Developer Ned Abdul's firm has sold three downtown Minneapolis office buildings to Twin Cities newcomer Spear Street Capital for $87.5 million.
Abdul's Minneapolis-based Swervo Development Corp. sold 510 Marquette Ave., 123 N. Third Street and 300 1st Ave. N. on Friday. Spear is based in San Francisco with holdings in the U.S. and Canada, primarily on the coasts. This sale marks its first Twin Cities acquisition.
510 Marquette, located in the central business district, recently underwent a major redevelopment effort. Swervo purchased the building in 2013 for $6.7 million. The skyway-connected building was originally constructed in 1921 as the Minneapolis branch of the Federal Reserve Bank.
The other two properties are red stone and brick buildings in the North Loop neighborhood.
“Our approach has been – and remains – to acquire, repurpose and hold our properties for the long-term. In this case, however, we were presented a very attractive unsolicited offer from one of the preeminent real estate investment firms in the country," said Swervo president Abdul.
The sale represents 10 percent of Swervo's portfolio.
House prices in the Twin Cities haven't been rising at the same pace as the national average (3.1 percent in the Twin Cities during February versus 4.2 percent nationwide), but that's not necessarily a bad thing. Here's why: In some parts of the country house prices are increasing faster than the national average, fueling fears that price gains in those areas are outpacing wage increases. In Denver, for example, the index increased 10 percent and in Miami prices were up 9.2 percent, according to the latest S&P/Case-Shiller Home Price Index, which measures changes in the price of the same the house over time. Take a look at what happened nationwide:
With the housing crash and Great Recession an increasingly distant memory, a growing number of people who lost the home to foreclosure are now trickling back into the market. This week the National Association of Realtors took a close look at these boomerang buyers and found that in addition to the nearly 1 million former homeowners who have likely already purchased a home again, an additional 1.5 million are likely to purchase over the next five years.In Minnesota alone, there have already been an estimated 25,000 return buyers and another 34,000 waiting in the wings. Here's a graphic look at the trend:
Harrington Road, the most expensive street in the Twin Cities metro, is a short lane in Wayzata where the median home value is $4.3 million, according to a new analysis of the most expensive streets in America by Zillow. Harrington Road, which bisects a leafy point of land that juts into Lake Minnetonka, has only about a dozen or so houses on it and many of them have lakeshore on Brown's Bay and Wayzata Bay.
Here's a complete list of the most expensive streets in the Twin Cities:
And the most expensive streets in America:
Hey, buyers! Fixed mortgage rates remain near 2015 lows, according to several weekly surveys. Here are the latest rates from Freddie Mac's Primary Mortgage Market Survey for the week ending April 16.
M.A. Mortenson has sold the new Hampton Inn & Suites, the first hotel built in downtown Minneapolis since the recession, for $39 million.
The Golden Valley-based construction and development firm announced the sale one day after the new 211-room hotel opened for guests. The buyer is Texas-based Summit Hotel Properties, a publicly-traded REIT with 91 lodging properties in 21 states.
The Hampton Inn & Suites is the first of this brand in Minneapolis. Located in the heart of the city's entertainment district at the corner of 1st Avenue and 8th Street, the nine-story building is one block from 1st Avenue & 7th Street Entry entertainment venue and skyway-connected to the parking garages next to Target Center. It is two blocks from the popular Loews Minneapolis Hotel.
“The new Hampton Inn & Suites represents the first ground-up hotel to open downtown Minneapolis since 2009 and will contribute to the continued renaissance within the City’s urban core,” said Nate Gundrum, development executive at Mortenson, in a statement. “We are excited to bring this property to the market and look forward to completing several other real estate development projects in the area.”
Mortenson announced in November its plans for developing and building an AC Hotels by Marriott at 401 Hennepin Av. S. across 4th Street from the Minneapolis Central Library. That is also a nine-story hotel with 244 rooms and is estimated to cost $48 million to build.