The Marquette Plaza in downtown Minneapolis has been purchased for $88.4 million by a California-based real estate investment trust that plans to renovate the office building.

The landmark building, located on Marquette Avenue between Washington Avenue and 3rd Street, is known for its smile-like glass arch and 1½-acre park.

It used to be the headquarters for the Federal Reserve Bank of Minneapolis.

The 15-story building was purchased by KBS Strategic Opportunity REIT at a valuation of about $169 per square foot.

"We've seen such a lure to the Minneapolis market in recent years, which is likely due to the large amount of economic investment in the area and employers' desire to attract and retain top talent that want to work in a thriving, vibrant neighborhood," Shep Wainwright, senior vice president for KBS and asset manager for the property, said in a statement.

He said the company plans improvements such as a new tenant lounge, a state-of-the-art fitness facility, updated common areas and "creative utilization of the lawn."

Real estate services firm CBRE will handle leasing and manage the property.