A joint venture of Beacon Investment Properties LLC, Harel Insurance Investments & Financial Services Ltd. and Menora Mivtahim Insurance Ltd. bought IDS Center, a 1.4 million-sq.-ft. office tower in Minneapolis, Minn., from Inland American Real Estate Trust Inc. for $253 million.
The 57-story tower is considered to be Minnesota’s tallest office building. Designed in 1972 by Philip Johnson, it features glass and steel construction, a 25,000-sq.-ft. indoor park and fountain and a two-level retail plaza.
The office portion of the building is 93 percent leased to tenants including Lindquist & Vennum, Merchant & Gould, Kraft Foods Group, Nickelodeon-MTV, Wells Fargo Advisors and Bank of America, among others. The retail plaza is 100 percent leased. Retail tenants at the property include Banana Republic, Gap, Hubert W. White, Mission American Kitchen and Bar and People’s Organic Café.
“Our company is delighted and proud to own the premier office complex in one of America’s most progressive and dynamic markets, the Twin Cities,” said Beacon Investments Chief Investment Officer and Founding Partner Ariel Bentata in a statement. “It is a stable asset with long-term tenants and a history of strong financial performance. We are honored to assume the stewardship of IDS Center from Inland American, which took very good care of this commercial real estate icon during its seven-year ownership.”
Beacon plans to add a conference center and a fitness center to the tower in the coming months.
Jamie Fink, Jeff Bramson and Mark Katz, of HFF, represented Inland American in the transaction. HFF’s Susan Hill, Kelly Layne and Timothy Joyce also arranged a $182 million loan with JP Morgan Chase Bank NA for the transaction.