Shorenstein Properties, a San Francisco-based firm, has acquired the City Center building in downtown Minneapolis.
Terms were not disclosed, but sources have previously put the price at about $207 million.
Formerly known as the International Multifoods Tower, the 50-story 33 South Sixth building occupies an entire city block bordered by Nicollet Mall, Hennepin Avenue, 6th and 7th streets.
The 29-year-old building, which was sold by Brookfield Office Properties Inc., spans 1.6 million square feet of commercial space, including 1.1 million square feet of Class A office space on top of City Center, which spans 489,000-square-feet. The deal also includes a 687-stall, three-story parking garage, and a ground lease for the adjacent 583-room Minneapolis Marriott City Center Hotel.
Douglas Shorenstein, chairman and CEO of Shorenstein Properties, said in a statement Tuesday 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 by using our extensive expertise operating Class A office properties.”
This isn’t Shorenstein’s first foray into the Minneapolis market — the firm bought LaSalle Plaza in 1992 and subsquently 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 that has $1.23 billion of committed capital.
Janet Moore covers commercial real estate for the Star Tribune.