E
rin Fitzgerald left her job at JLL to launch Willow Peak, a commercial real estate investment firm focused on revitalizing downtown Minneapolis. The company's first property is a five-story office building in the Warehouse District, near the North Loop. This area has become a focal point for downtown revitalization efforts, partly due to the Minneapolis Renaissance Coalition, which Fitzgerald founded to unite public and private sectors around a shared vision for the urban core.

    Fitzgerald spent over 20 years working in commercial real estate, mostly in downtown Minneapolis. She realized that interest rates were driving property prices down, creating opportunities for buyers like her firm. Willow Peak operates by outsourcing tasks to partners and has investors who share its mission-driven approach to supporting urban renewal while achieving returns.

    The company's goal is to raise a $100 million fund in 2025, targeting family offices, high-net-worth individuals, or financial advisors seeking alternative investments with high returns. Fitzgerald envisions creating a vibrant mixed-use environment at the Warehouse District property, supporting office, retail, and wellness spaces that draw people downtown and support local businesses.

    Willow Peak is evaluating other buildings for potential deals, but faces challenges due to their condition and cost of repositioning. The company aims to tackle more complex projects, such as adding senior housing or a children's space, if incentives like the CUB credit are passed. This tax credit would provide a 30% tax break for converting underutilized buildings.

    The Minneapolis Renaissance Coalition, which Fitzgerald founded, is a public-private partnership of over 150 members working to bring vibrancy and investment back to downtown Minneapolis. The group focuses on areas with high concentrations of buildings that can be repurposed or converted, as well as areas with high crime rates that could benefit from revitalization.

    Downtown Minneapolis is at a critical juncture, with the shift to remote work affecting office space values and foot traffic. Fitzgerald believes the city has the potential to become more resilient and engaging, but requires alignment between the City Council and business community to achieve this vision. She predicts the commercial real estate cycle will be down for three to five years, with properties coming to market as interest rates rise.