Star Tribune file photo
The Northstar Center in downtown Minneapolis will likely change hands again soon.
While the complex was sold to an entity associated with New York-based Taconic Capital Advisors for $62.7 million in December, the Northstar Center will be marketed for sale again as a “mixed-use redevelopment opportunity,” according to a release.
The center, which takes up a block between 6th and 7th streets and Marquette and 2nd avenues along with the connected 222-room Crowne Plaza Hotel, had fallen into foreclosure late last year. Los Angeles-based real estate investment firm PCCP had defaulted on its mortgage and owed about $64.8 million, however Taconic and New York-based real estate investment firm Somera Road provided capital to clear the debt.
“This recapitalization removes all debt from the property and allows PCCP to continue with their business plan, realizing the true value of the asset,” said Jonathon Reeser, vice president of acquisitions at Somera Road, in a statement. “With the local unemployment rate at less than 3 percent, we see Minneapolis as a stable market with continued drivers of growth and a diverse spectrum of corporate users.”
PCCP, Taconic and Somera Road now jointly own the Northstar Center. Commercial real estate firm HFF will market the property for sale. No renovations are planned at this time, according to a spokeswoman for the group.