The major redevelopment of the former State Farm Insurance campus in Woodbury will include two hotels.
Minneapolis-based construction company Kraus-Anderson and Florida-based real estate investment firm Elion Partners joined forces to redevelop the long-vacant 100-acre site. The companies said Thursday that the development, called “City Place,” will include “two 108-room, select-service hotels.”
TMI Hospitality, a Fargo, North Dakota-based property management firm, has a deal for a site on the northwest part of the development. TMI has nearly 200 hotels in 26 states. The hotel brands that will be featured at City Place have yet to be disclosed; they will be unveiled later this summer, Kraus-Anderson said.
The campus, located at the corner of Radio Drive and Highway 94, includes a large office building that has been vacant for nearly a decade. There were several unsuccessful attempts by various companies and investors to acquire and redevelop the property prior to the City Place plan.
In addition to the two hotels, City Place will feature two medical office buildings, a 40,000-square-foot grocery store, restaurants, and other stores and office space. Kraus-Anderson will begin site work on the multi-phased project this summer. (Learn more about the project here.)
“We are very excited to announce this important anchor at City Place,” Elion Partners Managing Principal Juan DeAngulo said of the hotel deal. “The hotel use is a vital complement to the existing 400,000-square-foot office building as well as a key amenity to the work-play-live concept behind the development plan.”
Kraus-Anderson also recently announced plans to build a new 80,000-square-foot headquarters in downtown Minneapolis, for an estimated cost of $16 million. It will house about 250 total employees and will have room for future expansion.