Owner of downtown office tower, One Financial Plaza in Minneapolis, Minnesota turned over the property to its lender. The office tower maybe the first office building in the city to yield to the commercial real estate decline. Behringer Harvard, a real estate investment trust and owner of the office tower handed the property to LNR Partner.
LNR Partner is a division of LNR Property based in Miami, Florida, and has confirmed on Wednesday, December 8, 2010 its ownership of the 40 year old, 27-storey office tower, which is located at 120 S. Sixth Street.
NAI Welsh, a property management firm would be the new leasing and management agent for the 394,000-square-foot property.
According to the Minnetonka-based NAI Welsh’s spokesperson, the owner of the high rise office basically handed back the keys.
Behringer Harvard could not be contacted for comments.
Two Minneapolis real estate professionals said that they believe the office tower, One Financial Plaza is the first troubled property which been handed back to its lender.
Behringer Harvard acquired the property from Zeller Realty Corp in 2005, when commercial real estate was at its best. The Hennepin county public records shows Behringer bought the property for $57.15 million.
The company also owns two properties in Minnesota: Minnesota Center and Lawson Commons in Bloomington and downtown St. Paul.
The property is 60 percent leased and was renovated back in 1991 and 1997. It market value was reduced to $20.4 from $20.9 for 2011.
Major tenants in the office tower include Turtle Bread, D Brian’s Deli, and Starbucks.