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Nestled amid one of the only fully-intact historic blocks in the North Loop, the 117 Washington Avenue project fully revitalized a building that had been only partially occupied for over a decade.
Role
Element served as part owner, leading development and leasing strategy.
Opportunity & Challenges
As an urban infill site with very little space off of the alley in the rear and no elevator to transport materials, construction phasing was managed carefully to coordinate construction materials and debris in the small space. Construction was scheduled to finish right as the COVID related shutdowns began, creating a one-month delay in the schedule. However, the project was completed and was 100% leased despite the complications of governmental orders and unrest in Minneapolis. Years of deferred maintenance meant that every surface of the building needed to be rebuilt including rehabilitated historic windows and skylights, roof parapet, plaster walls, and the tuckpointing of an exterior.
Approach
Element aligned ownership, leasing, and design decisions to drive full stabilization and long-term value. The project included a significant renovation of three floors and basement, accommodating Capsule in a first-floor retail space, Element Commercial Real Estate in the second-floor office and residential tenants in studio, one-bedroom and three-bedroom units. Additionally, the restoration project complied with requirements from the State Historic Preservation and National Parks Service for Rehabilitation Tax Credits and the City of Minneapolis Historic Preservation Commission.
Results
→ Achieved 100% occupancy
→ Stabilized across office, retail, and residential
→ Strengthened tenant mix
→ Positioned for long-term income stability
The building brings a new residential experience to the area, standing out from the larger multi-family projects completed over the last few years in North Loop with its larger units and unique floorplans. Maintaining the historical integrity and wide-open spaces in the residential units while integrating modern features such as large kitchens, heated bathroom floors, touchless faucets, skylights, powered skylight blinds, and professionally designed closets attracted tenants upon listing. In addition to the residential units, the renovation brought the building to full occupancy for the first time in over a decade which brought eyes onto the street and the alley.
