Minneapolis’ Tallest Building Secures CMBS Loan Extension
The Class A office building’s loan was extended up to three years on the heels of positive leasing momentum and sponsorship’s extensive track record.
By Cathy Cunningham December 11, 2023 4:49 pm
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There’s a distinct lack of holiday cheer in the market air this year, but we have a happy tale to tell.
Accesso just extended its commercial mortgage-backed securities (CMBS) loan on the IDS Center, the firm’s 1.42 million-square-foot Class A office tower in Downtown Minneapolis, Commercial Observer has learned.
Iron Hound Management’s Christopher Herron, Kevin Thompson and Anthony D’Amelio negotiated the three-year extension for the trophy asset, which provides Accesso with time to seek longer-term financing as capital market conditions continue to recover across the U.S.
The $151.7 million CMBS loan is split, pari-passu, across two CMBS transactions, JPMCC 2013-C13 and JPMCC 2013-C12, according to CRED iQ data. It transferred to special servicing in February, and an extension was successfully secured last month.
“We are excited to come to terms on a loan extension for the IDS Center as challenges surrounding the availability of capital persist, reflecting our success at the property despite a difficult macroeconomic environment,” said Deb Kolar, general manager at Accesso, who has overseen asset strategy at the IDS Center for more than three decades. “This extension enables us to continue doing what we’ve done successfully for many years – adeptly managing the iconic property while executing a highly successful leasing program.”
Indeed, so far this year, the IDS Center has executed 16 leases totaling more than 121,670 square feet. “We look forward to sharing news on leasing activity in the near future,” Kolar said.
The 57-story building, at 80 South Eighth Street, is Minneapolis’ tallest building and has been a landmark in the Twin Cities skyline since its completion in 1972. It sits at the center of the Minneapolis Skyway System, a collection of pedestrian footbridges in the city’s central business district that links buildings spanning 80 city blocks. IDS Center is linked to neighboring buildings by four of those glass pedestrian skyways.
In addition to its office component, the striking property also includes retail space and a 24,000-square-foot, eight-story indoor landscaped park. The Marquette Hotel, a boutique Hilton-branded hotel, also connects to the property.
Now the ripe age of 51, the IDS Center completed an extensive renovation of Crystal Court, its urban park and event space, in 2021.
Florida-based Accesso manages more than 14 million square feet of office properties and has also developed thousands of multifamily units across the U.S. over the years.
With a tidal wave of office loan maturities currently battering commercial real estate assets, several office owners haven’t been as lucky in extending their debt, but Accesso’s loan extension reflects the firm’s “long-standing stewardship” of the IDS Center, its extensive ownership and operator experience —both in Minneapolis and other non-gateway markets —and its “commitment to the communities in which it serves,” according to a company statement.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
