Principal Real Estate sells Minneapolis office tower

Principal Real Estate Investors has sold a 727,170-square-foot, 42-story office tower located at 222 South Ninth St. in downtown Minneapolis. The buyer was Richmond, Va.-based Lingerfelt CommonWealth Partners. The sales price was reportedly $81 million.

The office tower was built in 1985 and is the fifth-tallest building in Minneapolis. The new owner plans to rebrand the property as Two22 and initiate a $20 million renovation that includes a skyway overhaul, first-floor lobby redo, outdoor terrace and elevator modernization. Currently, the property is 51 percent occupied.

“The acquisition of Two22 fits solidly within our strategy of value investing in real estate markets with improving economic fundamentals. We’re looking forward to executing our business plan and delivering a great product for the city and building asset value for our investors,” said Ryan Lingerfelt, president and CIO of Lingerfelt Commonwealth Partners.