Northstar Center East in Minneapolis bought by Sherman Associates
Sherman Associates has closed on the $91 million purchase of Northstar East in the central business district of Minneapolis.
The 13-story office tower is currently vacant, with the last several years spent planning the conversion into 216 apartment homes.
The conversion will provide downtown with new, high-quality housing and remove “outdated” office space from the Twin Cities office market, according to a news release.
“Our investment in this historic conversion indicates our commitment to downtown Minneapolis. We see this project as a catalyst that will pave the way for creative redevelopment in both Minneapolis and cities across the country, as we reimagine our downtown communities,” said Chris Sherman, President of Sherman Associates. “This project will have positive environmental and social impacts on the local community through its historic preservation, creation of hundreds of jobs for the construction and management of the project, and in expanding high-quality living options for downtown.”
Each unit, averaging around 900 square feet, will have smart home technology, high-end appliances and solid surface countertops, the news release said.
There will also be over 10,000 square feet of amenity space, including a media lounge, sports simulator, virtual reality room and expansive fitness center.
The financing for Northstar East closes in conjunction with Northstar Center West, which, together with the recently completed Hotel Indigo, secures more than $250 million of investment into the redevelopment of Northstar Cente, according to the news release.
The news release states that the goal of this investment is to reposition over 1.5 million square feet of office, hotel and parking ramp space in downtown Minneapolis.
“Projects of this magnitude and innovation are rare. This project has been years in the making. There is no precedent for a historic, functionally related complex being simultaneously redeveloped by at least three separate organizations,” said Trevor Martinez, Senior Developer at Sherman Associates. “This project was comprised of a new residential financing tool, physical reinvention, and change of use, which made it highly complex. We are excited to pioneer this unique approach to redevelopment.”
Construction is expected to start immediately on Northstar East, with completion planned for September 2024.