Lake City Hospitality LLC, comprised of Eagan-based JR Hospitality and Iowa-based Hawkeye Hotels is partnering withStahl to convert the vacant office tower and the surrounding site located at 317 Second Avenue South in downtown Minneapolis into a dual-branded Hilton hotel.
The eight-story, neo-classic building will undergo an $18.8 Million renovation and 41,129-square-foot addition. The newly transformed space will feature 201 Tru by Hilton and Home2 Suites by Hilton guestrooms, and ground level and skyway public activations.
Originally built in 1900, the existing 76,000-square-foot building was previously known as the William E. McGee Building. The skyway-connected facility was occupied by Hennepin County’s Office of the Public Defender for over 20 years, but the property has been vacant since 2012. JR Hospitality originally acquired the structure in 2017 before evolving the ownership group to Lake City Hospitality LLC in late 2018.
“We will be building in and around a historic building on a really tight downtown Minneapolis site, so of course I wanted to find a way to make this project work for Jay,” said Jessie Houlihan, President of Stahl. “Over the last few years, urban adaptive reuse, hospitality projects have become an area of specialization for our team and we’re excited to be aligning or multi-family team with the strength behind Lake City Hospitality LLC.”
Stahl has completed over 1,500 wood-frame units, totaling over 1.2 million-square-feet, and nearly $140 million of multi-unit construction projects in the past 10 years. The Lake City Hospitality team has developed a number of hotels across the Twin Cities suburbs, with this project being their first venture in downtown Minneapolis.
“We are focused on unique expansion opportunities and this development is no exception,” said Jay Bhakta, Managing Partner at JR Hospitality. “After successfully navigating a number of obstacles associated with the project, we are eager to revitalize this 1900s building and bring the Hilton dual brand concept to the market. With their widespread experience in hospitality and adaptive reuse projects, and their innate motivation to positively impact the communities in which they work, Stahl has been a key partner in making this project a reality.”
Stahl and Lake City Hospitality LLC have partnered with architect firm Ramaker & Associates, Inc. for the hotel project.
Construction will start spring of 2019 and is scheduled for completion by May 2020.