LINGERFELT COMMONWEALTH ACQUIRES OFFICE TOWER IN MINNEAPOLIS, COMMONWEALTH COMMERCIAL OPENS 15TH NATIONAL OFFICE
Jul 8, 2019
Richmond, VA — July 8, 2019 — Lingerfelt CommonWealth Partners, LLC, a Richmond, Virginia-based commercial real estate investment firm, today announced the acquisition of 222 South Ninth Street, a 727,170 square foot, 42 story office tower in downtown Minneapolis, Minnesota. The asset was sold by Principal Real Estate Investors, the real estate group of Principal Global Investors, a diversified asset management organization headquartered in Des Moines, IA and member of the Principal Financial Group.
The tower, which will be rebranded as Two22, is located in the heart of downtown on Minneapolis’ Skyway System. Built in 1985, it was originally known as the Piper Jaffray Tower and most recently as the Campbell Mithun Tower. As the fifth tallest tower and the second tallest glass-curtain tower in Minneapolis, it is an iconic part of the Twin City’s skyline.
Two22 is 51% occupied and presents a significant repositioning opportunity in a market that has experienced similar successful repositionings over the past few years. Lingerfelt CommonWealth plans to immediately implement an estimated $20 million comprehensive renovation, including full elevator modernization, Skyway renovations and enhancements, a first-class tenant amenity package, a first-floor lobby renovation and an outdoor terrace.
“The acquisition of Two22 fits solidly within our strategy of value investing in real estate markets with improving economic fundamentals. We’re looking forward to executing our business plan and delivering a great product for the City and building asset value for our investors,” said Ryan Lingerfelt, President and CIO of Lingerfelt Commonwealth Partners.
Lingerfelt CommonWealth will own the tower via its vertically integrated investment platform. Commonwealth Commercial Partners, the Company’s affiliated commercial real estate operating firm, will handle all aspects of the day-to-day asset and property management for Two22, opening the firm’s 15th national office. Commonwealth Commercial will continue to grow its platform and will manage assets for real estate owners across the greater Minneapolis metro. Financing for the acquisition of the office tower was arranged by Atlantic Real Estate Capital.
“We’re excited to expand our company to the dynamic market of Minneapolis. Two22 represents a unique repositioning opportunity and we look forward to growing our platforms and serving the local community,” said Ken Strickler, President of Commonwealth Commercial Partners.
Lingerfelt CommonWealth will add to the existing on-site amenities which currently include a conference center, underground parking, fitness center, secure bicycle storage, a coffee shop, hair salon and a deli/catering service. Two22 earned Gold-level certification through the Leadership in Energy & Environmental Design (LEED) program in 2009 and then again in 2014. Two22 is surrounded by numerous hotels, restaurants and businesses in the rapidly expanding Downtown East neighborhood, and is just blocks away from the US Bank Stadium, home to the NFL’s Minnesota Vikings. The neighborhood’s swift residential and entertainment transformation has made it one of the most desired locations in the city.
More on the company can be found on the web at www.LingerfeltCommonWealth.com.