Downtown Minneapolis Office Market

[Bakken2016]

A 10 story office building is being proposed for a parking lot at 330 first ave

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[Anondson]

Looks like there is no chance for skyway link too. Interesting! I’ve been waiting for this lot to get something new.

[alexschief]

This looks pretty great, but I'm disappointed that the developers didn't consider that this site was high on my target list for a residential tower once I win the Powerball.

Serious thought is that there are now very few full, 3/4, or even 1/2 block redevelopment sites remaining in downtown, but there are still a huge number of 1/4 block(ish) surface parking lots like this one, especially in the North Loop. I'm hoping to see developers targeting these and coming up with projects of a similar scale in the coming years.

[MNdible]

Interesting that it appears the tower they're proposing would be 'L' shaped to fully build out the available piece of land. Not many of those around. It also will presumably be zero lot line with a lot of adjacent properties.

[twinkess]

Rats, I heard L shaped and Warehouse and for a split second thought it would be the one between 5th and 6th on 1st Ave...

[SurlyLHT]

This area from North Loop Green, to Gateway 5th St and Washington has seen an impressive amount of investment recently. It makes me wonder if large projects like Gateway and North Loop Green instill confidence in an area and attract additional development. Might be the highest dollar value for a small area in the state. Gateway, 240 Hennepin, 17 N Washington, North Loop Green, and this project aren't small. Only the Ford Plant might have a higher invesment?

[city.city]

Is this a legitimate proposal? I noticed that TDT MPLS deleted the post and I believe Nick Halter tweeted that the rendering had a 2019 timestamp.

[seanrichardryan]

https://thedevelopmenttracker.com/mpls/ ... al-project

[tedlanda2571]

Heard a rumor that the owner of 800 LaSalle has either defaulted on their loan or is soon to default.

Word is this ‘A-office space’ isn’t really as ‘A’ as was underwritten. Anyone work in that building?

I find this interesting in light of the new office proposed at 330 1st and the project on Washington.

I wonder if the definition of ‘office space’ is changing so rapidly that there is perceived need for ‘new concept office’ and that while workers in offices might decline, if you have the new concept you don’t need aggregate demand, just the ability to poach from older buildings. Sorta like how 20-30 years ago stadiums suddenly needed tons of suites to attract corporate clients and that need basically obsoleted otherwise ‘fine’ stadiums that couldn’t accommodate them.

[mamundsen]

I work in this building. They made a lot of changes to add amenities right before the pandemic. But the skyway level is dead and if it’s owner also owns the Hennepin side (probably) the closure of Rock Bottom was a signal.

[VacantLuxuries]

Rumors that 800 LaSalle was on shaky financial footing turned out to be true. The previous owners turned it over to their lender to avoid foreclosure and will be going up for auction next week.

And Fifth Street Towers might be next.

[tedlanda2571]

Who knows what went on behind the scenes, but it seems pretty interesting that a building of this size isn’t being re-structured, extended and pretended, quietly marketed while in forebearance or whatever. Straight to auction like any old 3 bedroom house.

[VacantLuxuries]

Well the article said the owner was an out-of-state pension fund. I can't imagine they had the expertise to do any of that and were relying on the people they hired to manage everything.

I don't know enough to say for sure, but I can't imagine that sort of ownership/management arrangement leads to great decisions made for the long term health of the property. I could see a scenario where as long as the mortgage was getting paid and they were making what they considered acceptable profit margins without making changes, by the time the pandemic hit and major changes were suddenly needed to keep lease rates above the default threshold, it was too late.

[Blaisdell Greenway]

According to the listing it looks like the interest-only loan came to term (probably at twice the interest of the original loan). So maybe just a bad/mistimed financial investment on a good asset? Almost 70% leased doesn't seem terrible in today's market.

[uptownbro]

https://www.startribune.com/ameriprise- ... 600234538/

Ameriprise is dumping there tower downtown and will be based out of there there client services center 2 blocks away. They will move out in 2025 but I think they will find someone new to lease to. But its not good news

[Silophant]

Meanwhile, Winthrop and Weinstine is looking to expand by about 20,000 sq ft. Gotta imagine the Dayton's Project would be in the mix, even with current low occupancy rates that much contiguous space can't be too common.

[go4guy]

Piper Sandler is moving to North Loop Green in 2025!

[HKM]

Piper Sandler is moving to North Loop Green in 2025!

At least two asset management firms moving in as well. Apparently this is becoming the finance building.

[uptownbro]

Do we know how much space they are taking?

[tedlanda2571]

Piper Sandler is moving to North Loop Green in 2025!

Is this good news or bad news (ala Ameriprise)?

They are currently at 800 Nicollet Mall, no?

…and I’d be surprised if they are upsizing, I guess.