City Center in Downtown Minneapolis Heads to Market After $110M Target Lease Buyout
Downtown Minneapolis just saw one of its biggest office stories in years.
City Center, a 51 story office tower in the heart of downtown Minneapolis, is preparing to hit the market after Target Corporation paid nearly $110 million to exit its long term lease early.
This move could have ripple effects across the Twin Cities commercial real estate market.
What Happened at City Center
Target once leased more than 900,000 square feet inside the 1.2 million square foot tower. At its peak, more than 3,500 employees worked in the building.
When remote and hybrid work expanded in 2021, Target vacated the space but remained financially committed to the lease. More than 10 years remained.
Instead of waiting, Target bought out the lease. Most of that money will go toward paying down roughly $97 million in outstanding debt on the building.
The owner, tied to Samsung, is now marketing the property for sale through CBRE.
A Massive Valuation Reset
City Center was purchased in 2018 for $320 million.
County records now show a value around $117 million.
That is a steep decline in less than a decade. Similar downtown Minneapolis office buildings have sold for significantly less than prior valuations as the market adjusts to reduced office demand.
For context, this building was renovated as recently as 2019. The fundamentals changed quickly.
What This Means for Downtown Minneapolis
Downtown Minneapolis continues to evolve.
Lower office occupancy affects retail traffic, restaurant performance, and investor confidence. It also creates opportunity.
Potential outcomes for City Center could include:
• Conversion of office space to residential units
• Mixed use repositioning
• A discounted acquisition that resets pricing expectations
For buyers and sellers in Minneapolis, Edina, Woodbury, and across the Twin Cities, large commercial shifts matter. They influence lending conditions, neighborhood perception, and long term development trends.
The Bigger Real Estate Picture
Downtown cycles are not new. Markets adjust, assets trade, and new visions emerge.
The key question is what comes next for the Minneapolis core.
Will we see more residential conversions?
Will companies recommit to in office presence?
Or will downtown continue to redefine itself around mixed use and housing?
If you are considering buying or selling in Minneapolis or the east metro, understanding these macro shifts gives you an edge.
Real estate is local. But it is also connected.
If you want to talk strategy in today’s Twin Cities market, reach out anytime.
