Another office knock-down proposed

Another in a series of Eden Prairie office building demolitions and replacement with other uses was OK’d by a city panel Tuesday, May 28.

The Eden Prairie Planning Commission, on an 8-0 vote, endorsed a plan by Endeavor Development to demolish the three-building American Family Insurance campus in the Eden Prairie slice of Opus Business Park and replace it with a large industrial building.

Why it matters: The work-at-home culture boosted by the pandemic has some companies downsizing their office space. As building vacancies have increased, the market values of some office buildings – and the property taxes they generate – have dropped or soon will do so. Redevelopment of office buildings – as Eden Prairie has recently seen – can replace that lost tax base.

Here are some key points to know:

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• This isn’t the first demolition of an Eden Prairie office building. The city council earlier this month approved Lotus Villas on Anderson Lake, a plan to build high-end homes where a vacant, 1982-era office building stands at 10700 Prairie Lakes Drive, east of Eden Prairie Center. In December 2021, the council OK’d plans by Shutterfly to demolish the westernmost building of its two-building campus north of I-494, along Viking Drive, and leave the area open and green for its employees to enjoy.
• The American Family Insurance buildings, constructed in 1977, have been on the sales market for some time, and the market value of the property has dropped in recent years. Other Eden Prairie office buildings available for sale or lease include two office buildings along Technology Drive that were formerly occupied by Optum and a large building on Charlson Road that was formerly leased by C.H. Robinson Worldwide.
• Endeavor Development, according to its website, develops warehouses, office warehouses, and distribution centers in Minnesota and neighboring states. It is proposing to demolish the three existing buildings and construct a new, 185,733-square-foot industrial building called the Nexus at Opus Park. No tenant has been identified by the developer, according to the city, which says the building will be used for offices, warehousing, and possibly light manufacturing.

Josh Budish, founder and principal of Endeavor Development, told the commission that the company’s plan would “revitalize an underused site.”

Commissioners were positive about the plan, which advances to city council review in late June.

“It’s a very good project. Very good timing,” said Commissioner Frank Sherwood. “The industrial market is still very hot. It’s an excellent design, and I’m in favor of it.”

Go deeper: An overall look at the office market in Eden Prairie was published by EPLN in February 2023.