Report: 33 S. 6th/City Center to be Sold for $207M
Signature downtown Minneapolis building 33 South Sixth—which includes City Center—is reportedly slated to be sold for roughly $207 million.
The Star Tribune, citing an unnamed source “familiar with the deal,” reported Wednesday that the 50-story office-retail-hotel complex is expected to be sold to San Francisco-based real estate firm Shorenstein Properties.
Shorenstein reportedly owns and manages 21.5 million square feet of office properties nationwide that are collectively valued at $6.7 billion. It does not, however, have any properties in the Twin Cities market.
Brookfield Properties now owns 33 South Sixth, Minneapolis’ fourth-tallest building. Brookfield announced in 2009 that it was selling its Minneapolis holdings but has never publicly revealed its reason for leaving the market, according to the Star Tribune. Brookfield also owns RBC Plaza and Gaviidae I and II.
33 South Sixth—located at Nicollet Mall and South Sixth Street—is anchored by City Center, a three-story shopping mall. City Center’s tenants include Office Depot, Marshalls, Brooks Brothers, Len Druskin, and restaurants Fogo de Chao and Rosa Mexicano. According to the Star Tribune, City Center was renovated in 2005 and is now about 83 percent occupied.
Meanwhile, the office tower at 33 South Sixth spans about 1.1 million square feet, and the technology group of Target Corporation is its primary tenant. It has an occupancy rate of about 97 percent.
Also on the 33 South Sixth site is a 687-space parking facility and the Marriott City Center hotel, which has 583 rooms and recently completed a $30 million renovation. The Star Tribune reported that only the land under the hotel is included in the deal.
To read the Star Tribune’s full story on the expected sale, click here.