MINNEAPOLIS — A joint venture between Cross Ocean Partners, Neuberger Berman Special Situations client funds and Onward Investors has acquired Wells Fargo Center, a 57-story office tower located at 90 S. Seventh St. in Minneapolis’ downtown commercial district. The 1.2 million-square-foot trophy building traded hands for an undisclosed price.
Wells Fargo Center is the third tallest building in Minneapolis. Major tenants include a Wells Fargo branch bank, Colliers, the law firm of Faegre Drinker and the local office of accounting firm KPMG. The building contains an indoor pedestrian promenade that houses a 100-foot-high domed ceiling rotunda on one side and a lobby on the other.
The building also features The Reserve, which houses amenities such as a fitness center, reservable wellness rooms, lounge with coworking and focus rooms, conference center and catering kitchen on the seventh floor. The property also offers private car and bicycle parking.
Wells Fargo Center was 62 percent leased at the time of sale, with up to 110,000 square feet of contiguous availability. The building has averaged roughly 95 percent occupancy since 1988, according to Onward Investors.
“This acquisition epitomizes our fundamental value investment strategy of opportunistically capitalizing upon market dislocation and demonstrates Onward Investors’ continued commitment to playing an active role in the revitalization of Minneapolis,” says Jon Lanners, a partner at Onward Investors.
In 1985, Houston-based developer and investment manager Hines was chosen to rebuild Norwest Corp.’s banking headquarters at the site after the building was destroyed in an office fire. The building opened in 1987 as the headquarters of Norwest Corp., which merged with Wells Fargo in 1998. Architect César Pelli designed the property.
The seller, Starwood Capital Group, purchased the asset from Blackstone and Hines for $315 million in 2019. Hines has continued to serve as the property manager. Starwood Capital Group implemented considerable renovations at Wells Fargo Center, and the new ownership plans to continue to strategically invest in the building.
Based in Minneapolis, Onward Investors is an alternative investment firm specializing in real estate-related opportunities. Neuberger Berman Group is an investment management firm headquartered in New York City. Cross Ocean Partners is an asset management platform with offices in Greenwich, Conn., London and Dublin.
— Channing Hamilton