MINNEAPOLIS—Even some of the nation's most vibrant CBDs still have older structures that developers can transform into creative office spaces. That's the goal R2 Cos. has set for itself in Minneapolis, where the Chicago-based firm and its partner Goldman Sachs have already transformed the outward appearance of the historic 15 Building and now plan to revive its interior.
Until 2014, the 12-story building located at 15 S. Fifth St. was owned by a local investor, and "it had not been updated in an aeshetic way in quite some time," Erik Ordway, a senior associate with Cushman & Wakefield | NorthMarq, tells GlobeSt.com. "What makes it unique is it's a vintage building tucked in amongst the downtown's more modern buildings." Similar structures populate the nearby Warehouse District and "those kinds of buildings have filled up over the past few years."
Along with C&W executive director Brent Erickson, Ordway will lease the property on the owner's behalf. The two have significant experience leasing creative loft-office space in the market, including the TractorWorks building in the North Loop neighborhood.
"No other building in the downtown core offers this opportunity for tenants," Ordway adds. "This property will have a brand-new feel to it, while still being a really cool, trendy space right in the middle of the city."
To give the building a new look, the owners worked with the Hennepin Theatre Trust to commission the five-story-high mural of Bob Dylan on the building's western facade as a tribute to the Minnesota native.
R2 and Goldman Sachs have also started improving the building's common areas, including the skyway level and lobby, to restore the building's art deco design components.
"This is a rare building, both structurally and architecturally, and our goal is to emphasize those characteristics as we reposition the building," says Jason Trailov of R2.
The new owners have already secured deals with impressive tenants. The national co-working company Assemble, for example, will open a 16,000 square foot space in the building, and both Chobani and the HiFi Project have also signed leases to move into the 150,000 square foot property.
R2 also owns 1165 N. Clark St. in Chicago, the site of Assemble's first location in that city. After seeing what a shared office did for the Gold Coast site, which they have spent millions renovating, company officials asked Assemble to occupy a portion of their Minneapolis acquisition "and bring buzz to the building," Phil Domenico, co-founder of Assemble, tells GlobeSt.com.
"It validates the plans that R2 and Goldman have for the building," says Ordway. "These tenants trust that we will follow through on our obligation to complete the renovations."
As an added bonus, 15 Building is adjacent to the city's Warehouse District. Once a gritty industrial area, the neighborhood is now listed on the National Register of Historic Places and hosts coffee shops, restaurants, bars, art galleries and thousands of new residents.
"If you walk out the front door it's just one block to the west," says Ordway. "You could even hit it by throwing a baseball." Furthermore, tenants can access the rest of downtown through the indoor Skyway system. "It's the best of both worlds."
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
