Minneapolis’ City Center Sells Again
HNA Divests Complex After Two-Year Hold
Beleaguered Chinese multinational conglomerate HNA has sold Minneapolis’ City Center for $320 million.
According to sales documents released on Wednesday morning, an as-yet unidentified buyer purchased the sprawling, 1.62 million-square-foot complex at 33 S. Sixth St. in Minneapolis. The 51-story structure houses offices for Target Corp. and an extensive retail and restaurant line-up that includes Saks Off Fifth, Marshalls and Brooks Brothers, among others.
The buyer is listed as City Center 33 South Property LLC, which lists no manager and an address that goes to St. Paul’s Capitol Lien, a company that specializes in acting as registered agent for those who wish to retain a measure of anonymity.
The transaction is dated to Tuesday. Further documentation was not available for review as of publication.
Haikou, China-based HNA owned the property for less than two years. The company acquired the complex in November 2016, paying $315 million to San Francisco-based Shorenstein. It was hailed as a record trade for downtown Minneapolis at the time.
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The City Center sale is the latest in a series of sales for HNA, which has been selling off U.S. real estate holdings in an effort to catch up with its debt. The company, which started as an airline, has set a goal of selling off $16 billion of its assets by the end of the year, according to Bloomberg.
Hennepin County assessed the complex at $216.4 million for taxes payable in 2019.
Minneapolis-based Ryan Cos. US Inc. has been chosen by the new owner to manage the property, according to a press release sent out by Ryan on Wednesday. A spokesperson for Ryan directed questions about the buyer’s identity to brokers on the deal.
At this juncture, it is unclear who precisely that may be.
When contacted last week, brokers with the Minneapolis office of Colliers International, which handles retail leasing at City Center, declined to comment on a possible sale. JLL, which is responsible for office leasing there, did not respond to a request for comment.