The new owner said it would add a fitness center and other improvements.
The sale of IDS Center has finally closed.
The fate of the signature postmodern office tower on Nicollet Mall in Minneapolis — one of Minnesota’s tallest structures — seemed a bit unclear late last year, but now a Florida-based commercial real estate firm has sealed the deal for $253 million. According to Emporis, the IDS Tower is the tallest in Minnesota, but that still prompts debate.
In a letter to tenants Thursday, buyer Beacon Real Estate Services said it was “attracted by the IDS Center’s iconic position, not just in the Twin Cities, but throughout the national property market.”
The owner of the IDS, Illinois-based Inland American Real Estate Trust, put the 57-story tower on the market last year, saying it was repositioning its portfolio in favor of retail properties, student housing and lodging investments. But five months later, Inland took the tower off the market. At the time, Winnipeg-based Artis Real Estate Investment Trust was reportedly interested in buying the building for $260 million, but a deal was never consummated.
Soon after, Hallendale, Fla.-based Beacon emerged as a buyer. Just 10 years old, Beacon has acquired 3.4 million square feet of “top tier” commercial properties in the past six months alone, focusing largely on properties in the Southwestern, Southeastern and now Midwestern metro markets.
The office tower of the IDS Center is about 93 percent leased; major tenants include some of the Twin Cities’ top law firms. The retail portion is fully leased with restaurants Basil’s, Mission, Cosi and Peoples Organic, as well as retailers Hubert White, Gap and Banana Republic, among others.
Beacon said in the letter to IDS tenants that it plans to add an “extensively equipped” fitness center and a “number of capital improvements” to the property.
The current management team for IDS, including General Manager Jim Durda, will remain in place.