VOLUME 30, NUMBER 9
©2014 Law Bulletin Publishing Co.
September 2014
StuartCo, Simon meet a need, bring luxury apartments to Twin Cities suburb By Dan Rafter, Editor
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he multi-family market is hot in the Twin Cities, and not just in the hearts of Minneapolis or St. Paul. The close-in suburbs of the Twin Cities are attracting their own share of renters. That’s why One Southdale Place Apartments, the newly opened luxury multi-
family project by StuartCo and Simon makes so much sense. These apartments opened in early September in Edina, a Twin Cities suburb that is badly in need of luxury rental units. How high is the demand for the type of apartments One Southdale Place offers? StuartCo and Simon say that one-third of the units in One Southdale Place were leased before the apartment project even opened. Apartments to page 20
Duke Realty: Booming business at Gateway North Business Park just more proof that Twin Cities’ industrial market is on the rise By Dan Rafter, Editor
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he Gateway North Business Park in Otsego, Minn., has kept Duke Realty Corporation busy. And to Duke officials, the steady flow of build-tosuit activity here is just one more example of the growing strength of the Minneapolis-area industrial market. "There have been articles about this for a few years
now, but there is a lack of bulk modern warehouse space in the Minneapolis/St. Paul market," said Josh Budish, vice president of leasing and development for Duke Realty Corporation. "The type of modern space that we are building at Gateway North is the type of product that a lot of users are looking for." In the latest example of this, Duke in late summer closed a long-term lease with Blu Dot, a designer and distributor of modern furniture, for a 150,064-squarefoot build-to-suit warehouse in this business park that
sits about 30 miles from Minneapolis. But that's just the latest big build-to-suit deal that Duke has closed in Gateway North. In July of this year, Duke signed furniture retailer Room & Board to a long-term lease for a new 485,804-square-foot warehouse in the park. And in January, Duke reached a deal with Des Moines, Iowa-based Ruan Transportation Management Systems for a new 300,000-square-foot Gateway to page 22
4 Hours of Real Estate and Appraisal CE Credits Applied For / 3.75 CLE Credits Applied For 7:55 AM Welcome & Introductions Emcee: Jon Lundberg, Ebenezer Jeff Johnson, Minnesota Real Estate Journal 8:00 AM The Importance of Putting Customer Service & Hospitality # 1 Moderator: Sue Olson, Ebenezer Susan Farr, Ebenezer Micah Benson, TruthPoint Sue Brinkhaus, Ebenezer Barbara Mekenye, Cherrywood Pointe • Creating a lifestyle in your community • Customer Service Satisfaction Tools: TruthPoint • How to build a positive environment • Other Trending Services you need to consider 8:45 AM The Journey from Beginning to End, Repositioning While in Operation Ward Isaacson, Pope Associates Pam Belz, Senior Housing Partners Tim Trimble, Greiner Construction Thomas Halloran, Greiner Construction Arlys Kath, Senior Lifestyle Design • Research, Assessment, and Vision • Life Safety • Communicating the Plan/Dream • Unforeseen Issues/Problems • Moving, Staging, and FF&E • Resident Celebration
9:30 AM Break 9:40 AM Capital Market Strategies and Solutions for your next project Moderator: Steve Grygar, Ebenezer Quintin Harris, Lancaster Pollard Michael Leonard, Oak Grove Capital Patrick O'Leary, Piper Jaffrey • What is the outlook in 2015 for lenders? • Who is lending and what are the current requirements to secure debt & equity? • What types of alternative sources of capital are available? • Traditional and innovative methods for securing financing for a project • Which deals are more likely to get done and what are the requirements • What types of governmental programs are available and how do I access them? 10:25 AM Memory Care & University of Minnesota Moderator: Candace Gislason, Ebenezer Dr. Joseph Gaugler University of Minnesota Mark Reese, University of Minnesota Lucy Boxrud, Ebenezer Jody Barney, Martin Luther Campus • The importance of effective staff training, setting ourselves apart from the competition • Understanding how to most effectively care for seniors
• How have Memory Care services changed over the years? • Advances made in medicine and care techniques • How to implement Memory Care and other new services into your community • Best Practices & Lessons learned 11:10 AM Development Trends: How to Evaluate Projects to Guarantee Success Moderator: Susan Farr, Ebenezer Jill Nokleby Kaiser, Ebenezer Deb Hanka, Centrex Rehab Mary Swartz, Ebenezer Alanna Carter, RSP Architects Mary Chapa, Ebenezer • Health & wellness, aromatherapy, inter-generational programs, organic foods • Partnerships with churches • Technology update and new workforce models to deal with staffing shortages • How to avoid mistakes to avoid losses and losing your project • Important steps developers must consider to help develop a successful project • Future trends and predictions on the future of the senior housing industry
September 2014
Contents
Minnesota Real Estate Journal
SEPTEMBER 2014 • VOLUME 30, NUMBER 9
Page 3
Departments PEOPLE
4
NEWS
6
RESOURCE GUIDE
1
STUARTCO, SIMON MEET A NEED, BRING LUXURY APARTMENTS TO TWIN CITIES SUBURB DUKE REALTY: BOOMING BUSINESS AT GATEWAY NORTH BUSINESS PARK JUST MORE PROOF THAT TWIN CITIES’ INDUSTRIAL MARKET IS ON THE RISE
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MULTI-FAMILY DEVELOPERS SELLING GREEN HAVE AN ADVANTAGE – NOW AND IF THE MARKET SWINGS
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NOW IS THE TIME TO TALK TO (AND EDUCATE) YOUR CANDIDATES ABOUT COMMERCIAL PROPERTY TAXES
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DLA PIPER: REAL ESTATE EXECUTIVES ARE AN OPTIMISTIC LOT TODAY
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The Minnesota Real Estate Journal (ISSN 08932255) is published monthly for $85 per year by Law Bulletin Publishing Company, 13400 15th Ave North STE C, Plymouth 55441. Phone: 952-885-0815. Periodicals postage paid at Minneapolis, MN. POSTMASTER: Send address changes to Minnesota Real Estate Journal, 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. ©2014 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
September 2014
People a division of Law Bulletin Publishing Co.
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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
Nate Pearson, Connie Shields, and Will Mooty join The TEGRA Group The TEGRA Group, Inc. is pleased to expand its team to nine professionals with these recent hires: Nate Pearson, Director, will lead design and construction team assembly, design-phase strategy, construction project oversight, and site due diligence on behalf of clients. Nate is a 20 year veteran of the construction industry with previous project management roles at Anderson Companies, Mortenson Construction and Ryan Companies. He holds a construction engineering degree from Iowa State University and an MBA in strategic management from the Carlson School of Management at the University of Minnesota. Connie Shields, Project Manager, will lead construction project management, furniture and equipment coordination and relocation planning on behalf of clients. Connie previously held executive project management roles for Room & Board and United Health Group. She holds a Bachelor of Science in Interior Design from the University of Minnesota. Will Mooty, Associate, will support construction coordination, market search, financial analysis and transaction negotiation. Will holds a Bachelor of Science in Business from the University of Minnesota’s Carlson School of Management.
THE EXCELSIOR GROUP PROMOTES JAMIE KORZAN TO ASSET MANAGER The Excelsior Group (TEG) is proud to announce the promotion of Jamie Korzan to Asset Manager. As Asset Manager, Jamie Korzan is responsible for the management of TEG’s commercial portfolio including property management, leasing, and dispositions. Prior to joining TEG, Jamie was most recently an Assistant Property Manager at Cassidy Turley where she collaboratively oversaw a large portfolio of office and industrial properties. Jamie is also a former Carlson Real Estate Assistant Property Manager where, among other things, she assisted in the repositioning of a CBD officer tower to a Class-A building. Jamie graduated from South Dakota State University with a Bachelor of Arts
degree in English and holds an MBA in Business from Bethel University.
HomeServices of America Announces New Leadership for HomeServices Relocation Mary Lee Blaylock Assumes New Responsibilities within HomeServices HomeServices of America, a Berkshire Hathaway affiliate, today announced the appointment of Steven John as president and CEO HomeServices Relocation, effective September 16, 2014. Mary Lee Blaylock, current president and CEO of HomeServices Relocation has been named senior vice president and general manager of Berkshire Hathaway HomeServices California Properties, effective October 1st. John brings extensive executive management and relocation experience to HomeServices Relocation. Most recently, John served as senior vice president, client services for RELO Direct where he was responsible for all relationship management, service and accounting operations, vendor management and technology. Prior to joining RELO Direct, John was executive vice president of client services for Prudential Relocation and has worked for several Fortune 500 companies in various executive management roles involving finance, budgeting, operations and strategic planning. As HomeServices Relocation’s president and CEO, John will be responsible for expanding the size, scope and footprint of HomeServices Relocation, providing operational and financial oversight and serving as chief liaison for new and existing clients. Blaylock began her career with Edina Realty, Inc. in 1992 as a Realtor® in Minneapolis and in 1999, was promoted to vice president of Edina Realty Relocation. In 2004 Blaylock was named president of HomeServices Relocation and under her leadership, HomeServices Relocation grew from a startup company to a global relocation provider encompassing operations centers in Winston-Salem, NC and Philadelphia, PA as well as a Minneapolis headquarters. In her role at Berkshire Hathaway HomeServices California Properties, Blaylock will focus on enhancing the internal organization processes and infrastructure, provide guidance and
direction to the company’s 57 sales offices and more than 2,400 Realtors® and will oversee the creation and delivery of value-added marketing solutions and innovative technologies. "I am excited to be joining HomeServices Relocation,” said John. “Mary Lee has built a great organization, recognized for its service excellence and consulting expertise. I look forward to building on that momentum and leading the company to its next stage of growth and performance." “I am extremely proud of everyone at HomeServices Relocation and what we have accomplished. HomeServices Relocation is in good hands with Steven as its leader.” said Blaylock. “Berkshire Hathaway HomeServices California Properties is an exceptional company and I look forward to being an integral part of their leadership team.” “Steven brings a wealth of relocation experience and industry relationships to HomeServices Relocation,” said Ron Peltier, chairman and CEO. “We are very pleased that he is joining HomeServices and have tremendous confidence in his ability to bring HomeServices Relocation to new levels of success. Mary Lee’s focus on the customer, her ability to work cross-functionally within the organization and her drive to succeed is without parallel. With her exceptional background of leadership and management success Berkshire Hathaway HomeServices California Properties is well-poised for continued growth and success.”
Ryan Companies US, Inc. Hires Steve Stecker as Division Manager – Health Care Ryan Companies US, Inc. is pleased to announce Steve Stecker has been hired as Division Manager – Health Care. In his new position, Steve is responsible for overall healthcare project leadership from the initial partnering meeting through project completion. He collaborates with Ryan’s project managers on cost estimating, technical design and development, preconstruction and construction activities, and owner contract negotiations. In addition, he plays a key role in pursing new projects, building community relationships, and maintaining customer satisfaction. “Steve is widely recognized in this People to page 23
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News CBRE ANNOUNCES THE SALE OF SHINGLE CREEK COMMERCE CENTER I CBRE announces the sale of Shingle Creek Commerce Center I located in Brooklyn Center, Minnesota to Capital Partners along with Tryperion RE Fund, LP for $6,025,000. The seller, Onward Investors, LLC, was represented by the CBRE Institutional Properties group in Minneapolis led by Steven Buss and Judd Welliver. Shingle Creek Commerce Center I is a 146,870 square feet office/warehouse built in 1973. At the time of sale, the building was 96% occupied by five tenants. Onward Investors, LLC is a Minneapolis based private equity firm formed in 2011 with the focus of investing in office, retail, industrial, multifamily and mixed use projects throughout the United States. The Minneapolis based team of Steven Buss, Tom Holtz, Ryan Watts
Minnesota Real Estate Journal
and Judd Welliver 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, Tom and Ryan are part of the 85-member CBRE Institutional Properties group. In 2013, the Capital Markets enterprise of CBRE including the Institutional Properties group completed over $87.2 billion in combined total U.S. capital activity.
Chicago Pacific Founders Invests in High Growth Senior Living Sector Chicago Pacific Founders (CPF) today announced the launch of its senior living platform, CPF Living Communities (CPF Living), and the simultaneous acquisitions of two senior living properties and a nationally recognized senior living management company. CPF Living will invest approximately $250 million of equity in senior living assets over the next three to four years.
These investments will target existing independent living, assisted living, memory care, and CCRC properties across the country and in Canada. CPF Living’s launch coincides with the acquisition of its first two communities, The Echelon Senior Living, an independent living community located in the heart of Las Vegas, and the Atrium of Belleville, an independent living community located in suburban St. Louis. Both properties have adjacent land that will support assisted living and memory care expansion. Additionally, CPF Living has acquired a majority stake in Grace Management, Inc. (Grace), an acclaimed, senior living management company based in Minneapolis. The acquisition of Grace, as well as its first two communities provides CPF Living with a dynamic platform and investment strategy to buy, build, and manage a portfolio of senior living communities with a focus on quality, innovation, and culture for its stakeholders and the next generation of seniors. “We want to build a vibrant company that will be oppor-
September 2014
tunistic and add value through operational improvements and strategic positioning,” said John P. Rijos, a founding operating partner at CPF and the former Co-President and COO of Brookdale Senior Living (NYSE:BKD). Rijos will serve as Chairman and CEO of CPF Living. “We are excited to be investing behind John Rijos, who has demonstrated a superb track record of leading senior living communities that excel at service, quality and improving the lives of their residents,” said Mary Tolan, Founder and Managing Director at CPF. CPF Living will focus on acquisitions across multiple markets and build density and scale based on those initial opportunities rather than focus on specific geographic regions. With Grace as its management base, the leadership of Rijos and Gene Grace (Grace’s Founder and President), and a strong desire to grow its third party management business, CPF Living and Grace have created a formidable platform of people and infrastructure that will pave the way fo success.
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MARCUS & MILLICHAP ARRANGES THE SALE OF A 92-UNIT TOWNHOME COMMUNITY 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 Carver Ridge Townhomes, a 92-unit townhome community located in Chaska, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $7,650,000. Mox Gunderson, an investment specialist in Marcus & Millichap’s Minneapolis office, along-side Robert Sheppard, Spencer Hurst and Jeff Kunitz, investment advisors with the Tax Credit Group of Marcus & Millichap, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a limited liability company, was also secured and represented by Mox Gunderson, Robert Sheppard, Spencer Hurst and Jeff Kunitz. Speaking with Mr. Gunderson, “The
Minnesota Real Estate Journal
incredible interest that was generated for Carver Ridge speaks to the strength of the Twin Cities apartment market. The property commanded over 20 tours in three weeks of marketing that resulted in generating eight (8) offers, ultimately selling over list price.” Carver Ridge is located at 340 Crosstown Boulevard in Chaska, Minnesota.
Liberty Property Trust Breaks Ground on New Industrial Center in the Twin Cities Liberty Property Trust today announced that it has begun site work at its recently acquired 20-acre parcel, to be known as Dayton Distribution Center. Construction of Dayton Distribution Center I totaling 247,000 square feet, will commence immediately, with expected delivery by spring 2015. “From putting the land under contract to the start of site work was less than 60 days. The City of Dayton’s Mayor, Planning Commission, City Council and staff were all very supportive of the proj-
ect and helped to fast-track the approval process so we could get underway this fall,” said Dave Jellison, vice president and city manager for Liberty’s Minnesota region. Dayton Distribution Center I will be a state of the art distribution building with 32’ clear height, abundant trailer storage and a deep truck court. Liberty is pursuing LEED Core and Shell certification for the building. “This is an exciting development for the City of Dayton and I am delighted to welcome a quality company like Liberty Property Trust,” said Mayor Tim McNeil. “The project design is appealing and it is located on a very visible site along I-94. The City of Dayton will benefit from the increased tax base.” Dayton Distribution Center is located along I-94 with excellent visibility and convenient access to County Road 81 and Highway 169. The architect for the development project is Ed Farr Architects, Inc., the civil engineer is Anderson Engineering of MN, LLC and the general contractor is R.J. Ryan Construction, Inc. Richard Weiblen is Liberty’s project manager.
September 2014
Jim DePietro of CBRE represented the seller and Jon Rausch of Cushman & Wakefield/NorthMarq represented Liberty in the land transaction. Liberty has begun plans for a second development in the complex, Dayton Distribution Center II, a 77,000 square foot facility. The company anticipates construction to start in midyear 2015.
CBRE’s Multifamily Group Announces Sale of Vintage Portfolio CBRE is pleased to announce the sale of a rare vintage Twin Cities multifamily portfolio. Ted Abramson of CBRE’s Minneapolis office represented the seller, Warner Properties LLC. Lake Forest, Illinois, based FIDES Capital Partners LLC and CPM Property Management of Minneapolis joint ventured to buy the portfolio. This is the first acquisition for FIDES in the Twin Cities. The portfolio consists of 11 properties: seven in Uptown, two in Loring Park, one in Linden Hills and one in West Bloomington. The properties range from 25 to 71 units and most were
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97% occupied at the time of sale. “We had a ton of activity on this portfolio. We received in excess of 20 offers and record pricing for a vintage portfolio,” says Abramson. “This is one of those opportunities in the business that you work on fostering a relationship and when you get to work on it, it really is fun.” Ted E. Warner, President/General Manager and Co-trustee, says “Though selling assets which have been in the family for generations is a difficult thing to do on many levels, we are confident that given the valuation we achieved this was a great trade for Warner Properties. We could not have executed on this unique market opportunity without CBRE’s guidance and execution”. FIDES Capital Partners, LLC .is a boutique real estate investment and capital markets firm with a heavy focus on the housing industry. “This was a unique opportunity to build an instant multi-family platform in Minneapolis with value add properties in A locations” said Gregg Handrich of FIDES.
Minnesota Real Estate Journal
Duke Realty Developing 150,064 SF Build-To-Suit Bulk Warehouse for Blu Dot in Gateway North Business Center Transaction is third build-to-suit project in Otsego industrial park by Duke Realty this year. The Minneapolis-St. Paul office of Duke Realty Corporation (Duke Realty) has announced the execution of a longterm lease with Blu Dot, a designer and distributor of modern home furnishings, for a 150,064-square foot, build-to-suit bulk warehouse in Gateway North Business Center. This is the third build-tosuit bulk warehouse transaction in its Otsego industrial development that Duke Realty has signed this year, bringing the total square feet under construction in the park to more than 935,000 square feet. “We are pleased to be able to accommodate Blu Dot’s needs by constructing a state-of-the-art facility within our park,” said Steve Schnur, Senior Regional SVP for Duke Realty’s Midwest Region. “Gateway North’s direct access
to Highway 101 and I-94, coupled with our construction capabilities, enables us to provide Blu Dot with a functional, economical solution for their current and anticipated space needs.” “Our continued growth prompted us to look at a number of alternatives for gaining additional space for our operations,” said Maurice Blanks, co-founder and Chief Operating Officer with Blu Dot. “After evaluating several options, we determined that Duke Realty’s proposal was the best given our timeline, budget parameters and expansion plans. We look forward to moving into our new facility in Spring 2015.” “Gateway North has attracted the attention of businesses looking for space in a first-class industrial park with excellent highway access and proximity to Minneapolis-St. Paul,” said Josh Budish, Vice President of Leasing and Development for Duke Realty’s Minneapolis-St. Paul office. “The decision by Blu Dot, as well as by our other recent customers Ruan and Room & Board, to locate here is evidence of the many positive attributes of Gateway
September 2014
North Business Center.” Located on 7.69 acres, Blu Dot’s new facility will be a rear-load building with 32' clear height, 14 dock doors, one drive-in door and 45' x 50' column spacing. A parcel immediately adjacent to the building can accommodate a 116,000-square foot expansion by Blu Dot. Neil Kolatkar and Dan Swartz with CBRE represented Blu Dot in the transaction, while Mr. Budish represented Duke Realty.
CBRE ANNOUNCES THE SALE OF LAFAYETTE PARK, ST. PAUL, MINNESOTA. CBRE announces the sale of Lafayette Park located in downtown St. Paul, Minnesota. The sellers, NGP Lafayette Portfolio Owner Corporation and Meritex Enterprises, Inc., were represented by the CBRE Institutional Properties group in Minneapolis led by Steven Buss and Ryan Watts. Lafayette Park is a four-building camNEWS to page 24
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Minnesota Real Estate Journal
September 2014
Multi-family developers selling green have an advantage – now and if the market swings By Dan Rafter, Editor
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hink of all the multi-family buildings across the Midwest that are now advertising their green features as a main selling point. In the Twin Cities market of Minneapolis/St. Paul alone, the new multi-family development 222 Hennepin has attained LEED Silver certification, while 7West has notched LEED Gold certification. The Dock Street Flats multi-family development in Minneapolis touts its eco-friendly design and high walkability factor, while the Third North Apartments here boasts of its e-car charging stations and high-efficiency heating, cooling and lighting systems. There's one thing, though, that all of these green multi-family buildings in the Twin Cities have in common: They all boast high-efficiency windows. This doesn't surprise Jay Sandgren, sales representative at the Edina, Minn., office of Andersen Windows. High-quality, energy-efficient windows are becoming a must-have in modern multi-family buildings, he says.
And those developers that don't call for high-quality windows in their apartment buildings? They might find themselves trailing their competition. "The apartments being built today are like condo-wannabes," Sandgren said. "Some of the apartments being
put up today are being built by the traditional companies that have built and operated apartments for the last 20 years. But some of the properties are also being put up by the same people and development teams who eight years ago were leading the pack with
all the condos being built. They are putting in condo-level amenities in these apartments, including the windows." Of course, there’s no guarantee, Sandgren says, that these buildings will Developers to page 25
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Minnesota Real Estate Journal
September 2014
Guest Column
Now is the Time to Talk to (and Educate) Your Candidates About Commercial Property Taxes By Duane Arens Director of Public Policy NAIOP Minnesota, The Commercial Real Estate Development Association
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s the campaigning for state offices accelerates and politics and the coming elections begin to dominate the media, it’s time to remind ourselves again that one of NAIOP’s core issues, perhaps its most important, is the matter of commercial property taxes. NAIOP has historically worked actively on a wide range of business-related cost issues—business-to-business sales taxes, estate taxes, fiscal disparities, park dedication fees, the gas tax, street improvement fees and transportation, to mention just a few---but none of these loom as large in their impact and influence on businesses’ profitability and behavior as the taxes their owners must pay on the business-purposed property they own or occupy. In an election year when the Governorship and every seat in the House of Representatives
could potentially turn over, it’s more important than ever for every NAIOP member to expand on his or her role as citizen-taxpayer and become a candidate educator as well. Combining that possibility with the fact that 2015 will also be a budgeting year will make it an even more significant session than usual for the commercial real estate industry and business in general. “Costs matter,” and business costs matter even more in today’s world of global competition and increased mobility. Minnesota’s environment for business has become even more uncompetitive in the last couple of years, with tax increases loaded disproportionately on the business community. Our tax rankings increased to some of the highest in the nation---fourth highest individual income tax rates, third highest corporate tax rates, and one of just two states with gift taxes. Minnesota Chamber: “Legislators and Top Elected Officials Don’t Understand the Challenges Facing
Minnesota’s Businesses” The Minnesota Chamber’s most recent Business Barometer Survey showed the highest level of concern about Minnesota’s business climate in the survey’s history. The October 2013 report underscores the business community’s concerns surrounding the state’s lawmakers and elected leaders. --93% of the 350 business owners responding believed the Governor and the legislature play an important role in setting the state’s business climate, but only 22 % of those said their role was positive in the previous year. -66% said the Governor and legislators do not understand the challenges of running a business. --78% said legislators don’t understand how often government gets in the way, stopping a business from being successful. It’s against that background that the Minneapolis Star Tribune recently analyzed the coming House races and concluded that the outcome of the votes in
just 16 districts statewide will determine the future of the House. It described the coming election as “an epic multimillion-dollar fight to determine whether Republicans or Democrats control the Minnesota House next year.” Magnifying the importance of NAIOP members reaching out and educating the candidates in their districts is the fact that just a “smattering of swing districts” (as the Star Tribune described it), will determine the ultimate winners. The great majority of the incumbents in the DFL-controlled House who are running for re-election—107 out of 134-- are considered “safe.” However, according to the newspaper’s analysis, of the 16 seats that could flip, eight are located in Twin Cities suburbs, where most NAIOP members live and work. NAIOP’s Top Leaders Agree: Educating Candidates About Our Issues Is Crucial to Expanding Minnesota’s Taxes to page 16
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Taxes from page 14
Economy and Growing Our Industry Doug Fulton, executive director-brokerage services, Cushman Wakefield / NorthMarq, past chapter president public policy chair, has a long history of involvement in NAIOP’s efforts to constrain property taxes. For Fulton and others like him, it’s a matter of controlling business costs and creating an environment that allows business to work. “Our state’s leaders need to recognize how important it is to keep Minnesota’s business costs competitive with those in other states,” he says. “In today’s economy, it is not enough to have a strong work force and a unique quality of life. Most states can make that same claim. Our tax system, and in particular our property tax system for businesses, has to be fair and competitive in order for owners and investors to want to invest or grow here.” Jean Kane, NAIOP National Chair, president of Welsh Companies, and past Minnesota Chapter president, sees the challenges we face on a regular basis. “As NAIOP 2014 chairman, I have
Minnesota Real Estate Journal
had the opportunity to travel the U.S. and meet with a wide variety of real estate professionals,” she says. “I’ve seen first-hand the creativity evident in our industry and in their communities and states. We are fortunate to live and work in a great state, blessed with many great companies who continue to innovate and be fiscally responsible. But that comes with a price tag. Businesses today are mobile, and consider multiple variables—costs, incentives, and employment bases, to name a few—when making a location decision. We need to be competitive in all of these areas.” The Minnesota Chamber survey points out that “business owners and managers have become increasingly concerned that our state seems to be losing ground with other states.” That’s why, says Kane, “ it is more important than ever that each of our elected officials fully understands the enormous impact his or her decisions can have on the ability of our NAIOP members, their tenants and client companies to grow and succeed here.” The Message to Your Candidates Is Simple: “ Costs Do Matter to Business Owners and Employers. Property Taxes Must Be Controlled If We Are to
Compete” The costs that matter most are those government-imposed costs over which business owners and managers have little or no control, such as the local and state property taxes they pay on space they own or lease. Now is the time to meet with, call or write your candidates and incumbent legislators. Educate them regarding the importance of acting to keep Minnesota economically strong. Most important, offer your support, contributions, volunteer time and your vote to those candidates---whether incumbents or contenders—of either party who have, or will if elected, support our commercial real estate industry. Ask them to pledge to… -Stop the continuing increases in commercial property taxes which are unsustainable and uncompetitive. Remind them that Minnesota employers already pay nearly 3 times their share of property taxes based on estimated market value. They pay more than 32% of all property taxes collected, although the buildings they occupy or own make up only 13% of total market value statewide. In effect, the higher taxes paid by businesses subsidize
September 2014
all other properties and their owners in the community. -Eliminate the state general tax, the additional special property tax Minnesota businesses are required to pay directly to the State General Fund. This second property tax often makes up as much as a third of a business’s total property tax bill -Reduce other uncompetitive taxes, such as the new fourth-tier individual income tax rate, the new gift tax and estate taxes, and the high corporate tax rate. “It’s time for each of us, speaking not just for ourselves but for the entire business community, to send a strong message to our legislators and candidates,” said Kane. “We need to urge them to rethink our state’s business strategy so that Minnesota companies can continue to sustain and expand their competitive edge.”
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Minnesota Real Estate Journal
September 2014
DLA Piper: Real estate executives are an optimistic lot today By Dan Rafter, Editor
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ommercial real estate executives are more optimistic about their industry in 2014. And they're expecting deal activity to continue to rise as the year moves on. That's the takeaway, at least, from the 2014 State of the Market real estate survey by DLA Piper. The survey, which measures the attitudes of 158 top commercial real estate executives, reached a milestone this year: Executives surveyed this year expressed greater optimism than in any year since DLA Piper started the survey in 2005. Jay Epstein, co-chairman of DLA Piper's Global Real Estate Practice, told Midwest Real Estate News that three main factors have fueled this optimism: The country has seen solid job growth in the last 12 to 18 months, there is plenty of capital chasing real estate and interest rates are still at historically low levels. "The alternative investments to real estate aren't very attractive right now," Epstein said. "People, domestically and globally, are looking to park their cap-
ital in real estate. That's providing a boost to commercial real estate." According to the 2014 survey, 89 percent of commercial real estate executives feel "bullish" about the next 12 months. Executives also said that several key trends will steadily change the real estate market. They pointed to reurbanization -- more people moving back into cities and downtowns -- as one of these trends, and one that is particularly powerful right now. A growing number of people want the urban experience. They want to live in the center of cities, relying on public transportation and their own feet to get around. It's a trend that is strong now in Midwest cities such as Chicago and Minneapolis, and on the rise in metros such as Cleveland, Detroit and Indianapolis. "The move back into cities is driving real estate decisions right now. People are building multi-family projects and retail centers in the heart of city downtowns to capture the business of all the people moving into them," Epstein said. "There is this drive toward convenience. You have Millennials who rely on Zipcars and bike-
sharing programs. People are re-imagining and re-inventing how they get to work. And it's not just how they get to work, but how they do all the other things they need to do in their lives that is changing." This trend is even impacting traditional enclosed shopping malls. These massive indoor malls are struggling across the country and the Midwest today. Today's consumers don't want to spend all day inside a shopping mall. In response, a growing number of owners are converting these malls into outdoor lifestyle centers, mimicking the feel of urban downtowns. Real estate executives are also keeping an eye on the slow, but growing, intrusion of crowdfunding into commercial real estate. In crowdfunding arrangements, large groups of investors put up smaller amounts of money to purchase real estate. It allows smaller investors to sink their dollars into strong real estate investments. According to the DLA Piper survey, 24 percent of surveyed real estate executives said that they thought crowdfunding will become an important source of real estate capital. Of course, 45 percent of surveyed executives said
that it would not become important. But as Epstein says, no one really knows what role crowdfunding will play in commercial real estate. "It won't play a role in the billiondollar transactions in San Francisco or Washington, D.C.," Epstein said. "But it might play a role in the smaller markets. People view real estate as an attractive investment. There is an opportunity for people to get into real estate by putting up smaller dollar amounts through crowdfunding. I think it will play a role as technology and innovation continues." Epstein points to the steady rise of online retail sales as an example. "Think back 15 years ago. No one thought e-tailing was going to play an important role," Epstein said. "And now look at how it has disrupted the retail marketplace. We are in the very early stages of crowdfunding. We have yet to see how it will eventually disrupt the real estate market."
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Minnesota Real Estate Journal
September 2014
Apartments From page 1
And now that apartments are available? That demand is only rising. “We are now touring people through the development non-stop,” said Lisa Moe, president and chief executive officer of StuartCo. “The demand has been a pleasant surprise.” Moe points to the walkable nature of the project as one reason for its early success. One Southdale Place is located in a suburb of the Twin Cities. But it also has an urban feel. Residents here can walk to restaurants, stores and parks. They’re also located close to downtown Minneapolis. At the same time, One Southdale offers less congestion and noise than residents would get if they moved to downtown St. Paul or Minneapolis. “We are getting a lot of people who like downtown but don’t want to be too downtown,” Moe said. “They want more trees and grass. We think we’re providing them with the best of both worlds.” One Southdale Place is made up of three buildings. The three-story Plaza building and five-story Crossings opened to residents in early September. The 10-story Tower building will open in early 2015.
The five-acre development at 6800 York Avenue South in Edina features 232 units in a mix of studio, one-, oneplus-den, two-, two-plus-den and threebedroom floor plans. There are also topfloor penthouse units available for rent. The units earn their high-end designation, with quartz countertops, stainless-steel appliances, broadloom carpet and nine-foot ceilings. Amenities at the development include an 11th-floor Skydeck, 1,500-square-foot fitness center,
club room, private theater, landscaped backyard with outdoor pool, sundeck and putting green. Moe says that such amenities are a necessity for new multi-family projects today. “Renters are more sophisticated,” she said. “They expect a variety of amenities. It’s a big deal today for developments to have that solid amenity package.” Moe says that several of the new ten-
ants at One Southdale Place have told her that they especially appreciate the condo-like finishes inside their units. These high-end finishes, Moe says, has helped attract a wide range of renters to the project, everyone from emptynesters to young professionals who either work downtown or in the booming medical industry throughout the Edina area.
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Minnesota Real Estate Journal
September 2014
Gateway From page 1
distribution center. Duke Realty now has 935,000 square feet under construction in the park. Duke, of course, isn't the only real estate company in the Twin Cities market that is seeing a steady increase in industrial activity. Just recently, the Opus Group signed a contract with Capp Industries, Inc. to design and construct a 121,000-square-foot speculative warehouse and distribution facility in Shakopee, Minn., another community located just more than 30 miles from Minneapolis. And First Industrial Realty Trust, Inc. has started construction on the development of two facilities totaling 239,000 Duke Realty Corporation is building this build-to-suit facility for Room & Board in the Gateway North Business Park. square feet at the Interstate North Business Center in Brooklyn Park, Minn. the Minneapolis/St. Paul market. And acres, and will feature 32-foot clear too." First Industrial will build a 142,290- he’s seen, too, how the lack of this mod- heights, 14 dock doors, one drive-in Duke Realty now owns more than 1 square-foot facility suitable for a single ern space has led to a growing number door and 45-foot-by-50-foot column million square feet of industrial space in user or up to three tenants. The compa- of spec industrial developments in the spacing. The company is keeping its the Gateway North Business Park. If ny is also developing a 96,764-square- Twin Cities area, Budish said. options for future expansion open, too; Blu Dot, then, needs to expand by even foot build-to-suit facility for Goodwill"There is quite a bit of spec industrial a parcel sitting immediately adjacent to more than 116,000 square feet, the comEaster Seals Minnesota that will serve construction going on now," Budish the building can accommodate a pany will have plenty of options in the as a donation-processing and storage said. "I personally track this, and there 116,000-square-foot expansion if Blu Otsego park. center and also house a Goodwill Out- is now more than 2.5 million square feet Dot should need it. “If you look at Blu Dot over the years, let Store. "Blu Dot is a fast-growing company," it has expanded steadily,” Budish said. of spec industrial development in the This activity doesn’t surprise Budish. Minneapolis/St. Paul market. That is a Budish said. "It's critical to them to have “It makes sense for the company to have He’s seen the demand for modern indus- pretty impressive figure." the opportunity not just for growth in the the options they need to expand at this trial space continue to soar throughout Blu Dot's new facility will sit on 7.69 building but growth within the park, site.”
September 2014
People From page 4
region as a construction industry expert in the health care and senior living arena,” said Collin Bar, President of Ryan’s North Region. “His leadership of the health care construction teams will add real value for our customers.” With over 25 years of construction experience, Steve has been involved in over 300 healthcare and senior living projects throughout his career. He is one of several people nationwide that has received the Certified Healthcare Construction designation from the American Hospital Association. “What I love most about my job is the close working relationships that develop with customers as well as the design and construction teams,” said Stecker. It’s a privilege to work for a company that believes in the importance of Building Lasting Relationships.” Steve received a Bachelor of Science degree in Construction Engineering from Iowa State University. He is a member of the American Society of Healthcare Engineers (ASHE), Twin City Healthcare Engineers (TCHEA), and the Minnesota Medical Group Managers Association (MMGMA) where he serves on the Membership Committee and Student Involvement Task Force.
Adolfson & Peterson, Inc. Names Rick Whitney Chief Executive Officer Adolfson & Peterson, Inc. (A&P) today announced the appointment of Rick Whitney as Chief Executive Officer, effective October 1, 2014. In his new role, Mr. Whitney will be responsible for the company's strategic direction and the overall growth and performance of the business. Mr. Whitney succeeds Interim CEO Steven Pinney, who has held the interim role since CEO Doug Jaeger stepped down in December 2013. Mr. Pinney will continue to serve A&P as Chairman of the Board of Directors. Mr. Whitney brings broad experience in executive leadership roles and a strong background in construction management. For the last six years he held the position of President and Chief Executive Officer of M+W U.S., Inc., based in Watervliet, New York. M+W U.S. is part of the M+W Group, a leading design/builder of technology-driven manufacturing and research facilities
Minnesota Real Estate Journal
headquartered in Stuttgart, Germany. Mr. Whitney also served as Chairman of the Board of M+W U.S., Inc. Throughout Mr. Whitney's tenure as CEO, M+W U.S. experienced rapid and sustained growth. He spearheaded several initiatives to ensure the company's profitability and led the company through the strategic acquisition of five companies. Mr. Whitney's career at M+W U.S. also included five years as Chief Operating Officer. In 2003 he founded Total Facility Solutions (TFS), a wholly owned subsidiary of M+W U.S., Inc.,
and served as the company's CEO. TFS is a self-perform mechanical contractor specializing in high purity piping systems. Mr. Whitney also worked for Texas Instruments from 1983 until 1997, during which he oversaw construction in the Asia Pacific region for several years. He began his career as a civil engineer with the U.S. Army Corps of Engineers in both active duty and U.S. Army Reserve positions. Mr. Whitney holds a BS in Civil Engineering from The Citadel Military College of South Carolina and an MBA in Finance from
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the University of South Carolina. "We welcome Rick to A&P at a pivotal time in our history," said Interim CEO Steve Pinney. "A&P is firmly established as a national company with a well-diversified portfolio of work, and we are seeing many opportunities for growth. Rick's strong leadership and his extensive background in engineering, construction and project management will be tremendous assets as we take A&P to the next level."
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News From page 10
pus 100% leased to the State of Minnesota (S&P: AA+). Lafayette Park, located just eight blocks east of the State Capital in downtown St. Paul, totals 677,514 square feet. Meritex converted the properties for State office use in the mid-1980’s. They have been 100% occupied by the State since the conversion. Lafayette Park includes the headquarters of the Minnesota Department
Minnesota Real Estate Journal
of Natural Resources, Labor and Industry, Minnesota Department of Human Services, and the Pollution Control Agency. Lafayette Park is situated in a government campus that also includes Ramsey County and the City of St. Paul. The Minneapolis based team of Steven Buss, Tom Holtz, Ryan Watts and Judd Welliver 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, Tom
and Ryan are part of the 85-member CBRE Institutional Properties group. In 2013, the Capital Markets enterprise of CBRE including the Institutional Properties group completed over $87.2 billion in combined total U.S. capital activity.
Marcus & Millichap ARRANGES THE SALE OF a 21-UNIT APARTMENT BUILDING Marcus & Millichap (NYSE: MMI), a leading commercial real estate invest-
September 2014
ment services firm with offices throughout the United States and Canada, today announced the sale of St. Anthony Place Apartments, a 21-unit apartment property located in Minneapolis, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $2,300,000. Josh Talberg and Mox Gunderson, 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, a private investor, was secured and represented by Josh Talberg and Mox Gunderson. Speaking with Mr. Talberg, “The deal generated 9 offers within a 4-week marketing timeline. Due to today’s high level of demand for this type of asset, coupled with the properties tremendous location, St. Anthony Place Apartments was received very well by the investment community and ultimately closed at 106 percent of list price. All sides won in this transaction”. St. Anthony Place Apartments is a 21unit converted warehouse located in one of the most desirable urban neighborhoods on the Mississippi river. Conveniently located near Downtown, the U of M, and within walking distance to many shops and restaurants, "Old St. Anthony" features an exciting variety of residential, commercial and entertainment-oriented venues-mixing rich history with exciting new Class A development, including Mill & Main and Red 20 Apartments.
CONCUR TECHNOLOGIES LEASE AT 1550 TOWER AT WEST END IN ST. LOUIS PARK CBRE announces 50,141-square-foot lease at 1550 Tower at West End to Concur Technologies. Located off I-394 and Highway 100, the building has excellent freeway access and skyway connection to The Shops at West End. 1550 Tower – formerly known as MoneyGram Tower – is located at 1550 Utica Avenue South in St. Louis Park, Minnesota. The 236,645-square-foot, Class A building features a dramatic two-story glass atrium, including covered ramp, underground executive parking and features amenities including: modern fitness center, D Brian's Deli, convenience store, barber shop, nail salon and Continental Diamond jewelry store. Currently the 1550 Tower at the West
September 2014
Minnesota Real Estate Journal
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Developers from page 12
remain apartments forever. "You can almost see that these buildings will turn into condos one day when the market shifts away from renting and to owning again," Sandgren said. Will that happen in the Twin Cities? How many of the new multi-family buildings here will be converted to condominiums if consumers once again decide that owning is a better option than renting? No one knows the answer to this question. But the debate between renting and owning will continue. And those apartment buildings that already boast high-end amenities -- including energyefficient windows -- are more likely to one day make the conversion to condos, if that's what the market calls for. For now, though, Sandgren is happy that so many multi-family developers are calling for higher-quality windows. Projects like 222 Hennepin and 7West in Minneapolis use the Andersen 100 Series windows. These are made with reclaimed sawdust and recycled glass. They are also energy-efficient and dampen outside noise. They're a good fit, then, for multifamily projects that advertise themselves as green. Demand for such windows is so high today that Andersen plans to expand its manufacturing facilities in Bayport,
Minn. Andersen announced earlier this year that will spend $18 million to expand its production facilities in Bayport. Andersen will purchase new equipment for the plant and renovate a large chunk of it. Much of the production here will focus on the Andersen 100 Series line of windows, which has become a vfavored choice among commercial developers. Overall, Andersen today operates 15
plants across the country. Sandgren says that he expects the demand for energy-efficient windows to only increase. A recent survey by the National Association of Home Builders found that 54 percent of the firms building new multi-family developments are shooting for green status in 15 percent of them. "We don't know when the demand for multi-family buildings will slow," Sand-
gren said. "In some ways, it feels like a bit of a bubble right now. But the demand for these apartment units doesn't seem to be letting up at all. I thought we'd see the end of it a year ago. But that hasn't happened. This might be a real demographic shift in what people are looking for in all parts of the country."
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End is 99% occupied with upcoming availabilities from 2,500 square feet up to 40,000 square feet. CBRE’s Brian Wasserman represented the landlord, DRA Advisors, who purchased the property along with the adjacent 1600 Tower at West End in January 2013. Concur Technologies joins other tenants including MoneyGram International, Clear Channel, Magenic Technologies and Hamline University.
Bellwether Enterprise Completes Merger with Towle Financial Services; Expands presence in Upper Midwest Bellwether Enterprise Real Estate Capital, LLC (Bellwether Enterprise), the commercial and multifamily mortgage banking subsidiary of Enterprise Community Investment, Inc. (Enterprise), today announced the completion of its merger with Towle Financial Services (Towle), a full service mortgage banking firm located in Minneapolis and Detroit founded over 100 years ago. The merger adds approximately $400 million in annual loan volume and $1.4 billion in servicing, bringing Bellwether Enterprise’s total annual loan volume to an estimated $2.5 billion and $8 billion in servicing, offering borrowers a wide variety of commercial lending opportunities in the Upper Midwest and beyond and making an even greater impact in the communities across the country. “The merger with Towle is the latest example of Bellwether Enterprise’s commitment to strategic expansion across the country. We are well on our way to becoming the best and the most respected mortgage banking company throughout the country,” said Ned Huffman, president of Bellwether Enterprise.
Minnesota Real Estate Journal
As part of the merger, Towle’s executive team receives equity stake in Bellwether Enterprise, and the 11 employees remain with the company. Towle, which has been in business since 1909, will gradually take on the Bellwether Enterprise name. All business practices and quality of service will remain the same. “Towle’s solid reputation, long-standing relationships and top notch talent made the merger an easy decision,” added Huffman. “Towle and Bellwether Enterprise share similar company cultures. Both are rooted in the Midwest, provide boutique style service, have overlapping connections with lenders and offer similar servicing platforms.” The integration will take place over several months. According to Mark Vannelli, president of Towle Financial Services, “Our customers and clients will continue to receive the highest quality service they’ve come to expect. The day to day operation will remain the same, from application to closing.” “With all the exciting new development projects taking place in the Upper Midwest, we welcome the opportunity to introduce Bellwether’s vast spectrum of agency and specialty lending products to borrowers here,” said Vannelli.” Bellwether Enterprise is part of the Enterprise family of companies that advocates for and creates affordable housing. As such, they have access to New Markets Tax Credits, Low Income Housing Tax Credits and other propriety products. “Giving back to society was an important factor in our decision to partner with Bellwether Enterprise. We look forward to expanding the Bellwether Enterprise brand in Minneapolis and Detroit regions, as well as supporting
the overall company mission of advocating for and creating affordable housing in the communities we serve,” explained Vannelli. The U.S. is in the midst of a broad housing insecurity crisis that is affecting nearly 19 million low-income families who are homeless or paying more than half of their monthly income on housing. Enterprise’s goal is to end housing insecurity in the U.S within a generation. That means no more homelessness and no more families paying more than half of their income on housing. As a down payment toward that goal, by 2020 Enterprise will help provide opportunity to 1 million lowincome families through quality affordable housing and connections to jobs, good schools, transit and health care. As part of the Enterprise family of companies, Bellwether Enterprise is committed to tapping its expertise and nationwide network to help achieve this goal.
CBRE ARRANGES $3,650,000 FINANCING FOR 82,500 SQUARE FOOT OFFICE/WAREHOUSE BUILDING LOCATED IN ROCHESTER, MN CBRE Capital Markets is pleased to announce it has arranged $3,650,000 of permanent financing for the 6301 Bandel Road building. The CBRE team of Murray Kornberg, Doug Seylar and Ben Bastian represented Rochester Properties, LLC in placing the $3,650,000 of permanent financing for the recapitalization of 6301 Bandel Road. The CMBS financing was originated through MC-Five Mile Commercial Mortgage Finance LLC. “The borrower benefited from the high amount of capital in the market for commercial lending right now; a fixed rate in the mid to upper 4.00s is a great rate, especially in a tertiary market. I expect the remaining available space to lease up quickly at healthy rents, due to its great location just off the new Highway 52 and Bandel Road interchange”, said Ben Bastian, with CBRE Capital Markets. The new 10-year loan was used to retire the existing more costly bridge financing and included two years of interest only payments, a fixed interest rate in the mid-4% range and a return of equity. A portion of the proceeds are being used for immediate upgrades to the parking lot and landscaping. Located at 6301 Bandel Road North-
September 2014
west in Rochester, Minnesota, the property is well located on the east side of Highway 52, in the burgeoning northern part of the city. The property is almost fully leased to 11 tenants, including KTTC Television, Inc. (FOX and NBC affiliates), Hunt Electric and Universal Hospital Services.
Sale of Woodbury’s highprofile CityPlace finalized The joint venture comprising Floridabased Elion Partners and Minnesota’s Kraus-Anderson today announced it has acquired the 100-acre mixed-use site located at the southeast corner of Radio Drive and Interstate 94. With a new identity and name, the partnership has plans to renovate, reposition and retenant the existing office building as it transforms the parcel into CityPlace, a 700,000-square-foot mixed-use campus with shopping, restaurants, a hotel and additional office space. “After eighteen months of pursuing the necessary approvals, we are very excited to pass this milestone and move forward with the next phase of CityPlace,” said Juan DeAngulo, managing partner with Elion Partners. “We’re committed to the long-term success of the property and the necessary time and investments required to redefine it and restore it to its full potential.” Elion Partners and Kraus-Anderson designed CityPlace through a collaborative process with the City of Woodbury. “CityPlace would have never come to fruition without the support and dedication from our partners at the City,” said Shlomo Khoudari, managing partner with Elion Partners. "We have been diligently working as a team to cultivate a development plan that not only meets the needs of the marketplace, but one that is in line with future demographics and the next generation of workers.” According to Khoudari, the partners shared a vision of bringing a work-play concept to this prime suburban location. CityPlace will offer corporate users a unique mixed-use campus that caters to employers who value easy accessibility, walkability and a balance of work-life integration. It also caters to those who desire a professional environment that combines quality amenities with convenience.