The 31-story Ameriprise Financial Center in downtown Minneapolis was recently sold to Minnetonka-based Onward Investors for US$6.25 million, a steep departure from its original US$200 million sale price in 2016. The new owners of the 960,000-square-foot (89,187-square-meter) glass-clad office building are evaluating potential non-office conversions for the property.
Located at 707 S. Second Avenue, the building was originally constructed in 2000 as Ameriprise’s headquarters. In 2023, the building was returned to its lender after its previous owners, out-of-state investors, defaulted. Despite a reported 33.5 percent office vacancy rate in downtown Minneapolis at the end of 2024, brokers claim an increase in asking rents due to demand for higher-quality, smaller offices. The building will soon be vacant as Ameriprise consolidates operations at another location.
Onward Investors has been actively acquiring office buildings in the city. They were previously part of the joint venture that purchased Wells Fargo Center for US$85 million in late 2023 and have also partnered with Willow Peak to acquire 300 First Avenue N. for US$5 million. Additionally, they are involved in financing the stalled West Hotel project in the North Loop.
Funded by a private investor pool, Onward has been acquiring discounted office properties across the country, with recent deals in Charlotte, North Carolina, and Richmond, Virginia. The firm remains optimistic about the long-term viability of office spaces and sees the Ameriprise Financial Center as a high-quality asset with prime skyway access and a 300-space underground parking ramp.
City assessors most recently valued the Ameriprise Financial Center at US$70.7 million though a new assessment will be released in March 2025.
Learn more at The Minnesota Star Tribune