Gaughan Companies/CORFAC International, a leading full-service commercial real estate provider serving the Twin Cities market, today announced the completion of the sale of the Manufacturers Building (formerly Nate’s Clothing) located in 401 First Avenue North. The Historic Warehouse District property measures 55,250 square feet and is six floors high.
John Chirhart and Lou Suski of the Gaughan Companies represented the seller and found the buyer of the former Manufacturers building which will become a boutique hotel in the warehouse district of downtown Minneapolis. The property was sold to U.S. Hotel and Resort Management of Sioux Falls, South Dakota for $2.7 million. The buyer plans to develop the property into an upscale, boutique hotel.
“This is one of, if not the, busiest corners in Minneapolis,” said Lou Suski, a broker with Minneapolis-based Gaughan Cos. who represented the seller, Central Bank of Stillwater. “It’s a shell ready to be finished.”
Central Bank foreclosed on the old Nate’s building — also known as the Manufacturers building — in January 2011. The original lender was Mainstreet Bank in Forest Lake, which was shut down by regulators after betting too heavily on real estate loans to developers and buildings. (Central Bank subsequently bought out Mainstreet’s deposits.)
After Central Bank foreclosed on the property, the owners, a group called 401 Group LLC, declared bankruptcy a month later. The building has been vacant ever since, but remnants of the elegant eatery remain, including an expansive bar, a winding stairway and a chandelier that dangles between the first floor and basement, where Om’s dining area was located.
“We had tremendous interest in this opportunity and were able to market and close this property in less than 90 days after listing. The quick sale process demonstrates the strong demand for well-located assets in the central core,” said Lou Suski, Vice President, Gaughan Companies.
More on the story can be found at the Star Tribune website, or at the Corfac International page.