Shorenstein Snaps Up $255M Office Tower
ASB Real Estate Investments sold Capella Tower and the adjoining Star Tribune Building in Minneapolis on behalf of its $7.4 billion Allegiance Fund.
By IvyLee Rosario
Capella Tower, Minneapolis
Shorenstein Properties has purchased the landmark Capella Tower and the adjoining Star Tribune Building in Minneapolis. The firm acquired the high-rise office complex from ASB Real Estate Investments for $255 million. ASB disposed of the properties on behalf of its $7.4 billion Allegiance Fund, its sole vehicle for core real estate investment.
Located at 225 South Sixth St., Capella Tower stands 58 stories tall. The LEED Gold-certified tower, along with the adjoining 20-story Star Tribune building, offers 1.4 million square feet. Constructed in 1991, the Class A property underwent cosmetic renovations in 2014 and also includes 8,000 square feet of retail. ASB acquired the asset in 2006 from Hines Interests for $245 million, according to Yardi Matrix.
“After successfully owning the asset for 11 years, Capella had become a less strategic investment from a portfolio diversification standpoint, and the current market dynamics presented a good opportunity to sell and redeploy capital,” said Larry Braithwaite, senior vice president & portfolio manager of ASB’s Allegiance Fund, in prepared remarks.
Image courtesy of Yardi Matrix
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