New owner plans to close and sell downtown Minneapolis parking lot

– Minneapolis/St Paul Business Journal

The new owner of two surface parking lots along Hawthorne Avenue in Minneapolis plans to close one of the lots in the next 90 days and offer it for sale to potential developers, according to a securities filing.

MVP REIT, a new San Diego-based real estate investment trust, closed Jan. 6 on its acquisition of two surface parking lots for $15 million plus closing costs, according to an 8-K filing with the Securities and Exchange Commission.

As I first reported in August, MVP REIT bought the properties from Minneapolis Venture, an investment partnership owned by Phillip Jaffe, Irv Kessler and Bob Lux. The trio, which also redeveloped Block E, put the lots up for sale in 2014.

The lot that will close and be offered for sale “for development purposes” is the former home of a Ramada hotel at 41 10th St. N., with 107,952 square feet and about 185 spaces. There are no buildings to demolish, no tenants to relocate and no height restrictions.

The lot that will stay open is at 1022 Hennepin Ave., with 90,658 square feet and about 270 spaces SP Plus Corp., the Chicago-based parent company of Standard Parking and Central Parking, has agreed to lease the lot for $800,000 per year in exchange for a percentage of the parking revenues, according to MVP’s filing.

Founded in 2012, MVP REIT owns parking garages and lots in metropolitan areas including Denver, Milwaukee, Houston, St. Louis and Fort Worth, Texas. Most of its recent acquisition activity ranges form $2 million to $25 million.

By: Sam Black
Date: Jan 11, 2016
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