Gaughan Companies/CORFAC International, a commercial real estate provider serving the Minneapolis/St. Paul market, on Oct. 15 completed the sale of the Manufacturers Building (formerly Nate’s Clothing) located at 401 First Avenue North. The Historic Warehouse District property measures 55,250 square feet and is six floors high.
The property was sold by a local community bank to U.S. Hotel and Resort Management of Sioux Falls, S.D., for $2.7 million. The buyer plans to develop the property into an upscale, boutique hotel.
Lou Suski and John Chirhart, both vice presidents with Gaughan Companies/CORFAC International, represented the seller and procured the purchaser.
The Manufacturers Building, built in 1914 and listed on the National Register of Historic Places, was formerly the home to Nate’s Clothing before it was sold in 2008. The second through fifth floors were gutted and slated for redevelopment into creative offices and/or luxury apartments while a sixth floor was added in preparation for a penthouse.
However, failure of the original lending institution forced the restaurant to shut down and renovation to be stalled shortly before the property was foreclosed on in early 2011.
“We had tremendous interest in this opportunity and were able to market and close this property in less than 90 days after listing,” said Suski. “The quick sale process demonstrates the strong demand for well-located assets in the central core.”
