Key Takeaways
- • Shorenstein is marketing the Washington Square office campus—a 1.1 million-square-foot, three-building complex in downtown Minneapolis—with an estimated asking price of approximately $175 per square foot, implying a total valuation around $175 million.
- • The portfolio consists of three buildings (20, 100, and 111 Washington Square) currently 80% leased, acquired by Shorenstein in 2014 for approximately $100 million from CommonWealth Partners.
- • Shorenstein has invested close to $35 million in repositioning efforts, including a major renovation of 20 Washington Square completed in 2008 and a full lobby and plaza upgrade at 100 Washington Square in 2017.
- • The Gateway District campus features approximately 900 shared parking spaces and was designed by renowned architect Minoru Yamasaki, with buildings constructed between 1964 and 1986; all three structures hold EPA Energy Star certification.
- • The sale represents a significant asset repositioning in Minneapolis' downtown office market and indicates potential market dynamics around institutional office holdings amid broader sector headwinds.
Summary
Shorenstein, a San Francisco-based real estate investment company, has placed its Washington Square office campus on the market. The property comprises three Class A office buildings totaling 1.1 million square feet located in downtown Minneapolis' Gateway District, marketed as a single portfolio package deal. According to sources cited by the Twin Cities Business Journal, the campus is expected to command approximately $175 per square foot, implying a total ask price near $175 million.
Shorenstein acquired the three-building complex—comprising 20 Washington Square, 100 Washington Square, and 111 Washington Square—in 2014 as a portfolio transaction for approximately $100 million from CommonWealth Partners, a Los Angeles-based real estate investment fund. The acquisition established Shorenstein as a major player in the Minneapolis commercial real estate market. The buildings maintain approximately 80% occupancy, a meaningful occupancy level in the current market environment.
The company has undertaken substantial capital improvements to enhance asset quality. Repositioning efforts totaled approximately $35 million, including a comprehensive renovation of 20 Washington Square completed in 2008 and a full renovation of 100 Washington Square's lobby and plaza completed in 2017. All three buildings are EPA Energy Star certified, underscoring environmental performance standards. The campus features approximately 900 shared parking spaces and was architecturally designed by Minoru Yamasaki, with original construction spanning 1964 to 1986. The Washington Square portfolio benefits from its Gateway District location and represents a well-established institutional office holding in Minneapolis' downtown market.
Shorenstein acquired the three-building complex—comprising 20 Washington Square, 100 Washington Square, and 111 Washington Square—in 2014 as a portfolio transaction for approximately $100 million from CommonWealth Partners, a Los Angeles-based real estate investment fund. The acquisition established Shorenstein as a major player in the Minneapolis commercial real estate market. The buildings maintain approximately 80% occupancy, a meaningful occupancy level in the current market environment.
The company has undertaken substantial capital improvements to enhance asset quality. Repositioning efforts totaled approximately $35 million, including a comprehensive renovation of 20 Washington Square completed in 2008 and a full renovation of 100 Washington Square's lobby and plaza completed in 2017. All three buildings are EPA Energy Star certified, underscoring environmental performance standards. The campus features approximately 900 shared parking spaces and was architecturally designed by Minoru Yamasaki, with original construction spanning 1964 to 1986. The Washington Square portfolio benefits from its Gateway District location and represents a well-established institutional office holding in Minneapolis' downtown market.
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