MINNEAPOLIS—Shorenstein Properties LLC has just sold its 33 South Sixth–City Center, a 51-story, class A office tower in downtown Minneapolis, to HNA Holding Group Co., Ltd., a subsidiary of the Chinese conglomerate HNA Group, for an undisclosed amount. It's the latest in a string of transactions in which an outside investor has bought one of this robust city's major office properties.
“This proves that Minneapolis is a liquid market,” Ryan Watts, of CBRE's Minneapolis office, tells GlobeSt.com. “We are seeing a lot of off-shore interest. And as they look into the economy here, they appreciate its strength.”
Minneapolis/St. Paul Business Journal reports that the price for the 1.6 million-square-foot mixed-use complex, the largest building in the Minneapolis CBD, was $315 million. An earlier deal for the property fell through.
Watts, along with CBRE's Tom Holtz, Judd Welliver and Sonja Dusil, represented HNA Group. This was its first office acquisition in the Minneapolis-St. Paul market.
San Francisco-based Shorenstein bought 33 S. Sixth St. in 2012 for more than $200 million and set about reviving and repositioning the asset, especially its retail space, known as Minneapolis City Center. “They achieved exactly what they wanted to,” adds Watts, by signing Saks Fifth Avenue OFF 5th to 40,321-square-feet at the center, and bringing Sports Authority to a ground-floor space on the Nicollet Mall and 7th St. side of the property. Minneapolis-based Target Corp. occupies 73% of the 1.2 million-square-foot office tower on a long-term lease.
Late last year, Shorenstein separately sold a ground lease within the City Center complex to Host Hotels & Resorts. The ground lease is occupied by the Minneapolis Marriott.
HNA also hired CBRE's asset services team in Minneapolis, led by managing director Dan O'Neill, to manage the newly acquired asset.
Investors were buying up Minneapolis' office properties at a historic pace several years ago. And even though sales dropped in 2015, a joint venture between Axar Capital Management, a New York-based hedge fund, and Morning Calm Management, a West Palm Beach, FL- based investor, recently purchased the 847,667-square-foot Ameriprise Financial Center at 701 2nd Ave. South in downtown Minneapolis for $200 million.
And Watts believes other investors, including ones from out-of-town looking to make their first Twin Cities' purchase, will snap up more of the city's class A space in 2017. “We are seeing new faces every day.”
MINNEAPOLIS—Shorenstein Properties LLC has just sold its 33 South Sixth–City Center, a 51-story, class A office tower in downtown Minneapolis, to HNA Holding Group Co., Ltd., a subsidiary of the Chinese conglomerate HNA Group, for an undisclosed amount. It's the latest in a string of transactions in which an outside investor has bought one of this robust city's major office properties.
“This proves that Minneapolis is a liquid market,” Ryan Watts, of CBRE's Minneapolis office, tells GlobeSt.com. “We are seeing a lot of off-shore interest. And as they look into the economy here, they appreciate its strength.”
Minneapolis/St. Paul Business Journal reports that the price for the 1.6 million-square-foot mixed-use complex, the largest building in the Minneapolis CBD, was $315 million. An earlier deal for the property fell through.
Watts, along with CBRE's Tom Holtz, Judd Welliver and Sonja Dusil, represented HNA Group. This was its first office acquisition in the Minneapolis-St. Paul market.
San Francisco-based Shorenstein bought 33 S. Sixth St. in 2012 for more than $200 million and set about reviving and repositioning the asset, especially its retail space, known as Minneapolis City Center. “They achieved exactly what they wanted to,” adds Watts, by signing Saks Fifth Avenue OFF 5th to 40,321-square-feet at the center, and bringing Sports Authority to a ground-floor space on the Nicollet Mall and 7th St. side of the property. Minneapolis-based
Late last year, Shorenstein separately sold a ground lease within the City Center complex to Host Hotels & Resorts. The ground lease is occupied by the Minneapolis Marriott.
HNA also hired CBRE's asset services team in Minneapolis, led by managing director Dan O'Neill, to manage the newly acquired asset.
Investors were buying up Minneapolis' office properties at a historic pace several years ago. And even though sales dropped in 2015, a joint venture between Axar Capital Management, a New York-based hedge fund, and Morning Calm Management, a West Palm Beach, FL- based investor, recently purchased the 847,667-square-foot
And Watts believes other investors, including ones from out-of-town looking to make their first Twin Cities' purchase, will snap up more of the city's class A space in 2017. “We are seeing new faces every day.”
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