MINNEAPOLIS—R2 Cos., a Chicago-based firm that specializes in transforming properties into modern offices, has already made a mark on the downtown here, and has now launched another project by acquiring the historic Flour Exchange Building at 310 S. 4th St. The 12-story building consists of roughly 100,000 net rentable square feet of commercial office.

The building was completed in 1909 and was home to the original Flour Exchange of Minneapolis, where flour was stored and traded on-site. It is the first steel and concrete high-rise in downtown Minneapolis and has been designated as a historic site by the Historic Preservation Commission and Metropolitan Planning Commission.

Located in the Downtown East neighborhood, the area has become more popular with modern office users due to the development of the new US Bank Vikings Stadium, a 1.2 million square foot campus for Wells Fargo, a 4.2 acre public park called The Commons, the first Radisson Red Hotel, and about 200 multifamily units and 26,000 square feet of retail.

"We are incredibly ecxited to be a part of the Downtown East submarket transition," said Max Meyers, chief investment officer of R2 Cos. "We have invested in the Minneapolis CBD market because of the emergence of a true 24/7 live/work/play environment. The development of Downtown East will create an amenity base that will drive office demand for uniquely repositioned historic assets."

"Our plan for the Flour Exchange is to make cosmetic and physical improvements to the property and reintroduce it to the market as a best-in-class historic office destination."

R2 acquired the historic 150,000 square foot 15 Building in August of 2014 in partnership with AIMS Asset Management, a business unit of Goldman Sachs. As reported in GlobeSt.com, the firm has begun repositioning the property into a class A creative office building. 

To give 15 Building a new look, the owners worked with the Hennepin Theatre Trust to commission the five-story-high mural of Bob Dylan that now adorns its 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. The joint venture also owns the 25 and 33 South Fifth Street Buildings in the CBD.

"We are big believers in the Minneapolis CBD and will actively pursue additional opportunities in the market.