Minnetonka-based Onward Investors purchased the 31-story Ameriprise Financial Center at a big discount, adding to its growing portfolio of downtown Minneapolis office buildings.

The firm paid $6.25 million in cash for the property at 707 S. Second Av., according to sources familiar with the deal. The building last sold in 2016 for $200 million.

The glassy 960,000-square-foot building will soon be vacant since its namesake tenant, one of the nation's largest full-service investment firms, is consolidating workers in its client service center a few blocks away.

According to a Thursday news release, Onward is exploring a variety of options for the property, including conversion for non-office uses.

"The purchase of the Ameriprise Financial Center is another demonstration of our desire to be an active participant in the recovery of downtown Minneapolis," Jon Lanners, a partner at Onward, said in a statement. "We believe that now is a great time to be investing in the city's future and look forward to engaging a multitude of stakeholders in the coming months as we reimagine this well-known asset in the Minneapolis skyline."

Onward was part of the joint venture that purchased downtown Minneapolis' Wells Fargo Center for $85 million late last year. The firm also recently partnered with Edina-based Willow Peak to acquire another downtown office building at 300 First Av. N. for $5 million and is helping finance the stalled West Hotel project in the North Loop.

The Ameriprise tower.

With a $125 million fund fueled by private investors, Onward has been on the hunt for discount office buildings across the country, closing deals in Charlotte, N.C., and Richmond, Va., in recent months.

"We don't think office is dead forever," Lanners said in an interview. "I mean frankly, we're already seeing a pretty substantial uptick in demand across our portfolio from a leasing perspective. I feel like it's a great time to be investing in high-quality assets that we believe will stand the test of time and will attract tenants going forward."

Lanners said Onward was drawn to the Ameriprise Financial Center because of its central location, skyway access and good quality. The property includes below-ground parking for more than 300 vehicles in a ramp accessible from South Third Avenue.

"It's sort of a blank canvas at this point," Lanners said of the building. "All options are really on the table for us."

The property had served as Ameriprise's headquarters since its construction in 2000. The out-of-state firms that purchased the building in 2016 essentially handed its keys back to their lender in 2023, amid the company's transition to other offices.

Ameriprise remains one of downtown Minneapolis' top employers with nearly 4,500 workers, according to a Minneapolis Downtown Council survey last year.

The overall office vacancy rate for the Minneapolis central business district was 33.5% at the end of 2024, according to brokerage firm Cushman & Wakefield. Brokers said despite the bump in vacancies, asking rents increased by the end of the year in large part because companies are seeking higher quality, but smaller, offices.

City assessors most recently estimated the value of the Ameriprise Financial Center to be $70.7 million, a figure that will be used to calculate taxes payable this year. The city will release a new round of assessments in March.