Shorenstein Snaps Up $255M Office Tower

ASB Real Estate Investments sold Capella Tower and the adjoining Star Tribune Building in Minneapolis on behalf of its $7.4 billion Allegiance Fund.

By IvyLee Rosario

Capella Tower, Minneapolis
Capella Tower, Minneapolis

Shorenstein Properties has purchased the landmark Capella Tower and the adjoining Star Tribune Building in Minneapolis. The firm acquired the  high-rise office complex from ASB Real Estate Investments for $255 million. ASB disposed of the properties on behalf of its $7.4 billion Allegiance Fund, its sole vehicle for core real estate investment.

Located at 225 South Sixth St., Capella Tower stands 58 stories tall. The LEED Gold-certified tower, along with the adjoining 20-story Star Tribune building, offers 1.4 million square feet. Constructed in 1991, the Class A property underwent cosmetic renovations in 2014 and also includes 8,000 square feet of retail. ASB acquired the asset in 2006 from Hines Interests for $245 million, according to Yardi Matrix. 

“After successfully owning the asset for 11 years, Capella had become a less strategic investment from a portfolio diversification standpoint, and the current market dynamics presented a good opportunity to sell and redeploy capital,” said Larry Braithwaite, senior vice president & portfolio manager of ASB’s Allegiance Fund, in prepared remarks. 

Image courtesy of Yardi Matrix

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