Shorenstein Properties, a San Francisco-based firm, has acquired the City Center building in downtown Minneapolis.
Downtown's landmark City Center is sold
The 29-year-old, 50-story building contains 1.6 million square feet of space.
November 21, 2012 at 9:08PM
Terms were not disclosed Tuesday, but sources have previously said the price was $205.5 million.
Formerly known as International Multifoods Tower, the 50-story building occupies a city block bordered by Nicollet Mall, Hennepin Avenue and 6th and 7th Streets.
The 29-year-old building, sold by Brookfield Office Properties Inc., encompasses 1.6 million square feet of commercial space, including 1.1 million square feet of Class A office space on top of 489,000-square-foot City Center. The deal also includes a three-story parking garage and a ground lease for the adjacent 583-room Minneapolis Marriott City Center Hotel.
Brookfield said its net proceeds were about $106 million. The property is about 95 percent leased.
Douglas Shorenstein, chairman and CEO of Shorenstein Properties, said in a statement the 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."
Target occupies 72 percent of office space in the property under a lease that expires in 2023.
This isn't Shorenstein's first foray in Minneapolis. The firm bought LaSalle Plaza in 1992 and sold it in 1997.
Shorenstein, a private real estate investment company, said it made the purchase on behalf of Shorenstein Realty Investors Ten LP, a fund formed in 2010.
Janet Moore • 612-673-7752
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