Minneapolis St. Paul Business Journal
By J.D. Duggan
December 12, 2023
After months of negotiation, Accesso Partners landed a three-year extension for its commercial mortgage-backed securities loan on IDS Center in downtown Minneapolis.
The Florida-based owner, Accesso Partners, missed the May 1 deadline for its $153 million mortgage balance and has been working for the better part of a year to get the extension. Trade publication Commercial Observer reported on the extension, which was secured last month.
The loan transferred to special servicing in February due to concerns over an “imminent maturity default,” according to loan servicer notes. The extension gives Accesso more time to seek longer-term financing after years of challenges for downtown office owners, like record vacancy rates and declining property values.
The extension follows successful leasing momentum in recent months at the 1.4-million-square-foot Class A office tower. The 52-story IDS Center has executed 16 leases totaling more than 121,670 square feet, according to Commercial Observer. Those leases come after some high-profile dropouts like the loss of Nordstrom Rack and Hubert White, an upscale men’s apparel shop.
Accesso paid $253 million in 2013 to acquire IDS Center. The deal was supported by at least $183 million in mortgage debt, according to Business Journal reporting. The property is now worth about $257 million, nearly a 5% drop since last year, according to county documents.
As of July 15, more than 360 Twin Cities properties with $2.66 in CMBS loan debt were set to mature by the end of 2024. The Business Journal reported at that time that the Twin Cities holds the highest concentration of distressed commercial real estate debt in the nation.
The CMBS loan extension reflects Accesso’s “commitment to the communities in which it serves” and its “long-standing stewardship” of the IDS Center, according to a statement from the company.