A joint venture between Elion Partners andKraus-AndersonCos. closed Thursday on a purchase of a 100-acre site in Woodbury from State Farm Insurance.
Florida-based Elion and Minneapolis-based Kraus-Anderson didn’t disclose the value of the land deal. The firms have spent 18 monthspursuing a massive $100 million redevelopmentof the site into a mixed-use office, hotel and retail center. Kraus-Anderson will begin grading the site Friday.
When complete, the project — dubbed CityPlace — will have 300,000 square feet of retail space for restaurants and shops. The partners have some signed leases with national retailers but they aren’t releasing any names yet, saidJuan DeAngulo, managing partner of Elion.
Work will begin immediately on construction of a 116-room Residence Inn byMarriottwithin the project thatTMI Hospitality announced that it would develop.
CityPlace will be anchored by the existing 400,000 Class A office building that was previously home for several thousand State Farm Insurance employees but has been vacant since 2006. The Minneapolis office of Transwestern has been hired to oversee leasing of the office space and it plans to open an on-site leasing office later this month.
“Given the plans for development, there isn’t a comparable office property in the market. We welcome brokers and potential end users to visit the site and tour the existing office facility,” saidMike Salman, a Transwestern partner and leader of the team hired to lease the office building.