A New Orleans developer that recently bought the historic Plymouth Building in downtown Minneapolis secured $65 million in financing from U.S. Bank to transform it into a hotel.
The bank’s announcement is the first official confirmation of the new owner’s plans to turn the 12-story building into a 290-room Embassy Suites by Hilton. It’s the latest redevelopment plan after several failed efforts, including attempts to turn it into apartments in 2013 and an luxury Conrad Hotel in 2014, each by different developers.
Louisiana-based HRI Properties, which specializes in adaptive and historical reuse projects, purchased the 384,000-square-foot office building in May for $20 million. Ryan Cos. of Minneapolis is the project’s general contractor.
The 105-year-old building, at the northeast corner of 6th Street and Hennepin Avenue S., is currently home to Lyon’s Pub on the ground floor. Its corner-facing front door is opposite the newly revamped Mayo Clinic Square, formerly known as Block E. It’s one block from where Mortenson Development is building a 244-room AC Hotel by Marriott.
U.S. Bank says the total acquisition and renovation cost will total $109.6 million. The lender is being partly repaid by $16.2 million in federal historic tax credits. The city of Minneapolis is giving about $1.5 million in environmental and transit-oriented district grants for the redevelopment.