Alatus Buys Retail Portion of Block E Dowtown

The property is at Hennepin and First Avenues between Sixth and Seventh streets, across from Target Center and is connected via skyway to the Target Center and City Center. The block includes the 260 graves hotel that recently was flagged as a Wyndham, but the deal does not include the hotel. The purchase price was not disclosed.

The site also includes Kieran's Irish Pub, though there are some recent empty fronts, with a vacant Borders spot, GameWorks pulled out just a few weeks ago and the Hooters has filed for bankruptcy. A spokeswoman for Alatus, owned by developer Bob Lux, tells GlobeSt.com that she can't comment on the vacancy. A spokeswoman for McCaffery, which still manages the property, did not respond to a call about this deal.

In a statement, Lux said there's still excitement for the block, which McCaffery developed in 2002 for a reported $134 million (with almost $40 million in tax incentives). "We intend to significantly invest in Block E to attract tenants that complement the neighborhood's new energy and opportunities," Lux said. He said no further public subsidies will be sought.

Lux has experience with projects in the city, including a proposed mixed-use project at Hennepin Avenue S. and another near the University of Minnesota. A 2.27-acre site downtown, named Penfield, will be turned into a full-service residential corridor. Alatus will construct 208 apartment units, a 167-key Hyatt Select Service Hotel, as well as a 30,000-square-foot Lunds Grocery Store, with 7,000 square feet for additional retailers. Total development cost is estimated at $88 million.