Inland American Real Estate Trust Inc. sold the 57-story IDS Center, the tallest building in Minnesota, for $253 million to a joint venture of Beacon Investment Properties LLC and two Israeli companies.
Beacon, based in Hallandale Beach, Florida, bought the property with Tel Aviv-based Harel Insurance Investments & Financial Services Ltd. and Menora Mivtahim Insurance Ltd., the companies said today in a statement.
Inland, a nontraded real estate investment trust, had pulled the tower off the market just four months ago. The Oak Brook, Illinois-based REIT has been shifting its focus to retail, lodging and student-housing holdings. It bought the IDS Center in 2006 for about $277 million.
“It is the centerpiece of downtown Minneapolis,” Jaime Fink, a broker with HFF Inc., which represented Inland, said in the statement. “There was very strong interest in the property from international and national investors.”
Demand is rising for office space in Minneapolis. The vacancy rate fell to 18.2 percent in the fourth quarter from 18.8 percent a year earlier, according to data from Reis Inc., a New York-based research firm. Rents rose to $16.97 a square foot from $16.70 a year earlier.