Historic Lumber Exchange Building Heads to Auction in Downtown Minneapolis
A Downtown Minneapolis Landmark
The Lumber Exchange Building is one of the most historically significant structures in downtown Minneapolis. Built in 1885, it is widely recognized as the city’s first skyscraper. Located at 10 South Fifth Street, the building has long been a visual anchor in the downtown core and a reminder of Minneapolis’s early commercial growth tied to the lumber industry.
Auction Details and Property Overview
The 226,000 square foot building is scheduled to go to auction March 16 through March 18 on the Ten X platform. Despite an estimated market value of $11.3 million based on Hennepin County records, the starting bid is set at $150,000. The property was previously listed for sale as a potential conversion project but did not trade, leading to the upcoming auction.
Conversion Potential and Historic Tax Credits
One of the most compelling aspects of the Lumber Exchange Building is its eligibility for both federal and state historic tax credits. These incentives significantly improve the financial feasibility of a residential conversion or mixed use redevelopment. The current ownership group invested approximately $700,000 to secure architectural plans and historic approvals, reducing entitlement risk for a future buyer. The building’s large floor plates, roughly 19,000 square feet each, allow flexibility for apartments, offices, or hybrid concepts.
Why This Matters for Downtown Minneapolis
Downtown Minneapolis continues to face questions about office demand, housing supply, and adaptive reuse of historic buildings. A successful redevelopment of the Lumber Exchange could bring new residents, increase street level activity, and preserve a key historic structure. It also signals how pricing, financing, and creative redevelopment strategies are reshaping the downtown real estate landscape.
If you are watching downtown Minneapolis closely, this auction is one to keep an eye on.
