The agreement comes after a year of unsuccessful attempts by the insurer to market the 90-year-old property. At 112 E. Washington St., it served as State Farm’s headquarters until 1974. Divisions of the company continued to operate there until 2018.

When previous sales fell through, State Farm announced in July its intention to demolish the 13-story building. Instead, it will be transformed into “Bloomington Lofts” a high-rise residential complex with 230 luxury loft apartments, fitness centers, tenant lounges, communal space and a ground-floor café. Apartments will include kitchens with granite counter tops and gourmet stainless-steel appliances.

“Urban Equity Properties is excited about this future development and the opportunity to be part of the great things happening in downtown Bloomington,” Founding Principal Justin Fern said. “We knew this would be a fit for us. And when it looked like we could save the property, we contacted State Farm directly, and they have been great to work with.”

The cost to redevelop the 200,000 square-foot building be approximately $40 million, Fern added.

“This buyer has a demonstrated track record of redeveloping older buildings in the urban core of similarly sized cities,” State Farm Public Affairs Specialist Gina Morss-Fischer said. “Our preferred option has always been to find a buyer for the Downtown Building, and we are pleased a buyer came forward with an effective plan to redevelop the building. Once the sale is finalized, State Farm can cease our plans to demolish the Downtown Building.”

The sale is expected to close by early to mid-October. Construction will begin next July with a completion date of June 30, 2022.