Minneapolis, Minnesota, US
601 W, Telos Group, and United Properties
The Dayton’s Project involves the redevelopment of the historic Dayton’s department store building at the Nicollet Mall business centre in downtown Minneapolis, US. The project is being developed by US-based real estate company 601 W, which owns the majority interest in the building, in partnership with Telos Group and United Properties.
Construction activities related to the transformation of the 12-storey building began in March 2017 while the demolition was completed in 2018. Multi-national professional services company Ernst & Young was unveiled as the project’s first office tenant in March 2021. The $250m redevelopment project is expected to be opened by the end of 2021.
The Dayton’s Project location and background
The Dayton’s Project is located at the corner of 700 Nicollet Avenue between 7th and 8th Streets, at the centre of the central business district in Minneapolis, Minnesota.
The building was an icon for downtown Minneapolis for more than 100 years. It was home to the Dayton’s and later the Macy’s department store.
The Dayton’s Project aims to realise the full potential of the property, developing it into a modern destination while also preserving the historic character of the building and restoring some of its original features.
The Dayton’s Project details
The Dayton’s Project will deliver a retail and business destination that will serve the region for years to come. The building will have five skyway connections providing access to the different business areas.
The project will feature more than 1.2 million square feet (111,484m²) covering modern office, dining, and retail spaces. A 45,000ft² (4,181m²) food hall and market will also be a part of the development.
The office space will include amenities such as a rooftop terrace and garden, private bar and lounge, library, and a health club facility. Spanning 850,000ft² (78,967m²), the office space will occupy levels three to 12. The amenities section located on level seven will include a 10,000ft² (929m²) fitness centre.
Retail and dining areas at the mixed-use project
The total retail area at the Dayton’s Project will be 200,000ft² (18,581m²), spread across the first three levels of the building. The first and second levels of the building will feature a range of retail stores, beauty, and convenience services.
The Dayton’s Food Hall & Market will feature a one-of-a-kind experience with a mix of food vendors, local restaurants, fresh food retailers, and food makers. The food market will be located across the first and lower floors of the building with space to accommodate up to 45 vendors.
The outlets will offer dining and takeaway options for products ranging from fresh meats and seafood, baked foods, and cheese.
Financing for The Dayton’s project
Global real estate and investment management services company JLL, through its Capital Markets business, arranged a loan worth $250m for the project in September 2021.
JLL acted on behalf of 601 W to arrange the three-year loan through a joint venture comprising Winthrop Strategic Real Estate Fund and funds managed by affiliates of Fortress Investment Group.
Key players involved
Gensler, an integrated architecture, design, planning, and consulting firm, was engaged as the architect and designer for the project.
Gardner Builders, a local commercial construction company, was appointed as the general contractor for the project.
US-based real estate firm Transwestern is the property manager and office leasing agent for the project while Mid-America Real Estate is in charge of retail leasing.
Passport Hospitality, a culinary concepts developer co-owned by celebrity chef Andrew Zimmern, was appointed to develop the Food Festival & Market. Other companies involved in the project include Hightower Initiative, PVN, MEPC, and Meyer Borgman Johnson (MBJ).