The Development Tracker follows construction projects around downtown and Northeast Minneapolis
30 3rd St. S.
United Properties has attracted an anchor office tenant to its 33-story Nicollet Hotel Block tower, dubbed Gateway. A spokeswoman with RBC Wealth Management confirmed the Canada-based company has entered into a lease agreement to move into the project, proposed for the now-vacant site on the north end of Nicollet Mall. A final agreement is subject to RBC board approval. The Minneapolis-based developer has yet to officially purchase site, but the $10.4 million sale is expected to close in December. RBC would occupy floors 12-14 of the building, which would feature an eight-story, 275-room Four Seasons Hotel, a first-floor restaurant and a skyway connection. The penthouse levels would contain 18 condominiums. United Properties estimates the development cost at approximately $330 million. The developer has until this August to submitted completed land use applications.
800 S. Marquette Ave.
Golub & Co.
Golub & Co. and Oaktree Capital are set to complete the second phase of renovations to RSM Plaza this June. The firms are overhauling the former home of Barnes & Noble and redoing the building’s skyway level. Once completed, the office and retail building will have a greater presence on Nicollet Mall thanks to a large lobby, a renovate pocket park in front of Panera Bread and a 11,000-square-foot high-end restaurant on the ground floor. Steve Sise, Golub’s senior vice president of portfolio management, said the skyway will be reformatted and will have 7,500 square feet of commercial space. A first phase that began in 2016 added tenant amenities, such as a 6,000-square-foot fitness center and a 55-person conference center, to the building. Golub hasn’t announced any new commercial tenants yet.
City Club Apartments
1000 Marquette Ave. S.
City Club Apartments
Developer Jonathan Holtzman and his City Club Apartments have officially broken ground on a 17-story apartment building that will target college graduates taking entry-level positions at downtown’s big companies. The 307-unit City Club Apartments CBD Minneapolis will have smaller micro-apartments that the developer said will be affordable for people earning $45,000–$65,000 annually. The project only has about 20 parking spots, so most residents won’t have cars. As part of the development, a non-historically designated building built in 1914 was demolished to make way for the building, but the project will preserve the 1907 Handicraft Guild Building on the site. The three-story building will be offices and its two-story Assembly Guild Hall will be renovated into a restaurant, bar and event space. A central courtyard will connect the two buildings through green space, which may host movie nights and other public or resident programming.
501 4th Ave. S.
City of Minneapolis
The City of Minneapolis will borrow $108 million over five years to build a 11-story office building in order to consolidate facilities it leases outside of City Hall, according to a capital improvement plan the City Council approved in March. The 382,000-sqaure-foot building, which will have 10 occupied floors, will replace a parking garage kitty-corner from City Hall. Mark Ruff, the city’s chief financial officer, told the City Council’s Ways & Means Committee that demolition will start June 18. The project won’t increase property taxes and will be partially funded by an existing annual debt levy for county-operated libraries, savings on leases and operating expenses and revenue from city departments. Staff from the Minneapolis Police Department, the city’s planning department and Finance and Properties Services would move out of City Hall and into the new building. Scattered offices like human resources, risk management and Minneapolis Youth Coordinating Board would move into City Hall in their place.
206 Washington Ave. N.
A dilapidated warehouse building with a prime location on Washington Avenue in the North Loop will look brand new by the end of April. JoAnna Hicks, a principal at Element Commercial Real Estate, said they plan to finish exterior renovations of the three-story Lowry-Morrison building at Washington & 2nd this month. The building has been vacant for much of the past two decades, but Hicks said they’ve leased a ground-floor space to a restaurant and are nearing leases for the upper office floors.
315 1st Ave NE
Lennar Multifamily Communities
Residents will begin moving into the tower portion of NordHaus on April 16, leasing staff said. Tenants have lived in the lower portions of the 19-story apartment complex since last fall, but the tower had yet to be finished. NordHaus, developed by Florida-based Lennar, features about 280 units, from studios that go for $1,479 per month to three-bedroom penthouse units that will rent for nearly $9,800 a month.
East Side Storage
27th & University
City of Minneapolis
The City Council has adopted a five-year capital improvement plan that will support the creation of a new Public Works facility in Northeast Minneapolis. The project, known as the East Side Storage Facility, will cost between $40 million and $45 million and will be paid for through $15 million tax coming from a bond redemption levy and $32 million from solid waste and recycling revenues. The facility would replace two existing maintenance and storage facilities built in the 1940s. The city is nearly finished with drawing out final construction documents for the facility. Once it’s completed, the city would seek LEED Gold certification.
415 1st Ave. N.
The City Council’s Zoning & Planning Committee has approved an appeal from a church to block a sexually oriented use, in this case a topless bar in the former Imperial Room building in the Warehouse District. Non-profit religious institution 3 Degrees Ministries, represented by pastor Nancy Aleksuk, appealed a decision of the city’s zoning administrator. A city ordinance includes a distance requirement that sexually oriented uses cannot be within a 500 feet of a religious institution place of assembly, in this case the nonprofit located on the fourth floor of an office building.
608 2nd Ave. S.
Taconic Capital Advisors
An entity of Santa Monica-based PCCP has sold the Northstar Center in downtown Minneapolis to an entity related to New York-based Taconic Capital Advisors for nearly $62.8 million, according to a certificate of real estate value made public in late March. The complex is comprised of three retail and office buildings between 6th and 7th streets and Marquette and 2nd avenues. Wells Fargo, once a major tenant in the building, now occupies its own buildings, two 17-story towers overlooking the Commons park.
601, 605 Nicollet Mall
United Properties has sold a portion of Gaviidae Common on Nicollet Mall for $24.55 million, according to a certificate of real estate value filed in Hennepin County. The buyer is KB Minneapolis, an entity related to Las Vegas-based real estate advisory firm KB Property Advisors. United Properties, which is based in the building at 7th & Nicollet, sold portions of the first and second floors, along with the location of Walgreens. YMCA of the Greater Twin Cities recently opened a new facility that occupies pieces of all five floors.