Developer Ned Abdul's firm has sold three downtown Minneapolis office buildings to Twin Cities newcomer Spear Street Capital for $87.5 million.
Abdul's Minneapolis-based Swervo Development Corp. sold 510 Marquette Ave., 123 N. Third Street and 300 1st Ave. N. on Friday. Spear is based in San Francisco with holdings in the U.S. and Canada, primarily on the coasts. This sale marks its first Twin Cities acquisition.
510 Marquette, located in the central business district, recently underwent a major redevelopment effort. Swervo purchased the building in 2013 for $6.7 million. The skyway-connected building was originally constructed in 1921 as the Minneapolis branch of the Federal Reserve Bank.
The other two properties are red stone and brick buildings in the North Loop neighborhood.
“Our approach has been – and remains – to acquire, repurpose and hold our properties for the long-term. In this case, however, we were presented a very attractive unsolicited offer from one of the preeminent real estate investment firms in the country," said Swervo president Abdul.
The sale represents 10 percent of Swervo's portfolio.