California firm snags three downtown Mpls buildings in massive deal

Author:
Updated:
Original:

A prominent property development firm has just sold three large office buildings in downtown Minneapolis for $87.5 million to a new player in the Twin Cities.

Led by businessman Ned Adbul, Swervo Development Corp. accepted an offer from San Francisco-based Spear Street Capital on the three buildings: 510 Marquette Avenue in the heart of downtown Minneapolis, 123 N. Third St. and 300 First Ave. N., the Star Tribune reports. The latter two are in the North Loop area.

The newspaper says the three properties together make up about 10 percent of Swervo's real estate portfolio.

According to the Minneapolis/St. Paul Business Journal, Swervo paid more than $6 million to acquire 510 Marquette in 2013.

The publication indicates the transaction was somewhat unexpected for Adbul and his company and marks a change of business strategy.

“Our approach has been – and remains – to acquire, repurpose and hold our properties for the long-term," said Abdul. "In this case, however, we were presented a very attractive unsolicited offer from one of the preeminent real estate investment firms in the country."

The deal marks Spear Street Capital's first foray into Minnesota.

Currently, the company owns properties in its home state of California, as well as Illinois, Massachusetts, New Jersey, Texas, Virginia, Washington, D.C., and Canada, according to its website.

Next Up

smoke, hazy sky, wildfire smoke

Hazy conditions may lift temporarily, but smoke will keep coming for MN

Drifting smoke "will likely remain with us for a while," one group warned.

Pixabay - covid face mask bicycle bike

Number of MN counties with high, substantial COVID transmission hits 64

Nine days ago, 14 counties passed that threshold. We're now up to 64.

rowdi billboard

Six months on, devoted family not giving up search to find missing Rowdi

Rowdi went missing on the North Shore in February, but Cory Carlson has hope Rowdi is still alive.

Pixabay - hospital emergency room sign

Woman suffers fractured neck, leg after driver blows through stop sign

The crash happened early Thursday about 20 miles outside of Detroit Lakes.

suni lee

Watch: Suni Lee reunites with family after winning 3 Olympic medals

Suni said she wouldn't be where he is today without her family.

Julie blaha and melisa franzen

Blaha, Franzen reveal extent of injuries suffered in crash

The state auditor and state senator were driving home from FarmFest.

covid vaccine card

More than 11K Minnesotans signed up for $100 COVID incentive on Day 1

The new vaccination rewards program opened on Wednesday, and it has proven quite popular among the newly vaccinated.

jeremy jones richardson - pine county

Charges: Man broke into friend's home, killed him with his cane

Pieces of the victim's cane were found on his back, charges say.

Awwal Adebayo Ladipo Go Fund Me hospital

Charges: Fatal punch after fight led to fractured skull, brain bleed

The victim, a 25-year-old St. Cloud State grad, died two days later.

Pixabay - school - classroom

Minneapolis Public Schools to require face masks for staff, students

The rule goes into effect Monday, and will continue at the start of the new school year.

Related

California-based firm to acquire Minneapolis office tower for $207M

33 South Sixth Street/City Center, the fourth-tallest building in downtown Minneapolis, is being sold for roughly $207 million to a real estate firm in San Francisco, the Star Tribune reports. The 50-story office-retail-hotel complex, once known as the International Multifoods Tower, is about 83 percent occupied. Its biggest office tenant is Target Corporation's technology group. The building is also home to a three-story shopping mall and a Marriott hotel.