After a year of construction and $ 20 million in upgrades, the owners of the Two22 Tower in downtown Minneapolis are ready to show off the newly renovated 42-story building, formerly known as Campbell Mithun Tower.
The structure that weaves its way through the Minneapolis skyline at 222 S. Ninth St. and Third Avenue was purchased by Lingerfelt CommonWealth Partners, based in Richmond, Va., In July 2019.
The renovations began in March 2020, when the pandemic sent most of the downtown office workers home.
General contractor Gardner Builders and design firm Nelson Worldwide have since redesigned the elevators, lobby, atrium and skyway of the Class A tower with sleek marble, high-tech and security features. They added indoor and outdoor rooftop terraces, videoconferencing rooms and a billiard room and also renovated the first and second floors as well as various spaces for tenants.
The public spaces of the skyscraper were last renovated in 2006.
The renovated building is now two-thirds let. Tenants include Principal Financial, Craig-Hallum Capital Group, private equity firm ShoreView Industries, payroll services firm CBIZ, Berkley Risk Administrators and law firm Fox Rothschild.
Cushman & Wakefield is now looking for new tenants to fill the remaining 240,000 square feet of vacant space, which is located primarily on the 15th and 21st floors and 23rd and 24th floors, said Katie Tufford, senior manager of the office of Cushman in Minneapolis, in an interview. .
The search for new tenants comes at a difficult time in the downtown commercial rental market as Minneapolis companies such as Target Corp., Ernst & Young, and Fredrickson & Byron downsize their office space due to COVID- 19 and modern computing trends that require less need for office filing systems.
Right now there is a glut of office space available downtown. The newly renovated Dayton’s Project office complex on Nicollet Mall and nearby downtown, where Target is divesting its offices, each has about 1 million square feet available.
At the same time, construction of the $ 433 million RBC Gateway tower is expected to be completed early next year, bringing a Four Seasons hotel and a host of new office options to the city.
Vacancy rates for all offices in downtown Minneapolis fell from 23.6% to 24% between Q1 and Q2 2021, Cushman & Wakefield reported. With COVID infections rebounding this summer, the future of the office market remains uncertain.
Inside Two22, Fox Rothschild plans to halve its four-story office when its lease expires next year, Tufford said. The company is also exploring other rental options.
“Obviously the vacancy rate is increasing downtown, but part of the reason for the renovation of Two22 was to really be able to respond to the market with the best solution so that employees can return to work after the pandemic”, Tufford said.
She added that companies looking for new space want upgrades and amenities found in better quality buildings like the recently remodeled Two22.
“The hope is that businesses believe in the downtown area and the amenities and vibrancy that downtown has to offer and will continue to rent space there,” she said. “We fully understand that many companies are downsizing and that makes sense. I expect that in five years, most businesses will use real estate the same way they did in 2019. ”
Officials from Lingerfelt, owner of the building, echoed their confidence in the future of the city center.
“The renovations and updates are truly exceeding expectations from a functional and aesthetic standpoint, and we believe we have provided an unparalleled destination for tenants and their employees, especially considering the post-pandemic environment. Said Rob Valentine, vice president of Lingerfelt. president, in a press release. “We acquired Two22 with a full understanding of the growth potential and history of Minneapolis and what this building could offer the downtown community.”