Chicago-based real estate investor and developer The John Buck Company has sold the landmark IDS Center in Minneapolis, Minnesota for $277 million (€217 million), approximately 25 percent more than what they paid for the 1.4 million-square foot tower in December 2004, according to reports.
Strong performance in the office sector and declining vacancy rates, which had climbed as high as 20 percent in recent years, are driving up office property prices in the Twin Cities. The IDS Center – which appeared in the opening sequence of television classic “The Mary Tyler Moore Show” – was 14 percent vacant when John Buck bought it. The vacancy rate now stands at 5 percent.
“We felt that the investment market continues to be very frothy and so it seemed like a good time for us to sell the building,” Paul Heinen, a principal at John Buck, told the local Pioneer Press.
Recently, a joint venture led by Chicago-based real estate firm Hines sold the nearby tower at 225 South Sixth Street to ASB Capital Partners for a reported $275 million. That building, which is the tallest in Minnesota at 53 stories, is 25 percent vacant.
John Buck closed its second opportunity vehicle, JBC Fund II on $160 million in 2003. The company’s portfolio includes approximately $2 billion in assets.