Onward Investors Acquires 960 KSF Minneapolis Building
The property traded at an almost 97 percent discount from its previous sale.
Onward Investors has acquired Ameriprise Financial Center, a 960,000-square-foot office building in Minneapolis.
The high-rise traded for $6.3 million, representing a nearly 97 percent discount from its previous open-market sale price of $200 million in 2016, The Minneapolis/St. Paul Business Journal reported. GHR Foundation sold the asset after assuming control of the building in 2023, following the previous owner’s execution of a deed in lieu of foreclosure.
Morning Calm Management acquired the asset in 2016, according to CommercialEdge. The firm took out a $137.8 million loan financed by the seller, The Opus Group.
Located at 707 2nd Ave. S., the property is in the city’s business district and less than 10 miles from the Minneapolis–Saint Paul International Airport.
Constructed in 2000, the 31-story high-rise has floorplates averaging 35,000 square feet and an adjacent four-story parking ramp with 300 spots. Onward Investors is considering various possibilities for the property, including repurposing all or part of the building for non-office uses. Ameriprise Financial, which had its headquarters at the building since its completion, announced in late 2022 that it will vacate the space.
READ ALSO: What’s Defining Office in 2025?
Last year, the Minneapolis Council passed the Office to Residential Conversions Amendment, which streamlines review processes, eliminates public hearing requirements, and temporarily exempts converted buildings from the affordable housing policy for five years.
Minneapolis office activity
In December, Onward Investors formed a joint venture with Cross Ocean Partners and Neuberger Berman Special Situations client funds for the acquisition of Wells Fargo Center, the third-tallest building in Minneapolis. Starwood Capital Group sold the 57-story, 1.2 million-square-foot asset.
Last year, Minneapolis’ office investment volume totaled more than $735 million, an 181 percent increase from 2023, according to a CBRE report. Additionally, the market’s vacancy rate as of December clocked in at 24.1 percent, a 10-basis-point decrease quarter-over-quarter. Nevertheless, the city’s central business submarket recorded one of the highest rates at 27.6 percent, the same report shows.
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