Commercial Real Estate Direct
By Orest Mandzy
September 11, 2025
Accesso Partners has exercised an option it previously negotiated to extend the term of the $143.87 million loan against the two-building IDS Center in downtown Minneapolis to next June.
The Hallandale Beach, Fla., company had negotiated a term extension two years ago, through June 5 of this year, on the amortizing loan, then with a balance of $151.66 million. The agreement allowed for another one-year term extension if certain criteria were met, and that option has been exercised.
The loan is split into two pieces, with a $72.92 million piece securitized through JPMorgan Chase Commercial Mortgage Securities Trust, 2013-C13, and the remaining $70.95 million in JPMBB Commercial Mortgage Securities Trust, 2013-C12. The loan amortizes on a 30-year schedule and pays a coupon of 4%. Those terms remain unchanged.
IDS Center, constructed in 1972, is comprised of a 57-story building and eight-story annex with 1.42 million square feet of office space, 100,810 sf of retail space, and a three-level underground parking garage. The complex also includes the Marquette Hotel, but that is owned separately and is not part of the collateral for the CMBS loan.
Accesso purchased the property in 2013 for $255 million.
At the time, it was 88% leased and had generated $16.8 million of net cash flow. In 2019, occupancy slipped to 80%. Cash flow was $16.62 million. The property, along with the rest of downtown Minneapolis, took it on the chin during the Covid lockdowns.
The property was 65% occupied during the first quarter and generated $3.12 million of cash flow, according to servicer data compiled by Trepp Inc. But Accesso has been busy signing up tenants, inking 110,000 sf of agreements since the start of the year. It signed Associated Bank for 25,513 sf and renewed leases with a number of existing tenants: Husch Blackwell LLP renewed its 22,088-sf agreement, Zimmerman Reed LLP renewed for 15,179 sf, and Parkins & Will renewed and expanded its lease to 13,515 sf.
“The loan extension is a testament to our recent leasing success and will enable us to solidify long-term financing as we continue to invest in the building and provide top-tier management services for our tenants,” explained Deb Kolar, chief asset officer and general manager at Accesso.