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Minneapolis firm sells 3 downtown buildings to San Francisco company

 

510 Marquette Ave. was one of three buildings Swervo Development Corp. sold to San Francisco-based Spear Street Capital on Friday, May 1, 2015.

510 Marquette Ave. was one of three buildings Swervo Development Corp. sold to San Francisco-based Spear Street Capital on Friday, May 1, 2015.

 

Developer Ned Abdul's firm has sold three downtown Minneapolis office buildings to Twin Cities newcomer Spear Street Capital for $87.5 million. 

Abdul's Minneapolis-based Swervo Development Corp. sold 510 Marquette Ave., 123 N. Third Street and 300 1st Ave. N. on Friday. Spear is based in San Francisco with holdings in the U.S. and Canada, primarily on the coasts. This sale marks its first Twin Cities acquisition. 

510 Marquette, located in the central business district, recently underwent a major redevelopment effort. Swervo purchased the building in 2013 for $6.7 million. The skyway-connected building was originally constructed in 1921 as the Minneapolis branch of the Federal Reserve Bank. 

The other two properties are red stone and brick buildings in the North Loop neighborhood.

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

The sale represents 10 percent of Swervo's portfolio.

266 riverfront apartments headed to St. Paul

A view of the project, towards the right of the rendering, from downtown St. Paul. Rendering courtesy of Bloomington-based Kaas Wilson Architects.

Sherman Associates is moving forward with plans to build a pair of apartment buildings across the Mississippi River from downtown St. Paul next to West Side Flats, which the company completed last year. The new buildings will bring an additional 266 apartments to the area, including 184 market-rate units in one building and 82 units - most of them for lower-income renters - in a second building. Sherman's 178-unit West Side Flats project has been 95 percent occupied over the past several months, emboldening the company to continue building in the area, which is near the intersection of Fillmore Avenue and Livingston Avenue, according to Tony Kuechle, a senior vice president of development for Sherman.

Kuechle said the company hopes to begin construction in early spring of 2016. The buildings will include some commercial space, including room for a 5,000 square foot restaurant with outdoor patio on the river and facing downtown. "[We're] talking with a couple of operators but nothing signed," Kuechle said.

The company recently completed a rental conversion project and owns several buildings in the city, but isn't pursuing any other projects in the area at the moment. The company has several housing projects underway in Minneapolis, including The Encore luxury rentals near Gold Medal Park in the Mill District and the Thresher Square block near the new Vikings stadium, which will include new apartments, a grocery store and a hotel in the historic Thresher Square office building.

A view of the project, towards the right of the rendering, from downtown St. Paul. Rendering courtesy of Bloomington-based Kaas Wilson Architects.