Hines JV Completes 1 MSF Minneapolis Mixed-Use Development

June 21, 2024

Mixed Use Development Midwest Minneapolis-St PaulMoreNews

The project's office component is 70 percent leased.

Property at 350 N. Fifth St., Minneapolis — North Loop Green’s office tower (pictured on the right) provides views of the downtown Minneapolis skyline and Target Field. *Image courtesy of Kraus-Anderson*

Hines, Marquee Development and AFL-CIO Building Investment Trust have officially completed North Loop Green, a 1 million-square-foot mixed-use development in Minneapolis.

The project comprises 350,000 square feet of office space, 350 multifamily units, 100 short-term rental residences, 10,000 square feet of retail space and a 1-acre public park.

Construction began in 2021, with ESG Architecture & Design and Kraus-Anderson acting as designer and general contractor, respectively.

The 3.4-acre development represents the third phase of a Planned Unit Development, which includes two additional office buildings and a multifamily property. The joint venture redeveloped a six-parcel site for the project’s assembly, which served as a surface parking lot.

North Loop Green consists of two towers and a park. The office component includes 14 stories with ground-floor retail, while the residential building rises 34 floors.

North Loop Green’s office tower

The office component features floorplates averaging 28,523 square feet, terraces on each level, floor-to-ceiling windows, as well as a swimming pool and gym, to name a few. Moreover, the property is Wired pre-certified, while pursuing LEED Silver certification.

Piper Sandler & Co. will relocate its headquarters to North Loop Green in the summer of next year. The investment banking firm inked a 15-year lease for 113,000 square feet of office space in 2022.

Other notable leases include Värde Partners’ 12-year agreement for 28,000 square feet of office space signed last year, as well as KPMG and the development’s own designer—ESG Architecture & Design. Currently, the office component is 70 percent leased.

A host of eateries and bars will occupy the mixed-use development’s retail component, with one already in service and two others slated to open this fall.

Located at 350 N. Fifth St., North Loop Green is less than 1 mile from interstates 94 and 394. The Mississippi River and the Target Field, home to the Major League Baseball’s Minnesota Twins, are within walking distance.

Taking Twin Cities’ office pulse

According to a recent CommercialEdge report, the Twin Cities’ asking office rate was down 7.9 percent year-over-year as of May. However, the vacancy rate was also down 80 basis points during the same period, standing at 16.2 percent—below the national average of 17.8 percent as of May.

Due in part to the rise in construction costs and the overall performance of the office sector, Minneapolis-St. Paul’s office supply pipeline was virtually non-existent, with only 35,666 square feet under construction as of May, the same report shows.