MINNEAPOLIS — Shorenstein Properties LLC has acquired the 1.6 million-square-foot 33 South Sixth, a mixed-use property which spans an entire city block in downtown Minneapolis, from Brookfield Office Properties Inc. The purchase price was $202.5 million, according to CNN Money.
“This property is in a superior office and retail location in a dynamic city,” says Douglas Shorenstein, chairman and CEO of Shorenstein Properties. “Minneapolis is growing faster than many larger metro areas, and it has wisely invested in its future success by developing the infrastructure necessary to attract more businesses and residents to downtown.” The population of Minneapolis is growing at an annual rate of 1.4 percent, according to the U.S. Census Bureau.
The development includes a 50-story office tower that features approximately 1.1 million square feet of Class A office space. Tenants include Target Corp., Stoel Rives and Meagher & Geer. The tower sits atop a 489,000-square-foot, four-story retail podium.
“We are pleased to have Target, which has done so much for Minneapolis, as our major tenant. We plan to work with our tenants and the community to add value to the city and to this important property by using our extensive expertise operating Class A office properties,” says Shorenstein.
Built in 1983, 33 South Sixth occupies an entire city block bounded by Nicollet Mall, Hennepin Avenue, and Sixth and Seventh streets. Also included in the transaction was a 687-space, three-story parking garage, as well as a ground lease occupied by an adjacent 583-room Minneapolis Marriott City Center Hotel.
Shorenstein Properties made the purchase on behalf of Shorenstein Realty Investors Ten LP, a commingled fund formed in 2010 with $1.23 billion of committed capital.
Shorenstein Properties, which was founded in 1924 and based in San Francisco, is a private real estate investment company that focuses on the acquisition, development and ownership of office and mixed-use properties. This marks Shorenstein’s second acquisition in Minneapolis. In 1992, the company acquired LaSalle Plaza for its first investment fund and later sold the property in 1997.
Brookfield Office Properties (NYSE: BPO) is a Toronto-based commercial real estate corporation that owns, manages and develops assets in North America and Australia. Some of its premier properties include the World Financial Center in New York and the Bank of America Plaza in Los Angeles. The company’s stock price closed at $16.37 per share on Friday, up from trading at $13.65 per share a year ago.
— Brittany Biddy