Mayo Clinic Square gets $43 million boost
The transformation of Minneapolis' Block E into Mayo Clinic Square received a financial boost last week with a $43 million loan.
Mayo Clinic Square is a 217,354-square-foot, mixed-use project. Mayo Clinic, along with its partner the Minnesota Timberwolves/ Lynx basketball teams, have signed on to lease the third floor as a sports medicine center.
Plymouth-based developer Provident Real Estate Ventures announced the loan from PCCP Inc.
"We now can move forward to complete the renovation of this most important asset located in the heart of Minneapolis," Provident Real Estate Ventures CEO Phillip Jaffe said.
Renovation of the empty commercial center in downtown Minneapolis has been underway for months. Don Kohlenberg of Hightower Initiative said construction, including the Mayo Clinic portion, is on schedule for a 2015 opening. Kohlenberg represents Provident.
He said there has been a lot interest from potential tenants in the complex, which includes spots for restaurants, retailers and offices.
"For a project in the throes of construction, activity is better than expected," he said. "From the architecture standpoint, this building is creating visually a clean break, a reboot if you will, from Block E."
Minneapolis-based RSP Architects is in charge of the renovation of the building's exterior and interior. AECOM, the California firm handing market analysis and economic-fiscal duties for Mayo Clinic's Destination Medical Center initiative, is working on the Mayo Clinic portion of the project.
Mayo Clinic has previously said its expects to pay between $5 million and $7 million to develop its part of the center.
While there are many prospective tenants looking at the facility, they haven't been signing leases yet.
Typically when one company commits the others fall in line, because they realize this is a limited resource," Kohlenberg said.
What's the reaction to the Mayo Clinic name on the facility?
"As far as how the central business district is taking the news that Mayo Clinic has naming rights for the building, we've had nothing but positive comments," he said. "Fast forward a year from now, this block is going to have an entirely different vibe and feel and appeal. Hopefully, we see that it'll be something that'll be a positive reflection on Mayo Clinic."