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VOLUME 29, NUMBER 12

©2013 Law Bulletin Publishing Co.

December 2013

Rightsize Facility Performance’s Awtry: Office life is changing. That’s not great for everyone By Dan Rafter, Staff Writer

T

he days of cubicle panels that nearly stretch to the ceiling are coming to an end. Replacing those cubicle walls? Often, it’s nothing, as a growing number of companies move to open office environments, a way to encourage collaboration among employees. But there’s a catch here: Companies can remove as many cubicle walls as they want. But that doesn’t mean that every one of their employees will thrive

in the open-office environment that is in vogue right now. Just ask Mason Awtry, who should know. He’s founder and president of Chicago-based Rightsize Facility Performance, a national office interiors and facility services firm that helps provide furniture to clients moving to new offices. “The taller-paneled work station is few and far between these days,” Awtry said. “There is a deliberate push to panel-less work spaces. But we have seen folks who do want that paneled system for at least some level of privacy. The Office to page 20

Tom Holtz: Building a three-decade career one relationship at a time By Dan Rafter, Staff Writer

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he Minneapolis branch of CBRE ranks as the most successful in the Midwest. A big part of this reason? The performance of Tom Holtz, an executive vice president at this office. Holtz has sold about $10 billion worth of investment properties during his career. That's called making an impact. And it doesn't appear that Holtz is ready to

slow down any time soon. During his entire career at CBRE, he's handled some of the biggest investment transactions for single- and multi-tenant office and industrial properties. And that's something Holtz plans on continuing. After all, he's working in the right market for big transactions. The Minneapolis/St. Paul market remains one of the strongest in the Midwest. "The Minneapolis market is very active today from an investment standpoint," Holtz said. "But it's a dif-

ferent market from when I first started. The key difference from 20 to 30 years ago is that Minneapolis is now attracting capital from overseas. In the older days, it would be rare to talk to anybod who had foreign capital attached to an enterprise. Today, in a lot of assignments we are talking to foreign buyers and entities that are partnering with foreign buyers. Minneapolis is clearly on the radar screen of the international investHoltz to page XX


Golden Valley Country Club 7001 Golden Valley Road | Golden Valley, MN | 7:15 am Registration • 7:30 am Hot Breakfast Buffet • 7:55 am - 12:00 pm Program 7:55 AM Welcome & Introduction Jeff Johnson, Minnesota Real Estate Journal Emcee: Keith Collins, CBRE 8:00 AM 2014 Twin Cities Apartment Market Overview: Moderator: Keith Collins, CBRE Mary Bujold, Maxfield Research Josh Talberg, Marcus & Millichap Gina Dingman, NAI Everest • With vacancies at record lows how does Minnesota stack up compared to the rest of the U.S. • What is driving the Apartment Market and where is it driving it. • What are the outside influences that are creating momentum in the Apartment Market • How are apartment brokers getting deals done today • The changing fundamentals of Apartments • New Development vs. Existing: Where are the opportunities and why • Downtown vs. Suburban: Where is the activity and why 8:45 AM Capital’s Comeback: The evolution of apartment financing Moderator: Jim Hoopes, Northmarq Capital Nick Place, Bridgewater Bank Brett Hood, Freddie Mac Joel Torberg, CBRE • What type of deals are Fannie & Freddie looking to target today • How has underwriting changed • What is the future for the agency lenders • What is the outlook for 2014 and beyond for lenders, buyers, sellers, developers and investors? • Who is lending, and what are some alternative sources of capital? • Which deals are more likely to get done and what are the capital requirements • What changes should we expect in underwriting criteria and how can we get deals done • What types of governmental programs are available and how do I access them? 9:25 AM Important Financing & Tax Ideas Now and For 2014 Jim Lockhart, Wipfli • What Is Going to Happen with Taxes in 2014 • Tax Planning Steps to Take Now • The New Repairs & Maintenance Rules • Deductions to Increase Cash Flow • Sales & Use Tax Traps in Minnesota and North Dakota

10:05 AM What is the Future of Apartment Investments Moderator: Abe Appert, CBRE Chris Culp, The Excelsior Group Sean Dwyer, Henderson Global Investors Kevin Kaberna, Greystar Acquisitions Matt Fransen, Timberland Partners • Where is the apartment market heading and Why • 2013 Investment Sales Recap: Was it a record year and what will 2014 bring • How to turn misfortune into fortune in apartments • How does the Twin Cities’ market compare to the rest of the US • How do you underwrite and evaluating properties in today’s marketplace • What type of yields should you expect and What are the fundamentals today • How is today’s economy and the housing market affecting the Apartment Industry • Growing trends and what can we expect in the next 1 to 2 years 10:50 AM How to operate your apartment building for success Andy Martin, IRET Properties Mark Moore, Timberland Partners Jim Soderberg, Soderberg Apartments Susan Picotte, Greystar Real Estate • Current Market Vacancy & Absorption Rates • Tenant Expectations: Which types of services are new tenants demanding from owners • Emerging trends in the Apartment marketplace • Property Management tools to improve the bottom line • Local Market Outlook and Market Predictions for the Next 1 to 2 years 11:35 AM Building a Successful Project from start to finish Moderator: Jack Boarman, BKV Architects Mark Swenson, ESG Architects Kelly Doran, Doran Companies Lisa Moe, Stuart Co. • Where is the biggest potential for growth in the Twin Cities • What new projects have been completed recently and what is currently under construction • Case studies of projects that have been developed and built right • The importance of building a strong partnership with a municipality • Leveraging historic tax credits to get deals done • Future Prediction on Apartment Development and Construction in the Twin Cities


December 2013

Contents

Minnesota Real Estate Journal

DECEMBER 2013 • VOLUME 29, NUMBER 12

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Departments PEOPLE

4

NEWS

6

RESOURCE GUIDE

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The Minnesota Real Estate Journal (ISSN 08932255) is published monthly for $85 per year by Law Bulletin Publishing Company, 1907 Wayzata Blvd. #110, Wayzata MN 55391. Phone: 952-885-0815. Periodicals postage paid at Minneapolis, MN. POSTMASTER: Send address changes to Minnesota Real Estate Journal, 1907 Wayzata Blvd. #110, Wayzata MN 55391. 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.

1

RIGHTSIZE FACILITY PERFORMANCE’S AWTRY: OFFICE LIFE IS CHANGING. THAT’S NOT GREAT FOR EVERYONE TOM HOLTZ: BUILDING A THREE-DECADE CAREER ONE RELATIONSHIP AT A TIME

14

NAIOP’S TRANSPARENCY INITIATIVE SCORES A HOME RUN WITH DAKOTA COUNTY PILOT PROJECT

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THIN BRICK: MAKING DESIGN WAVES, DELIVERING SPEED AND REDUCING COSTS FOR ARCHITECTS, OWNERS AND DEVELOPERS

©2013 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

December 2013

People a division of Law Bulletin Publishing Co.

1907 Wayzata Blvd. #110 Wayzata MN 55391 For information call 952-885-0815

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. 1907 Wayzata Blvd. #100 Wayzata MN 55391 For information call 952-885-0815

TOM PALMQUIST TO JOIN RETAIL TEAM AT COLLIERS -Industry veteran has over 25 years in commercial real estateTom Palmquist, one of the leading Twin Cities retail commercial real estate professionals, has been hired to join the retail brokerage team at Colliers International | Minneapolis-St. Paul. Active in the commercial real estate industry for over 25 years, Palmquist has worked at prestigious firms throughout the Twin Cities, including CSM, Ryan Companies, Robert Muir Company, and United Properties, where his skills were applied to creating commercial development, leasing, and asset management solutions. Palmquist joins Colliers as a Senior Vice President. “Welsh and Colliers has long been the top retail brokerage firm in the Twin Cities,” states Chris Simmons, Senior Vice President for Colliers International. “Adding a partner like Tom not only enhances our brand, but gives the company additional tools for long-term strategic growth. I could not be more excited to have a person of Tom’s knowledge, character, and work ethic join our retail family. It’s a perfect fit.” “Tom is highly regarded across the industry, and we couldn’t be more pleased to be partnering with him,” says Bill Wardwell, Executive Vice President for Colliers International. Jean Kane, CEO of Welsh and Colliers, says, “Tom’s experience in retail brokerage and the commercial real estate industry makes him an exceptional addition to our organization. His wide berth of knowledge will help us provide more comprehensive, specialized solutions for our clients.” “I’m thrilled to be joining the team at Welsh and Colliers,” states Palmquist. “I’m grateful for every opportunity I’ve had in my career, and look forward to coming back to brokerage with this next step.” A graduate from the Carlson School of Business where he earned his Bachelor of Science and MBA degrees, Tom is active in the International Council of Shopping Centers (ICSC), National Association of Office and Industrial Parks (NAIOP), Minnesota Commercial Association of Realtors (MNCAR), and Minnesota Shopping Center Association (MSCA).

The Opus Group® Announces Promotion of Dean Newins to Senior Vice President The Opus Group announced today that Dean Newins has been named senior vice president, architecture, at Opus AE Group, L.L.C. “It is with great pleasure that we recognize Dean’s strong leadership and expertise,” said Ed Gschneidner, president, Opus AE Group, L.L.C. “Dean continues to bring in-depth knowledge and experience to the table, working with his design-build and development colleagues to create innovative solutions for existing and potential clients.” In his new role, Newins will lead the pursuit and design efforts of Opus AE Group, L.L.C., as well as drive work to develop expertise, explore new technologies and advocate for strong design and graphics to improve the company’s capabilities. Newins has more than 25 years of experience in architecture and planning. Prior to joining Opus AE Group, L.L.C., Newins was a partner at OTJ Architects in Washington, D.C. During his three years with OTJ Architects, he oversaw the building design practice, where he led the design of corporate, government and private sector projects. Newins also worked as a principal with Opus Architects & Engineers, where he was responsible for regional design-build services. A LEED accredited professional, Newins earned a bachelor’s degree in architecture from the New York Institute of Technology.

Cushman & Wakefield/NorthMarq’s Deb Carlson Named President of Minnesota Shopping Center Association Deb Carlson, director of Brokerage Services at Cushman & Wakefield/NorthMarq (CWN) www.cushwakenm.com, was named president of the Minnesota Shopping Center Association (MSCA) during the Dec. 3 Shopping Center Tribute Awards for Retail Real Estate (STARR Awards) presentation and year-end ceremonies event at the Golden Valley Country Club. Carlson replaces past president Ronn Thomas, also of CWN, who will continue to serve on the group’s board of

directors. “With her expertise and knowledge of our industry, Deb Carlson is a great fit as the new president of the Minnesota Shopping Center Association,” said Mike Ohmes, Cushman & Wakefield/NorthMarq executive vice president – Transaction and Advisory Services. “I know she will do a superb job in her new role, and I thank Ronn Thomas for his tremendous service to MSCA and a job well done.” With more than two decades of commercial real estate experience in the retail sector, Carlson has managed transactions on behalf of well-known national retailers such as Toys"R"Us, Ace Hardware, The North Face, CarMax, Lifetouch Inc. and Room & Board, as well as prominent regional retailers such as Lakewinds Natural Foods and Kowalski's. She also provides exclusive tenant representation for Nash Finch (now SpartanNash) and Snyder Drug Stores.

Founders Properties, L.L.C. Announces Scott Haugen as Vice President Founders Properties, L.L.C. today announced that Scott Haugen has been hired as vice president of asset management. “Scott brings years of asset management and commercial real estate industry experience to this role and is an incredible addition to our leadership team,” said Wade Lau, president and CEO of Founders Properties, L.L.C. In his role, Haugen leads the asset management team by providing services for private real estate partnerships across several sectors including office, industrial, multi-family, retail and mixed-use projects. Specific duties include investor and lender relations, strategic property and portfolio planning, leasing decisions, asset valuation and oversight of property management functions. Most recently, Haugen managed a national portfolio of 200 medical office properties with Frauenshuh Healthcare Real Estate Solutions. Previously, Haugen was a senior asset manager for Opus Properties, which he joined in 1998. His experience also includes working in investment real estate and leading the corporate real estate division at RBC Wealth Management. People to page 22


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Minnesota Real Estate Journal

December 2013

News The Opus Group® Announces Office Space at Arbor Lakes North End 100 Percent Leased and Two Land Sales in Maple Grove The Opus Group announced today recent leases for office and retail space on Main Street in the Arbor Lakes development in Maple Grove, Minn., and the recent sales of 1.3 acres of land to KF Dental Company LLC and 1.39 acres of land to Freddy’s Frozen Custard & Steakburgers. “We’re excited to welcome an array of great businesses to both the Arbor Lakes North End Office and Retail Building as well as the Fountains at Arbor Lakes,” said Nick Murnane, real estate representative at Opus Development Company, L.L.C. “These leases are representative of the increased activity we have continued to see throughout Maple Grove over the past few months and demonstrate the strength of this market.” Pro Ag Management Inc. will occupy

9,179 square feet of space on the second floor and is joining Brook West Family Dentistry, which recently extended its lease for 6,212 square feet of space. With the addition of Pro Ag Management Inc., the office space is now 100 percent leased. Additionally, Sola Salon Studios signed a lease to occupy 4,524 square feet of ground-level retail space in the same building. The land parcel sold to KF Dental LLC is located at 11301 Fountains Drive North in the Fountains at Arbor Lakes development, and the land parcel sold to Freddy’s Frozen Custard & Steakburgers is located at 11201 Fountains Drive. Matt Delisle represented Pro Ag Management Inc. and Jim Damiani and Bryan Beltrand represented Opus in the office transaction. Tony Strauss represented Sola Salon Studios and Molly Murnane and Kris Schisel represented Opus in the retail transaction. All brokers were from Colliers International. Ben Krsnak of Hempel Companies represented KF Dental LLC and Zach

Stensland of Colliers International represented Freddy’s Frozen Custard & Steakburgers in the land sale transactions. Chris Simmons and Kris Schisel, also from Colliers International, represented Opus in both land sale transactions.

CSM Corp. Announces Venture with John Johannson to Advance Proposed Central Park Commons Project Joint effort set to drive forward premier commercial development project in Eagan CSM Corporation today announced that they have entered into a collaborative venture with John Johannson to seek final approvals and begin development on its proposed Central Park Commons project in Eagan, Minn. Johannson, a veteran Twin Cities developer and property owner, will team with CSM and its leadership to contin-

ue development of the450,000 square foot premier commercial project on the prominent corner of Yankee Doodle and Pilot Knob roads in Eagan. “I am very excited for the opportunity to join forces with CSM and be a part of Central Park Commons — one of the most exciting, mixed-used development projects the Twin Cities has seen in several years,” said Johannson. “I am extremely familiar with this project and know that the City of Eagan provides one of the most desirable trade areas and communities in the Metro area. I will be working closely with CSM, the City and its staff on plan enhancements for the betterment of the project.” CSM acquired the 52-acre development site from Lockheed Martin in 2011, and hasbeen working with city officials on a proposed mixed-use, urban-style redevelopment that, when complete, will provide the market and Eagan with amarquee destination. “I have the utmost respect for John Johannson and am thrilled to work with him on this important project,” said


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Gary Holmes, president and CEO, CSM. “We have had a close professional and personal relationship for more than 25 years, and I am highly confident that the CSMretail team, under his guidance, will deliver an exceptional product to themarketplace.” Final approvals for the Central Park Commons will be processed through the city in 2014, and CSM continues to engage in productive dialogue on the design and development of the property with the City of Eagan.

Paramount Real Estate Corporation/TCN Worldwide represented the Seller of Northstar Marketplace, a 96,356 square foot grocery anchored shopping center in Ramsey, MN. Tom Commerford, Vice President of Investment Services of Paramount Real Estate Corp/TCN Worldwide recently sold Northstar Marketplace, a 96,356 square foot shopping center located at 7876-7988 Sunwood Drive NW, Ramsey, MN. The property sold for $14,000,000 and closed on November 29, 2013. The property includes major

Minnesota Real Estate Journal

tenants such as Coborn’s, Acapulco Mexican Restaurant, Anytime Fitness and Caribou Coffee. Tom Commerford represented the Seller in the transaction, Solomon Real Estate Group, LLC, Minnetonka, MN. Solomon Real Estate Group is a leader in developing, constructing, and managing successful and innovative retail, office, residential and mixed-use communities. Tom also identified the Buyer, Phillips Edison & Company of Ohio. They own and operate a diverse portfolio of retail real estate assets across the country for which grocery-anchored shopping centers are their foundation.

Relocation Signals Growth for Calhoun Companies 7600 Parklawn Avenue, Edina Now the Business Brokerage’s New Home As the year draws to a close, so has Calhoun Companies’ time at 4940 Viking Drive. The business brokerage announces its move to 7600 Parklawn Avenue in Edina. “We’ve planned on relocating for some time now,” says Andy Kocemba, president and CEO of Calhoun Compa-

nies, “Our new office provides a comfortable space in which business buyers, sellers and the Calhoun Companies agents can connect and conduct successful transactions. Including the refreshed logo and color palette, the overall design also gives our clients and agents a better sense of who we are.” With 3,805 square-feet of space and a lease running through 2018, the Parklawn office location houses the 27 Calhoun Companies agents with additional agents anticipated in 2014. Ribbon Cutting to Take Place in 2014 A new member of the Edina Chamber of Commerce, Calhoun Companies is looking forward to being more involved with the local business community. They will secure a date in early 2014 for a ribbon-cutting ceremony at the new office location. “Calhoun Companies has earned a reputation for trust and integrity, especially among small and mid-size businesses,” says Lori Syverson, president of the Edina Chamber of Commerce, “The Chamber as well as the City of Edina is thrilled to be home to the headquarters of Calhoun Companies.”

December 2013

Paramount Real Estate Corporation/TCN Worldwide represented the Seller of a 121 unit senior mixed-use campus in Sartell, MN. Tom Commerford, Vice President of Investment Services of Paramount Real Estate Corp/TCN Worldwide recently sold The Legends at Heritage Place and Pinecone Villas, a 121 unit, 86,834 square foot senior mixedused campus located at 673-677 Brianna Drive in Sartell, MN to IRET Properties of Minot, North Dakota. The property sold for $15,200,000 and closed on October 29, 2013. Paramount represented the Seller, Heritage Place of Sartell/Kuefler Properties, headquartered in St Cloud, Minnesota. Sartell/Kuefler Properties is a family-owned and operated property management firm with properties in St Cloud and Sartell, MN.

CBRE ANNOUNCES THE SALE OF EXCELSIOR CROSSINGS CBRE announces the sale of 9350 and 9380 Excelsior Boulevard totaling


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501,603 square feet and located in Hopkins, Minnesota to Colony Financial, Inc. for $122,750,000. The office buildings are each 7 stories and are part of a 3-building corporate campus fully leased to Cargill, Inc. The Excelsior Crossings buildings have been Gold LEED Certified by the U.S. Green Building Council. Excelsior Crossing is Cargill’s newest campus and houses the largest concentration of Cargill employees in the Minneapolis metro. Cargill is the largest private company in the United States and has housed the company’s headquarters in the Minneapolis market for the last 130 years and has occupied the buildings since they were completed in 2008 and 2009. The seller, Real Estate Capital Partners on behalf of IVG Institutional Funds GmbH, was represented by the CBRE Institutional Group in Minneapolis led by Steven Buss, Tom Holtz, Ryan Watts and Judd Welliver. Since Real Estate Capital Partners’ inception, the company has invested over $10 billion in U.S. real estate for high net worth families and institutions. Investments have consisted of existing and to-be-

Minnesota Real Estate Journal

built apartment, office, industrial, retail and mixed-use properties. The Minneapolis based team of Steven Buss, Tom Holtz, Ryan Watts and Judd Welliver focuses on the disposition of single-tenant and multi-tenant office and industrial properties. Steven, Tom and Ryan are part of the 85-member CBRE Institutional Group. In 2012, the Capital Markets enterprise of CBRE including the Institutional Group completed over $64.08 billion in combined total U.S. capital activity.

$34,000,000 Loan Refinances Minneapolis CBD Parking Ramp Portfolio A Minneapolis based ownership group recently refinanced a portfolio of three well-located, skyway connected Minneapolis CBD parking ramps consisting of 3,323 parking stalls. The three ramps include the Loring Ramp, at Nicollet Mall and 13th Street S. adjacent to the Hyatt Hotel; Centre Village Ramp at 5th Avenue S. and 8th Street S.; and the Gateway Ramp at 5th Avenue S and 4th Street S. These assets are a portion

of the parking ramp portfolio purchased from the City of Minneapolis in 2007. Murray Kornberg, Doug Seylar and Ben Bastian of CBRE Capital Markets’ Minneapolis office represented the borrower. “This loan term, fixed rate financing fit our long term hold investment strategy, and has very competitive terms”, said a representative of the borrower. The CBRE Capital Markets team obtained the long term permanent financing through CBRE’s relationship with Quadrant Real Estate Advisors, LLC on behalf of AXA Equitable Life Insurance Company. “Quadrant and AXA understand this unique asset class and were excited about the quality of operations and the vibrancy of the Downtown market”, said Murray Kornberg. The portfolio has undergone substantial capital improvements and modernization since it was acquired from the City of Minneapolis in 2007. The three parking ramps are managed by Minneapolis Parking, the largest non-government parking operator in the Twin Cities. Minneapolis Parking and owners have enhanced safety and lighting,

December 2013

updated elevators, improved wayfinding and increased efficiency by converting all locations to self-pay stations. The Minneapolis-based team of Doug Seylar, Murray Kornberg, Joel Torborg, Ben Bastian, and Scott Larson focuses on loan origination and equity placement of all asset types. The Debt & Structured Finance (DSF) team also helps provide investment and advisory services to meet the financing

Marcus & Millichap ARRANGES THE SALE OF a 113-ROOM HOSPITALITY PROPERTY Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of the Days Inn Plymouth West/Minneapolis, a 113-room hospitality property located in Plymouth, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $2,200,000. Jon Ruzicka, a hospitality investment specialist in Marcus & Millichap’s Min-


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neapolis office, and Gordon Allred, Vice President of Investments in Marcus & Millichap’s Ontario, CA office, had the exclusive listing to market the property on behalf of the seller, a private fund. The buyer, a limited liability company, was also secured and represented by Jon Ruzicka and Gordon Allred. Per Mr. Ruzicka, “The property is ideally located near the intersection of Interstate 494 and Highway 55 presenting the purchaser with an opportunity to acquire a Minneapolis metro area hotel, a market that rarely sees hospitality properties for sale.” He continues, “The structure is a four-story interior corridor hotel that was built in the late 1970’s. The purchaser plans to immediately begin performing property renovations in hopes of realizing the hotel’s upside potential as quickly as possible.”

Oppidan Investment Company’s Site Work on Second Woodland Hills Development Nears Completion; Minneapolis-based Oppidan Invest-

Minnesota Real Estate Journal

ment Company, a national property development firm offering a full range of real estate services, today announces that it will complete all necessary site and infrastructure work for its second Woodland Hills Development in West Des Moines by early December. The company also expects to close on the sale of all 56 home sites in the development in early December. Woodland Hills II is a 56-lot residential development that sits on 18.5 acres Oppidan purchased in November of this year. Oppidan has already contracted the sale of all 56 lots to three local homebuilders and expects to close on 20 of those lots before the end of the year. Home construction is also expected to begin before the end of the year. Woodland Hills II is adjacent to adjacent to Woodland Hills I, a 163-lot residential development Oppidan began developing in mid-2012. Oppidan will be finalizing the sales of the last 30 lots within that development in the coming months. Home construction is already well underway in Woodland Hills I with numerous homes sold to occupants.

December 2013

Home construction will wrap up there in 2014.

CBRE ARRANGES $12,650,000 FINANCING FOR 430 OAK GROVE APARTMENTS IN HISTORIC LORING PARK CBRE Capital Markets has arranged $12,650,000 of permanent financing for 430 Oak Grove apartments, located at 430 Oak Grove Street in the historical Loring Park neighborhood of Minneapolis. The new financing secured by the CBRE Capital Markets team allows the borrower to pay off its current construction loan and obtain permanent financing. The transition sets up the borrower with a low interest rate while keeping the rate fixed for a long term. CBRE Capital Markets obtained the beneficial permanent financing for 430 Oak Grove Apartments through its relationship with New York Life Insurance Company. “A unique asset with an unmatched location overlooking Loring Park and the impressive sponsorship provides

great comfort to New York Life and allows them to provide the borrower with impressive terms,” said Doug Seylar, senior vice president and managing director for CBRE Capital Markets. The owner, 430 Oak Owner, LLC, was represented by CBRE’s Debt & Structured Finance (DSF) group led by Seylar, Murray Kornberg, and Scott Larson. The DSF group helps provide investment and advisory services to meet the financing needs of real estate owners ranging from private investors to large public entities. Historic 430 Oak Grove Listed on the National Register of Historic Places, the 75-unit multi-family complex was renovated in 2012 by Kraus-Anderson Construction and developed by Kraus-Anderson Realty. The upscale 430 Oak Grove apartments reopened its doors to residents in January 2013 following the completion of the building renovations. In 1924, Kraus-Anderson, then known as the J.L. Robinson Company, built the four-story, 90,000-square-foot News to page 24

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Minnesota Real Estate Journal

December 2013

NAIOP’s Transparency Initiative Scores a Home Run with Dakota County Pilot Project overall budget, the drivers behind county property tax changes, and the four-year trend line in both county spending areas and sources of revenue. Twait called the pilot project “an opportunity for citizens of the business community in Dakota County to not only understand what government services cost, but why they cost what they do, along with an explanation of the why behind the trend lines.” The roomful of business and real estate industry leaders who attended, many of them commercial or industrial property owners in Dakota County, clearly liked what they saw and heard.

By Kaye Rakow Director of Public Policy NAIOP Minnesota

T

he results of the latest in a series of pilot projects organized to test the value to taxpayers of greater transparency in financial reporting by their local governments—this one an analysis of Dakota County’s budget—drew a standing-room only crowd to the offices of the Dakota County Regional Chamber of Commerce last month. Organized by NAIOP Minnesota, the Commercial Real Estate Development Association, the Minnesota Shopping Center Association (MSCA) and the Chamber, with the help of Matt Smith, Deputy County Administrator for Dakota County, the event featured a presentation of the results of an analysis of the county’s budget conducted by the Minnesota Center for Fiscal Excellence (MCFE), a nonpartisan independent research organization. NAIOP has worked on its Transparency Initiative for several years, with a goal of improving our members’ understanding of the reasons for local property tax changes, by supporting the

Kaye Rakow development and widespread implementation of a clearer and easier way to understand the real cost drivers in local budgets. Presenting the county’s budget in a new and simpler format, described by Aaron Twait, MCFE research director, as “specifically designed to enhance property tax clarity and understanding,” the pilot project highlighted how property taxes fit into the county’s

Strong support from county taxpayers and others attending Special invited guest Rep. Jim Davnie (DFL), Chair of the House Property and Local Tax Division, sat in on the presentation. He said he was “struck by the fact that those who attended came away from the meeting with an entirely new perspective on the county’s budget—they found value in the analysis and gained some new insights regarding the relationship between local governance and its constituents.”

“It delivered something that by its nature is very complex to the public, in a way that made it very accessible,” he explained. “It was striking to me that those who attended the presentation— many of them from the real estate and business community, who are already more familiar with the property tax system—found something of value and came away with a new and deeper understanding as private taxpayers.” Rep. Davnie’s impressions of the program’s value were echoed by others who attended the pilot project demonstration. Mark Lofthus, Economic Development Director, Dakota Electric Association: “Budgets are a very complicated challenge to understand. But citizens have to understand them to know what their government is doing and to be able to ask good questions. The numbers alone don’t mean much without context. In fact, they are somewhat meaningless. That’s why the trend lines that NAIOP’s initiative calls for are so critical. Reporting in a more understandable way is important, but to me, NAIOP to page 18


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Minnesota Real Estate Journal

December 2013

Thin Brick: Making Design Waves, Delivering Speed and Reducing Costs for Architects, Owners and Developers By Dave Walock President, Fullerton Companies “Thin Brick.” The name sounds strange. Bricks, by definition are big, thick and heavy. “Thin” has never been a part of their description or an image you’d associate with a brick. That is, until now. Thin Brick refers to slim wedges of a real brick bonded to a base material like concrete, metal or wood, and installed in a variety of manners. They are making waves among architects and in the construction and development industry. It’s also turning the ages-old brickmaking industry itself on its head. What’s the secret behind thin brick’s growing popularity? It can be boiled down into one adjective: faster. Thin Brick has increased the speed of installation and these corresponding reductions in total construction time are proving to be major drivers in reducing total construction costs and is helping gain wide market acceptance. In addition to helping speed the construction process and compressing time-

lines, Thin Brick offers the some innovation in building design. The history of thin brick parallels the evolving nature of the construction industry itself, and its continuing search for products and techniques that are better, faster and more cost effective. Thin brick construction scores highly on all three counts, and is part of a major shift in the building industry away from more labor-intensive building materials and processes to new and better ways of delivering comparably reliable, durable, and attractive appearance and structure. This without the high cost—in time and labor –of historically accepted construction methods. The idea of using “skinny” brick had its origins in California in the late ‘80s, primarily in decorative interior uses. By the early ‘90s, interest had grown across the country to the point that a major producer, Endicott, established a separate division for its manufacture. Initially focused mainly on supplying job-applied installations such as metal panel systems with a thin brick facing,

the product was later adopted by the pre-cast concrete panel market. This was used primarily in tilt-up wall systems. In those tilt-up wall systems, the brick is placed manually in plastic form-liners and cast along with the wall on the jobsite, with the concrete serving as the mortar. Such pre-cast wall systems continue to make up a major part of the thin brick market. There are some limitations, however, in terms of size, weight and the vulnerability of the casting process to local conditions, a primary culprit which are the weather conditions as the time of casting. As acceptance grew, more advanced types of application systems have been developed, among them Fullerton Building Systems’ “BrikWal,” This system entails having the thin brick epoxied to lightweight prefabricated cementitious panels. This is done in a FBS factory to very precise tolerances and under controlled conditions, fully protected from the elements of the weather, and then delivered to the jobsite for rapid installation.

Gary Davis, vice presient of sales for Endicott, believes owners, architects and other parties are increasingly drawn to thin brick because of its great versatility. “There are many things you can do with thin brick that cannot be achieved inexpensively with full face brick,” he said. In its early days, the palette of colors was fairly limited. That has evolved along with the popularity and today Endicott offers 54 colors and a variety of textures. This versatility has proven popular from a design perspective as the product line can meet contemporary design needs and tastes. Davis estimates his firm “gets calls every day from architects and designers who have learned about thin brick construction and want to use it in a project for the very first time.” In addition to its versatility and the speed of installation, thin brick construction of job-applied or prefab panels offer some significant special cost savings, especially in the case of new construction “where the architect goes Brick to page 18

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Page 18 NAIOP from page 14

it’s knowing and understanding the changes in spending that will lead to greater citizen engagement.” Vicki Stute, President, Dakota County Regional Chamber of Commerce: “The standards [as proposed by NAIOP and the MCFE] would ensure that local governments provide transparency within their budgets and reports, much like a business. Our members appreciate having the ability to better understand their property tax statements and where their money is being spent, given that they pay the largest proportionate share of taxes at all levels of government. We look forward to working together to ensure this issue gains appropriate attention and passage into law during the 2014 legislative session.” Bruce Miller, Vice President, MFC Properties Corporation: “NAIOP should be commended for undertaking this effort. The presentation on the Dakota County budget was excellent—it added a great deal of clarity to my understanding of what is going on, and where the real increases in spending are occurring. I think this level of transparency ought to be required of all levels of government, allowing us to look at them and compare them, year over year. The trend lines and historical data are really beneficial. And the more years’ information we have with this level of detail, the better we can understand what is going on, and the greater the impact we can have as taxpayers.” Ted Daley, CPA, former State Senator, Dakota Coun-

Minnesota Real Estate Journal

ty resident: “As a resident of Dakota County, I was frankly surprised by some of the numbers. I had no idea of the steps the county had taken to control spending, and the significant decrease in county costs from 2009 to 2013. I did not expect that, and didn’t know about it, and I suspect most other residents didn’t know about it either. That’s why the trend lines that the NAIOP initiative calls for are so important. Consumers of this city or county data, presented in the way the initiative recommends, will be able to see where the spikes are and why. The result is that we can have a totally different conversation about costs and priorities. And that’s what it is really about—what values do we want? What results are we as citizens looking for? Greater transparency can only lead to more accountability, and therefore, better results for our communities.” Matt Smith, Deputy County Administrator, Dakota County: “NAIOP has been a longstanding voice in the battles over property taxes. Partnering with them as a county fit with what we do—we are always looking for ways to help our taxpayers better understand where their money goes. In my view, any time you add another perspective and create a conversation, that adds value. The combination of analysis, plus new conversations, creates a space in which governments and their citizens can have a more useful dialogue.” Where does the Transparency Initiative go from here? In the 2012 legislative session, NAIOP advanced a proposal that would have required local units of gov-

December 2013

ernment to present their budgets by expenditure type in eight major spending categories, as well as by program area, along with a four-year trend line, including revenue sources. The legislation passed both the House and the Senate and was included in two omnibus tax bills, both of which the governor vetoed. Going forward, NAIOP is continuing to build momentum for its Transparency Initiative, and expects to advance proposed legislation again in the 2014 session. Commenting on that goal, Rep. Davnie said that legislators “have already begun to explore replacing truth in taxation with something different.” “Truth in budgeting, similar to what NAIOP is proposing, may be the best alternative. However, we have to recognize that there will always be opposition. We have to be mindful that for smaller communities and counties, change of any kind is a challenge. And challenge has a cost. Change is hard. We cannot diminish that fact, if and when we seek new legislation.” “It is clear to me, however, that the electorate is searching for more transparency,” Rep. Davnie added. “Even though the subject may not show up high in taxpayer polling, it is out there as an issue, and voters seem to recognize and appreciate its value when they see it.” “Our goal,” he said, “should be consistency in delivering budget information in a way that is more accessible to the average taxpayer. The truth in taxation discussions that are sure to come up again in the 2014 session will be the test. How much do legislators really care about shedding more sunlight on local spending and budget reporting?”

Brick from page 16

into the process committed to designing around thin brick from the outset,” Davis says. In those cases, unlike with full brick, no huge footings or heavy lintels are required. Lighter gauge wall studs can be used and in the case of a full four-wall installation, the architect can remove six inches around the entire perimeter in terms of wall width. This amounts to a significant reduction in the amount of square footage available for calculating lease rates. The prefab systems are also much easier to work with in cold weather which yields savings on energy and weather enclosure costs. There are also labor considerations given the elimination of needing to rely on expensive, and increasingly scarce, mason labor. Thin brick can be set by carpenters or tile-setters. Thin brick offers more indirect cost savings as well. For example, Endicott calculates that one load of thin brick is the equivalent of seven loads of the full size product. This significantly reduces delivery time and transportation costs to a panel fabricator or to a pre-cast jobsite. High visibility applications of thin brick, some of them very largescale, including the New Jersey Devils Hockey Arena and the Colts Stadium in Indianapolis, have also caught the attention of the construction industry. There is a fast growing acceptance by major retail and

fast food chains, including HyVee Stores, Starbucks, Pizza Hut and McDonald’s. Thin brick is especially well-suited for the remodeling industry, especially for the franchised restaurant and convenience store sectors where facelifts to meet changing market tastes are often made on a 7-9 year cycle. Re-skinning with thin brick adds very little weight, and can be installed quickly, generally without disturbing ongoing daily operations or inconveniencing customers. The growth in the number and type of applications in place has also led to a much greater comfort level among potential users. “Thin brick has now been in place in thousands of installations long enough that it has proven its reliability and durability,” Davis says. “The fact is, it is made from the same raw materials and fired in the same ovens as full brick. There simply is no difference between today’s thin brick and the traditional brick people are familiar with.” In his opinion, the future for thin brick construction continues to be bright. “In no way has it topped out in terms of market acceptance, style options or techniques,” he says. “And astute architects are increasingly discovering that, with thin brick, they have a new freedom to design with a degree of vision that has never been available to them before.”


Page 20

Minnesota Real Estate Journal

December 2013

Office From page 1

collaborative environment is disruptive for some folks. Different people work and learn in different ways.” Awtry says that there is a large disparity between those who like the more traditional paneled work space and those who thrive in the so-called disruptive workplace, an office space without much in the way of offices, cubicles or privacy. As Awtry says, some employees will blossom in a collaborative, open workspace. Others, though, will struggle. The key for companies? Figuring out some way to create office spaces that will work for their particular employees, something that is a far better strategy than following the current hot trend in workplace design. “In our opinion, as an organization that touches 300-plus office spaces a month? The furniture at the end of the day can’t force collaboration among people,” Awtry said. “It can help to enable collaboration. But the human element is going to outweigh the furniture every time.” Rightsize Facility Performance is more than qualified to comment on office-space trends. The company, founded in 2004, helps a long list of top businesses furnish their office spaces and plan their work spaces. The company’s client list includes Bank of America, BlueCross BlueShield, CBRE, Crate & Barrel, Experian, Red Box and State Farm, among others. The company has provided furniture or designed the spaces on more than 22,000 workplaces across the nation,

averaging an impressive 280 new projects each month. The company operates out of three facilities, facilities that total nearly 300,000 square feet of showroom, warehouse, remanufacturing, operations and office space. And its warehouse is stocked with more than $5 million in pre-owned assets available for immediate delivery. Rightsize today is seeing a change in the amount of square footage on a per-

person-basis in offices. As Awtry says, the days of the 8-foot-by-8-foot or 12foot-by-12-foot work station are long gone. Today, more workers sit in 6foot-by-6-foot or 5-foot-by-5-foot cubicles. At the same time, public spaces — the lobbies, conference rooms and meeting rooms — are getting larger and more plentiful. “Where the public space historically

had been contained to conference rooms, break rooms and kitchens, it’s now expanded into open-air collaborative soft-seating areas,” Awtry said. “Public space is no longer only hidden behind walls. The public space has migrated to the open-workplace environment.”


December 2013

Minnesota Real Estate Journal

Holtz From page 1

ment community." Holtz, too, has seen significant changes in the city's office and industrial markets. Today, most of the development opportunities in these segments are being tackled by large users, Holtz said. There isn't much spec development. "If you look at office development, the only development you see going on is for large users like United Health Group and Wells Fargo. It will still be a while before you start seeing any speculative office development. The industrial market has bounced back a little quicker. You are starting to see spec development take place, which will add to the enthusiasm for the Minneapolis market." By all measures, Holtz is a commercial real estate success story. But he almost didn't end up in the field. He started his career in the mid-1970s in commercial banking, working for Norwest Corporation, national bank that in 1998 merged with Wells Fargo & Co. When Holtz was given some real estate credit to pass out, he realized something: He was intrigued by commercial real estate.

Tom Holtz Holtz was having lunch one day with one his mentors, Jim Curry, who in the 1960s developed Pentagon Park in Edina, which is believed to be the first suburban office park in the Twin Cities. "I remember him telling me that if I liked this real estate business I should pursue it," Holtz said. "So I did. In 1979 I made the move from commercial banking into commercial real estate, and I'm still here." Holtz said that he picked an especially auspicious time to jump into the market. Back in the late 1970s and

early 1980s, development in the Twin Cities was booming. And Holtz discovered that his success was only limited by how hard he was willing to work. "There was a spirited group of players involved in the commercial real estate business at that time," Holtz said. "You were able to determine your own future by how hard you were willing to work. I was able to take on risks that were not available to me in the banking business. It was more entrepreneurial than the banking environment." Holtz saw just how entrepreneurial the business could be in the early 1980s. That's when he and Pat Ryan, who is now president and chief executive officer of Ryan Cos. US Inc., worked together to sell a 5-acre parcel of land in Edina to a developer based in Winnipeg. The two helped the developers design the office buiding that eventually rose on the parcel. They also handled the leasing, leasing 100 percent of the space to AT&T. They also pre-sold the building to Travelers Insurance. This turned out to be an extremely successful transaction for both Holtz and Ryan. That one transaction also led to future business for Holtz. The devel-

Page 21

opers went on to form Winnipeg-based Artis REIT. During the last five-anda-half years, Holtz has sold this REIT $500,000 worth of real estate. "And it all started with a single deal in the early 1980s," he said. Is there a secret to Holtz's success? Not really. He believes in working hard and putting the needs of his clients first. He also believes in the power of developing long-standing relationships. This last point, he says, is especially important. It's easy in this day of Twitter, Facebook and LinkedIn to forget how important face-to-face meetings can be. "I am a firm believer in the theory of six degrees of separation," Holtz said. "Commercial real estate is all about relationships. It's about figuring out how to initiate and create relationships and leverage those into other relationships. A lot of people feel that the computer and technology is going to do everything for them. The reality is that the most successful brokers are the ones who are meeting face-to-face with people and forming new relationships all the time. This is still a people business. Technology is great, but it does not take the place of a great relationship."


Page 22

People From page 22

Haugen graduated from University of Minnesota’s Carlson School of Management with a bachelor’s of science degree and earned his MBA from University of St. Thomas. Haugen’s professional affiliations include NAIOP, the Commercial Real Estate Development Association, and Capital Markets National Forum.

LAWRENCE BLAISER JOINS BKV GROUP AS CONSTRUCTION ADMINISTRATOR BKV Group is proud to announce they have hired Larry Blaiser as their newest construction administrator. Blaiser brings more than 30 years of experience in healthcare and commercial architectural project expertise. “Larry’s skills and talents are a great asset for our clients and our entire team,” said Tom Daszkiewicz, Associate AIA. “His strength in comparing construction documents to activities on the jobsite ensures the design intent is always at the forefront during construction.” In his new role, Blaiser serves as the liaison between design, construction and ownership. He collaborates with the entire project team to ensure the owner’s goals are accomplished and construction documents are up-to-date. This involves constructability reviews, value management, quality control, product research, analysis and creative on-site problem solving. Blasier is well respected for

Minnesota Real Estate Journal

managing multiple projects and developing strategic solutions to keep a project on schedule and on budget. “I have a great appreciation for the quality assurance/quality control process,” said Blaiser. “It’s a highly gratifying way to ensure the client receives exactly what they need, want and expect.” Prior to joining BKV Group, Blaiser held similar roles with AECOM, Walsh Bishop Associates and Ellerbe Becket, all architectural firms in the Twin Cities area. He has extensive healthcare experience working with a prominent Minnesota-based hospital and healthcare service provider, and has worked on several regional office projects across the U.S. for a prominent Bloomington, Illinois-based insurance company. “BKV Group is expanding throughout the U.S. and the opportunities for growth it has to offer and its great clients and interesting projects are all ideal,” said Blaiser. “I enjoy working with the entire scope of design services under one roof.” Blaiser has a degree in architectural technology from Dakota County Area Vocational Technical Institute.

Ryan Companies US, Inc. Hires David Knoll as Director of Development Minneapolis-based Ryan Companies US, Inc. announced David Knoll has been hired as Director of Development in the SouthCentral Region. In his new position, David is responsible for leading the pursuit of development projects in Texas. Additional responsibilities

include site selection and land acquisition, due diligence, municipal and approvals, design and construction coordination, marketing and leasing, and sale negotiation. “David will be instrumental in the strategic growth of Ryan’s SouthCentral Region,” said Hunter Barrier, President of Ryan’s SouthCentral Region. “He brings a unique perspective to his new role due to his broad base experience in business approaches and we’re thrilled to have him on board.” Prior to joining Ryan, David was Executive Director of the non-profit Urban Land Institute (ULI) – Austin District Council. David executed the vision of ULI – Austin and was successful in growing the membership from 265 to over 400 members during his tenure. He is known for his strong analytical and problem solving skills as well as his ability to manage complex projects. “I’m extremely proud to work with such a talented group of professionals and I’m excited to take on the challenge of expanding Ryan’s presence in Texas,” said Knoll. David received a Bachelor of Arts in Civil Engineering from Dartmouth College and a Masters in Community and Regional Planning from the University of Texas at Austin. He is a member of the Urban Land Institute (ULI) and the American Planning Association (APA).

Ryan Companies US, Inc. Hires Brian Devlin as Vice President of Development Minneapolis-based Ryan Companies

December 2013

US, Inc. announced Brian Devlin has been hired as Vice President of Development in the SouthEast Region. In his new position, Brian is responsible for leading the pursuit of build-to-suit projects in the Southeastern United States. Additional responsibilities include site selection and land acquisition, constraint analysis and due diligence, municipal approvals, design and construction coordination, and lease or sale negotiations. “Brian is a dynamic leader and brings a wide range of skills to his position as Vice President of Development,” said Doug Dieck, President of Ryan’s SouthEast Region. “With his experience in office and industrial development, and the many relationships he’s cultivated over the years, Brian is the perfect person to help Ryan expand its presence in the Tampa area.” Brian has over 12 years of experience in Real Estate Development and was most recently First Vice President at CBRE Group. He is known for his collaborative approach and enjoys working with his customers to ensure the finished product meets their long-term goals. “From the outside looking in, I saw an organization that was loyal to and cared for the people that worked for them,” said Devlin. “Ryan is a first class company and I’m honored to work with such a talented group of professionals.” Brian received a Bachelor’s Degree in International Business from Loyola University New Orleans. He is a member of the National Association of Industrial and Office Properties (NAIOP), the Real Estate Investment Council (REIC), and CoreNet Global.


Page 24

News From page 12

building to serve as headquarters for Northwestern National Life Insurance (NWNL). Since NWNL’s departure in 1961, the building was converted into a multitenant office space. During the renovation, most of the building’s historic Beaux Arts limestone and tile exterior was left intact, including windows, skylights, and an original exterior bronze circular light fixture

Minnesota Real Estate Journal

depicting native wildlife crafted by renowned Minneapolis interior designer John Bradstreet. A five-panel lobby mural featuring historic scenes from early Minneapolis was also preserved. Designed by Elness Swenson Graham Architects, the original vintage skylight system serves a new central atrium area. Oversized windows, complete with original hardware, were also retained. The building is adjacent to Loring Park and offers views of the downtown skyline, while the building’s proximity to

bike trails and downtown also appeals to residents. The renovation took advantage of the building’s unusual wedge shape and other assets to create distinctive living environments, including two-level units with mezzanines accommodated by 15foot, six-inch ceilings. Of the 75 apartments, 35 are one-of-a-kind in configuration. Building amenities include a spa/fitness center, lounge, and hearth room, all fostering opportunities for neighbors to interact.

December 2013

The Opus Group® Announces Completion of Chicago Tube & Iron Warehouse Expansion The Opus Group announced today that Opus Design Build, L.L.C. recently completed construction on a 41,872square-foot warehouse expansion for Chicago Tube & Iron in Eagan, Minn. Located near Lone Oak Road and I35, the addition provides Chicago Tube & Iron more space for its expanding operations in the metro area. “It was great to continue our relationship with Chicago Tube & Iron with this expansion,” said Jeff Mertens, senior project manager at Opus Design Build, L.L.C. “We were able to provide a design solution within the site constraints that allowed Chicago Tube & Iron to remain at their current location, helping retain employees.” In addition to the warehouse expansion, Opus also updated the warehouse with an exterior insulation finishing system and remodeled existing areas of the facility. Interior remodeling included updating bathrooms and a break room, modernizing the front entry and replacing six overhead doors. During the project, mechanical and irrigation systems were incorporated and prominent signage added to the front entry and south end of the facility. “We are very excited to begin leveraging this facility improvement and expansion, which Opus delivered on time and on budget,” said Donald R. McNeeley, president & CEO of Chicago Tube & Iron. “With the dramatic improvement this investment brings in our throughput capacity, we are in a stronger position than ever to service our customers and support new business growth across our markets in the upper Midwest.” Opus Design Build, L.L.C. was the contractor and Opus AE Group, L.L.C. was responsible for structural and architectural design. MFRA, Inc. performed civil engineering and landscaping and Hallberg Engineering provided mechanical and electrical design services.

CBRE Multi-Housing Group Announces Sale of Eagan Apartments Cornerstone Real Estate Advisers, based in Hartford, Connecticut, acting on behalf of a Cornerstone-managed fund, recently sold Promenade Oaks


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Minnesota Real Estate Journal

Apartments, a 281 unit property built in 1997, in Eagan, Minnesota. Keith Collins, Abe Appert and Laura Hanneman of CBRE’s Minneapolis office represented the seller. The multifamily sale was the second largest in the Twin Cities during 2013. A locally based owner/operator purchased Promenade Oaks.

the property.” He continues, “The market is hot for apartments and we have been receiving a lot of offers from outof-state buyers. Three of our last five apartment transactions were purchased by out-of-state buyers.” Maple View Apartments is located at 380 & 400 Larpenteur Avenue West in Saint Paul, MN.

Marcus & Millichap ARRANGES THE SALE OF a 34-UNIT APARTMENT BUILDING

CBRE ANNOUNCES THE SALE OF THE Arden Hills Industrial Portfolio, Arden Hills, Minnesota

Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Maple View Apartments, a 34-unit apartment property located in Saint Paul, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for $1,870,000. Dan Linnell and Evan Miller, 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 limited liability company, was secured and represented by Dan Linnell, an investment specialist in Marcus & Millichap’s Minneapolis office. Per Mr. Linnell, “This property commanded five offers in total and ultimately traded at $55,000 per unit. The buyer was based out of California and hired a local management company to operate

CBRE announces the sale of the Arden Hills Industrial Portfolio in Arden Hills, Minnesota to Space Center Inc. The three building warehouse portfolio totaling 374,370 square feet with 24’ clear heights was built in 1997 and 1998 and are currently 97% occupied. The seller was represented by the CBRE Institutional Group in Minneapolis led by Steven Buss, Tom Holtz, Ryan Watts and Judd Welliver. The Minneapolis based team of Steven Buss, Tom Holtz, Ryan Watts and Judd Welliver focuses on the dispo-

December 2013

sition of single-tenant and multi-tenant industrial and office properties. Steven, Tom and Ryan are part of the 85-member CBRE Institutional Group. In 2012, the Capital Markets enterprise of CBRE including the Institutional Group completed over $116.9 billion in combined total global capital activity.


Christopher Dolan

REAL ESTATE SERVICES Continental Property Group, Inc. 1907 Wayzata Blvd, Suite 250 Wayzata, MN 55391 Tel-952-473-1700 www.leasespace.com

Monroe Moxness Berg 8000 Norman Centeer dr. #1000 Minneapolis, mn 55437 952-885-5999 www.mmblawfirm.com

REAL ESTATE EDUCATION MN Real Estate Exchangors Henry votel 651-426-1610 Www.mree1031.com Info@mree1031.com


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