A joint venture that recently purchased Fifth Street Towers in downtown Minneapolis said Friday it has secured nearly $95 million in financing with Wells Fargo Bank.
Fifth Street Towers Investors LLC purchased the office building at a sheriff's sale in April for $111 million, roughly $100 per square foot of space. The joint venture is a partnership between Invesco Real Estate in Atlanta and Chicago-based Zeller Realty Group.
The twin green glassy structures, built in 1984 and 1988 by Opus Northwest, are at 5th Street and Marquette Avenue S. The towers have more than 1 million square feet of Class A office space.
The building sold for $180 per square foot in 2007, but the owners gave back the keys to the lender, MetLife Inc., which foreclosed on the property in late 2011. At the time, the combined occupancy of both towers dropped below 70 percent.
The three-year, floating rate financing for the recent purchase provides upfront funding of about $62 million, with a commitment to fund more for future capital expenditures and leasing costs.
Financing was arranged by the Minneapolis and Dallas-based debt and equity teams of CBRE Group Inc., the world's largest commercial real estate services firm.
Janet Moore • 612-673-7752