Starwood acquires Minneapolis office tower for $315m

Starwood Capital Group has purchased the 57-story Wells Fargo Center in downtown Minneapolis for $315 million.

Blackstone and Hines sold the 1.19 million-square-foot office tower.

Tenants include Wells Fargo, investment firm Castlelake LP, accounting company KPMG, and law office Faegre Baker Daniels. The building is 80 percent leased.

The sale is the largest of a Minneapolis office building since South Korea–based Samsung paid $320 million in June 2018 for the 51-story 33 South Sixth office tower and the City Center retail complex.

The Minneapolis office market remained stable in the first quarter, as overall vacancy decreased 20 basis points from first quarter 2018 to 17.4 percent in first quarter 2019, according to Cushman & Wakefield. New leasing activity was concentrated primarily in the suburban markets and absorption was buoyed by mid-size tenants occupying space in class B buildings, particularly in the Northeast. In addition, notes Cushman