An Eagan office tower that used to be the home of Blue Cross and Blue Shield of Minnesota is about to get a major make-over. St. Paul-based Interstate Partners has the 10-story tower and adjacent parcels under contract, and they plan to convert the tower into 112 rental apartments. Phase Two of the project will be construction of an additional 90 apartments and 30,000 to 40,000 square feet of retail along Yankee Doodle Road near Town Centre Drive, according to Interstate Partners partner, Lonnie Provencher.

The project received the first of three city approvals last night - a comprehensive guide plan amendment. The property is now owned by Open Space LLC. Provencher said that he hopes to begin construction by the second quarter. Conversion of commercial space into housing isn't unusual, but very fewer office tours are suitable for such conversion. Provencher said that this building is perfect for such use because it has big windows, appropriately located elevators and "amazing" views of downtown Minneapolis and St. Paul. The most notable example of such a conversion was the transformation of a high-rise office building in Minnetonka into the Cloud 9 Sky Flats in 2006.