Strib Trying to Sell Main Building
By Brian Lambert
This just in from Star Tribune publisher Chris Harte:
"Star Tribune Real Estate
by Chris Harte, Publisher and ChairmanChris Harte
February 1, 2008 - I want to let you know that we are moving forward with a process to list our downtown Minneapolis real estate for sale. We have hired a real estate broker who will start working on a marketing plan to conduct a private sale. The process will take months to complete and a deal is by no means certain. Even though this will not be a public process, you may see news reports, so I wanted to anticipate some questions you might have.
The listing will potentially include our headquarters building, and I'm sure you would wonder why we would do this while we are currently consolidating all our operations into the 425 Portland building. One big reason is that it is not a certainty-just a possibility- that we would sell the 425 Portland building as part of this process.
We decided to list the 425 Portland building because our belief-affirmed by our real estate advisors-is that offering all the property will make it more desirable to many potential buyers.
Certainly if we sold the 425 Portland building we would make sure we have plenty of time to find, prepare and move to another location.
We believe there are many positives in moving to a newer, state-of-the art building that would create a more comfortable and efficient work environment. Even if we do sell 425 Portland, the process will take some time to complete. Moreover, we may potentially enter into a lease with a buyer that would allow us to continue occupying our headquarters over the longer term. So it makes sense to consolidate all our operations into 425 Portland for now and assume business as usual. Plus, we will have a substantial savings by closing down the Freeman building.
So we will finish moving all of our Freeman Building employees into the 425 Portland building as planned. We have no idea when, or if, a buyer will come forward, but we will keep you informed as new developments occur."
More later as we get it. But for the moment I'll refrain from my usual, "I told you so."
© 2008 MSP Communications, Inc. All rights reserved
I see consolidation in the future. I'm only 26, but it's amazing to see how both papers have gone downhill since I was younger. I prefer the Strib. If there's consolidation, I would hope that the Strib layout and style wins out over the Press.
LAMBERT: That brave talk of leasing back 425 ... will be someone else's problem if Avista snags a buyer.
Posted by: ML on February 1, 2008 at 4:02 PM
Maybe Avista knows someone looking to buy. Everything.
LAMBERT: Do you think?
Posted by: Dog on February 1, 2008 at 11:29 PM
Strib HQ will be a spendy knockdown. Five blocks for sale means office rent obligations will be picked up by hypothetical future owners; any sale value will reflect the business minus the land assets.
Expect a business sale once 1) RAI expense cuts get the multiples back in line, and 2) the land sale covers lost revenue. Q3 at the latest.
LAMBERT: Care to speculate on what kind of "expense cuts" it'd take to return the Strib to the multiples of yore?
Posted by: wally on February 2, 2008 at 12:45 AM
For the sake of ease, all of the reporters should just work out of a big tent like the one they sell souvenirs out of at the Dome.
LAMBERT: Reusse Giant Foam Pandas -- $45!
Posted by: A Son of Mississippi on February 4, 2008 at 8:05 AM
While certainly not as beautiful as other iconic newspaper buildings in other cities like Chicago or New York, the Strib Building has significant architectural merit and features. Target already destroyed the Physicians & Surgeons building when there were empty blocks on Nicollet Mall aching for development (still empty), and there have been other architectural disasters in the riverfront development surrounding the Strib building. There is no design council in Minneapolis only the political self interests of our uneducated, far too large City council. I shudder to think what will happen with the property if they tear down the building. If they do succumb to pressure and knock it down, does Sid lay claim to the marble icons from the front of the building or can they at least be salvaged for auction or resale?
LAMBERT: I'm putting Zygi Wilf's chances of knocking the building down for a publicly-funded Vikings stadium at about zero or less ... this year. Frankly, the more likely scenario is Dean Singleton buying what's left of the Strib and merging both papers into the current Strib building.
Posted by: Claire on February 6, 2008 at 5:17 PM