U makes $6.6M land purchase

The parcels’ future purpose is unclear, but the deal moves a hotel planned for the area.

Barry Lytton

The University of Minnesota Real Estate Office purchased three parcels of land Thursday that were originally intended to be the location of a new extended-stay hotel.

The parcels are all located in Stadium Village on the 1000 block of Essex Street Southeast and were bought from CPM Companies for about $6.6 million in total. University spokesman Steve Henneberry said the school hasn’t yet determined what it will do with the land.

The acquisition is part of a larger $26 million purchase that the University will make, according to Board of Regents

That purchase will include the entire block of land east of the Ambulatory Care Center, which is set to open in January 2016.

The extended-stay hotel previously intended for the area was designed by DJR Architecture to serve the Ambulatory Care Center. CPM was the project’s developer.

The two companies instead plan to build the hotel across the street, said CEO and founder of DJR Architecture Dean Dovolis.

“Generally it’s been very supported by the neighborhoods and the University,” Dovolis said. “This was a win-win for everyone.”

The regents documents show that CPM approached the University to sell the land.

Heneberry said CPM will tear down the block’s existing structures, which are mostly residential, for the University.