Tallest Tower in Minneapolis Pulled Off of Sales Market
Inland American Real Estate Trust Inc. ended its effort to sell the 57-story IDS Center, the tallest building in Minneapolis, about five months after putting the property on the market.
“We have decided to hold on to this iconic asset,” Jeff Manno, Inland’s vice president of transactions, said in an e- mailed statement. “There isn’t and never was an urgency to sell this property and we continue to believe in its strength in the Minneapolis marketplace.”
Inland, based in Oak Brook, Illinois, had been seeking a sale of the office tower as it shifts its focus to retail, lodging and student-housing holdings. While the company is continuing to pursue that strategy, the IDS Center “has served us well the last six years and we believe it will continue to do so,” Manno said.
Demand is rising for office space in Minneapolis. The vacancy rate fell to 18.2 percent in the third quarter from 19.2 percent a year earlier, according to data from Reis Inc. (REIS), a New York-based research firm. Rents rose to $16.86 a square foot from $16.55 a year earlier.
Inland bought the IDS Center in 2006 for about $277 million, the company said at the time. It hired HFF Inc. (HF) to market the building in July, according to a statement from the broker.
The skyscraper opened in 1972 and includes a retail center, Crystal Court. It was designed by the American architect Philip Johnson.
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