Mayo Clinic Square, the mixed-use complex on Hennepin Avenue in downtown Minneapolis, has been sold to a Chicago-based real estate investment management firm.
LaSalle Investment Management on Monday announced it bought the 222,000-square-foot complex, though it did not reveal the sales price. According to sources with knowledge of the sale, Mayo Clinic Square was sold for $98 million. The sale closed Friday.
"We are very pleased to have completed the acquisition of this unique and exceptionally positioned asset on behalf of our client," said Mark McGruder, portfolio manager at LaSalle, in a statement. "Mayo Clinic Square represents a tremendous opportunity to grow our client's exposure to the high-quality, infill urban property market, with this amenity-rich location, exciting tenant roster and durable income profile."
Mayo Clinic Square, when it was formerly known as Block E, had been a sore spot for the city as the building struggled to attract and keep tenants. After it purchased the beleaguered building in 2010 for $14 million, Camelot LLC tried but failed to spur interest in the building as a casino.
In 2015, Camelot invested $50 million to overhaul the building.
The building is now 96 percent leased, according to LaSalle. The complex houses Mayo Clinic's sports medicine facility, the headquarters and practice facilities for the Minnesota Timberwolves and Lynx, Kieran's Irish Pub, Starbucks, Jimmy John's and City Works restaurant.
Jerky company Jack Link's is scheduled to move into a new office in the building at the end of the summer as well as open a restaurant space on the ground floor.
"The Warehouse District is undergoing transformative change that continues to make this area increasingly relevant to tenants and local residents, and Mayo Clinic Square represents a key driver of this evolution," said David Schreiber, managing director of acquisitions at LaSalle.
CBRE represented Camelot in the deal.