The $250 million overhaul of Northstar Center is officially complete with the opening of downtown Minneapolis’ first pandemic-era conversion from office to housing.

Groove Lofts brings 216 apartments to the 13-story Northstar Center East building through a $98 million redevelopment led by Sherman Associates. It’s the final piece of Northstar Center’s transformation, which also includes a repositioned office tower and a renovated hotel.

Groove Lofts features studio, one-bedroom, two-bedroom, and four-bedroom rental units ranging from $1,260 to $4,490 per month. A movie theater, arcade, karaoke lounge, craft room, and coworking space are among the apartment building’s amenities.

A two-bedroom unit in Groove Lofts staged with furniture. Photo by Brianna Kelly

Sherman Associates celebrated the completion of Groove Lofts on Dec. 18 with local officials, downtown stakeholders, and development partners, including general contractor Kraus-Anderson.

During the event, speakers emphasized the importance of historic tax credits to support commercial-to-residential conversion projects, which can help address office vacancy and stabilize property values. 

“Groove Lofts at Northstar Center exemplifies what’s possible when federal, state, and local policies align to prioritize investment and preservation, that will serve generations to come,” Sherman Associates President Chris Sherman said in a statement.

“These efforts drive local economies, advance sustainable development, and unlock new potential for urban centers. While office-to-residential conversions are complex, the tools and support for projects like this are critical for transforming downtown Minneapolis—and, on a larger scale, downtowns across the country.”

Sherman Associates executives George (left) and Chris Sherman address the crowd Dec. 18 at an opening celebration for Groove Lofts. Photo by Brianna Kelly

Earlier this year, the Minneapolis City Council members representing downtown, Katie Cashman (Ward 7) and Michael Rainville (Ward 3), co-authored an ordinance to streamline the City’s processes for converting commercial property into residential. They also plan to work together on additional legislation related to tax credits for developers in these kinds of projects.

Both Cashman and Rainville were present on Dec. 18, along with Sen. Ann Rest, Sen. Zaynab Mohamed, and Hennepin County Commissioner Marion Greene.

“After the ordinance that we passed in July, I'm really happy to say that multiple other housing providers have actually purchased buildings and are starting their process of developing the plans and getting the permits filled in order to build more housing downtown,” Cashman said during the event.

About 65,000 people live in downtown Minneapolis right now, and the City hopes to reach 100,000 downtown residents in the next decade. Groove Lofts is expected to add around 500 residents to the downtown population.

A "vinyl lounge" for residents on the 13th floor of Groove Lofts. Photo by Brianna Kelly

More than 3,600 tons of material was removed from Northstar Center East as the building was gutted at the start of the project. Roughly 76% of that material was ultimately separated and recycled.

“If my math is right, that's over 5.5 million pounds of stuff that doesn't end up in a landfill and gets back into the world as useful materials,” Kraus-Anderson CEO Peter Diessner said at the event.

As much as 75% of the project cost went toward labor, with about 180 workers on site during peak activity. A project of this scale would typically take around two years, according to the developers, but this one was done in 16 months.

Northstar Center's smaller tower was converted from office to residential, while the taller tower was maintained as office use. Photo by Brianna Kelly

Completed in 1963, Northstar Center was touted as a “city within a city,” with easy access to everything through the new skyway system, from lodging and entertainment to restaurants and retail.

“The idea was to keep our important corporate partners, Cargill and Pillsbury, downtown by creating a place that had everything their modern workforce needed,” said New History founding principal Meghan Elliott, who described Northstar Center as a catalytic project for the rest of downtown Minneapolis.

Supporters hope the latest iteration of Northstar Center will have a similar appeal and impact on the surrounding area in 2025 and beyond.

“The vision for downtown is to move from the 9 to 5 downtown to a 24/7 downtown,” Cashman said.

The 17-story Northstar Center West building reopened in November, with updated offices, a spacious event venue, an upscale cafeteria, and a grab-and-go general store.

The complex’s Crowne Plaza Hotel building now features the 218-key Hotel Indigo and Kim Bartmann restaurant Star Bar & Bistro.