Jim Durda isn’t surprised that Minneapolis’ tallest building, the 57-story IDS Center, was sold late last month. That’s what happens, he said, with trophy properties.
And as Durda says, there is no bigger trophy in the Twin Cities than the IDS Center.
“Architecture really is art. And this building is a masterpiece,” Durda said. “It’s unique. It’s a fabulous piece of art. It looks incredible from the outside. And then when you get on the inside, it is even more amazing.”
Durda should know. He served as vice president and general manager of the IDS Center for Inland American, the company that until last night owned the IDS Center. Durda is now vice president and general manager of the building for the company that purchased the IDS Center, Hallandale Beach, Fla.-based Beacon Investment Properties.
Durda has overseen the 1.4-million-square-foot tower for the last 19 years.
“I’ve been with the building through a lot of ownership changes,” Durda said. “But that’s the nature of trophy real estate. It usually doesn’t stay with one owner for long.”
Beacon Investment Properties paid $253 million to acquire the IDS Center. In a release following the deal, Ariel Bentata, chief investment officer and founding partner of Beacon, said that the building’s strong financial history and tenant base persuaded the company to make the deal.
Beacon was impressed, too, with the location of the center. The IDS Center sits on Nicollett Mall, a particularly busy section of downtown Minneapolis.
“Our company is delighted and proud to own the premier office complex in one of America’s most progressive and dynamic markets,” Bentata said in a written statement.
In early May, Beacon announced that the Minneapolis offices of Jones Lang LaSalle and Cassidy Turley will take on the leasing duties at the IDS Center.
Jon Dahl, senior vice president, and Brent Robertson, vice president, are heading Jones Long LaSalle’s office leasing team. Andrea Christenson, vice president for Cassidy Turley, leads the retail leasing team for the property.
The IDS Center represents Beacon’s first foray into Minnesota. And Terry Kennon, managing director of asset management for Beacon, said that the company couldn’t have chosen a better building for its entrance to the market.
“We really like this asset,” Kennon said. “It’s not a typical building. It truly is an iconic property in the Twin Cities.”
Kennon said that Beacon officials liked the strong tenant mix of the IDS Center. Some tenants, he said, have called the building home for more than 20 years. That’s the definition of stability.
Kennon said that the Twin Cities as a whole also appealed to Beacon. He pointed to the number of respected institutional investors who have sunk their dollars into Twin Cities properties as a sign that this is strong market.
“We felt comfortable seeing that so many knowledgeable investors had already targeted the Twin Cities,” Kennon said. “These investors know what they are doing. They wouldn’t invest in the Twin Cities if this wasn’t a solid, strong market.”
Will Beacon invest in other Minneapolis/St. Paul buildings? Kennon said that the company is waiting to see how its invest in the IDS Center plays out before making any decisions about future Twin Cities deals.
But it’s clear that Beacon is excited about doing business in the region.
“There is a vibrant attitude about downtown Minneapolis,” Kennon said. “It has a buzz about it. There are so many amenities there. It has a high quality of assets and people. It certainly is an exciting area.”
Durda agrees. And he’s eager to continue doing business from the building that he has so long called home.
“They say that the city has grown up around this building,” Durda said. “And it really has. You can look out from this tower and see how Minneapolis has grown over the years. This building truly is a precious asset.”
