Henrico County-based Lingerfelt CommonWealth Partners LLC acquired a 42-story office tower in downtown Minneapolis.
The company bought the Campbell Mithun Tower. Built in 1985, it was originally known as the Piper Jaffray Tower.
The 727,170-square-foot tower will be rebranded as Two22. It is the fifth-tallest office building in Minneapolis.
Lingerfelt CommonWealth Partners, the investment management affiliate of commercial real estate firm Commonwealth Commercial Partners, bought the property from Principal Real Estate Investors, the real estate group of Principal Global Investors, a diversified asset management organization based in Des Moines, Iowa.
Terms of the deal, announced late Monday, were not disclosed.
The building is 51% occupied, which Lingerfelt CommonWealth said presents a significant repositioning opportunity. The company plans to spend about $20 million for a comprehensive renovation.
“The acquisition of Two22 fits solidly within our strategy of value investing in real estate markets with improving economic fundamentals. We’re looking forward to executing our business plan and delivering a great product for the city and building asset value for our investors,” said Ryan Lingerfelt, president and chief investment officer of Lingerfelt CommonWealth Partners.
Lingerfelt CommonWealth owns the office building. Commonwealth Commercial Partners will handle the property management by opening the firm’s 15th office in the U.S.
This is Lingerfelt CommonWealth’s second major acquisition of a high-rise office tower in a major U.S. city in the last couple of months.
In May, Lingerfelt CommonWealth bought the Pierre Laclede Center buildings, two high-rise towers which combined have a total of 580,368 square feet, in Clayton, Mo., located about 10 minutes from downtown St. Louis.
Lingerfelt CommonWealth owns nearly 20 million square feet of commercial real estate valued at about $2 billion across the Mid-Atlantic and Southeast. Its portfolio in the Richmond region includes more than 1 million square feet of office space in the Innsbrook Corporate Center and some suburban medical office buildings and shopping centers.