The owner of Rand Tower, a historic Art Deco office building in downtown Minneapolis, is transforming it into a Tribute by Marriott hotel.
Maven Real Estate Partners plans to spend more than $86 million to convert the 26-story building at 527 S. Marquette Av. from office space into a 277-room hotel, said Nick Peterson, co-founder and principal of Maven.
The firm, which bought the building two years ago, initially planned to reposition it for tenants seeking short-term, flexible office space. It abandoned that idea in early 2018 because converting it to a hotel would be more profitable, Peterson said.
“The floor plates [the amount of leasable area on an entire floor of a building] are not as ideal for office going forward,” Peterson said. “It’s much more ideal for hotel and/or residential [use]. While the location is a class A location, you’re never going to be able to get the class A [office] tenant because of the lack of amenities, space and the size of the floor plates with how the current building is set up.”
Renovations are scheduled to be completed in December 2020. The second-story skyway system connected to the building will be accessible during construction.
The hotel will bear Marriott’s Tribute flag, a family of independent boutique hotels that attempt to pay homage to their surrounding neighborhoods. It would be the first Tribute by Marriott hotel in Minnesota. The brand has 23 locations in the U.S. at the moment.