Renovated CBD Hotel Ideal For Adaptive Reuse

Highlights

• This historic building, designed by the same architectural firm that worked on Grand Central Terminal in NYC, is an ideal redevelopment opportunity.
• Extensively renovated during the current owner's tenure, the property boasts modern updates paired with irreplaceable finishes.
• Easily accessible from I-94 and I-35E, connected to the rest of downtown via skyway, and within 5 mins of Xcel Energy Center and the State Capitol.
• Located in a Qualified Opportunity Zone.
• Located in a growing metropolitan area that is approaching 4,000,000 residents.
• Located adjacent to a premier development site in Downtown Saint Paul, the Central Station Block Development.

Description

Shape the future of Downtown St. Paul with the exciting adaptive reuse opportunity at 340 Cedar Street, also known as the Saint Paul Athletic Club Building. Formerly home to Hotel 340, The College of St. Scholastica, the Saint Paul Athletic Club (fitness center), and a variety of banquet spaces, this 13-story building was the first boutique hotel in downtown St. Paul. The offer allows investors and developers to reimagine this historic downtown fixture and create a vibrant mixed-use destination. The Saint Paul Athletic Club's stunning architectural features, along with significant modern updates and prime location make it the perfect candidate for use as multifamily apartments, an expanded hotel, and/or an upscale event venue (with supplementary uses).

Originally built in 1917, the building was designed by renowned architecture firm Reed and Stem, famous for their work on New York City’s Union Station and Seattle’s King Street Station. The 175,000-square-foot building has seen extensive remodeling during the current owner's tenure and currently boasts lavish interiors, including a marble lobby, a grand ballroom, four smaller event spaces, a (former) one-of-a-kind luxury fitness center that is currently being re-positioned, or which could be re-opened as a fitness center, and 56 exceptionally maintained guest rooms. Large windows, expansive hardwood floors, high ceilings, and elegant lighting create a spectacular atmosphere for anyone who walks through the front door. This rare opportunity allows investors to get a running start on a new project with a world-class building at well below replacement cost that radiates with historic charm.

One potential reuse scenario is multifamily. The St. Paul CBD Multifamily submarket’s recent performance strongly supports the development of new quality space. Both segments have shown tightening vacancy rates below the ten-year average and growing rental rates outpacing the greater metro. With no new housing inventory delivered in the past year and economic headwinds delaying local project starts, the stage is set for vacancies to tighten again beginning in 2025 and for rent growth to accelerate thereafter.

The Property is located in the center of the Saint Paul Central Business District between the Xcel Energy Center, the Ordway Center for the Performing Arts, Rice Park, and the Lowertown Arts District.

Saint Paul is the capital city in the state of Minnesota and is one half of the Twin Cities (along with Minneapolis), the 16th largest MSA in the United States with a population of approximately 3,600,000 inhabitants. Saint Paul's core downtown area, located in Ramsey County, has seen unprecedented growth in the past couple of years, especially in the residential sector. The number of residential units in the downtown district is expected to climb to 8,100 over the next few years, compared with 5,500 units in 2010. The average monthly apartment rental rate has risen nearly 13 percent over the past two years to $1.74 per foot, with the average vacancy rate at 4 percent. There is no sign of a slowdown in growth.

The Metro Green Line, which connects the Union Depot in Saint Paul to Target Field in Minneapolis, has five stations in downtown Saint Paul and had ridership of 12.4 million in 2015. The line provides easy access to University Avenue, Dinkytown (the campus of the University of Minnesota), and Downtown Minneapolis. The Property is adjacent to the Central Station of the Metro Green Line. The Xcel Energy Center, the home of the Minnesota Wild, attracts roughly 1.5 million visitors per year. The Saint Paul RiverCentre has hosted more than 3,000 events since its opening in 1998, and is the host of numerous national and international conferences and conventions.

Saint Paul's proximity to Minneapolis, and the slew of re-development projects that continue in the downtown core, makes it a very attractive place to live and play.