Minnesota Real Estate Journal April 2015 by REjournals

VOLUME 31, NUMBER 04

April 2015

DTZ report: report: Twin Twin Cities’ Cities’ office office market market DTZ enjoying a a quiet quiet resurgence resurgence enjoying By Dan Rafter, Editor

he multifamily and industrial markets in Minneapolis/St. Paul are thriving. Just look at the number of construction cranes and spec warehouses being built in the Twin Cities area today. But the office market in the Twin Cities is actually enjoying a quiet resurgence, too. And that's good news for anyone hoping for busy times for commercial real estate in 2015 and beyond. DTZ recently released its first quarter office report for the Minneapolis/St. Paul area. And the company found plenty of good news. Most important, the

metropolitan area enjoyed nearly 300,000 square feet of net absorption in the first quarter of 2015. Tyler Allen, research analyst in DTZ's Minneapolis office, said that that five of the six office submarkets that DTZ studies showed positive absorption in the first quarter. All office types, too, enjoyed positive net absorption during the quarter, Allen said. Of course, certain submarkets are performing better than others. "The Minneapolis Central Business District and hotspots in the Southwest and West/Northwest markets continue to significantly outperform the metro averages," Allen said. "Demand for office space in mixed-use neighborhoods DTZ to page 20

The Opus Group ready to make a splash in the healthcare sector Minneapolis company starts new healthcare division By Dan Rafter, Editor

inneapolis' The Opus Group has already made an impact in the healthcare sector: Opus has served as the developer or contractor for healthcare projects across the country, including such notable ones as the Kohl's Wellness Center in Menomonee Falls, Wisconsin; Columbia St. Mary's Gateway Health Center in West Allis, Wisconsin; and a 354,000-

square-foot office building extension for UnitedHealth Group in Minnetonka, Minnesota. It makes sense, then, that The Opus Group has formed a new healthcare division to focus solely on delivering projects for hospitals, physicians groups and other medical providers. Tom Shaver, the newly appointed president of Opus Healthcare and a 31-year commercial real estate industry veteran, said that the time was right for Opus to create a formal division to handle the changing real estate needs of healthcare providers.

Shaver said that there are several trends today that are disrupting the healthcare system. This includes an aging population that needs more medical care and a rise in the number of people who now have health insurance thanks to the Affordable Care Act. Then there are the evolving demands of patients: Many no longer want to treat any but their most serious ailments at large, centrally located hospital campuses. Patients today want to receive fast treatment at Opus to page 16

April 2015

Minnesota Real Estate Journal

Contents

APRIL 2015 • VOLUME 31, NUMBER 04

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Departments PEOPLE

NEWS

RESOURCE GUIDE

DTZ REPORT: TWIN CITIES’ OFFICE MARKET ENJOYING A QUIET RESURGENCE THE OPUS GROUP READY TO MAKE A SPLASH IN THE HEALTHCARE SECTOR

A CONVERSATION WITH QUINN CHENEY, NAIOP MINNESOTA’S NEW DIRECTOR OF PUBLIC POLICY

ZELLER REALTY GROUP’S HERRON: PROPERTY MANAGEMENT AND THE POWER OF PREDICTABLE REVENUES

SARA INVESTMENT REAL ESTATE’S DALSIN: MADISON, MINNEAPOLIS AND OTHER MIDWEST MARKETS ATTRACTING THE DOLLARS OF REAL ESTATE INVESTORS

ST. CLOUD IS MINNESOTA’S FIVE-TOOL REAL ESTATE PLAYER

The Minnesota Real Estate Journal (ISSN 08932255) is published monthly for $85 per year by Minnesota Real Estate Journal, 13400 15th Ave North STE C, Plymouth 55441. Phone: 952-885-0815. Periodicals postage paid at Minneapolis, MN. POSTMASTER: Send address changes to Law Bulletin Publishing Co, 415 State Street, Chicago IL 60654. Lanning Macfarland, Jr. chairman; Sandy Macfarland, CEO; and Brewster Macfarland, president. Back issues $10.00. Subscriptions are non-refundable. For more information call 952-885-0815. ©2015 Law Bulletin Publishing Co. No part of this publication may be reproduced without the written permission of the publisher.

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Minnesota Real Estate Journal

Canadian Pacific with public utilities and infrastructure stubbed to the site.

People Brent Webb joined the development team as a Business Development Associate at Sherman

a division of Law Bulletin Publishing Co.

13400 15th Ave North, Suite C Plymouth MN 55441 For information call 952-885-0815

Webb

Publisher | Managing Editor Jeff Johnson jjohnson@rejournals.com Associate Publisher Jay Kodytek jkodytek@rejournals.com Consulting Editor Dr. Tom Musil tamusil@stthomas.edu Conference Manager Alan Davis adavis@recg.com

EDITORIAL ADVISORY BOARD JOHN ALLEN Industrial Equities ROBERT ANGLESON Navigator Real Estate RICK COLLINS Ryan Cos. US Inc. JEFF EATON Cushman & Wakefield/NorthMarq MARK EVENSON ULG Equis PATRICIA GNETZ US Bank TOM GUMP TAG Consulting JON HEMPEL Hempel Properties DAVID JELLISON Liberty Property Trust CHAD JOHNSON Hellmuth & Johnson BILL WARDWELL Colliers International GEORGE KLUEMPKE Braun Intertec JEFFREY LAFAVRE CBC Griffin Companies WADE LAU Founders Properties MIKE LE JEUNE Fabcon JIM LOCKHART WIPFLI DUANE LUND Exchange Realty PATRICK MASCIA Duke Realty Corp. CLINT MILLER Cushman & Wakefield/NorthMarq DR. THOMAS MUSIL University of St. Thomas WILLIAM M. OSTLUND CBC Griffin Companies WHITNEY PEYTON CB Richard Ellis MIKE SALMEN Transwestern STEWART STENDER Stewart Capital Partners

a division of Law Bulletin Publishing Co. 13400 15th Ave North Suite C Plymouth MN 55441 For information call 952-885-0815

April 2015

In his role as Business Development Associate, Brent is responsible for assisting in the identification of new opportunities by building awareness of Sherman Associates unique capabilities, and develop/maintain relationships with current and past clients. Brent works with Sherman's project management team through development, financing, and construction.

News CBRE ARRANGES $49.6 MILLION FINANCING FOR PLYMOUTH CORPORATE CENTER IN PLYMOUTH, MN CBRE Capital Markets’ Debt & Structured Finance team has arranged $49.6 million in financing for the purchase of Plymouth Corporate Center, a two-story, 628,436-SF, multitenant office building at 1405 Xenium Lane North in Plymouth, Minnesota. CBRE worked on behalf of the borrower, an entity affiliated with Wildamere Properties, LLC and an undisclosed joint venture partner. The 4year loan was structured with an initial advance of $45.0 million (72% loan-tovalue for the $62.5 million purchase price), and subsequent funding of up to $4.6 million for accretive leasing and capital improvements. The borrower will benefit from an initial floating interest rate in the mid-3.00% range. Financing was originated through CBRE’s correspondent relationship with GE Real Estate, with funding from General Electric Capital Corporation. The loan was facilitated by Murray Kornberg, Doug Seylar, Ben Bastian and Scott Larson of CBRE’s Minneapolis, Minnesota, office. The properties were marketed for sale by Ryan Watts, Steve Buss, Tom Holtz and Judd Welliver of CBRE Capital Markets’ Investment Properties team. “There were many competitive fixedand floating-rate quotes for this financing assignment. Wildamere was attracted to the combination of a flexible structure, future advances and aggressive pricing offered by GE,” said Mr. Kornberg, Senior Vice President, CBRE Capital Markets. “The CBRE Capital Markets team

helped us get this loan closed in just 30 days, which was exactly what we needed to get the deal done,” said Ted Jokerst, president of Wildamere Capital Management LLC.

Hillcrest Development LLLP and The Opus Group® Announce Agreement to Develop Southeast Industrial Park Hillcrest Development LLLP (Hillcrest) and The Opus Group (Opus) announced today an agreement to develop an approximate 40-acre rail served business park located south of US Highway 61 at the northwest corner of Hemingway Ave. South and 91st Street South adjacent to Hamlet Park in Cottage Grove, Minnesota. Plans for the site include a variety of development scenarios ranging from 425,000 to 550,000 square feet of rail served industrial space with the ability to support 38-foot clear height and outside storage. “We are very excited to collaborate with Opus on the development of Southeast Industrial Park. Opus provides best in class excellence and expertise in industrial development. The combination of Opus and the Southeast Industrial Park is an irresistible partnership,” said Scott Tankenoff, managing partner of Hillcrest Development LLLP. “We are thrilled to support Hillcrest Development on this exciting property in the southeast metro,” said Phil Cattanach, director, real estate development of Opus Development Company, L.L.C. “What makes this opportunity so compelling is there are very few sites that can accommodate rail service for large users at this scale in the greater metropolitan area.” Rail service to the site is provided by

CBRE ARRANGES $49.6 MILLION IN FINANCING FOR PLYMOUTH CORPORATE CENTER IN PLYMOUTH, MN CBRE Capital Markets’ Debt & Structured Finance team has arranged $49.6 million in financing for the purchase of Plymouth Corporate Center, a two-story, 628,436-square-foot, multitenant office building at 1405 Xenium Lane North in Plymouth, Minnesota. CBRE worked on behalf of the borrower, an entity affiliated with Wildamere Properties, LLC and an undisclosed joint venture partner. The four-year loan was structured with an initial advance of $45.0 million (72% loan-to-value for the $62.5 million purchase price), and subsequent funding of up to $4.6 million for accretive leasing and capital improvements. The borrower will benefit from an initial floating interest rate in the mid-3.00% range. Financing was originated through CBRE’s correspondent relationship with GE Real Estate, with funding from General Electric Capital Corporation. The loan was facilitated by Murray Kornberg, Doug Seylar, Ben Bastian and Scott Larson of CBRE’s Minneapolis, Minnesota, office. The properties were marketed for sale by Ryan Watts, Steve Buss, Tom Holtz and Judd Welliver of CBRE Capital Markets’ Investment Properties team. “There were many competitive fixedand floating-rate quotes for this financing assignment. Wildamere was attracted to the combination of a flexible structure, future advances and aggressive pricing offered by GE,” said Mr. Kornberg, Senior Vice President, CBRE Capital Markets. “The CBRE Capital Markets team helped us get this loan closed in just 30 days, which was exactly what we needed to get the deal done,” said Ted Jokerst, president of Wildamere Capital Management LLC.

INTERNATIONAL PLAZA ACHIEVES 90% OCCUPANCY ICM Realty Group, the international real estate investment and management firm, announced today that it has achieved 90% occupancy and complet-

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ed the renovations of International Plaza. The fully renovated, 284,000 SF office building is well located in the dynamic Airport South submarket along the interstate 494 corridor in Bloomington, MN. In addition to fully renovating the building’s common areas and restrooms, ICM has created a new fitness center, locker room facilities with showers, WiFi lounge, conference room facility and on-site management office. All amenities are available for tenant use, 24/7, free of charge. “When ICM took over as managing member/asset manager for the ownership group in 2012, we committed to making significant capital improvements, which we’re pleased to say are now complete,” said Andrew Webb, ICM’s Managing Director. “Additionally, through our strategic leasing and marketing campaign we’ve successfully leased a majority of the vacant space and are currently 90% occupied.” The property has been rebranded, which, along with the completion of the improvement work, marks a significant milestone in the project’s long history.

Minnesota Real Estate Journal

“We’re proud to have played a part in transforming the building back into a market-leading property and thrilled with the overwhelmingly positive response we’ve received,” said Bruce Timm, ICM’s CEO. “We owe a great deal of gratitude to all the brokers who’ve trusted us with their clients. Without their support, we’d have a terrific looking empty building.” Although remaining vacant space is limited, the building is able to accommodate a new user in excess of 10,000 SF.

Dougherty Funding LLC Closes $10.3 Million Loan for Laguna Apartments Dougherty Funding LLC has closed on a $10.3 million construction loan for a to-be-built, six-story, 45-unit apartment project located at Lagoon Avenue and Irving Avenue in the Uptown neighborhood of Minneapolis, Minnesota. The new construction financing was arranged for Laguna Property Investors, LLC and will be developed by CPM Development. Construction of the project is anticipated to begin in May 2015

with completion expected 12 months later. Dougherty Funding LLC serves as lead lender and servicer for the loan.

NAI Everest Selling Two Property Portfolio NAI Everest is exclusively representing the sale of two office and industrial properties in the Minneapolis-St. Paul MSA. Roseville West is an 80,000 square foot multi-tenant office building located on Highway 36, and Shawnee Business Center is a 54,000 square foot multi-tenant office/industrial building located near the Mall of America and MSP International. Both are value-add assets. “The Minneapolis-St. Paul market is enticing to a large pool of investors due to a location which is somewhat protected from the booms and busts of the coasts,” said Tom Dillon, Senior Vice President of NAI Everest. “The Roseville West and Shawnee Business Center assets will attract local, regional and national buyers, as the buildings will outperform the competition once new leases are in place at market rates.”

April 2015

MARCUS & MILLICHAP ARRANGES THE SALE OF AN 8-UNIT APARTMENT BUILDING Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of an 8-unit apartment property located in Minneapolis, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $625,000. Adam Haydon and Josh Talberg, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a private investor, was also secured and represented by and Adam Haydon and Josh Talberg. Speaking with Mr. Haydon, “The property offered a great opportunity to acquire both a stabilized asset located in a highly desirable neighborhood of Minneapolis, with further upside potential through strategic in-unit upgrades and continued rental growth.”

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Constructed in 1911, this classic brick building features four one-bedroom and four two-bedroom units. There is offstreet surface parking, on-site laundry, and a storage unit for each tenant. The property is located at 946 19th Avenue Northeast in Minneapolis, Minnesota.

Dougherty Mortgage LLC Closes $9.5 Million HUD 223(f) Loan for Crosby Pointe Apartments Dougherty Mortgage LLC, a full service national mortgage banking firm, has closed a $9.5 million HUD 223(f) loan for the refinancing of Crosby Pointe Apartments, a 73-unit multifamily market rate apartment property located in St. Paul, Minnesota. The 35-year term, 35-year amortization loan was arranged by Dougherty’s Minneapolis office for borrower, Crosby Pointe, LLC. The Crosby Pointe Apartments property is professionally managed by Real Estate Equities, LLC, and offers an outdoor pool, fitness center, and under-

Minnesota Real Estate Journal

ground parking garage. Units are currently being upgraded to include stainless steel appliances, granite countertops, and new finishes.

Dougherty Mortgage LLC Closes $6.2 Million Fannie Mae Loan for Quail Park Village Apartments Dougherty Mortgage LLC, a full service national mortgage banking firm, has closed a $6.2 million Fannie Mae loan for the refinancing of Quail Park Village Apartments, a 142-unit multifamily affordable housing property located in Austin, Texas. The Fannie Mae, 10-year term, 30-year amortization loan was arranged by Dougherty’s Minneapolis office, for borrower Heartland Wanaka Limited Partnership. Quail Park Village is located in north Austin with easy access to shopping, major employers, restaurants, neighborhood parks, and city libraries. Unit amenities include energy efficient windows and doors, counter top and floor-

April 2015

ing upgrades, new cabinets, gas stoves and spacious floor plans.

include a community fire pit, picnic and grilling area and off street parking.

Dougherty Mortgage LLC Closes $6.4 Million Fannie Mae Loan for Park Place Townhomes

MARCUS & MILLICHAP ARRANGES THE SALE OF A 53-UNIT APARTMENT BUILDING

Dougherty Mortgage LLC, a full service national mortgage banking firm, has closed a $6.4 million Fannie Mae loan for the refinance of Park Place Townhomes, a 72-unit multifamily market rate townhome property located in Mankato, Minnesota. The 18-year term, 30-year amortization loan was arranged by Dougherty’s Minneapolis office, for borrower Park Place Mankato LLLP. Park Place Townhomes are nestled within the Minnesota River Valley and located adjacent to Hiniker Pond and Park, offering easy access to multiple walking trails. One, two, and three bedroom options are available and include washer and dryer, dishwasher, microwave, ceiling fans, oversized decks and spacious storage. Property amenities

Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Phalen Shores, a 53-unit apartment property located in Saint Paul, Minnesota, according to Craig Patterson, Regional Manager of the firm’s Minneapolis office. The asset sold for $4,150,000. Dan Linnell, Mox Gunderson and Annie Arneberg, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a partnership. The buyer, a private investor, was secured and represented by Dan Linnell and Mox Gunderson. Speaking with Mr. Linnell, “Within News to page 21

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Minnesota Real Estate Journal

April 2015

A Conversation with Quinn Cheney, NAIOP Minnesota’s New Director of Public Policy Effective March 1, Quinn Cheney assumed the position of Director of Public Policy for the Minnesota Chapter of NAIOP, one of the largest chapters of the nation’s leading association of commercial real estate development professionals. In this exclusive MREJ interview, Quinn offers her views on the outlook for the chapter, the legislative challenges ahead, and the leadership role the Minnesota chapter plays in the state’s commercial real estate industry. Q. What is your professional background? A. I have a 20+ year career in all levels of government relations, working at every level of government, including positions with former Governor Pawlenty and the Minnesota Department of Agriculture. Most recently, I led my own government relations consulting business. Q. What was it about NAIOP’s Minnesota Chapter that led you to join it as public policy director?

A. I saw this as an opportunity to become part of an industry that really touches the lives of all Minnesotans. I’m excited to bring a fresh perspective to an organization that has achieved such respect, both at the Capitol and in the industry. Q. How does NAIOP differ from other organizations you have represented? A. NAIOP is the only organization that represents ALL aspects of the commercial real estate industry. From

members’ efforts. That’s a message I’m looking forward to sharing.

Quinn Cheney the developers and builders, to the property managers and tenants, and all everyone in between, NAIOP really represents the whole industry. It's also an industry that literally touches the lives of every Minnesotan, every day. The offices where we work, the stores where we shop, the doctor’s offices we visit - all are the direct result of our

Q. What are your public policy goals for 2015 and 2016? A. Our most important goal is to increase the competitiveness of Minnesota’s commercial and industrial property taxes and I believe we have a real opportunity to do that this year. Minnesota property taxes rank amongst the highest in the nation. As a state, we have a lot to offer, but our high property taxes are a constant obstacle to our growth. To ensure a healthy business climate in Minnesota, we've got to give the commercial real estate industry a reason to continue to invest, through both the good economic times and the bad. I believe there is a strong appetite to enact tax relief this session. Q. Can you talk more about the impact of property taxes on your members? A. Already the Legislature has spent NAIOP to page 12

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considerable time discussing the state general levy—the additional tax our members pay on commercial properties, on top of local property taxes.. This tax has grown in just a few short years to become an onerous burden on our industry and our business tenants, who actually bear the brunt of this tax. It accounts for about 25% of a tenant’s occupancy cost, and is the one cost over which businesses have no control.

Q. NAIOP Minnesota has a unique support mechanism funding your public policy efforts—the Penny Per Square Foot Fund. How does the fund work? A. The PPSF Fund, as it is known by our members, is simple. Building owners contribute just one cent annually for each square foot of space they lease or manage. Their contributions are then pooled and used to underwrite the cost of our chapter’s award-wining public policy efforts.

Q. Where does NAIOP’s transparency initiative---the call for greater clarity in local government spending—stand today? A. Using the positive findings our 2014 pilot demonstration projects, we are drafting a new bill to effectively accomplish our goal of making the local government budgeting process more transparent. Then, throughout the summer, the Citizens League will convene a series of stakeholder meetings to gather input and further refine our proposal. We believe this process will help ensure that by the time the 2016 legislature convenes, we will have a strong bill, with the support of those affected by it.

Q. How important is the PPSF fund to your efforts to reduce property taxes and influence legislation that affects your members, their business tenants and the industry in general? A. It is the real key to our successful efforts at the Capitol. Without it, NAIOP's Minnesota chapter wouldn't be the prestigious organization it is. In fact, I'd like to take this public opportunity to thank the fund’s many generous contributors. Because of their continued commitment, it has become a reliable source of the resources needed to accomplish NAIOP's public policy efforts - one that ALL our members greatly appreciate.

Q. The Minnesota chapter is recognized nationally for the large numbers of motivated volunteers engaged in your public policy program. To what do you attribute that high level of participation? A. As a chapter, we are very lucky. Our members are enthusiastically committed to NAIOP’s public policy agenda - so committed that they're willing to devote their personal time and energy to support it. And it shows. It's why this chapter has gained such prominence at the Capitol, in the community, and at a national level. Frankly, it’s one of the things that convinced me to join the organization. Q. Given the strong comeback of the real estate industry, how can the chapter take advantage of that growth in expanding NAIOP’s influence? A. While there’s a lot happening in the industry right now, Minnesota could do better. We’re not reaching our full potential. My goal for NAIOP is to work to enhance Minnesota’s business climate – and reduce or eliminate those hurdles that impede growth. To do that, we will continue to collaborate

April 2015

with other business groups, like the Minnesota Chamber of Commerce and others. Q. As you look to the future, what is your general outlook for the local real estate industry, and more particularly, for the Minnesota Chapter of NAIOP, over the next few years? A. It’s a really amazing time to be associated with the development industry here in Minnesota. Some of the biggest projects in the history of the state will become reality in the next few years, making it an exciting time for economic growth in Minnesota. It will be a perfect opportunity to see the widespread “ripple effect” of our members’ developments, as the impact of all of the increased jobs, materials purchases and all of the other inputs to development we create move through the economy. As I said earlier, the commercial real estate industry affects all Minnesotans. When our industry is healthy and successful, Minnesota’s economy is healthy and successful as well.

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April 2015

Zeller Realty Group’s Herron: Property management and the power of predictable revenues During the economic downturn, commercial real estate firms were reminded of just how important their property management divisions are to their annual bottom lines. Property management, after all, provides CRE firms with the kind of stable, predictable revenues that help companies survive tough times. Now that the economy is steadily improving, property management divisions remain important to top CRE companies. Steve Herron, principal at Zeller Realty Group – headquartered in Chicago and with Midwest offices in Minneapolis and Indianapolis – recently spoke with Minnesota Real Estate Journal about the boost that a strong property management division can provide and the challenges and rewards of competing in this space. by Dan Rafter, Editor Minnesota Real Estate Journal: This is a big question, but how important are property management divisions to the bottom lines of commercial real estate firms? Steve Herron: They are important for two main reasons. The first is that property management divisions really provide exceptional optics on the dayto-day activities of your buildings. Companies that have property management divisions have much better control of the overall execution of their assets. The buildings are well taken care of. This provides companies with

property management divisions another way to enhance and display their brand. You do have institutional owners out there who will go out and hire the JLLs and CBREs of the world to manage their properties. They tend to look at their properties as commodities. Those institutional owners don’t have a true brand. Companies that have property management divisions have a true brand. They have better control over all of their services. That really helps with the ownership of a particular asset. MREJ: What is the second main reason that these divisions are so

which property management is one of, provide that steady flow of revenue. That’s a nice bonus when you consider that property management also helps you promote your company’s brand. Those are the primary reasons that I think about when I think of companies like ourselves who have an internal property management division.

Steve Herron important for companies? Herron: They are important, too, from a revenue perspective. The revenues derived from property management division are predictable. They are steady. They have become a bit of the lifeblood of the overall company’s operations. You think of investment companies. Their revenues can go up and down. Their service divisions,

MREJ : What about companies that are considering starting a property management division? What challenges should they be aware of? Herron: When the economy slows, companies tend to look at property management. They might think, ‘If we had a property management division we could get the steady revenues. We could even out the ebbs and flows in our own cash flow.’ But as companies that have done property management for a long time can tell you, the greatest challenge is the human capital. I think of our own situation. You can say that 50 percent to 70 percent of the employees of a company are geared solely toward the property manageZeller to page 17

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Opus From page 1

ambulatory care centers and other smaller, neighborhood clinics. And why not? Going to a big hospital's emergency room can be an all-day hassle of long lines and interminable paperwork. Going to a neighborhood clinic might require just an hour-long stop in a busy day. These three key factors are changing the way medical providers think about real estate. More are interested today in building smaller outpatient-centered clinics. This created an environment in which it made sense for Opus to formally build a healthcare division, Shaver said. "As we looked at the disrupters in this industry, it became clear during our strategic planning process a few years back that we should pursue healthcare in a more purposeful way," Shaver said. A changing sector Opus Healthcare is wading into a healthcare real estate environment that is in the middle of several major changes. Shaver says that medical providers are moving toward a retail model of

Tom Shaver providing healthcare. This means that there has been a shrinking footprint around the traditional hospital campus. Providers are embracing the clinic and ambulatory strategy of scattering smaller care centers in the neighborhoods and communities that they serve. This has been a positive for consumers. Hospitals and medical providers if they want to remain attractive to today's patients must be willing to provide them with more options for receiving care, Shaver said. "You as a consumer of healthcare have more portability today than you did 10 years ago in managing your own

health and wellness," Shaver said. "Consumers are becoming more discerning in who they use as their healthcare provider for whatever illness they are dealing with." This means that consumers instead of driving to the middle of the city to a crowded emergency room, might be able to drive a mile to a neighborhood clinic affiliated with that big-city hospital to treat the same ailment. Technology, too, is having an important impact on the medical field, Shaver said. Telemedicine is becoming more popular, giving patients the chance to receive treatment -- or practice preventative care -- online or through a phone call. Some medical providers are experimenting with wearable technology that helps them remotely monitor the health of their patients. All of this combines to make visits to hospitals and their emergency rooms less frequent for many patients. The goal, Shaver says, is for everything from telemedicine and neighborhood clinics to handle most routine medical care while hospitals are reserved for the most serious of illnesses and injuries. A boom in health insurance Shaver said that medical providers have to be creative in how they treat

April 2015

patients today. That's partly because there are so many more potential patients out there. Shaver says that in 2013, there were an estimated 40 million to 45 million U.S. residents who lacked health insurance. In the next 10 years, because of the Affordable Care Act, that number will drop to roughly 20 million to 23 million, he said. "You have a significantly larger percentage of the population getting insurance and using the healthcare environment for health and wellness," Shaver said. "That will put more pressure on the system. It will translate into an even bigger focus on the hub-and-spoke concept of healthcare, with the hospital as the hub and the ambulatory care centers as the spokes. "We need more efficient, more flexible and more clinical care out in the communities to handle the traditional maladies that exist for patients," Shaver said. "That will hopefully free up the hospitals for acute care."

April 2015 Zeller from page 14

ment side. You have property managers, assistant managers, building engineers, accountants and engineering personnel. You have bodies on top of bodies to run an effective property management division. As companies jump into it and think that they can just do this for a steady income stream, they miss the boat on the human capital side. They don’t realize just how many employees they need to have focused on property management to make it work. MREJ: It comes as a shock to companies just how many bodies it takes to succeed in property management? Herron: It does. Just think of the other departments that are involved in property management: human resources, the accounting department, a legal team. Companies might not have thought about the number of people they need to run a property management division. Getting and managing the human capital is the greatest challenge. MREJ: Are there other big challenges that companies might not be aware of? Herron: There is also the challenge of developing best practices. Our companies and those others that have done property management for a long time have really refined how to incorporate best practices into their operations. How do you execute a management plan for a property? You have so many different bodies working in property management. How do you direct them? Running a property management division is incredibly difficult to do out of the gate. The companies that have done it successfully over time have refined the process. And they have added to their best practices over time. If you don’t have a property management division that is finely tuned, it won’t be a value-add for your company. It will just be more work. MREJ: Have the services that your company’s property management division offer changed over time? Herron: Over the years, we have added to our existing services. For instance, today energy and sustainability reviews and assessments are very important. Larger firms have a component that can generally do that service. The changes are driven by the property management team saying that we can run a better mousetrap. MREJ: How competitive is the property management business today? Herron: It depends on the context. If you are a third-party provider, it is incredibly competitive out there. For those folks it is all about bandwidth, about total access. It’s about quantity and getting access to clients at multiple levels. As I think about how CBRE looks at the world, they need touch points. They need a lot of touch points to their clients. They’ll offer services

Minnesota Real Estate Journal

like property management to help drive their own revenue. That is a very competitive world. For us it’s different. We provide property management services to provide better service to our partners. It’s a different type of competitiveness for us. For us it’s about the corporate culture that you identify and create. For us, it’s about the way we do business as a whole. We all do property management in a certain way. It is part of our brand. We are a very high-touch firm. We are really focused on adding value.

MREJ: Are you seeing any new trends in the property management business? Herron: Energy and sustainability are still hot topics. Building owners are focused on how they can improve on their current systems. We can now get our engineers to see the operations of the buildings we manage in real time. We have software that gives our engineers and operational folks real-time optics on what is happening within a building. You can then figure out

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where you can make changes and adjustments. Any time you can use tech to better the optics on a property and make quicker decisions, you will make better decisions because of the data you have.

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DTZ

report, there are now 1.1 unemployed people for every active job opening in the state. That's down from 2.1 people per opening last year. Like other markets in the Midwest, the Twin Cities is seeing renewed interest in its urban core, DTZ said. That's evident in two companies making moves from the Twin Cities' suburbs to the CBD. Varde Partners plans to relocate to 36,000 square feet in the AT&T Building downtown from the Normandale Lakes office park in the Southwest submarket. Qumu will move from the West/Northwest submarket to the CBD in a 17,000-square-foot deal. There was one particularly large office sale in the first quarter in the Twin Cities market: The 1.06-millionsquare-foot Fifth Street Towers in Minneapolis's CBD sold for $154 million.

From page 1

has continued to boost their micromarkets." Strong numbers The overall vacancy rate for the Twin Cities office market fell to 14.4 percent in the first quarter, according to DTZ. That is a drop of 2.5 percent in vacant space since the first quarter of last year. This also represents the largest 12-month change in office vacancies in more than a decade. The West/Northwest and Minneapolis CBD submarkets remain the strongest when it comes to office activity. DTZ reported that of the 290,000 square feet absorbed in the first quarter, more than 85 percent of it took place in these two key submarkets. Class-A properties saw the lowest vacancy rate by building type. This rate stood at 10.8 percent in the first quarter of the year. The Minneapolis CBD had the lowest office vacancy rate of any submarket, 12.3 percent. Behind the good numbers There are several reasons for the strong performance of the office mar-

April 2015

ket in the early stages of the year. The overall unemployment rate in the state of Minnesota was a low 3.7 percent. That's much better than the overall U.S. unemployment rate of 5.5 percent.

At the end of 2014, there were 89,900 job openings in the state, 47 percent higher than a year earlier. It's also the highest number of job openings since 2001. According to DTZ's

April 2015

Minnesota Real Estate Journal

Page 19

Sara Investment Real Estate’s Dalsin: Madison, Minneapolis and other Midwest markets attracting the dollars of real estate investors By Dan Rafter, Editor Traci Dalsin, president of Madison, Wis.-based Sara Investment Real Estate, has good news: Investors are pumping more dollars into commercial real estate in the Madison market. And that’s just the beginning. Dalsin says several major markets across the Midwest are enjoying the same positive trend. Minnesota Real Estate Journal recently spoke with Dalsin about what is bringing investors back to Madison. Minnesota Real Estate Journal: Let’s start with a broad question: Are you seeing more interest from investors in Madison and the other Midwest markets in which you work? Traci Dalsin: We do a lot of work in Madison. But we work almost equally in other markets, too. I can definitely see more activity and growth in Madison and our other markets. This is an exciting time in commercial real estate. MREJ: Why are you seeing more interest today? Dalsin: I think it is a combination of

factors. We are in general seeing more confidence on the part of tenants. They are growing their businesses. At the same time, we are seeing more confidence from investors. We are now seeing people who maybe in the past weren’t looking as hard in the Midwest considering markets such as Madison. They are now focusing more on the Midwest. They are attracted to the great stability we have in the Midwest. We have stability and we still have great growth. That’s a good combination for investors. There is quite a bit of opportunity for investors in our markets today. MREJ: We often hear that our Midwest markets are more consistent than, say, those on the coasts. We don’t have those high highs or low lows. How important is this to investors? Dalsin: That stability is something that the investors we work with do like. They realize that there is opportunity for growth and opportunity for returns here, but that there is also that underpinning of more stability. Our Midwest markets provide investors with the opportunity to invest in stable markets

while also realizing growth. MREJ: What commercial real estate sectors are most attractive to investors today? Dalsin: It’s pretty varied, from our perspective. We have many investors who focus on industrial. There is a lot of activity in that market right now. I have a core group of investors who are focused on office, too. It depends on the dynamic of the investor and what that investor’s focus has been. MREJ: What markets is your company already doing business in? Dalsin: We have been doing business in Wisconsin for 18 years. We have a heavy focus on Madison and Milwaukee, some other markets in Wisconsin. We have a presence in Minneapolis. We will be actively growing in that market. In January, we opened an office in St. Louis that will also serve Kansas City, Omaha and a bit into Iowa. MREJ: What is it about the St. Louis market that inspired you to open an office there?

Dalsin: Geographically, St. Louis is in a great location for us. It can serve Omaha. It can serve Kansas City and even into Iowa and Colorado if we go that route. We also have a fantastic employee there who fits well into our organization and is based there. The other part is that working in those markets feels similar to working in Wisconsin and Minnesota. Those markets seem to have a lot in common with the markets in St. Louis and Kansas City, so I think that we’ll do well there. MREJ: Speaking of Minneapolis, that market has long been one of the strongest in the Midwest. Is the Twin Cities market still an attractive one for investors? Dalsin: You have a great combination of some of the stability that comes with being in the Midwest while also having that larger metropolitan area to work in. There are quite a few large corporations in Minneapolis/St. Paul that provide a lot of vitality. There are incredible opportunities in that market. It has a great mix of your metro areas combined with some good, stable Midwest growth.

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Minnesota Real Estate Journal

April 2015

Community Spotlight

St. Cloud is Minnesota’s five-tool real estate player

lthough they might not eat as many hot dogs, commercial site selectors are like baseball scouts in that both are always searching for the perfect prospects. The ideal in baseball is called a “five-tool player” – someone who excels at throwing, fielding, running, hitting for average and hitting for power. Those players are extremely rare, though, because very few can do everything well. Of course, very few development locations can do everything well, either. But one rare exception is St. Cloud, whose land availability, readiness, access, affordability and development assistance have made it Minnesota’s five-tool commercial real estate player. “The newest opportunity in St. Cloud is the 100 acres ready for development adjacent to our new highway interchange and the proposed site of a new high school,” says St. Cloud Mayor Dave Kleis, adding that its location is just 60 minutes from the 494694 loop. “With the CentraCare cam-

pus, VA Medical Center and bustling Crossroads Mall all nearby, these 100 acres are as close to the corner of Main & Main as you’ll find for prime land near the Twin Cities.” So let’s expand on St. Cloud’s five tools: Land availability In addition to the 100 acres the Mayor mentions, which are one mile from I-94, St. Cloud has two business parks that can accommodate developments from five to 80 acres. The I-94 Business Park, with 103 available acres, is home to local and international giants Anderson Trucking, Arctic Cat, New Flyer of America and others. The St. Cloud Airport Business Park was chosen over 27 competing locations around the U.S. by German-based Geringhoff, which now manufactures farm equipment in a 100,000 square foot facility there. The Airport Business Park still has 287 acres available. “Outside of a handful of remaining sites, the inventory for available industrial land sites along I-94 up to St.

Cloud (from the Twin Cities) is minimal,” says Mark Sims, SIOR, Managing Principal of DTZ (formerly Cassidy Turley Commercial Real Estate Services) in Minneapolis. “St. Cloud will be increasingly relevant for large industrial users looking in the northwest moving forward.” Readiness Those two business parks, as well as other sites from downtown St. Cloud to its borders, are truly shovel-ready – construction can begin immediately since all planning, zoning, surveys, title work, environmental and soil studies, public infrastructure, and engineering work are completed. Of course, readiness also includes workforce. Partially due to the community’s 30,000 college and technical training institution students, St. Cloud has experienced the fastest labor force growth in Minnesota the past 10 years. Others are noticing the area’s readiness, too. In March, Stearns County (for which St. Cloud is the county seat) was named among the top 10 largesized communities in the U.S. “poised

to achieve sustainable economic growth while attracting people and investment,” according to Pittsburghbased Fourth Economy Consulting. Access In addition to being accessible by several exits off of I-94 and a modern airport with a 7,000-foot runway, St. Cloud industry is also served by the BNSF Railway. Commuters benefit from rail service, too. In 2009, Northstar Commuter Rail service began between Minneapolis and Big Lake, just 30 miles from St. Cloud, with the intention of eventually reaching the city. From east and west St. Cloud is close, too. It’s just 145 miles from Duluth and 170 miles from Fargo. Affordability This topic is batting cleanup in our recap of St. Cloud’s five-tool strengths for good reason: Commercial real estate is very affordable there. “At just $1.75 per square foot for fully-serviced property off of I-94, St. Cloud’s rates are about half of what

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April 2015

you’ll find in the northwest metro area,” says Cathy Mehelich, director of the St. Cloud Economic Development Authority. Development Assistance While financial assistance is great, it just scratches the surface of the assistance St. Cloud provides. Great River Energy, which sees St. Cloud’s I-94 Business Park as an excellent candidate for locating national data center operations, offers one example. “We were impressed with the available infrastructure and access at the site,” says Tom Lambrecht, Great River Energy’s manager of economic development services. “But we were most impressed with the willingness and ability of local officials to work together.” Statements like that confirm the need Mayor Kleis saw when he led creation of the St. Cloud EDA just four years ago. “Prior to then St. Cloud’s economic development efforts were somewhat scattered, forcing those with an interest in developing here to chase down all kinds of information on their own,” says Kleis. “It wasn’t the best way to attract businesses and new jobs. But since we’ve created our EDA, we now do all the legwork, package the information developers need, lead the site tours and show people how much we value their interest in growing here.” The approach is working, with every

Minnesota Real Estate Journal

dollar of public investment resulting in $10 of private investment. Since the EDA’s inception in 2011, $5.6 million in public investment has led to $54 million in private development and more than 300,000 square feet of new construction. “TIF, tax abatement and other financing tools are effectively used here because the City leverages incentives for job creation and tax base with our State and regional partners,” adds EDA Director Mehelich. “People now think of the St. Cloud EDA as their first-stop shop for business development assistance. Whether it’s permitting, site selection, identifying financing resources, linking business startups with other businesses – or whatever else is needed – we’re here to make it easier for businesses large and small to succeed in St. Cloud.” Additional information about the EDA’s services and success stories can be found at ci.stcloud.mn.us/economicdevelopment. Learn more about the city’s five-tool strengths during the St. Cloud Real Estate Development Summit, co-sponsored by the Minnesota Real Estate Journal, on May 12 at the Golden Valley Country Club. Then when you visit St. Cloud yourself, you might want to check in on some other five-tool players. The Minnesota Amateur Baseball Hall of Fame Museum is right downtown, inside the River’s Edge Convention Center.

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News from page 8

three weeks of marketing, Marcus & Millichap conducted 15 qualified tours and ultimately drove five written offers on the asset; which ultimately closed at $78,301 per unit. Phalen Shores is desirable due to the quality exterior of all concrete and brick construction, its location on the edge of Phalen Regional Park, and close proximity to Lake Phalen itself. The 53-unit building consisted of 24 one-bedroom units, 29 two-bedroom units and was 97 percent occupied at the time of sale.” Phalen Shores is located at 985 East Ivy Avenue in Saint Paul, Minnesota.

Knutson celebrates the grand opening of the Ramsey County Library in White Bear Lake Together, with the White Bear Lake community, Knutson Construction celebrates the completion of the $3.3 million renovation to the Ramsey County Library in White Bear Lake, Minnesota. The design-build project began in September 2014 and was a collaborative with Bentz/Thompson/Rietow Architects. Approximately 12,500 square feet of the existing library has been remodeled and 4,000 square feet has been added to create flexible space and maximize efficiency. The design

integrates new and old portions of the facility into one cohesive community destination. The library features an interactive EyePlay projection gaming system located in the teen/children’s room encouraging interaction with the new space. The project successfully exceeded all diversity and small business enterprise utilization goals and kept approximately 200 construction workers employed throughout the project. Minnesota's Sustainable Building Guidelines were utilized to significantly reduce the facility's energy use, cost of operation and impact on the environment. "We are proud to be a part of such an amazing project for the people of White Bear Lake. We know the enhanced facility will have a positive impact on the community and will allow the library to adapt to future changes in library services,” stated Dave Bastyr, Knutson Construction’s executive vice president of Minnesota. In addition to Knutson Construction and Bentz/Thompson/Rietow Architects, the Ramsey County Library project team included: Ramsey County Property Management, the Ramsey County Library, the City of White Bear Lake, Mattson Macdonald Young Structural Engineers, Pierce Pini & Associates Civil Engineers, Gausman & Moore Mechanical and Electrical Engineers, and

Page 22

Minnesota Real Estate Journal News from page 21

Calyx Design Group Landscape Architecture.

MARCUS & MILLICHAP ARRANGES THE SALE OF A 98,157-SQUARE FOOT RETAIL SHOPPING STRIP Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Oak Park Ponds, a 98,157-square foot retail shopping strip located in Stillwater, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $8,900,000. Mark Taylor and Dean Zang, both First Vice President of Investments in Marcus & Millichap’s Philadelphia office, along Sean Doyle and Cory Villaume, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, also a limited liability company, was secured and represented by Matt Hazelton, Adam ‘AJ’ Prins and Michael Marzinske, investment specialists in Marcus & Millichap’s Minneapolis office. Speaking with Mr. Hazelton, “Oak Park Ponds generated multiple offers from varying profiles of buyers. This was despite the property being encumbered by an existing loan that had to be assumed. The main driver of interest was having Kowalski’s as a long-term anchor.” Oak Park Ponds is located at 5801 Neal Avenue North in Stillwater, Minnesota.

MARCUS & MILLICHAP ARRANGES THE SALE OF A 40,000-SQUARE FOOT SELFSTORAGE FACILITY Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of TNC Mini Storage, a 40,000-square foot, 203-unit selfstorage facility located in Forest Lake, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $1,350,000. Adam Haydon, an investment specialist in Marcus & Millichap’s Minneapolis office and Adam Schlosser,

Director with the National Self Storage Group, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a private investor, was also secured and represented by Adam Haydon and Adam Schlosser. Speaking with Mr. Haydon, “TNC Mini Storage presented a great opportunity to purchase a stabilized self-storage facility with significant upside. The demand for self-storage in the area currently outpaces the supply as market occupancy is near 100 percent. With room to expand and in-place rental rates below market rates, the new owner can easily increase returns during the facility's first few years of new ownership.” TNC Mini Storage is a two-property self-storage facility located in Forest Lake, Minnesota. It is separated into two parcels that are located less than onehalf mile from each other. The two parcels consist of 203 total units, with sizes ranging from 5'x10' through 20'x20'. As of April 2015, the facility was 96 percent occupied.

MARCUS & MILLICHAP ARRANGES THE SALE OF A 4,937-SQUARE FOOT RETAIL PROPERTY Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of a Stop-N-Go, a 4,937-square foot retail property located in Lake Geneva, Wisconsin, according to Craig Patterson, Regional Manager of the firm’s Minneapolis office. The asset sold for $680,000. Terry Jacobs, an investment specialist in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was secured and represented by an outside brokerage. Matthew Fitzgerald, Broker and Regional Manager of Marcus & Millichap’s Milwaukee office, assisted in closing this transaction. Speaking with Mr. Jacobs, “Stop-NGo is located at 896 South Wells Street in Lake Geneva, Wisconsin. It was built in 1971 and leased to Stop-n-Go in 1995. Because of the quality of the location and availability of the property, Stop-n-Go, headquartered in Madison, Wisconsin, made the decision to add this property to their portfolio.”

CBRE ANNOUNCES THE SALE AND LEASEBACK OF THE SPORTECH HEADQUARTERS AND ASSEMBLY BUILDINGS, ELK RIVER, MINNESOTA CBRE announces the sale and leaseback of Sportech’s headquarters and assembly facilities in Elk River, Minnesota to Broadstone Real Estate, LLC for $9.8 Million. The Headquarters Building is a 92,830 square foot office/warehouse building constructed in 2008 with 22’ clear height. The Assembly Building is 50,079 square foot office/warehouse/showroom building constructed in 2006, with 20’ clear height. Both buildings are 100% occupied by Sportech, Inc. The seller, Sportech, Inc., was represented by CBRE Institutional Properties in Minneapolis led by Steven Buss and Judd Welliver. Sportech, Inc. is an innovation-driven plastics thermoformer specializing in the design, development, and production of quality products and accessories for the powersports industry. The Minneapolis based team of Steven Buss, Ryan Watts, Judd Welliver, Tom Holtz, and Sonja Dusil focuses on the disposition of single-tenant and multi-tenant industrial and office properties. The team also advises real estate operating companies on the sourcing and structuring of joint venture equity. Steven, Ryan and Tom are part of the 85-member CBRE Institutional Properties group. In 2014, the Capital Markets enterprise of CBRE including the Institutional Properties group completed over $104.2 billion in combined total U.S. capital activity.

Dougherty Real Estate Equity Advisors LLC Acquires C.H. Robinson Worldwide Operation Center in Eden Prairie Dougherty Real Estate Equity Advisors LLC (“DREA”), an affiliate within the Dougherty group of companies, headquartered in Minneapolis, MN, has announced the acquisition of the C.H. Robinson Worldwide Operations Center, a 153,028 square foot office building in Eden Prairie, Minnesota. The transaction represents an off-market opportunity handled by the CBRE Minneapolis Investment Sales Team of Holtz/Buss/Watts/Welliver/Dusil. The well-designed, mission critical facility

April 2015

is net leased to C.H. Robinson and is part of their world headquarters campus. According to Lori Larson, Executive Vice President of DREA, “This acquisition provides us with predictability and consistency of cash flow from a wellknown and respected tenant who continues to grow in size and prominence. The profile of this property aligns nicely with one of our investment vehicles, and we are able to generate initial leveraged cash returns of more than 10% while utilizing a conservative amount of mortgage debt. In addition to these attractive current cash yields, we believe the property’s value will appreciate over time.” “While we plan to pursue multiple investment strategies, one current focus is to take advantage of exceptionally low mortgage rates over an extended period of time by utilizing tax-efficient reinvestment strategies and collateral substitutions,” stated Andy Deckas, DREA President. “Given the anemic yields available from fixed income investments currently, we believe this is an excellent time to invest in real estate.”

NAI Everest Brokers Sale of Parkdales Office Complex NAI Everest is proud to announce the successful closing of the six-building Parkdales Office Complex located in the prestigious West End retail and entertainment sector of St. Louis Park, MN. The 566,000 square foot multi-tenant office asset is located at the southwest quadrant of Highway 100 and Interstate 394 and sold for approximately $40,000,000. “We were thrilled by the quick response and overwhelming demand for this type of office product from local, regional and national buyers,” said Gina Dingman, President of NAI Everest. “Despite the number of quality bids we received, it is especially exciting that Eden Prairie-based Excelsior Group won the project. It will be terrific to watch them renovate these assets and add value in this dynamic location.”

April 2015

Minnesota Real Estate Journal

Page 23

MARCUS & MILLICHAP ARRANGES THE SALE OF A 57ROOM HOSPITALITY PROPERTY Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of AmericInn Lodge & Suites Sioux City - Airport, a 57room hospitality property located in Sioux City, Iowa, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $3,000,000. Jon Ruzicka, an investment specialist in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was also secured and represented by Jon Ruzicka. Barry A'Hearn, broker of record for Marcus & Millichap in Iowa, assisted in closing this transaction.

Looking for Real Estate CE Credits?

Minnesota Real Estate Journal 2015 CONFERENCE SCHEDULE for more information or to register www.rejournals.com/conferences January

Apartment Summit

May

Retail & Restaurant Summit

January

Downtown St. Paul Summit

June

Mid-Year Apartment Update & Student Housing Summit

January

Construction Summit

June

2014-2015 General Salesperson and Broker Module Course: Hillcrest

February

Appraisal Summit

June

Property Management Summit

February

Condo Summit

June

Brownfields Summit

March

2014-2015 General Salesperson and Broker Module Course: GVCC

July

Duluth Real Estate Summit: Duluth MN

March

North Dakota & Bakken Summit

September

Contractors Summit

March

Medial Properties Conference

September

Hotel Summit

April

Residential Real Estate Summit

September

Energy Summit

April

2014-2015 General Salesperson and Broker Module Course: GVCC

October

Downtown Development Summit

April

Capital Markets Summit

October

Senior Summit

May

Land Conference

November

Tax Credits Conference

May

St. Cloud Real Estate Conference

November

Industrial Real Estate Summit

May

2014-2015 General Salesperson and Broker Module Course: Hillcrest

December

Office Summit

May

Data Center Summit

December

Succession Planning Summit

Contact:

Jeff Johnson

Jay Kodytek

Publisher/General Manager Direct: 952.405.7780 jjohnson@rejournals.com

Associate Publisher Direct: 952.405.7781 jkodytek@rejournals.com