LouMin Holdings moves into Minnesota with acquisition of The Deco
By Dan Rafter, Editor
LouMin Holdings made its Minnesota debut with the acquisition of The DECO, a five-story Class-A mixed-use development that has become one of downtown Shakopee’s most visible additions.
The Minnesota-based investment firm closed on the 89-unit luxury property this month, planting a flag in one of the Twin Cities’ more competitive suburban multifamily markets.
For LouMin, the purchase is more than a new address. It represents the first Minnesota addition to a portfolio that has grown across the Upper Midwest and highlights the local leadership of Co-Founder and
President Brad Swenson, who is based in the Twin Cities.
Company officials say the Shakopee acquisition is a natural fit, pointing to the city’s rising population, expanding employer base and strong demand for high-quality rental housing.
“This building checks all the boxes,” Swenson said. “It has a thoughtful design. It is in a walkable neighborhood and is connected to the community. We think that it is a perfect fir for our hands-on partnership-based approach. We are looking forward to actively managing and enhancing the building.”
JLL Capital Markets secured the sale of the DECO Apartments on behalf of the seller, Enclave. JLL Capital Market’s Investment Sales and Advisory team was led by Director Joseph Peris and Managing Director Josh Talberg.
“The Shakopee story has been a fun one to tell, and one that has been very well-received by the marketplace today,” Peris said in a statement. “This was a highly sought-after investment opportunity, and we’re excited for the LouMin team who is acquiring a great property in a location with compelling tailwinds for sustained performance.”
LouMin to page 26
Committing to a strong industrial market in Eagan: Saber Hall not afraid to make big investments in local industrial properties
By Dan Rafter, Editor
The leaders at Saber Hall Investment Management? They believe in the strength of the Twin Cities-area industrial sector. They’re especially bullish on the community of Eagan, Minnesota.
And to prove it? They’re investing heavily in it, making new industrial acquisitions in the region.
That includes Saber Hall’s newest acquisition, Boulder Lakes III, a 116,549-square-foot, Class-A light-industrial/tech building at 3000 Ames Crossing Road in Eagan, Minnesota.
The $15.4 million acquisition marks the fourth Eagan industrial property that Saber Hall has added to its commercial portfolio.
Ryan Bohrer, managing partner with Saber Hall, said that the Boulder Lakes acquisition came with several positives that made it a good fit for the company’s portfolio.
Chief among these is its location near the Viking Lakes mixed-use development in Eagan Thomason Reuters’ sprawling campus in the same community.
“It’s a newish building in such a strong location,” Bohrer said. “It comes with a lot of positive talking points. We feel that it’s a good add for our portfolio.” Boulder Lakes III still counts as a newer industrial property, having been built in 2008. The property is also in demand, currently 82% leased to five tenants: Krech Exteriors, Lynx Innovation, The Open Door Pantry, People, Inc. and Service Express.
The DECO (Photo courtesy of LouMin Holdings.)
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CONTENTS December 2025
1
1
4
6
8
LouMin Holdings moves into Minnesota with acquisition of The Deco:
LouMin Holdings made its Minnesota debut with the acquisition of The DECO
Saber Hall not afraid to make big investments in local industrial properties:
The leaders at Saber Hall Investment Management? They believe in the strength of the Twin Cities-area industrial sector.
A growing trend in seniors housing? Ebenezer Development embracing senior cooperative housing: Will the Twin Cities market see a growing number of senior cooperative housing developments pop up soon?
Setting a new standard for construction at Ironmark: In an industry where reliability is often promised but rarely proven, Ironmark Building Company continues to deliver.
6250 Ridgewood Road -- A Premier Bulk Warehouse Opportunity in St. Cloud:
Nestled in the thriving industrial corridor of St. Cloud, Minnesota, 6250 Ridgewood Road offers an unparalleled opportunity for
10
Does my vacation home or second home qualify for a 1031 Exchange?
Whether or not your second home qualifies for 1031 exchange treatment depends on how you have been using the property and what your intent has been.
12 Take Care When Using the 200% Identification Rule in a 1031 Exchange:
When using the 200% identification rule in a 1031 exchange, you can identify any number of properties only if their aggregate fair market value does not exceed 200% of the value of the real property you sold.
14 An AI boom, flexible workspaces and the continuing return to office:
The U.S. office market remains in flux, but there are positive signs for this troubled sector, according to the latest research from JLL.
16 Renewed momentum and growing optimism:
Cushman & Wakefield released its U.S. Outlook 2026, revealing that after a year defined by extraordinary macroeconomic uncertainty, the U.S. commercial real estate sector is entering 2026 with renewed momentum, clearer visibility and growing optimism across both leasing and the capital markets landscape.
President | Publisher Jeff Johnson jeff.johnson@rejournals.com
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A growing trend in seniors housing? Ebenezer Development embracing senior cooperative housing
By Dan Rafter, Editor
Will the Twin Cities market see a growing number of senior cooperative housing developments pop up soon? It appears so, especially if you study the strategy of one of the biggest believers in this concept, Ebenezer.
Ebenezer broke ground on Estoria Cooperative Oak Marsh, a new senior cooperative development in Oakdale, Minnesota. Estoria Cooperative Oak Marsh, located next to Oak Meadows Senior Living, another Ebenezer-managed community, will be an 87-unit member-owned community for adults 62 and better.
It’s also the latest foray into senior cooperative housing by Ebenezer.
What is senior cooperative housing? Ebenezer is embracing this housing model, a type of community living arrangement in which older adults collectively own and manage their residential building or community.
Here’s how it works: Each resident purchases a share in the cooperative, giving residents the right to occupy a private unit and a voice in how the property is operated. Members work together to make decisions about maintenance, services and community activities.
Fans of this type of seniors housing say that it creates a strong sense of community and mutual support among residents.
Shona Schmall, director of marketing and sales/cooperative development with Ebenezer Management Services, said that cooperatives provide a sound financial investment
with reasonable purchase prices and monthly fees, along with built-in equity appreciation for a more secure future return on investment.
“There is also great benefit from living in a maintenance-free lifestyle that provides more time for leisure, enjoyment and social engagement,” Schmall said. “One of the biggest advantages of cooperative living is the community effect: people working together for a common purpose. Members run the business together and enjoy life together by joining together in the various common spaces that are designed to promote leisure enjoyment and community.”
Estoria Cooperative Oak Marsh offers a maintenance-free, turnkey lifestyle. Amenities include outdoor patios with firepit and grill stations, pickleball and shuffleboard courts, community flower gardens and raised beds, pet park/lounge areas, walking paths, grand lobby with fireplace lounge and coffee bar, a great room with serving kitchen, art studio, fitness/wellness studio, yoga classroom, pub room/lounge, golf simulator, library and sunroom/ lounge.
“We look at it as an adventure and a new beginning,” said founding members and residents Steve and Lisa Baker, in a statement included in a press release announcing the new development. “Moving to Estoria Oak Marsh will allow us to bring forward the best things from our current home and leave behind the things we no longer need. We’re ready to take that next step.”
Estoria Oak Marsh is the second Estoria Cooperative developed by Ebenezer, which will also manage the property. The community is expected to open in late 2026.
Ebenezer recently celebrated the groundbreaking of Estoria Cooperative Oak Marsh, a new senior cooperative in Oakdale, Minnesota.(Photo courtesy of Ebenezer.)
Setting a new standard for construction at Ironmark Delivering quality, collaboration
for themselves.
by Ironmark
In an industry where reliability is often promised but rarely proven, Ironmark Building Company continues to deliver. With projects spanning the country, more than $225 million in annual revenue, and a reputation built on precision, partnership, and pride in every detail, Ironmark has turned craftsmanship into a standard rather than a slogan.
Built on hard work, collaboration, and pride in quality projects, Ironmark has grown from a Minnesota-based builder to a national contender trusted by developers and architects who expect more than the industry standard. The company’s strength lies in multifamily, commercial, and nonprofit projects, but its reputation
and results that
speak
has been earned through something less tangible: the way they work.
At Ironmark, excellence isn’t an abstract goal. It’s built into the process from the first preconstruction conversation to the final punch list. And speaking of punch lists, Ironmark averages fewer than two items per project unit at final owner and architect walkthrough. That level of precision doesn’t happen by chance. It’s the result of meticulous planning, accurate scheduling, clear communication, and a team that takes accountability personally.
Projects That Define the Standard
Apartments in
is a prime example of what happens when planning, communication, and efficiency align. The project finished two months ahead of schedule and under budget, achieving a National Green Building Standard Silver certification. While others are still working through delays, Ironmark is handing over keys.
Then there’s Archive, a downtown project that tested every limit of precision and logistics. Nestled between two government buildings, one of them a federal facility for printing U.S. currency, the site re-
BUILDINGS ARE COOL .
should know. We design the behind-the-walls systems that bring them to life.
Finch
Edina, Minnesota,
The Finch Apartments recently opened in Edina, Minnesota. (Image courtesy of Ironmark.)
Ironmark to page 18
6250 Ridgewood Road – A Premier Bulk Warehouse Opportunity in St. Cloud, Minnesota
Nestled in the thriving industrial corridor of St. Cloud, Minnesota, 6250 Ridgewood Road offers an unparalleled opportunity for large-scale industrial users seeking expansive and strategically located bulk warehouse space.
With up to 640,000 square feet of efficient warehouse available for lease on over 14 acres of outdoor storage/parking area, this property is uniquely positioned to meet the demands of modern logistics, distribution, and manufacturing operations today.
Prime Location with Regional Connectivity
Located just 56 miles northwest of Minneapolis, this property benefits from direct access by three major transportation arteries, including Interstate 94 and Highway 10. Its proximity to the Twin Cities metro area and key suburban hubs like Rogers and Dayton (just 45 minutes away) makes it an ideal location for companies seeking to optimize supply chain efficiency while maintaining access to a robust labor pool.
St. Cloud itself is a dynamic and growing city, with a population exceeding 100,000 residents. It has earned accolades such as:
• #1 Fastest Growing Labor Force in Minnesota –MN DEED
• #1 Top City for Working Parents –SmartAsset.com
• #1 Most Livable City in the World –LiveCom (2019) These distinctions underscore the city’s appeal as a business-friendly environment with a strong workforce, excellent infrastructure, and a high quality of life. Click here to learn what makes St. Cloud the most livable city in the world.
Facility Highlights
Originally constructed in 1989 and 1994, the property recently underwent a significant renovation in 2019, modernizing its infrastructure and enhancing operational efficiency. The building is designed for high-volume industrial use, with features that support a wide range of tenant needs.
Key specifications include:
• Total Space Available: Up to 640,000 SF with land area for building expansion
o Divisibility: Down to 60,000 SF, offering flexibility for tenants of various sizes
• Clear Heights: Up to 24’, ideal for racking and vertical storage
• Loading Capabilities:
o 80 dock-high doors equipped with load levers and door locks
o 2 oversized drive-in doors for large vehicle access
• Total Site Size: 98 acres, with outside storage permitted
• Parking: An impressive 923 surface parking stalls, accommodating large fleets and employee vehicles
• Zoning: PUD16 (Planned Unit Development) and I-3, supporting a wide range of industrial uses
Construction & Building Systems
The building is constructed with precast concrete tilt-up panels, steel framing, metal decking, and a sloped metal roof system to provide for long-term weather resistance and low maintenance.
Inside, the warehouse is outfitted with T-5 lighting, fully re-lamped in 2018, delivering bright and energy-efficient illumination. The facility is protected by an ESFR sprinkler system, which is the highest rated system for all, offering enhanced high-pile storage applications.
Power and climate control are robust, with over 5,800 Amp electrical service at 480/277 volts, and a combination of rooftop and ground-floor packaged HVAC units. Two elevators are available on-site, supporting all vertical movement for multi-level use in select needed areas.
Outdoor Storage & Expansion Potential
One of the most compelling features of the 6250 Ridgewood Road site is its available 14+ acres of outdoor storage and parking area, a rare amenity in today’s industrial market. This space may also be used to expand the existing building footprint as well.
Surrounding Amenities & Workforce Access
The property is surrounded by a wealth of retail amenities that support employee satisfaction and operational convenience. Nearby retail centers such as Crossroads Center, Riverwood Mall, and Rivertown Village offer abundant dining, shopping, and lodging
6250 Ridgewood Road in St. Cloud. (Photos courtesy of Colliers.)
6250 Ridgewood Road in St. Cloud. (Photos courtesy of Colliers.)
6250 Ridgewood Road in St. Cloud. (Photos courtesy of Colliers.)
Does my vacation home or second home qualify for a 1031 Exchange?
By Jeff Peterson, J.D., Commercial Partners Exchange Company, LLC
The Short Answer: It Depends!
Whether or not your second home qualifies for 1031 exchange treatment depends on how you have been using the property and what your intent has been.
Under IRS rules, only real property held for investment or for productive use in a trade or business qualifies for a 1031 exchange. That means the home you
use purely for personal enjoyment, even if you hope it appreciates in value, does not qualify.
A vacation rental can qualify for a 1031 exchange if it is primarily used as an income-producing property or otherwise held for investment purposes.
A vacation home property may be held for investment or business purposes even if it does not meet
the safe harbor guidelines the IRS issued for intermittent rentals.
IRS Safe Harbor Guidelines for Vacation Homes
To be within the safe harbor, the property must be rented at fair market value (FMV) for at least 14 days per year and personal use must be limited as follows:
Vacation to page 24
BUILDING A BETTER FUTURE,
TOGETHER
As builders we are driven by a desire to make a positive difference in the communities where we work, live and play. We do this by investing in our employees’ development and growth, and by nurturing solid relationships with our clients, partners and each other.
Image by Andrey Cojocaru from Pixabay.
NORTH LOOP GREEN
Take Care When Using the 200% Identification Rule in a 1031 Exchange
By Dan Rafter, Editor
When using the 200% identification rule in a 1031 exchange, you can identify any number of properties only if their aggregate fair market value does not exceed 200% of the value of the real property you sold. As a simple example, if your relinquished property sold for $1 million, you could identify multiple properties totaling up to $2 million in value.
The 200% rule is helpful when you cannot use the 3-property rule. For example, if you utilize a Delaware Statutory Trust (DST) that is comprised of more than three properties, you negate the use of the 3-property rule. In a 1031 exchange utilizing the 200% rule, precision is not optional, it is required. From identification deadlines to matching property values, the IRS expects the numbers to line up. But what happens if your replacement property ends up higher than the amount you identified? Does this overage jeopardize your 1031 exchange?
1031 Identification Rules and Why They Matter
When you identify replacement property in a 1031 exchange, you are essentially telling the IRS, “This is what I plan to buy with my exchange proceeds.”
Under the 200% rule, you can identify properties totaling up to twice the value of the property you sold. But if you identified a very specific dollar amount for your DST, for example, that exact figure is what the IRS
recognizes as “like-kind” property. Anything beyond that amount may not qualify as like-kind property.
• Consider this scenario: An investor identified a DST at $1,000,000, but when it came time to invest, the actual amount was $2,000,000, which is more than what was identified. The real question is: Does this overage put the exchange at risk?
The amount above the identified amount could technically be treated as boot. That amount is not eligible for like-kind treatment if it was not identified on your Replacement Property Identification Form. Your identified amount sets the boundaries and exceeding it, even slightly, technically creates boot.
Boot is the IRS term for cash or non–like-kind property received in an exchange. If your exchange also results in a gain, you may need to recognize that gain up to the value of the boot. In other words, this overage could create a partially taxable exchange.
Advisor’s Perspective
From a tax advisor’s point of view, the concern is not the overage itself, but the precedent. What you identify sets the ceiling for like-kind property. If the numbers do not match, the IRS could take issue, especially in an audit.
That is why keeping your CPA informed, even about small discrepancies, is a smart move. Better to report it correctly than to risk questions later.
Final Thoughts
When using the 200% rule in a 1031 exchange, even the smallest numbers need to add up. Precision in identification is not just paperwork; it is your best protection against unintended tax consequences.
A small difference on a seven-figure transaction is unlikely to sink a 1031 exchange, but technically, it can open the door to some “boot” and a partially taxable exchange. The safest approach is to keep your financial advisor and CPA in the loop and make sure you properly identified on your Replacement Property Identification Form.
Jeff Peterson is a Minnesota attorney and former adjunct professor of tax law. He serves as President of Commercial Partners Exchange Company, LLC, where he facilitates forward, reverse, and build-to-suit 1031 exchanges nationwide. Jeff regularly collaborates with attorneys, accountants, and real estate professionals on exchange strategies. Reach him at 612-643-1031 or JeffP@CPEC1031.com or on the web at www.cpec1031. com.
In both established HOAs and new developments under construction, Sharper delivers experience, technology and people-first service that keeps communities running strong now and into the future
Serving Established Communities
With more than 20-years of industry experience, we serve HOAs of every size, type and scope to help the Board and residents enjoy a well-run community
Transparent, Timely & Accurate Financial Management
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Your community deserves a partner who understands the importance of structure, transparency, and long-term success
Partnering with Developers & Builders
From the blueprint to the Declarant turnover, Sharper is the trusted partner along the way to establish thriving CICs throughout the Twin Cities We work side-by-side with Developers and Builders to help realize the dream from dirt to established HOA
Budget creation and reserve planning tailored for new HOAs Governance setup and legal documentation assistance
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Professional guidance from project start to community turnover A smooth, stress-free handover from builder to board
Sharper takes care of the details so you can focus on building
An AI boom, flexible workspaces and the continuing return to office: JLL report highlights the biggest trends in the U.S. workplace
By Dan Rafter, Editor
The U.S. office market remains in flux, but there are positive signs for this troubled sector, according to the latest research from JLL.
In its Workplace Trends 2025 report, JLL reported that while larger tenants continue to reduce their office footprints, companies looking for a smaller amount of space -- typically 25,000 rentable square feet or under -- are becoming more active in the marketplace.
JLL says that this pattern is most frequently seen in the finance, tech and consumer goods industries. And while it’s nice to see smaller users gobbling up space, the lack of activity by companies seeking larger amounts of square footage means that vacancy rates will remain high in the office sector throughout 2026.
The strength of the work-from-home movement is lessening, though. JLL reported that more than 70% of firms included in its research have enacted some form of in-office policy, whether that’s requiring employees to return to the office on a full-time basis or on a parttime schedule. That’s a big jump from 2024, when only 51% of companies in JLL’s report had put such policies in place.
Another big workplace trend? An increasing number of companies are using AI to fuel their businesses.
JLL pointed to the insurance industry, which it says leads all industries in AI adoption. According to JLL’s research, 64% of insurance companies said that they prioritize AI initiatives. More than half of insurance CEOs in JLL’s report said that they expect to see a return on their AI investments in three to five years.
These CEOs said that they expect the use of AI for more mundane, time-consuming tasks to free up their employees to tackle high-value work and boost their productivity.
In the energy industry, JLL found that employees average three to four days a week in the office. Workspaces in the energy sector increasingly include dedicated focus zones in addition to private offices and workstations, JLL reported.
Energy companies are also leasing office space on a longer-term basis than in many other industries. JLL reported that 85% of the office leased volume from energy companies came with lease terms of more than five years. That’s about 1.2 million square feet of long-term office leases in this sector.
Finance firms continue to evolve. JLL said that finance companies prefer hoteling systems and flexible seating when it comes to the workplace environment. Employees at these companies are averaging 3.5 to 5 days in the office a week.
The flight to quality is especially strong in this sector, with JLL reporting that finance companies are aggressively pursuing top-tier, Class-A-plus office spaces. The goal? To persuade employees to spend more time in the office and to help retain the best talent.
Tech companies continue to embrace the hybrid work model, JLL said. This is clear in the spaces that tech companies are leasing. In tech company spaces, offices function more as collaboration hubs with spaces set aside for team projects and innovation sessions, JLL said.
JLL said that tech firms rely on occupancy sensors, booking analytics and employee preference data to continuously refinance space allocation and predict future office needs.
Tech companies focus, too, on amenities. JLL said that some companies offer such high-end amenities as baristas, rooftop terraces, outdoor patios, yoga and exercise studios, mother’s suites, prayer rooms and social hubs.
And what does the future hold for the U.S. workspace? First, expect a lot of expiring office leases. JLL says that office leases are beginning to expire that were either extended during the pandemic or standing leases that were signed seven to 10 years ago. JLL predicts that companies, now more certain of their future, will sign leases with longer terms.
AI will continue to play an important role in office life. Companies are still trying to determine how to best use AI to increase employee productivity, JLL said. Those organizations that provide training and set clear expectations and boundaries will realize the biggest gains from AI technology, JLL said.
JLL also says that flexibility in office design remains key. This includes a focus on quiet zones vs. active zones, spaces for individual work and additional spaces for collaboration. It’s key for companies to understand how their employees work best and design their office spaces to set these workers up for success, JLL said.
Photo credit: EyeEm Mobile GmbH
Renewed momentum and growing optimism: CRE pros looking forward to a stronger 2026
By Cushman & Wakefield
Cushman & Wakefield released its U.S. Outlook 2026, revealing that after a year defined by extraordinary macroeconomic uncertainty, the U.S. commercial real estate sector is entering 2026 with renewed momentum, clearer visibility and growing optimism across both leasing and the capital markets landscape.
Despite uncertain tariffs, a volatile policy backdrop, tightening immigration flows and episodes of financial market stress in 2025, the U.S. economy proved far more resilient than expected. Real GDP growth is projected at 1.9% in 2025 and 1.7% in 2026, buoyed heavily by the acceleration of AI-driven investment, which accounted for more than half of all GDP growth in 2025.
“As we head into 2026, the tone has shifted meaningfully,” said Kevin Thorpe, Chief Economist at Cushman & Wakefield. “There is still risk on both sides of the outlook, but we’ve moved past the peak levels of uncertainty, and confidence in the CRE sector is building. Capital is flowing again, interest rates are moving lower, and leasing fundamentals are generally stabilizing or improving. If 2025 was a test of resilience, 2026 has real potential to reward it.”
Clear Tailwinds for Capital Markets
After two years of constrained liquidity, 2025 marked a turning point. Debt costs eased, lenders re-entered the market, and institutional capital returned, supporting a broad-based revival in deal activity.
• Debt availability and pricing improved sharply, with lending volume up 35% year-over-year.
• Institutional sales activity increased 17% yearto-date through October.
• Pricing has largely reset, presenting the market with compelling opportunities for yield and income generation.
Investors are also seeing more motivated sellers, both from portfolio recalibration and selective distress, creating attractive entry points.
“Commercial real estate has already gone through a major price correction, and we are just now emerging from it,” said James Bohnaker, Principal Economist at Cushman & Wakefield. “The sector is not overbuilding heading into next year, and if anything, we are under-
building in certain areas, which will help support the fundamentals under most economic scenarios. CRE is now fairly priced, and that will likely attract even more capital as investors rebalance their portfolios and expand exposure to real estate.”
Leasing Markets: Quality Space is Tightening
Across major U.S. markets, elevated amounts of vacant space in office and some industrial markets presents tenants with leverage to negotiate favorable lease terms. However, the window to capitalize on market dislocation may be closing. Occupiers are making more decisive commitments and prioritizing high-quality, well-located space, and with limited new supply expected in the next few years, premiums for quality space are expected to rise. The same is true in retail, where the market has been consistently undersupplied amid diverse tenant expansion post-pandemic.
Office: Flight to Quality Accelerates
• Class A buildings in many markets are nearly fully occupied, driven by tenant preference for modern, amenitized environments.
• The U.S. office construction pipeline is at its lowest level since the 1990s, with just 20 million sq. ft. expected to deliver between 2026–2028.
• Key markets, including San Francisco, San Jose, Austin, New York, Atlanta, Dallas, and Nashville, posted strong positive absorption in 2025, supported by AI expansion and diversified job growth.
“For large office users looking to secure high-quality space, the message is clear: if you find the right space, act decisively,” said Bohnaker. “There is strong demand for new, high-quality space and not enough of it to go around. And given the limited construction pipeline, it’s going to get even tighter.”
Industrial: Demand Rebounds as Tariff Uncertainty Moderates
Industrial leasing regained strength in late 2025, with the strongest quarterly absorption in over a year.
• Demand forecasts for 2026–27 have been revised 70 million sq. ft. higher than midyear estimates.
• New supply will fall sharply, expected at roughly half the pace of 2022–25.
• Competition for land is intensifying as data center developers and industrial users target similar power-rich sites.
Market-level performance varies widely. Coastal port markets face cost pressure and softening rents, while inland hubs such as Dallas, Chicago, Phoenix, Atlanta, and Reno continue to record rent growth and robust occupier interest.
Multifamily: Structural Strength Continues
Multifamily absorption remains near record highs, propelled by:
• A collapse in new construction starts, down two-thirds from peak
• Rent growth is forecasted to strengthen to 5% by 2027, as new supply dries up.
Retail: Stable, with Opportunities in Grocery-Anchored and High-Quality Malls
Retail fundamentals remain steady, with occupancy near long-time highs and construction muted.
Even with flat-to-negative headline absorption in 2025 due to big-box bankruptcies, leasing velocity, mark-to-market rent gains, and mall-sector performance have all improved.
A Market Turning the Page
Cushman & Wakefield’s baseline scenario, with a 50% probability, foresees continued economic expansion, gradually easing inflation, and a more supportive policy environment as tariff-related adjustments stabilize and the Fed lowers interest rates toward a neutral 3% by late 2026.
“With better visibility, capital confidence returning, and supply waves receding across several key asset types, the backdrop for commercial real estate in 2026 is the strongest it has been in years,” said Thorpe. “The path ahead looks clearer, and the opportunities are broadening for both occupiers and investors.”
Photo by Pixabay.
“The cooperative model is an exciting option for seniors who want the best of both worlds: the financial benefits of home ownership and the ease of maintenance-free living,” said Brett Anderson, Ebenezer president and chief executive officer. “It also creates a true sense of belonging, where members aren’t just residents, they’re invested in each other’s well-being.”
This cooperative community was designed by RSP Architects and is being built by Frana Construction Company, both Twin Cities based organizations. Additional partners include Leap Development Co, strategic development advisor, and Colliers, HUD mortgage lender.
Josh Cowman, development consultant and owner of Leap Development, said that he expects to see more of these types of projects in both the Twin Cities market and the entire country.
“We are seeing growing interest in cooperative senior housing models,” Cowman said. “As older adults seek more autonomy and community engagement in their living environments, the cooperative model is gaining traction. It offers a compelling alternative to traditional senior housing, especially for those who value ownership and choice.”
Todd Willet, chief financial officer with Ebenezer Development, said that he expects his company to build more senior cooperatives in the region.
“We see this model as an important part of Ebenezer’s growth,” Willet said. “As demand continues to grow, we remain committed to developing communities that reflect the evolving preferences of today’s seniors.”
What sets cooperatives apart from other forms of seniors housing? Schmall points to the ownership aspect.
Housing cooperatives for residents 62 and older are member-owned and member-governed.
How these projects are financed differs, too. Schmall said that most senior cooperatives in the upper Midwest are financed through an FHA/HUD-insured master mortgage program. This keeps fees lower than other senior living options such as rentals and market-rate townhomes and condominiums, she said.
“Members own the cooperative and share their gifts and talents from years of working in the marketplace or serving in their communities to assist in running the business and serving one another within the community,” Schmall said.
quired exceptional control of vibration and distribution to protect sensitive operations next door. Ironmark’s ability to execute seamlessly under that kind of pressure became a benchmark for coordination and trust.
And finally, The Fieldhouse, a twelve-story steel structure rising over Dinkytown, stands as proof that efficiency and scale can coexist. The project finished ahead of schedule so students could move in before the school year started, a win for both the client and the hundreds of residents who now call it home.
Each of these projects tells the same story. Ironmark doesn’t just build structures; it builds confidence.
Developers and architects know that when Ironmark is on the job, the deadlines are real, the budgets are respected, and the experience is collaborative from start to finish.
The People Behind the Process
Ask anyone on the Ironmark team what makes the company different, and they’ll all land on the same answer: culture. This is a team that genuinely likes working together. They take their work seriously but not themselves, balancing the intensity of construction with a shared sense of humor and camaraderie that keeps morale high and turnover low.
“I’ve worked across the country, and I’ve never met a team quite as cohesive as ours,” says Kristina McMillan, Director of Business Development. “We’re nimble but dangerously efficient. Everyone pulls their weight, communicates clearly, and has each other’s backs. That balance of fun and focus is rare, and it’s what makes our projects run the way they do.”
That cohesion extends beyond Ironmark’s internal culture. The company is deeply relationship-driven,
prioritizing partnerships with clients, architects, and subcontractors who share their respect for communication and craft. They’re the kind of builder who shows up early, stays late, and treats every project as if their name were being stamped on the cornerstone, because in a way, it is.
Building What’s Next
Ironmark’s future is focused, deliberate, and driven by the same values that built its foundation. The company isn’t chasing growth for growth’s sake. Instead, its leadership team is committed to thoughtful expansion through strong partnerships in multifamily, commercial, and nonprofit markets. At the same time, Ironmark continues to invest in community-driven initiatives that reflect who they are at their core.
That focus on intentional growth and continuous improvement has positioned Ironmark as one of the most trusted and quietly ambitious general contractors in the region.
For clients, the message is simple: if you value communication, craftsmanship, and accountability, Ironmark is your builder. For peers across the industry, it’s a reminder that a strong reputation is earned one project, one partnership, and one successful handoff at a time.
Ironmark is proving that when hard work meets pride in the craft, the result isn’t just a well-built project. It’s a better way to build altogether.
To connect with Ironmark, please reach out to Kristina McMillan, Director of Business Development, at Kmcmillan@ironmarkbldg.com.
Access to Modern Living
Multifamily management demands flexibility.
Salto delivers a future-ready access solution that works across every door and access point within a multifamily property—from common areas and garages to elevators and unit door smart locks.
salto.us
Ironmark’s Minneapolis office. (Photo courtesy of Ironmark.)
options. The proximity to St. Cloud State University also contributes to a steady pipeline of educated talent.
With easy access to surrounding communities like Sauk Rapids, Sartell, Waite Park, and St. Joseph, the location is well-positioned to draw from a diverse and skilled labor pool. This accessibility, combined with the city’s reputation for livability and workforce growth, makes 6250 Ridgewood Road a strategic choice for businesses looking to scale.
Lease Terms
• Net Rental Rates: Negotiable
• CAM/Tax (2025): $1.25 per square foot
• Available Tenant Improvement Package
Whether you’re seeking a regional distribution hub, a high-capacity manufacturing facility, or a flexible logistics center, 6250 Ridgewood Road offers the right choice for infrastructure and location to support all your business goals. With its combination of scale, efficiency, and strategic access, this property stands out as a premier industrial opportunity in Central Minnesota.
U G 2 W E L C O M E S
J A S O N B E R G D A H L
Senior Vice President, Midwest Operations
Jason is a seasoned facility services executive with deep industry expertise in client engagement and operational excellence “We could not be more excited to have Jason on board,” said UG2 COO John Correia “He knows the industry, he knows the region, and he is the ideal leader for this moment, as UG2 expands our footprint and deepens our relationships across the Midwest ”
Based in the company’s new regional office in Minneapolis, Jason will oversee operations within UG2’s Midwest Region He will support business development activities and expand UG2’s impact through vital, lasting customer partnerships.
Ridgewood
APARTMENT
DoubleTree by Hilton, Bloomington
7:30am Breakfast & Networking
8:00am - 1:00pm Program
Abe Roberts
Marcus & Millichap
Adam Neumann
Bigos Apartments
Andy Gatchell
Park State Bank
Angie French
Mid Continent Management Corporation
Austin Morris Enclave
Barry Schneiderman U.S. Bank
Blake Nelson
Hellmuth & Johnson
Brady Olson
Roers Companies
Chris Culp
The Excelsior Group
Clinton Blaiser
Halverson and Blaiser Group Ltd
Cory Bultinck Wipfli
Daniel Oberpriller
North Bay Companies
Devon Lundy UrbanWorks
Erin Young
Kaas Wilson Architects
Evan Doran
The Doran Group
Harley Gold
Peakhill Capital
Heidi Addo
Michel Commercial Real Estate
Jeff Anneke
DBS Group
Jesse Hadley JLG Architects
Jessica Huebner
Kleinman Realty Co.
John Nordstrom
Emanuelson-Podas, Inc.
John Rent
Associated Bank
Josh Hinchley
Sentinel Management Company
Joyce Stupnik BDH
Kayla Gibbons Level 10 Property Management
Keith Collins CBRE
Mary Bujold Maxfield Research and Consulting
Matt Fransen
Timberland Partners
Matt Hozza
Kleinman Realty Co.
Nick Place
Bridgewater Bank
Sean Ryan
Ryan Companies US, Inc.
Shaun Chambers
In-Focus Systems
Ted Bickel
Northmarq
Todd Dexheimer
Endurus Capital
Trevor Martinez
DEVCO Development
Will Anderson
Sherman Associates
For the Relinquished Property:
• You must have owned it for at least 24 months before the exchange; and
• In each of those two 12-month periods:
o It must have been rented to another person(s) at fair market rental for 14 days or more, and
o Your personal use may not have exceeded the greater of 14 days or 10% of the total days rented at fair market value.
For the Replacement Property:
• You must own it for at least 24 months after the exchange; and
• In each of those two 12-month periods:
o It must have been rented out for 14 days or more at FMV, and
o You must have limited your personal use to the greater of 14 days or 10% of the rental days.
“Personal use” includes days you, your family, or related parties occupy the property for personal purposes. The IRS looks at all the facts and circumstances, including how you advertise, maintain, and report the property, to determine if it is truly an investment.
While it is possible to have a property qualify as investment or business purposes and be outside of the safe harbor guidelines the IRS issued for intermittent rentals, it is preferable to have the certainty of knowing that the tax treatment is applicable to your exchange. IRS Revenue Procedure 2008-16 provides
clear criteria for when a vacation or second home can safely qualify for a 1031 Exchange.
Why Intent Matters in a 1031 Exchange
Even before Revenue Procedure 2008-16, the IRS evaluated intent based on facts and use. In Moore v. Commissioner (T.C. Memo 2007-134) and Goolsby v. Commissioner (T.C. Memo 2010-64), the courts disallowed exchanges on vacation homes where the properties were primarily for personal enjoyment, even though owners argued they expected appreciation.
In both cases, personal use trumped investment intent, reinforcing that expectation of appreciation in value is not enough.
Pro Tip: Keep Detailed Records
Keep detailed records showing your rental activity, advertising, income, and fair-market rental value (ideally supported by a third-party source). These details demonstrate that the property was held primarily for investment, not personal use.
And remember, even if you meet the safe harbor, you must also satisfy all other 1031 requirements, including use of a Qualified Intermediary, following identification timelines, and reinvesting in like-kind property.
The Bottom Line
Yes, a vacation rental can qualify for a 1031 exchange, but not a purely personal vacation home. If you intend to use your property part of the year and rent it part of the year, follow the 14-day/10% rule and maintain clear
documentation. As always, consult your tax advisor or CPA to confirm how these rules apply to your specific situation.
Jeff Peterson is a Minnesota attorney and former adjunct professor of tax law. He serves as President of Minneapolis-based Commercial Partners Exchange Company, LLC, where he facilitates forward, reverse, and build-to-suit 1031 exchanges nationwide. Jeff regularly collaborates with attorneys, accountants, and real estate professionals on exchange strategies. Reach him at 612-643-1031, JeffP@CPEC1031.com or on the web at www.cpec1031.com.
Thank You to Our Sponsors!
Summit CONSTRUCTION
January 29, 2026
The Club at Golden Valley
7:30am Breakfast & Networking
8:00am - 12:00pm Program
Speakers:
Abbie Raudabaugh
Flannery Construction
Amelia Reigstad
The Women Collective
Babette Buckner
Moltron
Beth Duyvejonck
Opus Design Build, L.L.C.
Bill Ball
Api Mechanical Division
Blake Nelson
Hellmuth & Johnson
Dana Hendrickson
Ryan Companies US, Inc.
David Krco
Best & Flanagan
James Ford
Egan
Jessie Otto
Brush Masters
John De Goey
RSM US LLP
John Holper
Bassford Remele
Julie Crawford Mortenson
Kate Johnson
The Opus Group
Kyle Willems
Bassford Remele
Mark Becker
Fabyanske, Westra, Hart & Thomson, P.A.
Matt Bergmann
Laketown Electric Corporation
Rachel Dana
Ryan Companies US, Inc.
Richard Jacobson
Kraus-Anderson
Construction Company
Ted Beckman
RJM Construction
Trent Johnson
PCL Construction Services, Inc.
Troy Blizzard Mortenson
Sponsors:
Jay Kodytek
jay.kodytek@rejournals.com
612-940-3713
from page 1
LouMin’s deal came together quickly. The firm said it completed an equity raise in a matter of days, a pace that executives attributed to strong investor interest in the asset and confidence in LouMin’s disciplined investment approach. The company also secured institutional financing that included a Fannie Mae loan, giving the transaction the kind of structure typically seen in larger, repeat-sponsor deals.
As part of its long-term ownership strategy, LouMin tapped Sail Management to run day-to-day operations. Sail, a third-party management firm with deep experience in the Twin Cities region, is already on site overseeing leasing, maintenance, and resident services. LouMin leaders say the arrangement underscores their commitment to providing local stewardship and a hands-on ownership approach from the first day of possession.
Built in 2021 by Enclave Development, The DECO has been among the city’s more architecturally distinctive projects. The design draws heavily from the Art Deco movement of the 1920s, a deliberate nod to Shakopee’s past. The building’s lobby showcases enlarged historical images in partnership with the
Saber from page 1
The building has a clear height of 19 feet along with three loading docks and five drive-in doors. It sits in the corporate hub of Eagan with easy access to Interstates 35E and 494, and is just minutes from the Minneapolis/St. Paul International Airport.
Cushman & Wakefield’s Avery Ticer and Adam Hoffman helped secure the deal.
Saber Hall also owns and operates Eagan Business Commons I & II (2915 & 2980 Commers Dr) and 2956 Center Court in Eagan. The firm’s portfolio spans 39 properties, totaling over 1.7 million square feet across Minnesota, South Dakota and Florida, with assets valued at more than $175 million.
Bohrer said that he expects Saber Hall to continue to invest in the Twin Cities area. He also expects to see the area’s industrial easing activity rise in 2026 and beyond.
“We generally are not builders, but we know that the construction pipeline is not as strong as it has been,” Bohrer said. “About two-thirds of what is being built is build-to-suit versus developers building spec. The developers across the country don’t feel great about building spec right now. But that has resulted in less supply, which has kept vacancy rates low and leasing activity strong.”
Evidence of this? Rohrer points to the industrial absorption numbers in the Twin Cities region: Users have generated more than 3 million square feet of positive absorption this year.
At the same time, the industrial vacancy rate is lower than 4% in the Twin Cities region. Those are both
Shakopee Historical Society, integrating the city’s storytelling into the building’s modern finishes.
Inside the five-story structure, residents find alcove, one-, and two-bedroom units with features that match Class-A expectations: tile backsplashes, pendant lighting, wood-style flooring, in-unit laundry, and private balconies. Heated enclosed parking comes standard, a perk that continues to resonate in Minnesota winters.
Lifestyle amenities also run deep. The DECO’s rooftop lounge includes a fire pit and grill station and offers views of downtown Shakopee. A 24-hour fitness studio, pet spa, bike storage and repair area, clubroom, and complimentary espresso bar round out the common-area offerings. The property also benefits from an on-site tenant, Mana Brewery, which adds a neighborhood-centric dining and social element steps from residents’ front doors.
“It goes back to the community,” Swenson said. “The community in downtown Shakopee has history and charm and momentum. You can’t buy a house where some of these multifamily properties are located.”
Shakopee’s appeal is a major part of the property’s investment thesis. The DECO sits on the site of the city’s original 1883 City Hall, putting residents within walking distance of local retailers, restaurants, and the Minnesota River Valley trail system.
The suburb is also home to several regional draws, including Valleyfair, Canterbury Park, the Chanhassen
Dinner Theatre, Mystic Lake Casino, and the Minnesota Renaissance Festival. A new amphitheater scheduled to open this summer is expected to provide yet another amenity for residents and visitors.
The city continues to experience steady population and job growth. Between 2020 and 2024, Shakopee’s population grew an estimated 10.8%, according to local officials. Employers such as Amazon, Emerson, Canterbury Park, and the Shakopee Public Schools have helped fuel that expansion, supporting demand for new housing options.
“Shakopee felt like the right market at the right time,” Swenson said. “It has an increasing population and good demographics. It offers the type of lifestyle that people want. It’s one of the top-performing markets in the state. All the new construction in his market is filling up fast. The timing was right to enter this market.”
Don’t expect The Deco to be LouMin’s last acquisition in Minnesota, either. Swenson said that the company is just getting its start in the state.
For LouMin, that demand is central to the bet the firm is making. With The DECO now in its portfolio, company leaders say they’re focused on strengthening operations, elevating the resident experience, and evaluating additional opportunities across the state.
“We believe Minnesota will be an important part of LouMin’s future,” Swenson said. “This acquisition is just the beginning.”
strong numbers and indicative of a healthy industrial sector.
Bohrer says that the more affordable prices for industrial real estate are helping to keep vacancy rates low in this market.
“We are not a gateway city. We are not Los Angeles or Chicago, a mega city,” Bohrer said. “The price point at which you can buy industrial real estate is lower here. There is less risk when investing here. People can make cautious buys here, conservative buys. Based on where rents are going, where cap rates are headed in other major markets, the Twin Cities remain more of a pocket in which local investors can still buy product comfortably.”
Bohrer said that the Twin Cities area is attractive for companies seeking industrial space, too. The area
is an affordable place for employees to live. It’s also the logistics crossroads between I-35 and I-94. Companies also benefit from Minneapolis-St. Paul International Airport.
What will construction activity in the industrial sector look like next year? Bohrer predicts that most building activity in this sector will be of the build-to-suit variety again.
“New construction activity will be targeted more toward large users of space,” Bohrer said. “Our region is so built out in the core, more building will need to take place a little further out. Building costs are so high. It makes more sense for a company like us to find an existing space for our clients than it would to build something new.”
Boulder Lakes III (Photo courtesy of Saber Hall Investment Management.)
