KanAm US-grundinvest Fonds, a $579-million public fund of the Frankfurt-based real estate investment firm KanAm Grund, acquired the building in October 2005 for $197 million. The property was 90% leased. Tenants include Dorsey & Whitney, a law firm; Fallon Worldwide, an advertising agency; and Excel Bank.

In January, GlobeSt.com reported that the fund--which also has ownership in shopping centers owned by the accounting-challenged Mills Corp.--had been frozen. The SEC has called on Arlington, VA-based Mills to restate earnings beginning in first quarter 2000 through third quarter 2005. Shortly thereafter, Mills accepted resignations from 17 company executives and halted plans for 10 development projects.

Two days after the US fund was frozen, its $3.8-billion European Grundinvestment fund also was frozen. A UBS Investment Research report in response to the frozen funds suggested the predicament might require KanAm to sell off some of its assets in order to raise liquidity. On Feb. 17, a KanAm spokesman told GlobeSt.com, "We are sounding out different options that will lead to reopening our funds. Selling a portfolio is just one of these options."

It's one option that's being seriously considered. A source with a national brokerage firm tells GlobeSt.com he has confirmation from KanAm its advisor that New York-based Eastdil has been retained to market for sale 50 South Sixth St. and other office buildings in the fund that are located in Chicago, Phoenix and Philadelphia.

The developer of 50 South Sixth was a joint venture of Hines and an institutional client of Morgan Stanley Real Estate. As part of the sale to KanAm US-grundinvest Fonds, Hines retained the property management and leasing assignments.

Hines is also looking to sell 225 South Sixth, a 1.4-million-sf building located two blocks away. The disposition assignment is in the hands of Northstar Partners, an Eden Prairie-based brokerage firm affiliated with Cushman & Wakefield.

Also on the market in Minneapolis is IDS Center, a 1.2-million-sf building that Chicago-based John Buck Co. acquired in 2004 for $225 million or $182 per sf. Like 50 South Sixth, Eastdil Secured has the listing.

The three buildings combined represent upward of $700 million worth of real estate on the market at the same time. Thankfully, says the local principal of a national brokerage house, there's exponentially more money out there wanting to buy real estate, and Minneapolis is the second most attractive Midwest market behind Chicago. Assuming each of the Minneapolis buildings on the market attract several offers, that represents a combined $5 billion of capital.

"Historically, this market has sold one prominent building per year, but last year three were sold and now three more are on the market," the source tells GlobeSt.com. "We don't expect the same velocity over the next couple of years, but nor do we expect these current listing to languish on the market. Last year showed us that the global capital markets recognize the Twin Cities area as a place with long-term vibrancy, a place where buyers are comfortable investing big dollars."