Willow Peak, PE Firm Onward Buy Minneapolis Building for Repositioning

Two commercial real estate firms have acquired and plan to reposition a 96,000-square-foot office building in downtown Minneapolis as part of a broader strategy to renew vibrancy in the city’s core.

Edina-based Willow Peak and Minnetonka-based Onward Investors announced this week their purchase of the five-story building, located at 300 First Ave. N. on the edge of the Warehouse District and the North Loop. The purchase price was not disclosed and a public filing hasn't yet been published.

The sale is Willow Peak’s first acquisition since the commercial real estate investment firm launched this summer. Led by ex-JLL broker Erin Fitzgerald, the company focuses on investing in high-quality office properties and redeveloping them with a mix of uses.

"We're all about repositioning underutilized buildings to a higher use and 300 is an ideal candidate for that vision,” Fitzgerald said in an interview.

Built in 1887, 300 First Ave. N. is currently 53% occupied, leased by software company Anaplan. The building once housed the headquarters for SuperValu Inc., which is now part of United Natural Foods Inc., and Cafe Brenda.

Willow Peak and Onward plan to reposition the property for a mix of uses, depending on market demand, Fitzgerald said. In addition to offering workspaces, the new ownership is also exploring residential uses, retail and restaurant options, sophisticated entertainment uses appealing to the 35-plus demographic, and wellness concepts, like a gym or spa. The companies are currently seeking tenants.

The companies also will consider adding exterior LED lighting to highlight the building's façade and improve feelings of safety, she said.

The seller of the property is an entity tied to San Francisco-based Spear Street Capital, according to Hennepin County property records and a state business filing. Spear Street declined to comment for this story.

The assessed value of the property, as of 2024, is $5.84 million, according to the county records.

The new ownership is working with Minneapolis-based consultant New History to discuss the process of being listed on the National Register of Historic Places and pursuing historic tax credits, Fitzgerald said.

"Our goal is really to bring foot traffic and more life to the area, integrating it into the city's broader revitalization efforts of making the Warehouse District Minneapolis's premier entertainment district,” she said.

The focus aligns with the goals of the Minneapolis Renaissance Coalition, which is a group of over 150 individuals from the public and private sectors that's also being led by Fitzgerald. That group’s philosophy is that the reinvention of office buildings and office-focused districts will be necessary to restore vibrancy, but that the costs of doing so are often too steep for the private sector to accomplish on its own. One of its main goals is making the Warehouse District an entertainment hub.

The group was named as a partner on several strategies in Minneapolis Mayor Jacob Frey's Downtown Action Plan announced last month, which lays out the city's vision for downtown Minneapolis post-pandemic.