MINNEAPOLIS (July 25, 2023) — CBRE has arranged the sale of the office component of RBC Gateway Tower, a newly constructed mixed-use tower in Minneapolis, Minnesota, for $225 million to San Francisco-based Spear Street Capital.
The transaction involves the 525,000-square-foot office space, the ground floor office lobby and 296 executive below-grade parking spaces. The seller, Minneapolis-based United Properties, was represented by Ryan Watts, Tom Holtz, Brandon McMenomy, Steven Ward, Greg Greene, and Harrison Wagenseil of CBRE.
“RBC Gateway Tower is a crown jewel in the Gateway District, with unmatched location and amenities. Premier properties like this offer exceptional workspaces that cater to the needs of modern employees, making them highly desirable as companies adapt to new workplace trends,” said Mr. Watts.
The 1.2 million-square-foot building, located at 250 Nicollet Mall, houses Minnesota’s first five-star hotel — the 222-room Four Seasons Minneapolis — and 34 luxury Four Seasons Private Residences on the uppermost floors. Three restaurants are also on-site, including Chef Gavin Kaysen’s Mara, a full-service restaurant and bar, and Socca Café. The office space is currently 99% leased to six tenants, including anchor tenant RBC Capital Markets, United Properties and Pohlad Companies.
“Our team set out to create a development that would add to — and invest in — the future of the city that we call home, ” said Chris Pohlad, chief of staff, United Properties. “We are proud to have added new energy to downtown by creating a connection point between the Central Business District and the North Loop.”
The sale did not include the Four Seasons Hotel & Spa or luxury condos located in the building.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
About United Properties
United Properties has been creating deep roots in the commercial real estate industry for more than 100 years. The company imagines new possibilities in real estate to help enrich communities and create lasting legacies. United Properties provides market expertise for ground-up development, redevelopment and acquisitions of value-add and stable investments. The company invests in and develops office, industrial, retail, mixed-use and senior housing properties. United Properties is owned by the Pohlad Companies and is headquartered in Minneapolis, with offices in Denver and Austin, Texas. For more information, visit uproperties.com and follow on LinkedIn and Instagram.