The deal will likely mean the hotel will be closed and torn down to make way for a SuperTarget store on the site. Target has yet to publicly say what they plan to do with the site.
The land is on a high-profile property between University Avenue and Interstate 94 on the eastern edge of Hamline Avenue. An existing Target store is just north of the hotel site on Hamline.
More than 100 workers will lose their jobs when the closes, most likely this fall, once the sale is completed. Tom Collins, a Port Authority spokesman, says employees who stay until the hotel closes will be offered a severance package.
A SuperTarget, which combines groceries with the discount store and are typically about 177,000 sf and employ about 400 people, which is twice as many as now work at the existing store.
While the loss of the hotel and its jobs are unfortunate, Port Authority officials say they had little choice but to sell the land to Target as the highest bidder, since the sale will go to pay off bonds that helped build the hotel nearly a quarter of a century ago.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
