The IDS Center, considered the tallest building in Minnesota, is for sale again.
The building's owner, Florida real estate firm Accesso Partners, has listed the 57-story tower just three years after purchasing it, marking what could be one of the shortest ownership periods in the building's history.
Accesso hired Chicago-based Holliday Fenoglio Fowler (HFF) to market the 1.43 million-square-foot office property — a signature element of the Minneapolis skyline beloved for its tapered edges and sleek glass curtain wall.
"We have owned this iconic property for three years, reached our investment target earlier than expected and have a fiduciary responsibility to return capital to our investors," Ariel Bentata, Accesso Partners' managing partner of investments, said in a statement.
The asking price was not disclosed.
Accesso, then known as Beacon Investment Properties, bought the IDS Center in April 2013 for $253 million from Inland American Real Estate Trust Inc. and has since invested in several upgrades, including a fitness center, conferencing space and other amenities.
The tower is 88 percent occupied. The tower's retail space was 100 percent leased in 2013, but last year the center lost Gap on the first floor of the Crystal Court public area. Inland had bought IDS in 2006 for nearly $278 million.
Real estate experts say a potential sale should not be interpreted as a knock on Minneapolis. In fact, they say, it is the opposite: There is money to be made.
The potential IDS deal represents what the industry calls an investment sale, a type of transaction meant to earn the buyer money, instead of holding the property for a long-term use. If Accesso finds a buyer soon, the brevity of its ownership indicates the level of interest in the Twin Cities market by out-of-town investors.
"I'm guessing the current owner of that property sees a present opportunity to make a profit," said Bob Pounds, senior vice president in investment sales at Colliers International, Minneapolis-St. Paul.
There's currently strong interest in the Minneapolis market because "it's a safe place to invest with good real estate and good tenants," said Jim Durda, executive vice president of Zeller Realty Group in Minneapolis.
The IDS Center, located at 80 S. 8th St., is considered by the local real estate community as one of the most stable investments.
"There is no better building in all of Minneapolis," Pounds said.
"It is one of those properties you just fall in love with — a great symbol for our city," said Durda, who has managed IDS for 21 years under six different ownership groups.
When the tower was built in 1972, it soared 345 feet above the next highest skyscraper, the 32-story Foshay Tower. Designed by influential American architect Philip Johnson, IDS came to symbolize Minneapolis' burgeoning place as a grown-up city.
The IDS Center is one of several top-tier downtown Minneapolis office buildings currently up for sale.
Pounds said the investment market is peaking, meaning prices are plateauing. He said he can't predict how long they will remain at their current level, but that a cooling period could come in as soon as three months to a year.
Accesso said its ownership of IDS — and entry into the Minneapolis market — has been "exceptionally rewarding" and that the company will continue looking in the metro area for new investments.
"Minneapolis has a strong economic engine, a talented and productive workforce, and we hope to find other office properties that meet our investment criteria, either downtown or in a surrounding suburb," Bentata said.
The 19-story Marquette Hotel, which is connected to the IDS Center by the Crystal Court, is owned separately.