THE FALL OF MINNEAPOLIS CONTINUES

Powerline ^ | 31 Jan 2025 | John Hinderaker

[Rummyfan]

From the world of commercial real estate, this shocking news:

Minnetonka-based Onward Investors purchased the 31-story Ameriprise Financial Center at a big discount, adding to its growing portfolio of downtown Minneapolis office buildings.

The firm paid $6.25 million in cash for the property at 707 S. Second Av., according to sources familiar with the deal. The building last sold in 2016 for $200 million.

So that represents a 97% decline in market value since 2016. The prior owners handed the keys back to their lender in 2023. This is a nice, new building in the heart of downtown Minneapolis, but it is now vacant...

In related news, Minneapolis Mayor Jacob Frey has announced that he will run for a third term. I am not sure why: Frey presided over the disastrous George Floyd riots, although, to be fair, he didn’t perform as badly as Governor Tim Walz. Now the commercial tax base in Minneapolis has dried up–that’s what happens when the value of commercial real estate declines by 97%–and it is hard to see how the city will finance itself going forward.

[dfwgator]

Minneapolis is going the wrong way, like Jim Marshall.

[PeterPrinciple]

The industry as a whole greatly benefited from this re-entrenchment, as did consumers of electric power. Fortunes will be made in Minneapolis real estate if and when rational local government is re-established. Imagine, someone built and got financing for that $200 million building, and someone else acquired it for a paltry $6.5 million. If that building is ever filled, the new owner will be in an enviable situation.

---

from one of the comments

Now remember, onward investors gets a fee for putting the deal together. They may be investors too. And there was much more going on than the 6.5 million purchase price.

[gundog]

Nope, nope...George Floyd is all you’re supposed to remember about Minneapolis. Say it with me...”Black Lives Matter.”

[Bonemaker]

Theyy can house illegals and other assorted filth there.

[Dave911]

As a real estate developer, this is beyond catastrophic. Many may think, oh too bad doesn't affect me in any way. Well I can tell you that it will affect everyone because this is happening in big cities across the country and will eventually cause both large and small banks to fail once again. People in all economic strata have money in those banks and FDIC insurance or not, how many can wait weeks or months to be able to access checking or savings accounts? Dem run cities are bankrupting more that just their own locality.

[dfwgator]

This is the Destruction Phase of “Build Back Better”.

[Orosius]

Supervision by Donald Trump’s DOJ might be just what the Minneapolis PD needs.

[PAR35]

Say it with me...”Black Lives Matter.”

OK. "Black Lies Matter"

Maybe this typewriter has a sticky key.

[cuz1961]

“value of commercial real estate declines by 97%”

This is what

The Cloward–Piven strategy called

“progress” looks like...

[ARW]

These properties need to clear eventually. I think slowing the fall is more detrimental in the long run.

[cuz1961]

or do most of the cities that are in trouble all seem to have Democrat mayors?

and electronic voting machines whose components are all made in Communist China ?

[Night Hides Not]

They all need to purify themselves in the waters of Lake Minnetonka....and never come back up.

The sounds of doves crying is emanating from MN.

[dfwgator]

It’s a Sign O’ The Times.

[alternatives?]

Detroit in the making.

[alternatives?]

Less than $200,000 per story. And it is not tilting like those in SF.

[lurk]

$6M for a 31 story downtown building. Brutal. Those are Mogadishu prices.

[Cincinnatus.45-70]

Hope springs eternal in the human breast. Mankind always is to be, never is, blessed. So a poet once said.

I wonder how it’s going in Detroit these days. I hear things are better, but how does it compare to when the city was clearly prospering?

I’m afraid Minneapolis is done for.

[Night Hides Not]

I see another problem to consider: the FDIC is not the same agency I knew 12-15 years ago, when Sheila Bair was the Director. This was during the bank crisis, and they hired guys like me off the street, on two year contracts (with an Agency option for two additional years).

Martin Gruenberg was just another bureaucrat that replaced Sheila. So when the Schiff hits the fan (again), the FDIC will be unable to meet the challenge.

Here's a recommendation to President Trump: new federal hires should be done on that same 2 + 2 program, instead of hiring permanent employees. If a new hire isn't meeting expectations, terminate them at the end of the first two years.

I worked primarily in contract oversight, overseeing the contractors who serviced mortgage loans from the banks that were closed. We did our jobs well: two servicers voluntarily withdrew from their contracts, because we were too tough on them, and they weren't making enough money (boo-hoo).

A personal highlight of mine was when a Director in Dallas sent out an email to the higher ups in DC. She summarized my caustic after action report of a site visit with: "Houston, We Have a Problem." Ahh, the good old days. lol

[bigbob]

Not a lot of desire to be in downtown Mogadishu-North

[bray]

Did he ever get his shotgun loaded?