Anselm House, a college center for Christian studies with a small footprint on the St. Paul campus of the University of Minnesota, has long wanted to expand its reach on the Minneapolis side of the river.
After five or six years of research and planning, the organization has found what it believes to be an ideal location: an early 1900s brick structure that houses doctors from the University of Minnesota and other tenants. .
In an off-market deal, Anselm House on Tuesday closed a $ 14.87 million acquisition of the building at 718 Washington Ave. SE in Minneapolis. Bloomington-based Juno Investments Corp. is the seller.
Built in 1905 and remodeled in 2005, the building sits on the southwest corner of Washington Avenue and Oak Street in bustling Stadium Village. Huntington Bank Stadium, Mariucci Arena, Jean K. Freeman Aquatic Center, light rail service and other amenities are just steps away.
Dan Olson, general manager of Anselm House, said the organization will occupy approximately 18,000 square feet of space on the lower level of the building. The organization is working with the design firm LHB and RJM Construction to develop the space.
The first floor includes a 4,000 square foot atrium and a staircase will be added to access the lower level, he said.
Existing tenants will remain in the four-story building, Olson said. Doctors at the University of Minnesota occupy about 39,000 square feet of space, according to the CoStar Group. Other tenants are Bruegger’s Bagels and US Bank.
Anselm House has hired Frauenshuh Commercial Real Estate to manage the asset, Olson said.
Olson said the previous owner tried to rent the vacant basement space. Anselm House believed the space would work well for its conferences and gatherings. But instead of signing up to become a tenant, Anselm House chose to become homeowner, Olson said.
“It seemed to us to be a wiser strategy to actually buy the building and then allow the retail income from the first floor and above to be essentially unrelated business income to cover the cost of the building. himself, “he said.
In September 1993, the building sold for $ 1.34 million, according to Hennepin County real estate records.
Juno Investments was not actively seeking buyers, but the deal with Anselm House worked well for both parties, said Nora Scallen, president of Juno Investments, a commercial property management and investment firm.
“It wasn’t on the market at all. We kept it for a long time and the right buyer came along and it was a win-win and the perfect time to sell it, ”Scallen said Wednesday.
“For being an old building, it is in very good condition,” Scallen added. “It was restored after its purchase. I have heard some amazing plans for what they are going to do on the lower level and it will be awesome.
Anselm House has operated “for and on behalf of the students and faculty of the University of Minnesota for over 40 years,” said Olson. The organization’s mission is to “connect faith and knowledge with all of life,” according to its website.
Anselm House’s new space in the Washington Avenue building is expected to be ready for occupancy in the fall of 2022, Olson said. Most of the work will take place next spring and summer.
“For us, this is an exciting endeavor,” said Olson. “We are excited about the future.
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