Finance & Commerce
New York-based Taconic Capital has paid $62.78 million in cash for the troubled Northstar Center in downtown Minneapolis, according to a certificate of real estate value made public Thursday.
An entity related to Taconic closed Dec. 15 on the purchase of the three-building, 746,003-square-foot complex, a little more than a month after lenders published a foreclosure notice in Finance & Commerce.
Included in the purchase are the 222-room Crowne Plaza hotel, at 618 Second Ave. S.; Northstar East, at 608 Second Ave. S., and Northstar Center West, at 625 Marquette Ave. S. The hotel and other tenants lease retail and office space in the complex, according to the CRV and CoStar.
The deal works out to $84.13 per square foot. Hennepin County values the property at $54 million for property tax purposes.
The transaction takes the property off the hands of Santa Monica, California-based PCCP NNN Northstar and PCCP NNN Northstar Hotel. The sellers were in default on a $62.15 million mortgage that was taken out on the property in 2007 and were facing foreclosure from lenders, Finance & Commerce first reported in November. The entities owed about $65 million at the time.
A sheriff’s sale had been scheduled for Jan. 18.
More than half of the 537,000-square-foot, 17-story Northstar West building was empty, according to CoStar. Wells Fargo had vacated the building for its new office campus in Downtown East.
Taconic is an investment firm that also has offices in London and Hong Kong. The company did not immediately respond on Thursday to a request to comment on the Northstar Center purchase.
The sale was the second made at Northstar Plaza in the past year. Last June, entities related to Minneapolis-based 614 Co. sold the land under the hotel for $15 million sale to a Scottsdale, Arizona, entity controlled by Steven Greenberg, Finance & Commerce reported at the time. Greenberg’s company, North Country Property LLC, was not a party to the foreclosure proceedings.
Related:
