Real estate: Project is getting another look

Minneapolis' Warehouse District could be getting more retail and a boutique hotel after a mixed-use project was scaled back.

A mixed-use development that originally called for high-rise towers in Minneapolis' Warehouse District has been scaled back, and the developers are hoping for city approval so that construction can begin early next year.

In January, the City Council refused to endorse the Pacific, proposed for the block occupied by the Monte Carlo restaurant, because it exceeded the 10-story height limit laid out for the neighborhood in district guidelines. The project also drew considerable opposition from neighboring residents and business owners. At the time, the plans included two condominium buildings -- one 28 stories and the other 18 stories -- plus a 10-story boutique hotel.

Council members urged the developers -- a partnership of New York developer Fred Deutsch and Twin Cities-based Lupe Development -- to come up with a new plan.

Steve Minn, a principal of Lupe, said last week that revised plans have been approved by the Minneapolis Heritage Preservation Commission and the city planning commission.

The developers still need to submit architectural drawings and site plans to the city for final approval. Minn said he expects that to be done by the end of the year.

The 28-story tower is not part of the new plans, Minn said. The 18-story building has been scaled down to 10 stories, with retail and a health club planned for the first five floors. It's possible that only five stories might initially be built, with upper floors added later for condominiums if the residential market improves, Minn said.

Plans for converting the old Northwestern Building to a hotel at the corner of 3rd Avenue and 2nd Street have been revised so that the building's height now meets the 125-foot limit for the district. The hotel would be managed by New York's Henry Kallan and his HK Hotels company.

Minn said the project also calls for renovating the rundown Lowry-Morrison Building into office and retail space, including a restaurant. The development still calls for the Monte Carlo to continue operating at its existing site. The restaurant's owner, John Rimarcik, is the principal owner of the project site, which is bounded by Washington, 2nd and 3rd Avenues N. and 2nd Street.

Bloomington center sold

Des Moines-based Principal Life Insurance has sold the Normandale Village Community Center at 98th Street and Normandale Road in Bloomington to MLG Capital for about $15.8 million.

Built in 1974 and renovated in 1989, the 142,000-square-foot retail center is about 90 percent leased. Tenants include Snyder Drug, U.S. Bank and Famous Dave's.

MLG Capital is a commercial real estate investment business with offices in Wisconsin. Its portfolio consists of about 50 retail, industrial and multiunit residential properties valued at about $203 million.