Minnetonka-based Onward Investors purchased the 31-story Ameriprise Financial Center at a big discount, adding to its growing portfolio of downtown Minneapolis office buildings.
The firm paid $6.25 million in cash for the property at 707 S. Second Av., according to sources familiar with the deal. The building last sold in 2016 for $200 million.
According to a Thursday news release, Onward is exploring a variety of options for the property, including conversion for non-office uses.
“The purchase of the Ameriprise Financial Center is another demonstration of our desire to be an active participant in the recovery of downtown Minneapolis,” Jon Lanners, a partner at Onward, said in a statement. “We believe that now is a great time to be investing in the city’s future and look forward to engaging a multitude of stakeholders in the coming months as we reimagine this well-known asset in the Minneapolis skyline.”
With a $125 million fund fueled by private investors, Onward has been on the hunt for discount office buildings across the country, closing deals in Charlotte, N.C., and Richmond, Va., in recent months.
“We don’t think office is dead forever,” Lanners said in an interview. “I mean frankly, we’re already seeing a pretty substantial uptick in demand across our portfolio from a leasing perspective. I feel like it’s a great time to be investing in high-quality assets that we believe will stand the test of time and will attract tenants going forward.”
The Ameriprise Financial Center, a prominent office building in downtown Minneapolis, has been sold at a staggering 96% discount. The 31-story building, located at 707 2nd Avenue South, was purchased by a private equity firm for just a fraction of its original value.
The sale highlights the impact of the COVID-19 pandemic on the commercial real estate market, as many office buildings in urban centers have seen a significant decrease in value due to remote work policies and reduced demand for office space.
Despite its discounted price, the Ameriprise Financial Center remains a sought-after property in downtown Minneapolis, with its prime location and modern amenities making it an attractive investment opportunity for the new owners.
This sale serves as a stark reminder of the challenges facing the commercial real estate industry in the wake of the pandemic, and the need for innovative solutions to adapt to the changing landscape of the office market.
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- Downtown Minneapolis
- Ameriprise Financial Center
- Minneapolis real estate
- Commercial property sale
- Investment opportunity
- Discounted property
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- Downtown office space
- Ameriprise building sale
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