognizing opportunities to add value, invested in smart capital expenditures, and the market responded.”
According to a company release, Franklin Street Properties Corp. is planning to invest $1.9 million in capital improvements over the next four years.
Stephen Livaditis, Kenneth Glomb, and David Knapp of Eastdil Secured represented the seller in the deal.
Image courtesy of Yardi Matrix