Xcel headquarters, 510 Marquette buildings sold in downtown Minneapolis

Dec 16, 2019

Two downtown Minneapolis office buildings — one just a few years old, the other with roots dating back almost a century — sold last week in separate deals.

The Star Tribune, citing an electronic certificate of real estate value filed Friday, reports on the $108 million sale of part of the corporate headquarters of Xcel Energy Inc. to an affiliate of Sentinel Real Estate Corp., a New York City-based real estate investment management firm.

The deal works out to a square-foot price of about $514.

The 212,000-square-foot building at 401 Nicollet Mall was developed in 2016 by Opus Group as a new home for Xcel (NYSE: XEL), which also occupies 414 Nicollet across the street. Xcel will remain in both buildings.

Just around the corner, meanwhile, the 510 Marquette building has also been sold by owner Spear Street Capital to an affiliate of Chicago-based RREEF, a part of Deutsche Bank. Finance & Commerce has a report on that $61 million deal, which works out to about $258 per square foot.

The Business Journal had reported earlier this year that the 510 Marquette building was on the market.

San Francisco-based Spear Street bought the building in 2015, along with the 300 First Ave. N. building in the Warehouse District, for a total of $87.5 million.

The building was constructed in 1921 for the U.S. Federal Reserve. Minneapolis-based Swervo Development bought the property in 2013, when it was mostly vacant, for $6.7 million, giving it a major overhaul and finding new tenants before selling it to Spear Street.

Major tenants include Redbrick Health Corp., Augsburg Fortress and Interpublic Group of Cos. (the parent of McCann and Weber Shandwick, both of which have space in the building.)

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