Summary: Shorenstein, a San Francisco development firm, has handed back the Capella Tower, the second-tallest building in Minneapolis, to its lender MetLife after failing to sell the property amid market uncertainty. Despite efforts to sell the nearly 1.5 million-square-foot office building at a reduced price, no buyers emerged. The building, which Shorenstein bought for $255 million in 2018, struggled with high vacancy rates, exacerbated by a downturn in office space demand post-COVID-19. Capella Tower is about 80% leased, with major tenants like Capella University, law firm Winthrop & Weinstine, and accounting firm Baker Tilly.
Minneapolis’ Second-Tallest Tower Handed Back to Lender After Failing To Land a Buyer
