MINNEAPOLIS—Provident Real Estate Ventures, LLC has just gotten a $43.1 million senior loan from PCCP, LLC to renovate and reposition Mayo Clinic Square, a 217,354-square-foot mixed-use project in the heart of downtown Minneapolis at 600 Hennepin Ave. near 1st Ave. North.
The property was originally developed in 2001 as a mixed-use shopping and entertainment center, but earlier this year, Mayo Clinic decided to open a sports medicine facility in partnership with the Minnesota Timberwolves and Lynx Ownershipgroup. And Provident has begun an aggressive renovation to the exterior façade, interior atrium and skyway level entrance.
The facility will focus on sports medicine, athletic training, rehabilitation, and physical therapy. Mayo plans to open its facility in the fourth quarter of 2014. In addition, the Timberwolves have signed a long-term lease to use the property as its corporate office, practice and training facility.
“This loan represents a compelling opportunity to fund the renovation of a well-located mixed-use project in the heart of downtown Minneapolis,” says Jim Galovan, managing director with PCCP.
The real estate finance firm has been quite active in the both the Twin Cities and the Midwest in general. As reported in GlobeSt.com, for example, a venture led by Sage Hospitality recently used a $30.3 million loan commitment from PCCP in its recent acquisition of the Marriott Minneapolis Southwest in suburban Minnetonka. Sage will also use the funds to renovate the property. And PCCP also recently formed a joint venture with St. Louis-based TriStar Properties to acquire 45 acres of land for the speculative development of a 673,000-square-foot bulk warehouse building at Gateway Commerce Center just east of St. Louis, the first big spec of its kind in the region in years.