Capella Education Company has accepted notice to activate an amendment to its current lease with Minneapolis 225 Holdings, LLC for its premises at 225 South Sixth Street in Minneapolis, MN, otherwise known as Capella Tower.
Pursuant to the amendment, Capella Education Co. will return 54,940 square feet of the 426,165 square feet it currently leases in the building on or before July 3, 2014. Employees located in this area will be relocated to other areas within the company’s remaining space.
Capella Education says it anticipates recording a charge of approximately $2.5 million during the 2nd quarter of 2014 in connection with this amendment. It anticipate expense savings of approximately $7.0 million over the remainder of the lease term, with approximately $800,000 of those savings expected in 2014.
The company’s lease in the building expires on October 31, 2018. Capella Education has the right to extend the lease for two successive periods of five years each. Capella has leased space in 225 South Sixth since 2004.
Capella, the parent company of the fully online Capella University, announced in 2008 that it would bring together its more than 1,150 Twin Cities-based employees in the building complex in early 2009.
The 56-story tower designed by Pei, Cobb, Freed & Partners has an illuminated semicircle at its top, which has given the building the nickname the “Halo Building,” according to wikipedia.com.