City of Minneapolis and Ryan Companies Sign Agreement to Redevelop Midtown Exchange

Allina lease and housing agreements also finalized; site work begins this week

MINNEAPOLIS (August 17, 2004) – The City of Minneapolis and Ryan Companies US, Inc., signed the redevelopment agreement for Midtown Exchange today, one of the final steps required before they close on the property and construction begins at the former Sears site, located south of downtown Minneapolis at the intersection of Lake Street and Chicago Avenue. The agreement sets the stage for Ryan Companies to begin work on environmental improvements at the site later this week.

“Signing the redevelopment agreement caps off a series of recent events that clear the way for Ryan to reach our primary objective – to get to work on this historic redevelopment project.” said Rick Collins, vice president of development, Ryan Companies.

Rick Collins leads the Midtown Exchange development for Ryan Companies

On Monday, August 9, Allina Hospitals and Clinics signed a lease with Ryan Companies to move its corporate headquarters to the redeveloped building. The 20-year agreement earmarks 255,000 square feet of office space for the headquarters, to be known as Allina Commons, and will house an estimated 1,000 employees. Allina expects to move into its new space in late 2005.

On Tuesday, August 10, Sherman Associates signed a development and construction agreement with Ryan Companies for the condominium and apartment units that will be located in the original 1928 building. More than 220 market-rate apartments and more than 85 condominiums will occupy 11 floors of the historic building, which should be ready for tenants in the spring of 2006.

The City of Minneapolis and Ryan Companies expect to close on the former Sears site in early September. Most of the initial construction work will take place inside the building; later, Ryan Companies will clean the exterior and replace the windows. As work progresses, crews also will demolish the adjacent 1964 warehouse that spans the Midtown Greenway and begin excavation for a 136-room Sheraton hotel and parking ramp to be built on the site.

“When it’s complete, Midtown Exchange will once again be a vital, contributing cornerstone of the community, bringing together jobs, homes and activities that will have a positive impact on the Midtown district,” Collins said. “It would not have been possible without the unique partnership between the City of Minneapolis, local businesses and community leadership.”

Midtown Exchange is a mixed-use historic landmark development in the Midtown district of Minneapolis. The redevelopment team, a consortium of development and community organizations led by Ryan Companies, will transform the site into a place to work, play and live, further connecting the site to the surrounding community and supporting the Midtown renaissance. For more information on the Midtown Exchange, please visit www.midtowncommunityworks.org/exchange.

Ryan Companies US, Inc. is a leading national commercial real estate firm offering integrated design-build and development as well as asset, property and facilities management services to customers. For more than 65 years, Ryan Companies has used a single-source approach that offers flexibility in defining the scope of a project and strength in providing effective, timely solutions resulting in a higher certainty of success. In addition to its Minneapolis office, Ryan has offices in Chicago, Phoenix, Cedar Rapids, Davenport and Des Moines, Iowa.

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Interviews with Ryan executives are available by contacting Ella Carlsson at 612-492-4474 or ella.carlsson@ryancompanies.com