Prime Downtown Minneapolis Hotel Development Site (ID: 77823)
|Location:||Minneapolis, Minnesota, United States|
Half Block, 1.2 Acre Site Opportunity in Booming Hotel Market
Cushman & Wakefield/NorthMarq is offering for sale a skyway-accessible hotel development site immediately north of the Minneapolis Convention Center and in the heart of the thriving Minneapolis CBD.
The Cushman & Wakefield/NorthMarq team of Dan Wicker, Kai Thomsen, Paul Donovan, Ronn Thomas, Jeremy Striffler and David Stokes is representing the property owner in the potential sale of 228 S. 12th St., a half-block, 1.2 acre site currently home to an underutilized church building.
“Immediate proximity to the active Minneapolis Convention Center, direct access to the skyway and 35W/94, and a booming downtown Minneapolis hotel market make this site a natural target for a new hotel development,” said Ronn Thomas. “This is an ideal and rare opportunity for a new hotel in downtown Minneapolis.”
The hotel industry has rebounded strongly in downtown Minneapolis, with year-to-date occupancy at 75.1 percent through the end of November, according to STR Global research. Last year’s occupancy of 72 percent was an all-time record for the Minneapolis CBD, and Meet Minneapolis expects the total 2015 occupancy to easily surpass 73 percent.
“Downtown Minneapolis’s hotel market is benefiting from a stronger economy, stronger meeting and convention business and stronger city branding initiatives which is attracting more visitors and events,” said Kevin Hanstad, Director of Market Research for Meet Minneapolis. “2015 has been another stellar year for the city and we expect that trend to continue.”
In 2015, Minneapolis hosted 609 conventions and events, dwarfing the previous record of 534 set in 2014. The metropolitan area attracted 30.9 million visitors in 2014, outperforming most of its peer markets, and that number is only expected to grow with such upcoming events as Super Bowl LII in 2018, the 2019 NCAA Final Four and several other major gatherings yet to be announced in the new U.S. Bank Stadium.
The site for sale will have impeccable access to each of those events, and Target Center, Target Field, the Hennepin Avenue arts and cultural district and vibrant downtown Minneapolis restaurant scene are all also easily accessible from the property. Thousands of public parking spaces are within two blocks of the site, which has easy access to both Interstate 35W and Interstate 94 and could also feature multi-family residential development.
The Average Daily Revenue for hotels in downtown Minneapolis is $153.93 through the end of November, a 3.6 percent increase over 2014. RevPAR, a measure of hotel revenue per available room, sat at $115.60 through the end of November, up from just over 109 last year.
“The latest economic indicators continue to show that downtown Minneapolis has room for a new hotel property, and several brands have shown interest in bringing new flags to our market,” Thomas said.
Multiple sales of existing hotels in the Minneapolis CBD have set new records over the past 18 months, indicating continued investor interest in top-tier properties in prime locations.
Cushman & Wakefield/NorthMarq hopes to identify a buyer for the site by February. Interested parties should contact Ronn Thomas at (952) 893-8230.
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