MINNEAPOLIS-Xcel Energy has hired Opus Development Corp. to build a new office building to hold a consolidation of spread-out employees. The energy firm has agreed to a long-term lease on the proposed 212,000-square-foot building, to be built at the southeast corner of Fourth Street and the Nicollet Mall.

The company has about 1,500 employees at its headquarters at 414 Nicollet. The new office will be built across from the HQ over a private parking ramp. Ben Fowke, chairman, president and CEO of Xcel, said in a statement that the new building will improve operating efficiency. “Leasing space in this new building is a prudent, cost-effective way to consolidate our operations, meet our future space requirements and create a great environment for our employees,” he said.

Opus hasn’t released the cost of the build-to-suit project. The company is about to start building the 33-story Nicollet Residences apartment building next door, over the site of the former Powers Department Store. A source tells GlobeSt.com that the entire one-block project is expected to cost Opus more than $160 million to build. The company has already said the apartment tower will cost about $108 million.