Capella Tower sells for $255M

The Capella Tower, one of downtown’s tallest skyscrapers, has sold for $255 million.

San Francisco-based Shorenstein Properties bought the 58-story building and the adjoining 22-story Star Tribune Building from ASB Real Estate Investments. The Maryland-based firm paid $245 million for the office towers and has owned them for the past 11 years, according to a release.

The complex features 1.4 million square feet of office space. Its tenants include Capella University, Baker Tilly and WeWork. In 2014, ASB put nearly $10 million into renovating the Capella Tower to add a health club, event space and flexible work spaces.

The Capella Tower was built in 1991 and was the city’s tallest building at the time. The building is known for its signature halo.

“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 and portfolio manager of ASB’s Allegiance Fund, in a statement.