Shorenstein Properties is looking to acquire a 1.1 million-square-foot mixed-use building in downtown Minneapolis. According to data provider Real Capital Analytics, the San Francisco-based real estate investment firm is expected to buy City Center at 33 South 6th Street from Brookfield Office Properties for approximately $207 million.
One source told PERE that Shorenstein is purchasing 33 South 6th Street on behalf of Shorenstein Realty Investors X, a commingled fund that closed on $1.23 billion in commitments in 2010. Officials at Shorenstein and Brookfield declined to comment.
The 50-story property includes an office tower, a three-story shopping centre and a hotel. The office tower is about 97 percent occupied by tenants that include the technology group of Target Corp, global human resources firm Personnel Decisions International and several law firms. The shopping centre portion of the property is about 83 percent occupied, with tenants that include Office Depot, Marshalls, Brooks Brothers and restaurants Rosa Mexicano and Fogo de Chao. The property also houses the Marriott City Center, a 584-room hotel, and comprises a 687-space parking garage.
The purchase comes immediately on the heels of Shorenstein buying 801 Gateway Boulevard, a 136,075-square-foot Class A office building in South San Francisco for $35 million. The firm purchased 801 Gateway on behalf of Fund X.