A small but significant building in downtown Minneapolis is getting a new major tenant.

Advertising agency Wolfmotell will move its offices from Minneapolis’ Warehouse District to the Pence Building, former home of Carmichael Lynch, at 8th Street and Hennepin Avenue S. The agency will occupy two floors of the eight-story building, which is nearly 100 years old.

Wolfmotell is the second significant tenant to lease space in the Pence Building in the last several months. Last fall, Art Institutes International Minnesota kept its current facilities at 9th Street and Hennepin but leased three floors in the Pence Building for expansion. The school offers courses in visual arts, fashion and cooking.

The Pence Building changed hands in 2007 after Carmichael Lynch moved to the Wyman-Partridge Building in the Warehouse District.

The Pence’s new owner, Minneapolis-based Turnstone Group, is investing about $4 million to renovate the property, according to Mike Wendorf, vice president of the Sherman Group, which manages the property.

Some improvements, such as new elevators and plumbing, have been completed, Wendorf said. Other upgrades will include new windows and mechanical systems and restoration of the exterior.

Wendorf said Wolfmotell has hired 20 Below Studio, a Minneapolis interior design firm, to renovate its 18,000-square-foot facilities in the Pence.

The offices will be more than twice Wolfmotell’s space at 431 N. 1st Av., which the 10-year-old agency has occupied for about four years, Wendorf said.

On the move

Minneapolis architecture firm James Dayton Design Ltd. is doubling its space in new offices in the redeveloped former Crown Iron Works site in northeast Minneapolis.

The firm will occupy about 14,000 square feet in the property at 1331 NE. Tyler St. Business manager Donell Cherry said the architecture firm has outgrown its longtime home in the Warehouse District and spent about two years looking for new space.

Cherry said the new offices will have the space needed to display and store architectural models, and it provides much more natural light and more parking than does its current location.

A branch of Minneapolis-based Hillcrest Development bought the 10-building, former industrial complex last year for about $2 million. The redevelopment has involved cleaning pollution and gutting and renovating the buildings’ interiors. The project was financed in part with grants from the Minnesota Department of Employment and Economic Development, the Metropolitan Council and Hennepin County.

Nearly three-fourths of the 140,000-square-foot project is leased, according to Scott Tankenoff, Hillcrest managing partner.

Other tenants include Gopher Towing; land surveyors Egan, Field and Nowak; medical device maker Tactile Systems Technology Inc., and several small tenants, such as commercial artists.

Hillcrest’s other projects in Northeast include the renovation of 3311 NE. Broadway. The company also plans to renovate a building at 1209 NE. Tyler St. that formerly housed a paint and linseed oil processing business.

Susan Feyder • 612-673-1723