MINNEAPOLIS—Saks Fifth Avenue OFF 5TH caused a bit of a stir in this city's retail world last year when it announced it was closing its location at 655 Nicollet Mall after a 25-year run. But the upscale retailer has just signed a lease with Shorenstein Properties LLC for 40,321-square-feet in Minneapolis City Center at 33 S. Sixth St. Saks plans to open the new store in April 2016.
“This city has been a strong market for us, and Minneapolis City Center provides us with a vibrant location in which to serve our exceedingly loyal customers,” Jonathan Greller, president of outlets, Hudson's Bay Company, the parent company of Saks. “We look forward to continuing to be the fashion destination for shoppers looking for exceptional merchandise at great value.”
As reported in GlobeSt.com, the old Saks space was purchased by a joint venture between United Properties and Capital Real Estate, Inc. Retail space in this vibrant CBD is in high demand, and the partners have already signed a lease with Walgreens to anchor that building.
The new Saks will occupy ground-floor space formerly used by Office Depot and an additional 16,000-square-foot portion on the skyway level. This means that Saks will effectively anchor the 250,000-square-foot retail section of City Center. The store will sit near the main entrance at 6th St. and Nicollet Mall.
“Saks Fifth Avenue OFF 5TH is tremendous addition to the retail component of Minneapolis City Center and we continue to see strong interest in the remaining ground-floor space from other national and regional stores,” says Glenn Shannon, president, Shorenstein Properties. “We believe that tenant interest will absolutely be enhanced as a result of this addition to the project.”
San Francisco-based Shorenstein acquired 33 S. Sixth St. in 2012 for more than $200 million and has focused on repositioning and re-tenanting the retail space. The LEED Silver property has a total of 1.6-million-square-feet and includes a 50-story office tower, a three-story parking garage and a long-term ground lease for the adjacent 583-room Marriott City Center Hotel.
These are not the only big changes to the CBD's retail lineup. As reported in GlobeSt.com, when KBS Real Estate Investment Trust III acquired the RBC Plaza in 2013 for $118.1 million, company officials decided to transform the adjacent four-story retail mall, formerly known as the Gaviidae Common II, into an integral part of the 40-story, 678,045-square-foot building. The third and fourth floors were recreated as modern office space, the rest into building amenities.
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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.
