Owner of Minneapolis skyscraper misses property tax payments
Add Axios as your preferred source to
see more of our stories on Google.
The Ameriprise Financial tower. Photo: Nick Halter/Axios
The local company that bought the Ameriprise Financial Center skyscraper nearly two years ago for a shockingly low price of $6.25 million has missed both property tax payments this year, according to county data.
Why it matters: This is another sign of distress for downtown Minneapolis' office market and helps explain why buildings are trading for so little.
- You can buy a 31-story tower for $6.25 million, but then you have to pay a property tax bill of $1.5 million, plus energy, maintenance and security costs.
The intrigue: It's unclear why Minnetonka-based Onward Investors didn't make two $777,118 tax payments that were due in May and October. It also owes $155,438 in late fees, according to Hennepin County records as of Friday.
- The firm is current on its taxes for the nearby iconic Wells Fargo Center, which it bought around the same time.
- Onward did not respond to multiple requests for comment.
What they're saying: The city said it wouldn't comment because there's an appeal filed by the landlord in Minnesota Tax Court. However, the city did not provide a case number when asked.
Between the lines: It's easy to see why Onward is appealing the valuation. The city's 2026 assessment for the tower was $39.8 million, which is more than six times what Onward paid for the property in early 2025.
- For 2027, the building is assessed at $28 million, even though the tower is completely vacant after Ameriprise moved its employees to a nearby building last year.
Asked to explain this valuation difference, a city spokesperson wrote: "The City values the fee simple interest. The sale of the property is not reflective of market value of the fee simple interest." The city declined to explain further.
How it works: City assessments are based on more than a sale price, explained Tim Rye, a Larkin Hoffman attorney with property tax expertise. They include other factors, such as the building's rent potential.
- He noted that the $39.8 million valuation was made before the $6.25 million sale.
What we're watching: What the end game is for Onward. It has previously said it may convert some of the space to residential and also tried to sell it to another developer that backed out, spurring a lawsuit.
- A sale or conversion can't happen with unpaid taxes.
What's ahead: Rye said the Ameriprise building won't be considered delinquent on its taxes until January. From there, the county's forfeiture process begins.
- It takes three to four years before the county can take the building from an owner and, at any point, the owner can pay the taxes and late fees and end the process.