Trump administration eyes sale of historic Wellstone building, other federal offices in Minnesota

The federal government is looking to terminate leases and offload hundreds of buildings it owns across the country, including downtown Minneapolis’ historic Paul D. Wellstone building and other office spaces located in Minnesota.

The buildings, newly listed as “non-core” assets by the U.S. General Services Administration, are being eyed for sale by the government as part of a sweeping effort in the Trump administration to slash federal spending.

GSA plans obtained by the Minnesota Star Tribune include the Wellstone building, the Bishop Henry Whipple Federal Building near the Minneapolis-St. Paul International Airport, a courthouse in Fergus Falls and two Social Security Administration offices on a list of buildings expected to be put up for sale over the next several years.

A “regular drumbeat of disposal decisions” will be rolled out to eliminate nearly 600 buildings from the federal government’s portfolio, according to the agency’s plans. The GSA is charged with managing federal buildings and real estate while providing office space to federal employees.

“GSA is reviewing all options to optimize our footprint and building utilization,” a spokesperson from the agency said in a statement. “GSA is actively working with our tenant agencies to assess their space needs and fully optimize the federal footprint, and we’ll share more information on specific savings and facilities as soon as we’re able.”

The sale of these buildings would represent a significant reduction in federally owned buildings in Minnesota. The GSA lists 11 federal holdings across the state, including the federal courthouse in St. Paul and several ports of entry. The agency says on its website that the federal government occupies space in more than 100 buildings in the state, including leased locations.

Federal leases are also being scrutinized. The Indian Health Service office in Bemidji is listed on Elon Musk’s so-called Department of Government Efficiency website as a lease being targeted for termination. DOGE’s website says the government could save $178,554 by terminating the lease.

Someone who answered the phone at the office in Bemidji didn’t know that the building was listed on DOGE’s website and was unsure where the office would go if the lease was terminated.

“I’m alarmed that Elon Musk and the Trump Administration may be shutting down local Social Security and veterans’ offices, as well as the Fergus Falls federal courthouse and Indian Health facility in Bemidji,” Sen. Tina Smith said in a statement. “I’m closely monitoring this situation and will be pressing the Trump Administration and their Republican allies for answers to ensure Minnesotans are not left without the services they need by Elon Musk’s reckless approach.”

An internal presentation on the GSA plan says that non-core assets “will be disposed of and customer agencies that do not require specialty space will be transitioned into privately-owned leased space.”

“By mandating a minimum 60% level of utilization for any given building, GSA is empowered to take the actions required to substantially reduce the owned footprint,” read the plans, laid out in a PowerPoint presentation.

Finding buyers for those buildings or tenants to fill them could be especially challenging. While demand for high-quality office space has been strong in some parts of the metro area, demand has generally been soft, especially in and around downtown St. Paul.

At the end of last year, nearly a third of the office space in that area was vacant, according to a quarterly report from Colliers. That’s double the metro-wide rate and is at all-time highs.

GSA’s plans say they’re targeting properties for sale with “significant reinvestment requirements and low revenue potential.”

The Bishop Henry Whipple Federal Building, which primarily houses employees for the U.S. Department of Veterans Affairs, was last renovated in 2014.

Two other locations are listed on the National Register of Historic Places, including the Edward J. Devitt U.S. Courthouse in Fergus Falls.

The historic Paul D. Wellstone Federal Building was first constructed as a U.S. Post Office in 1913 before being turned into federal office building in the 1930s. It houses a passport office for the U.S. Department of State and offices for Housing and Urban Development and the National Labor Relations Board.

John McCarthy, senior vice president for the investment services group at Colliers, said that both the Paul D. Wellstone and Bishop Henry Whipple federal buildings have their pros and cons, but selling or repurposing them in today’s market wouldn’t be easy.

He noted that the Wellstone building, which he visited recently, is in need of some maintenance, but it’s a Minneapolis landmark that’s historic, well-located and full of character.

“But with that comes the usual hurdles of an older, historically designated property,” he said. “Any redevelopment would take the right buyer with a solid plan (and patience), and in a soft office market, that’s a tough find.”

He said the Whipple building is a different story. It recently went through a big renovation so is in better shape than the Wellstone building, but because of its age and lack of amenities sought by many of today’s renters, it wouldn’t be as desirable as many newer buildings in prime locations.

“With its location along 62-Crosstown and adjacent to the airport, it would have some lookers,” he said. “Its size and somewhat isolated setting make it a tough fit for most tenants — especially in a market where large office users are few and far between.”

In 2022, Minnesota U.S. Sen. Amy Klobuchar spearheaded an effort to rename the federal building in honor of former U.S. Sen. Paul Wellstone, who died in a plane crash in 2002. Klobuchar said the building is in a central location that allows Minnesotans to access critical services.

“Before Senator [Norm] Coleman and I pushed for this passport office to open up in our state, Minnesotans had to travel to Chicago for in-person assistance,” she said in a statement. “We cannot go back to those days. Selling off this building would be of great disservice to our state.”

Wellstone’s son Dave was surprised to learn that the building could potentially be sold to a private owner.

“It would seem to be a shame. We’re pretty proud that it’s the Wellstone name and what it stands for and all of the things it does for people,” Dave Wellstone said. “I’m sort of shocked in some ways, and not others.”