Hillcrest Development will retain a nine-story tower at the site.
Hillcrest Development has started demolishing parts of General Mills' former Cheerios flour factory in northeast Minneapolis to make way for a $16 million office complex.
Hillcrest bought the 107-year-old factory, which includes a nine-story tower, in 2019 for $2.1 million.
The structure, renamed the Highlight Tower, sits next to the former Minneapolis school board headquarters building Hillcrest bought in 2015 and redeveloped into offices now known as Highlight Center.