Bloomington-based United Properties has finalized its purchase of the shuttered Neiman Marcus store in downtown Minneapolis.
Terms of the deal were not disclosed.
The fate of the space that once housed the luxury department store, which closed in January after 22 years, has not been determined. In a news release, United Properties’ Executive Vice President Bill Katter said the firm is evaluating “a variety of tenant uses.”
The goal, the company said, will be to create “a design consistent with the plans for the adjacent retail space.” Earlier this year, KBS Real Estate Investment Trust purchased RBC Plaza, including Gaviidae II, which is connected to the old Neiman’s store, for $126.5 million.
To that end, United Properties has hired Minneapolis-based Shea Design to “formalize design plans” for the 100,000-square-foot space. The work is expected to be completed by the end of the year.
The four-story Neiman property, located at 505 Nicollet Mall, is across the street from the mall’s 400 block, which is undergoing a redevelopment boom.
At the corner of S. 5th Street and Nicollet Mall, Opus Development Co. is building a $100 million 26-story, 253-unit luxury apartment tower called the Nic on Fifth — the first new residential rental high-rise at the city’s core in nearly 30 years. In addition, the Minnetonka-based firm is slated to develop a nine-story corporate campus expansion for Xcel Energy Inc. on the block. And, Mortenson Development is planning to build a 30-story, 262-unit apartment tower called 4Marq at the corner of S. 4th Street and Marquette Avenue.
Next to the Neiman’s site, Minneapolis-based Swervo Development Corp. has purchased the 510 Marquette building for $6.7 million and intends to renovate it, and a Michigan firm is renovating the former Soo Line Building into 250 luxury apartments.
“We are excited to revitalize this part of Nicollet Mall and currently are evaluating a variety of tenant uses,” Katter said in a statement. “We will deliver a large block of space on Nicollet Mall at a time when the market is increasingly looking for these unique opportunities.”
United Properties has increased its development activity in downtown Minneapolis in recent years, including the renovation of the Ford Center, which cost more than $40 million, as well as the acquisition of the Loose-Wiles building at 701 Washington Av. N. and an option on the Shapco Printing site at 524 N. 5th St.