Swervo Development pays $4.1 million for a notable North Loop building

Minneapolis-based Swervo Development Corp. paid $4.1 million for the 50,544 square-foot Manufacturers' Building at 401 First Avenue North in the North Loop neighborhood of Minneapolis. The six-story brick building - a vestige of the historic Warehouse District - sits at the northwest corner of First Avenue and Fourth Street North and was for at least three decades home to Nate's Clothing, a neighborhood fixture. The deal closed Friday.

While the neighborhood around it has been redeveloped and rebuilt, the building has been the focus of several redevelopment proposals, including a boutique hotel, for nearly the past decade. Swervo president, Ned Abdul, plans to convert the 1913 structure into a mixed-use retail and office building.

"This building has played a leading role in the city's history for 100 years," Abdul said in a statement. "It's suffered from a lot of starts and stops recently, but it's exactly the kind project we think we do well. We've worked extensively with buildings of this vintage in the Warehouse District for more than two decades and we're confident we can put it on the right path to its next century."

The transaction caps a busy second quarter for Swervo. In May the company sold three properties, including 510 Marquette, for $87.5 million and in June paid about $6 million for the iconic Minneapolis Armory, which Swervo plans to redevelop as an entertainment, cultural and sports venue.