Downtown Crowne Plaza sold, to become boutique hotel after $ 25 million renovation
The former Crowne Plaza Hotel in downtown Minneapolis will become a Hotel Indigo boutique hotel.
The sale of the Crowne Plaza, which closed at the start of the coronavirus pandemic in 2020 amid travel restrictions and stay-at-home orders, was finalized on Wednesday for an undisclosed price, Kothe’s John Kothe said. Real Estate Partners in Madison, Wis.
Kothe is leading a $ 25 million renovation, redeveloping the 1962 building in partnership with Madison-based Great Lakes Management Group and New York-based KP Property Development.
Work will begin next month, with the new hotel and restaurant opening in fall 2022, officials said.
The rehabilitation of the old Crowne Plaza will be Minneapolis’ first project for developers.
As the pandemic has hit Minnesota’s accommodation industry hard, “we believe the timing of the fourth quarter of 2022 is right … and will be good for us,” Kothe said. “The economy continues to improve as people continue to return to work and host events downtown.”
When completed, the property at 618 2nd Av. S. will become a 218 room Hotel Indigo by IHG.
“The investment and modernization of this property, along with the new owner’s confidence in the continued recovery of the downtown economy over the next year, is a welcome and encouraging sign as we close 2021” said Steve Cramer, CEO of the Minneapolis Downtown Council.
Carpets and other flexible construction will begin next month, followed by asbestos removal valued at $ 800,000, provided a grant is approved by the Metropolitan Council as scheduled. Separately, the escalators will be removed to restore a 40-foot-high rotunda that was covered decades ago.
The furniture, lights, beds and other contents of the old Crowne Plaza are liquidated in four in line K-BID.com auctions that end this weekend, said Alex Haigh, owner of Minneapolis-based Nordeast Resale.
âThey just change owners and wanted to update everything, so they get rid of all the old inventory,â Haigh said. âWith all this COVID thing, hotels started to struggle, so we have [liquidated assets] for many.”
The Hotel Indigo project took a long time to come together.
âWe’ve been working on this for three years. And we’re thrilled. We love to breathe new life into old buildings,â said Kothe, who has co-developed several commercial properties, including Hotel Indigo properties in Madison, Wisconsin and the United States. Kansas. City, Mo.
Twain Financial, Lincoln Savings Bank and US Bank fund the Minneapolis project.
New York-based Taconic Capital bought the Crowne Plaza Hotel and the adjacent Northstar Center office and parking buildings in 2018 for just under $ 63 million.
Taconic was preparing the sale of the hotel to Great Lakes Management, Keith Page of KP Property and Kothe partners in 2019.
âWhen COVID hit, we really pulled back and continued to focus on our other properties,â Kothe said.
Meanwhile, Taconic continued to work on the project. He subdivided the hotel from the 1,000-space Northstar Center parking lot and its west and east office towers. She also applied for the historic property tax credit needed to sell the hotel.
Kothe, Great Lakes and KP Property Development then re-engaged with Taconic about nine months ago to purchase the hotel and finalize the design plans.
Chicago-based Level Construction will be the general contractor for the hotel, working with Minneapolis-based RSP Architects.