City approves sale of Saks/Gaviidae I
- Blog Post by: Janet Moore
- July 10, 2013 - 11:09 AM
All's well that ends well. Or something like that.
On Tuesday, the city's Community Development Committee voted to approve the sale of the Saks/Gaviidae I property in downtown Minneapolis to New York-based David Werner Real Estate for $26.5 million. The seller is Brookfield Properties, which has been looking to divest itself of its Minneapolis properties for some time now.
"Through this process, we found a good buyer that will do wonderful things for the community," said David Sternberg, a senior vice president at Brookfield.
The property, located at Sixth St. S. and Nicollet Mall, generated strong national interest and multiple bidders.
The city owns the land on which the Saks Off-Fifth department store and an office tower are located. The land is subject to a ground lease agreement dating back to 1987. After two lawsuits between Brookfield and the city over the property were settled in 2004, the terms of a potential sale were laid out. The city and Brookfield own 34 percent and 66 percent, respectively, according to city documents.
Cushman & Wakefield/NorthMarq was chosen to market the property, and all parties agreed the David Werner bid was the best deal. The city's 34 percent cut will be reduced by costs of the sale and leasing expenses incurred by Brookfield. So, if the sale goes accordingly, the city will receive a payment exceeding $8 million.
We wrote here about the impending sale.
Janet Moore covers commercial real estate for the Star Tribune.
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