Minnesota Real Estate Journal Nov. 2020

©2020 Real Estate Publishing Corporation November 2020 • VOL. 36 NO. 4

Lifetime Achievement Award Winner John Allen: The determination of a pit bull clutching a chuck roast page 16

Downtown Development & Lake Street Summit: Challenges await, but future of downtown Minneapolis remains bright

By Dan Rafter, Editor

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he message from commercial real estate pros was a simple one during Minnesota Real Estate Journal’s Downtown Development & Lake Street Summit: The future of downtown is bright, and political leaders across the state need to work closely

with corporate leaders to make sure that brighter future arrives sooner rather than later.

It was a message of hope that’s needed today. Like many urban centers, downtown Minneapolis is struggling today. The COVID-19 pandemic and the resulting

business shutdowns already sent workers out of the downtown and caused businesses and restaurants to close their doors. Then came the May 25 murder of George Floyd and the protests and rioting that followed throughout downtown Minneapolis.

MINNEAPOLIS (continued on page 10)

The big challenge: Planning the future of downtown Minneapolis’ living room

By Dan Rafter, Editor

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The most famed indoor gathering spot in downtown Minneapolis, the IDS Center’s Crystal Court, is getting a $5 million facelift.

Accesso, owner of the IDS Center in downtown Minneapolis, recently released a series of renderings detailing the planned revamp of Crystal Court, the busy public space on the ground floor of the 57-story tower.

The renovation plan for the nearly 50-year-old courtyard was designed in collaboration with architects Perkins and Will and New History. The goal of these plans? To update the space while still honoring the work of renowned architect Phillip Johnson, who designed the IDS Center.

This is an important project. On a normal workday – during pre-pandemic times – the Crystal Court is humming with businesspeople, tourists and downtown residents, some rushing through the court, others lingering

by the court’s trees or eating lunch by a fountain. Plenty of people, then, will be watching this renovation.

But Deb Kolar, general manager at Accesso, would have it no other way. She and the architects who have designed the plans say that the renovations will only enhance the court’s standing as Minneapolis’ central gathering place

CRYSTAL COURT (continued on page 12)

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COVID’S UPENDED EVERYONE’S LIFE. PROPERTY MANAGERS ARE NO EXCEPTION: The pandemic has made life more challenging for property managers. How have they adapted?

14 A CARES ACT TRAP FOR THE UNWARY:

When the CARES Act provided a technical correction for the so-called “retail glitch” in the Tax Cuts and Jobs Act, it also created a trap that could cause taxpayers to permanently lose future qualified improvement property depreciation deductions.

15 COVID-19 AND PROPERTY TAX ASSESSMENTS:

The COVID-19 pandemic has impacted so many facets of our daily lives, and taxes are no exception.

16 MREJ’S 2020 LIFETIME ACHIEVE AWARD WINNER: JOHN ALLEN:

Real estate veteran John Allen earned the Lifetime Achievement Award during this year’s MREJ awards night. We take a closer look at this dealmaker’s illustrious career.

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A BRIGHT FUTURE FOR DOWNTOWN? This year has been a challenging

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PLANNING THE FUTURE OF DOWNTOWN MINNEAPOLIS’ LIVING ROOM:

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CREATIVITY THE KEY FOR RETAILERS FACING DOWN THE PANDEMIC:

one for downtown Minneapolis, with the fallout from protests and COVID-19 casting a pall on the hub of the city. But CRE professionals say that the future remains bright for downtown.

The most famed indoor gathering spot in downtown Minneapolis, the IDS Center’s Crystal Court, is getting a $5 million facelift.

This year will go down as the worst year for retail closings ever in the United States. What creative steps are retailers taking to survive?

HYDE DEVELOPMENT

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NOVEMBER 2020

CoStar report: Retail closures to reach new high in 2020

By Dan Rafter, Editor

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he news for retailers is grim: According to the latest research from CoStar Group, store closures in 2020 will reach an all-time high.

As of October, retailers had announced plans to close more than 130 million square feet of store space this year, according to CoStar. More than half of this space is coming from five big-name retailers: J.C. Penney, Macy’s, Stein Mart, Bed Bath & Beyond and Pier 1 Imports.

Experiential retail has been hit hard, too, with retailers such as 24 Hour Fitness, Gold’s Gym, Check E. Cheese and many restaurants announcing store closures this year, too.

COVID-19 is the big cause of this record-setting pace. But it’s not the only one.

As CoStar retail analysts say, the retail sector was facing challenges long before the pandemic hit. The growth of ecommerce and online shopping had already hit traditional brick-and-mortar retailers hard, according to the company. CoStar says that the pandemic, and the further boost it has given to online shopping, has only accelerated these struggles.

“It was rather surprising to see the speed at which retailers were announcing closures,” said Robin Trantham, retail consultant with CoStar Advisory Services, during an interview with Minnesota Real Estate Journal.

“We, of course, expected closures to come from the pandemic, but the pace has been rather quick. Retail is always going through a big transition. This year, the pandemic really accelerated that transition. With the pandemic and the continuing threat of ecommerce, we are seeing record store closures.”

Trantham said that retailers who were already struggling with the threat of ecommerce before the pandemic are feeling more pain today. Those retailers that have adopted an omnichannel approach -- maintaining brick-and-mortar stores more to showcase their products and then expecting a large chunk of their consumers to buy these

products online -- have been able to better withstand the impact of the pandemic and the resulting shutdowns.

Retailers with stronger online presences, such as Target and Walmart, have benefitted from the growth of online sales during the pandemic. Many consumers have increased their online purchases during the last seven months as retailers shut brick-and-mortar stores. And while this has helped bigger retailers with strong websites, it’s hurt others, especially apparel retailers, restaurants and entertainment centers.

The five big retailers that are seeing the most store closures are an example of this. They mainly sell apparel or home goods. Both of these retail categories were hit especially hard by shutdown orders.

“People are still staying at home more,” Trantham said. “They aren’t going to these apparel and traditional retail shops to spend money. A lot have lost their jobs. There is less discretionary spending. These retailers saw a drop in foot traffic. As a result, they are thinking of cutting down their footprints.”

Now it’s not just shutdowns that are hurting these retailers. As Trantham says, many consumers are still hesitant to shop at retailers even if their states’ shutdown orders have ended. They’re worried about contracting COVID-19 and would rather shop online than take their chances at a traditional brick-and-mortar retail center.

“It comes down to people feeling safe when they are shopping,” Trantham said. “A lot of retailers and center owners have put money and resources into making sure their centers are more than safe enough to shop at. That is of high importance right now. But a lot of people still don’t feel safe shopping in person.”

And don’t expect things to look better for traditional retailers soon. CoStar predicts that during the next 12 months, pandemic-related closures will drive a further increase in retail vacancy rates. The company predicts that mall vacancies will increase by

more than double that of the next-highest retail center type, while power centers and community centers are expected to suffer through significant vacancies.

Neighborhood centers, which are typically anchored by grocery stores, will see the lowest amount of closures, according to CoStar analysts.

CoStar doesn’t just track retail closures. The company also tracks store openings. Trantham said that grocery and discount stores are active today, opening new locations even during the COVID-19 pandemic. Trantham said that he expects these retailers to continue to do well even as the country continues to fight the pandemic.

But what about those retailers offering experiences, places like movie theaters, high-tech bowling alleys and indoor entertainment parks? For years, these experiential retailers had been growing, offering consumers experiences they couldn’t get just by shopping Amazon.

Trantham said that it will be a long, arduous road to recovery for these retailers. They’ve been devastated by the COVID-19-related closures. A good example is the Regal theater chain, which announced it was closing all 536 of its U.S. movie theaters.

But this pandemic won’t last forever. Trantham says that in the long run, experiential retailers are best poised to beat back the threat of ecommerce. Because of this, he said, experiential retailers should continue to thrive once a vaccine is distributed and U.S. shoppers feel safe again gathering in larger groups.

“We still believe that the long-term threat to retail is ecommerce and the growth of ecommerce,” Trantham said. “Experiential retail is not as exposed to the threat of ecommerce as is an apparel or traditional retail tenant. It is still a good play for a shopping center to take on an experiential tenant over the longterm over one that is highly exposed to the threat of ecommerce.”

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NOVEMBER 2020

The pandemic has upended everyone’s life.

Property managers are no different

By Dan Rafter, Editor

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he COVID-19 pandemic has changed life in the United States, with office buildings sitting empty in downtowns; millions filing for unemployment; children taking math, science and literature classes remotely from their own bedrooms; and government leaders weighing the benefits and negatives of closing down restaurants, bars and retailers to keep the virus from spreading.

couldn’t necessarily do things face-toface. People still needed to move and find places to live, though. People still needed maintenance and repairs in their units.

Property managers have had to shift a lot during this pandemic.

Repairs and maintenance are interesting. How have property managers handled these while being mindful of the need to socially distance as much as possible?

Property managers are dealing with big changes thanks to the pandemic, too, with a survey released in June by property management software provider AppFolio giving an indication of how significant these changes have been.

According to the survey, 82 percent of residential property management companies had at least some of their staff working remotely and 46 percent said they were adopting new technology as a way to prepare their businesses for the future.

The survey found, too, that 71 percent of property management companies said they were placing a priority on virtual showings while 64 percent said that these virtual showings are here to stay.

Stacy Holden, industry principal at AppFolio, recently spoke with Midwest Real Estate News about the ways in which the pandemic has changed the business of property management. Here is some of what she had to say.

We’ve written a lot about how COVID19 has changed life for brokers and developers. But it’s changed the way property managers work, too, right?

Stacy Holden: The pandemic has changed life for everyone. Property managers, for lack of a better phrase, have turned into frontline workers. All of a sudden, the people in their multifamily properties are living there 24/7. What would have been minor maintenance issues and inconveniences have become mission critical.

Property managers had to respond in different ways. They were also restricted from much in-person contact. They

Holden: Technology has played a big role.

We changed the way that people make work requests, for one thing. Residents aren’t just filing work orders online. They are filing them with photos and videos to show the actual repair work they need.

They are providing more information upfront to property managers in this way.

At the same time, we are seeing building maintenance people increasingly posting videos on how residents can fix the circuit breaker in their units or how they can fix other basic problems. There are some repairs that residents can do themselves.

AppFolio (continued on page 8)

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Maintenance workers will drop off supplies they need and might guide the residents through the repair by video. That reduces physical contact between managers and residents.

How has the video component of this change worked?

Holden: Sometimes property managers or maintenance staffers get online and do a video conference with residents as they take on a work order. That is becoming more common. We also have customers who have provided a library of do-it-yourself videos that their residents can access.

The maintenance professionals will film themselves walking through a unit and explain how you make common repairs.

How do you reset a circuit breaker? What should you check when you have a leaky faucet?

How about with the leasing side? How has the pandemic changed that part of the process?

Holden: The video interaction on the leasing side has increased. Property managers have long relied on virtual tours during the times when people can’t make an in-person showing for whatever rea-

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“In the dead of winter, no one wants to look at an apartment. Now people have lots of ways to look at apartments without actually stepping into them. From the property manager’s perspective, these tools make their jobs more efficient.” son. The number of virtual tours property managers are doing now, though, has only increased. These are useful tools when two people can’t be in the same room at the same time. It’s a safer way to show an apartment.

Not only are virtual tours more popular now, they will also be more common in the future. We asked property managers what tech pivots they think will remain with us even after the pandemic. The number-one piece of technology they cited was virtual tours. In response to

that, we have also seen a big increase in property managers using virtual leasing assistants, like our AI leasing assistant, Lisa. This virtual assistant takes care of the beginning of the resident experience. If residents are looking and have questions about an apartment, 24/7, 365 days a year, Lisa can have comprehensive conversations through AI, with a back and forth between her and residents. Residents can use Lisa to send in applications or schedule an appointment for a virtual showing.

Are virtual showings evolving as the pandemic continues?

Holden: There are different kinds of virtual showings. You and I might be on the phone or you might be on your laptop. I would be in the unit. I would give you a tour of that unit while you and I have a virtual interaction with each other. As I walk through the units, you’d be asking questions. We would all be at a safe distance, and the leasing agents would still have the ability to use their secret sauce, their selling skills, to sell someone a unit.

There are also 3D virtual tours that potential renters can do anytime on their own. They’d pull up a 3D video that goes through the unit. Property managers can post these online. This gives potential renters more confidence that this unit might be the right one before they move on to the next step.

Some management companies offer interactive site plans. We offer these to our property managers. These are 2D. Customers can click on them and get a layout of the complex, the lay of the land of the unit. After customers click through these, the next step might be to interact with our virtual assistant, Lisa, to make an appointment for an in-person or virtual showing.

These will be useful tools for after the pandemic, too. In the dead of winter, no one wants to look at an apartment.

Now people have lots of ways to look at apartments without actually stepping into them. From the property manager’s perspective, these tools make their jobs more efficient. With Lisa and other AI assistants, they are no longer asking the same questions over and over. The virtual

NOVEMBER 2020 assistant can answer these basic, early questions. Property managers can spend their time on more impactful tasks, like being there for residents 24/7 because so many of them are working from home now. Property managers can spend more time on the more important things.

What other changes brought on by the pandemic do you think will become permanent?

Holden: I think remote work will remain permanent to an extent. It is more efficient for many people. I don’t think working in an office will completely go away. One of the challenges with more people being in their units for most of the day revolves around efficiency. How as a property manager will I know things are getting done in these units on a timely basis? How do I know that the renewals are being done on a timely basis, or that the security deposit refunds are being paid out in a timely manner?

This is where automation comes in. Property managers can take their processes, policies and procedures and put them in an application itself. The application will guide users step by step through the app on how they can accomplish these important but repetitive tasks.

These apps help employees know what to do. They help property managers to see quickly if they are on time with a renewal or other job. They might see that they are behind three days on a renewal.

Why is that? You can use these automated applications to drill into the reasons why something is late. Property managers will use these apps to view the communication that has already happened between the resident and the leasing agent. They can determine if their employees have done things efficiently.

How has the pandemic changed the way residents are using common areas in their apartment buildings?

Holden: There is more demand on maintenance in general. The usage of common areas depends largely on the states and their local regulations. In some areas, for instance, residents can use their common areas like the fitness center but they must reserve a time to use it.

But this isn’t only about common areas.

If you look back at the 1918 pandemic that this country went through, one of the things that changed was the design of windows. We made them bigger so that more air could flow through homes. I think we’ll see changes like that, not only in the construction process but in how units are designed. There will be a greater emphasis on more open space. There will be an emphasis on providing spaces that residents can use for home offices. We’ll see more space set aside for package delivery. As residents are changing how they are using their apartments today, you’ll see the design of apartments change, too.

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M I N N E S O TA R E A L E S TAT E J O U R NA L

10 MINNEAPOLIS (continued from page 1)

area’s civic leaders, city council members and mayor are all well-intended. They all want to see a better Minneapolis, he said.

This combination has left a much quieter downtown, one with fewer people and struggling businesses.

The challenge is that solving the problems exposed by the pandemic and issues of racial justice is no easy matter, Lux said.

This was the topic during the Oct. 9 summit held at the Radisson Blu Mall of America in Bloomington, Minnesota. And while speakers were realistic about the state of downtown today, they were also hopeful, with many pointing to a brighter tomorrow.

“We are being faced with issues that are incredibly difficult to deal with,” Lux said.

The keys for that brighter tomorrow? The pandemic must loosen its hold on the city, and government leaders have to lessen restrictions on business owners, speakers said. Reform must occur in the Minneapolis police department, with speakers empathizing that they are looking for reform, not anything near an abolishment of the department.

Most important of all? People need to feel safe again in downtown Minneapolis, they said.

“Downtown’s future is bright,” said Bob Lux, principal of Minneapolis developer Alatus.

“We’ll get through these problems. People still want to live in downtown Minneapolis.”

Lux said that downtown Minneapolis is now at a key tipping point, saying that the

Lux said it is time for corporate leaders and the mayor to work together. The city needs more affordable housing, he said. And workers need to get back to their offices in downtown Minneapolis.

“Our corporate citizens and mayor need to work together, respect each other and acknowledge that we have social issues in our community,” Lux said. “We have to deal with these issues. We can’t just police our way out of this. We have to get people back to work sometime. That might not be today and it might not be next month. But it is important to pick a date. Let’s try to get a portion of the workforce back in downtown.”

Chris Carr, director of security with the Minneapolis office of security firm G4S, said that the last several months have been challenging ones for downtown Minneapolis. The challenge, he said, is that peaceful protests have been exploited by those who are more interested in looting and damaging property that they are social issues. Images

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“Downtown’s future is bright.

People still want to live in downtown Minneapolis.”

– Bob Lux, Atalus

of shattered store windows and burning buildings have kept many people away from downtown Minneapolis. That, in turn, has led to a perception that the downtown isn’t safe right now.

Carr said that with fewer workers in downtown Minneapolis, the number of homeless people in the city’s center now seems even larger. That, too, frightens people away from the center of the city. Carr said that the city needs to address the problem of homelessness and boost its supply of affordable housing.

“The pandemic has highlighted the lack of resources for people who have been experiencing homelessness,” Carr said. “How do we address that? Then there is the fact that there isn’t a lot of activity going on in downtown right now. There has been a withdrawal from companies in downtown.

There aren’t people commuting into downtown. When you have a reduction of that activity, some of the things you might not otherwise see are more visible.”

Carr said serious crime in Minneapolis is actually down now when compared to the same period a year ago. The problem is that the crime and violence that does exist is more visible today.

“It feels less safe today,” Carr said. “But it’s important to know the real story. There are percentages and statistics that we can communicate.”

It’s important, too, to protect businesses from looting while protecting the rights of protesters, Carr said. That’s where public-private partnerships such as RadioLINK, a communications network between private security agencies and the Minneapolis Police Department, can help, Carr said.

“As we navigate civil unrest, we have to be able to differentiate between the First Amendment and advocacy work that is happening and the exploitative and destructive element,” Carr said. “That’s where partnerships between the private and public sector come in. We want to get at these issues before they become a problem.”

Jonathan Weinhagen, president and chief executive officer of the Minneapolis Regional Chamber of Commerce, said that he is bullish on the future of downtown Minneapolis. As Weinhagen said, before the

NOVEMBER 2020 COVID-19 pandemic and the riots, people waned to live in downtown. Businesses wanted to open offices there, and restaurants and retailers wanted to open locations in the city’s center.

Today’s challenges are real, Weinhagen said.

But they are also not permanent. There will be life after the pandemic, and businesses will be allowed to operate again at full capacity.

When will that happen? That’s still unclear.

“We can’t just flip a switch and get people back downtown,” Weinhagen said. “Our governor’s executive order is one of the five most stringent in the country. If you can work from home, you must. We don’t know yet at what point we can turn the dial so that more companies if they want to can get more people back into the downtown core.”

Weinhagen, though, said that he doesn’t expect people to flee the city in droves. Some people and businesses will leave. But longterm, businesses and people want the amenities that come with living in downtown.

“The notion that there is a mass exodus out of concentrated urban areas, I would tell you, is patently false,” Weinhagen said. “We are six months into a pandemic. Companies don’t make decisions like that on a dime.

Business and activity is going to come back to downtown.”

Weinhagen agreed that the key today is safety. People will return to downtown if they feel safe there.

“We are realizing that it is a lot more complicated than just saying ‘defund the police,’” Weinhagen said. “The business community has a positive relationship with the police department. But there are challenges there.

What happened to George Floyd should never happen to anyone. It happened in our department and it has happened in departments across the country. We should be pushing for reforms to create a more just department. But we do need a police department.”

Dan Collison, director of downtown partnerships for the Minneapolis Downtown Council, focused on one of the reasons for hope in downtown: the advancement of The Root District.

The Root District includes about 30 acres of land in the North Loop neighborhood. The land, anchored by the Minneapolis Farmers Market and adjacent to Target Field, is slated for future development focusing on food, art and culture.

“There hasn’t been a lot of development interest for years in this area,” Collison said.

“There is so much potential here.”

The city owns 30 percent of the land in the Root District and is interested in seeing private investment in it.

“We are going to activate this place and draw people and energy to it,” Collison said.

“This district is one of the key pieces as we pivot to the feature.”

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CRYSTAL COURT (continued from page 1)

“The Crystal Court has always played an integral role in downtown Minneapolis.

It’s always been a social gathering place for the city,” Kolar said. “It gets chilly in Minnesota. It’s nice to have this indoor park in downtown. It’s hosted many events during its time, civic events and philanthropic events. We recognize that this space is not just for the tenants of the IDS Center. It’s for the entire city of Minneapolis.”

Tony Layne, principal and managing director at Perkins and Will, said that the

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Crystal Court sits at the metaphorical corner of Main and Main, and has always acted as the heart of downtown.

“The Crystal Court is kind of the living room for downtown Minneapolis,” Layne said. “There are all the gatherings and planned events that happen there. But it’s also about day-to-day life. Because of the Skyway system and the court’s connectivity, if you are in downtown, you are often in the Crystal Court every day. This space doesn’t just have ceremonial importance.

It has day-to-day importance. That means there is an extra level of responsibility in caring for it.”

The Crystal Court originally opened in 1972. The updated version of the court will feature new collaborative seating areas with modular furniture and an enhanced grove of overstory trees that will rise directly through the court’s granite floor. These trees will form a tall canopy of green space. The new court will also feature an infinity edge water feature.

David Dimond, principal and design director for Perkins & Will’s Minneapolis office, said that the Crystal Court is all about how people move through time.

“Time is shortened for pedestrians who flow quickly between street and skyway

NOVEMBER 2020

as they link into downtown,” Dimond said. “Time is stretched for those who find water, trees and casual seating an invitation to pause, gather and engage. We feel lucky to be refining opportunities for such engagement within this beautifully timeless place.”

As Layne says, visitors to the court experience the space in different ways. Some rush through the space on their way to work, barely pausing to glance at the trees or tables dotting it. Others go to the space to linger and relax. Some are in a contemplative mood and are enjoying the space by themselves. Others are in bigger groups, laughing and swapping stories.

NOVEMBER 2020

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“Phillip Johnson’s Crystal Court is truly one of the iconic and most beloved sites in downtown Minneapolis,” said Steve Cramer, president and chief operating officer of MPLS Downtown Council. “The planned update will solidify that legacy for generations to come. And it couldn’t come at a better time as our downtown looks forward to a strong bounce back from the challenges of today. This timeless space reminds us of the enduring importance of downtown to the economic and social fabric of our entire community.”

“Phillip Johnson’s Crystal Court is truly one of the iconic and most beloved sites in downtown

Kolar said that Accesso will officially apply for its construction permits with the city in November. In late December, the construction barricades will start popping up at the court. In late January or early February, she said, hard construction will begin.

Minneapolis. The planned update will solidify that legacy for

The last piece of the project? That is when the court’s new trees will be brought up from Florida in June of next year.

generations to come.”

– Steve Cramer, MPLS

“The space steps up to whatever need you have at the time,” Layne said. “Even during the day, the space changes. From morning to noon to evening, the different qualities of light change the feel of the Crystal Court. Throughout the year, the space evolves and changes with the sea-

13

Kolar said that Accesso is taking its role of protector of the space seriously. sons. That shifting nature of the space was an important factor that we kept in mind when we were designing the renovations.

We wanted to maintain that quality about this space and enhance it.”

The IDS Center has long been an iconic structure in downtown Minneapolis. The tower includes nearly 2 million square feet of mixed-use space, a two-story retail center, the 19-story Marquette Hotel and an enclosed eight-story urban park.

“The space is timeless,” Kolar said. “The bones of the space are so spectacular.

There was such a thoughtfulness that went into putting this space together. As the space has evolved over the years, it has still maintained this timeless beauty.”

WHY WASHINGTON COUNTY?

LOCATION ADVANTAGES

• 15-minutes from the MSP International Airport • 10-minutes to downtown St. Paul with lots of land • 4-Hours to Madison & Des Moines, 6-Hours to Chicago • Centrally located within the US. Easy access to Canada and the rest of the United States

CONTACT

Christopher Eng Washington County CDA Director of Economic Development 7645 Currell Boulevard Woodbury, MN 55125 (651) 202-2814 ChrisE@washingtoncountycda.org

For more information, visit www.EastMetroMSP.org

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NOVEMBER 2020

A trap for the unwary in the CARES Act ‘retail glitch’ fix

By Brianna Komppa

W

hen the CARES Act provided a technical correction for the socalled “retail glitch” in the Tax Cuts and Jobs Act, it also created a trap that could cause taxpayers to permanently lose future qualified improvement property (QIP) depreciation deductions.

“The fix generally allows taxpayers to immediately deduct up to 100 percent of the cost of such improvements

The fix generally allows taxpayers to immediately deduct up to 100 percent of the cost of such improvements using bonus depreciation, rather than depreciate them over 39 years.

Not only can the deduction be taken for improvements made in future years, but the IRS also made it easy for taxpayers to go back and claim the deduction for improvements made in 2018 and 2019. By filing an amended return or a Form 3115, taxpayers can generate additional deductions and increase their cash-flow.

But what if a taxpayer doesn’t want to go back and claim the deduction available to them for the prior year? In such cases, can a taxpayer choose to simply keep depreciating QIP placed in service in 2018 and/or 2019 using the 39-year life with no bonus depreciation? Taxpayers may want to do so for a variety of reasons: • To avoid the additional time and expense involved • To avoid amending partner or shareholder returns in the case of a flowthrough entity • To avoid opening up a previously filed return to audit or causing an extension of the statute of limitations • Perhaps any additional depreciation deductions generated would not provide an immediate benefit due to the application of another limitation in the tax law such as the passive loss rules Common sense would say the IRS wouldn’t mind if a taxpayer opted to continue using a 39-year depreciable life with no bonus depreciation, because it is better for the IRS. Surprisingly, however, there are negative consequences to not adjusting the depreciable life and method of QIP placed in service in 2018 or 2019 to reflect the retroactive changes made in the CARES Act. In such a case, taxpayers risk permanently losing future depreciation deductions with respect to those QIP assets.

THE ‘ALLOWED OR ALLOWABLE’ DILEMMA

The IRS indicated that using a 39-year depreciable life for QIP placed in service in 2018 and beyond is now considered to be an impermissible depreciation method.

In addition, bonus depreciation is man-

using bonus depreciation, rather than depreciate them over 39 years.”

– Brianna Komppa

datory with respect to qualified property unless a taxpayer elects out on the tax return for the year in which the property was placed in service.

IRS rules require generally that the basis of depreciable property be reduced by the greater of the depreciation ‘allowed or allowable.’ The basis of depreciable property eligible for bonus depreciation must also

That means the basis of any QIP placed in service in 2018 and 2019 is required to be reduced by the amount of bonus depreciation that should have been taken, and future depreciation deductions can’t be claimed with respect to that basis reduction amount going forward.

Further, in the year of sale, a taxpayer using an impermissible depreciation method

“Surprisingly, however, there are negative consequences to not adjusting the depreciable life and method of QIP placed in service in 2018 or 2019 to reflect the retroactive changes made in the CARES Act.” be reduced by the greater of the bonus amount ‘allowed or allowable’ before any other regular depreciation deductions are computed.

Because QIP placed in service in 2018 and 2019 was made retroactively eligible for bonus depreciation, unless an election out, taxpayers must reduce the tax basis of such QIP by the amount of “allowable”’ bonus depreciation, whether or not such bonus depreciation was actually claimed.

would still be required to reduce its tax basis by the amount of depreciation that would have been ‘allowable’ had a permissible method been used. This could create a ‘whip-saw’ situation, since taxpayers would be required to pick up additional gain as if the ‘allowable’ depreciation deductions were claimed but would have never actually received the benefit of those deductions.

THAT’S WHY THE RULES CREATE A TRAP FOR THE UNWARY.

Taxpayers that placed QIP in service in 2018 or 2019, did not elect out of bonus

depreciation and do not file a 3115, amended return or AAR for such years to either claim bonus depreciation or elect out of bonus depreciation and claim additional depreciation deductions using a shorter depreciable life, will permanently lose the benefit of all future deductions with respect to such QIP.

ACTION REQUIRED BY TAXPAYERS WITH QIP PLACED IN SERVICE IN 2018 OR 2019

To avoid this trap, taxpayers with QIP placed in service in 2018 or 2019, who did not specifically elect out of bonus depreciation and/or used a 39-year life for that QIP should take one of the following actions: 1. File a 3115, amended return or AAR for the affected years to claim bonus depreciation on all QIP placed in service during such years.

2. File a 3115, amended return or AAR for the affected years to elect out of bonus depreciation for the 15-year asset class and claim additional depreciation deductions using a 15-year life, rather than a 39-year life.

Each taxpayer’s unique situation will dictate the best option. Some of the options are limited by time constraints as well.

Contact Wipfli to learn more.

Brianna Komppa is a senior manager for taxes with Milwaukee-based Wipfli. She works with real estate developers, construction contractors and community banks.

She not only provides basic tax compliance services for clients, such as return preparation and deferred tax calculations, but also is involved with tax planning, research, and transactional consulting services.

NOVEMBER 2020

M I N N E S O TA R E A L E S TAT E J O U R NA L

15

COVID-19’s impact on property tax assessments Chad Zeznanski

T

he COVID-19 pandemic has impacted so many facets of our daily lives, and taxes are no exception.

“The fix generally allows taxpayers to

As businesses seek financial relief wherever possible, some outside consultants are encouraging businesses to pursue 2020 property assessment reductions, founded on coronavirus-related economic losses.

Clearly, most income-producing properties will suffer coronavirus financial losses and should pursue assessment reduction.

However, most states determine property assessments on prior-year income. As such, pursuing 2020 assessment reductions solely on coronavirus economic losses would be inappropriate in most states. Business property tax values for the 2020 assessment date — for personal property — will most likely remain intact despite the current health crisis.

Therefore, businesses should pursue 2020 and 2021 property assessment reductions based on a comprehensive assessment review.

immediately deduct up to 100 percent of the cost of such improvements using bonus depreciation, rather than depreciate them over 39 years.”

- Chad Zeznanski

TYPES OF PROPERTY TAX RELIEF

In general, property tax relief falls into two categories: disaster relief and economic relief.

Disaster relief, a.k.a. misfortune & calamity (M&C): Specifically covers “phys-

ADVOCATE. ADVISER. ALLY.

ical damage” to property(s) resulting from events such as fire, earthquake, tornadoes and storms. It is possible to obtain a current-year reduction in property assessment value/property tax for physical damage.

It does not provide property tax relief for economic losses.

Economic relief, a.k.a. economic decline in value: Applies to income-producing Property Taxes (continued on page 18)

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NOVEMBER 2020

Lifetime Achievement Award Winner John Allen: The determination of a pit bull clutching a chuck roast

J

By Dan Rafter, Editor

ohn Allen has long been a big name in the Minnesota commercial real estate community. Not only did he thrive as a broker with Coldwell Banker, he also founded his own firm, starting Industrial Equities in 1983. That development and investment firm, one that focuses on industrial real estate, is thriving today, with a portfolio of more than 3 million square feet of industrial space.

mercial real estate. He spent 14 years at Coldwell Banker Commercial Real Estate Services, consistently ranking as a top-five producer from 1981 to 1995. During this time, he arranged more than 10 million square feet of sales and lease transactions.

Allen’s peers respected his drive. He was a multiple winner of the Colbert Coldwell Award before he left the company in 1995 as a senior vice president.

But this isn’t Allen’s only success story. His residential land development company, Windsor Development, has been a major player in the Minnesota real estate scene, too. Windsor has completed almost 2,000 residential lots in communities throughout Minnesota, Arizona and Florida.

Of course, Allen, like many thriving CRE pros, didn’t always envision a career in real estate. He did attend law school, after all. But as he moved through law school, he found that the idea of practicing law didn’t excite him. He decided to look for other opportunities.

It’s little surprise, then, that Allen, president and chief executive officer of Industrial Equities, was awarded the Gary Holmes Lifetime Achievement Award during the 2020 Minnesota Real Estate Awards held Oct. 1 by Minnesota Real Estate Journal at the Depot in downtown Minneapolis.

At the time, Allen was a bouncer at Sergeant Preston’s, a bar and restaurant in Minneapolis. He noticed that the customers who always seemed to be having the most fun, those who dressed the nicest and drove the newest cars happened to be in real estate.

Allen was one of 37 award winners during the event. And his acceptance speech was one of the evening’s highlights.

“They were winning the fun game,” Allen said during a phone interview with Minnesota Real Estate Journal.

Those who’ve followed Allen’s career?

They aren’t shocked at the long-term success Allen has enjoyed in commercial real estate. Take Bill McHale, executive vice president of development with Ryan Companies. During a taped introduction during the awards ceremony, McHale said that Allen always had a knack for closing deals. And that’s a skill that’s never left this real estate veteran, he said.

And during his third year of law school, Allen came across a copy of Corporate Report, a business magazine in Minnesota. The magazine had a story about Coldwell Banker arriving in Minneapolis. The cover shot featured six of the pros from Coldwell kicking their feet in the air and looking extremely successful. And when Allen read the story? He was hooked.

“John always came in with this big energy,” McHale said. “He was smart and decisive. He was imposing, but he was not threatening. He had a real likeability to him. He really was a natural salesperson.”

Paul Magers, a former news anchor and reporter, met Allen when they were both students at Hamline University School of Law in St. Paul. He and Allen quickly became friends, and it didn’t take long for Magers to discover Allen’s entrepreneurial nature.

During the awards ceremony, Magers told the story of the frigid winter day when Allen rushed up to him and asked for an emergency loan of $50. What did Allen want the money for? He wanted to buy a new starter for his car. Allen knew that the Twin Cities’ temperatures were only going to drop in the winter months. He also knew that his roommates, who, at the time, were as broke as he was, had junk-

“This has been a wonderful career on multiple levels,” Allen said. “It has been interesting. It’s been fun. And you do positive things.”

“I read that magazine and I kept it,” Allen said. “I knew I wanted to do what those guys did. That was a career that I wanted to get into.”

Allen had two interviews after graduating from law school. He was offered a job at a corporate law office that came with two weeks of vacation, health insurance and a fixed, solid salary. He also interviewed with Coldwell Banker. That job offer came with no insurance and no set salary.

“There was no decision to make,” Allen said. “I took the job at CB.”

er cars that wouldn’t handle these cold temps.

Allen installed his new starter and when the temperatures plummeted his car started right up. Other’s vehicles? They weren’t so fortunate. Allen made a quick haul charging his roommates $10 for rides to work or campus. As Magers said, Allen paid for that $50 starter several times over.

“John has the determination of a pit bull on a chuck roast,” Magers said. “He’s not going to let go. It’s his energy. It’s his drive.

He is unbelievable. He has more determination than any human being I’ve ever met.”

That determination, along with a shrewd understanding of the market, has propelled Allen to a booming career in com-

And he’s never regretted it.

“This has been a wonderful career on multiple levels,” Allen said. “It has been interesting. It’s been fun. And you do positive things. You increase the tax base.

You create opportunities for businesses to get space to grow their companies. There is not another enterprise or area of commerce that has more of a waterfall impact

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18 on jobs. Look at all the people who are in business because of real estate. You have architects, finance professionals, attorneys, engineers, construction people. The impact you have in this business only adds to the fun of it. You are creating things.

You are making things happen.”’

What are some of these positives? Allen points to the redevelopments he’s worked on that have boosted the fortunes of struggling communities. He pointed to new facilities that employ people and enhance a community’s tax base. Then there’s the remediation work that goes into preparing sites for new industrial facilities.

While Allen has enjoyed a long and successful career, this doesn’t mean he was immediately confident that he’d made the right decision when he turned down that steady legal job. During his early days in the business, Allen didn’t let go of his bouncer job. He also worked weekends sealing driveways as a way to bolster his income during those early months.

Success, though, came quickly for Allen.

After working as a commercial broker for about 16 months, he had saved enough money to purchase his first commercial property. He had been cold-calling potential clients in Minneapolis when he connected with one who owned an office building. The owner wanted to sell the property as quickly as he could. Allen, sensing an opportunity, bought the building himself.

Allen held onto the property for about 10 months, then flipped it to a car dealership that was next door and wanted the space to expand its business. Allen flew to Chicago with his proceeds and bought his second property.

“Then I was off to the races,” he said. “I was buying smaller industrial properties that needed to be repositioned or cleaned up or leased up. For those first deals, we

Property Taxes (continued from page 15)

property when there is a loss of revenue due to general economic conditions.

The first difference between the two forms of relief is the timing of recognizing the loss.

• For M&C issues, the date of loss becomes the recognized date by assessors to process requests for reductions in the improvement loss.

• For economic decline, the date of loss is statutory, often referred to as the assessment and/or valuation date. For many states, the assessor’s valuation date is January 1 of the current year. Further, for economic decline, it must have been known or reasonably anticipated as of the assessor’s valuation date in order to be relied upon in the relative tax period.

“We never defaulted on a single mortgage or loan. Therefore, we got preferential treatment from banks and lenders. That allowed us to take risks when others were unable to do so. If real estate is about anything, it’s about risk management. That’s something I’ve learned over the last 40 years. It’s a risk-management business. Looking back, it’s clear that we managed risk well.” put in a lot of work. We put our shoulders into them. We painted them. Cleaned them and leased them.”

That approach worked. By 1995, Allen had acquired a portfolio of about 1 million square feet. That was when he left Coldwell Banker and began focusing more on the development and investment of institutional-grade properties.

Allen certainly created his own success.

But he says he also benefitted from

The second difference between the two forms of relief is methodology.

• For M&C, the methodology is an analysis of the value of loss to improvements until such loss is corrected. For example, if a fire causes $1 million worth of damage to a structure, you must compare the assessed structure value with the loss incurred to calculate the reduction in relative assessment.

• For economic decline, value decline is due to the loss of revenue; the physical property remains intact but no, or limited, revenue is generated. The methodology is specific to January 1 or other specific date of assessment, and not the actual date of loss.

CHALLENGING YOUR PROPERTY TAX ASSESSMENT

Various assessors have already indicated that a reduction related to the current environment will not be forthcoming for the 2020 assessment. Just as businesses are seeking financial relief, so too are states,

working at a company as professional as Coldwell Banker during the early days of his career. And after leaving Coldwell, Allen made sure to surround himself with talented commercial real estate professionals. This included skilled architects, financial professionals and lawyers.

NOVEMBER 2020 Finally? Allen prided himself on being honest and keeping his word.

“We always paid our mortgages on time or early,” he said. “We never defaulted on a single mortgage or loan. Therefore, we got preferential treatment from banks and lenders. That allowed us to take risks when others were unable to do so. If real estate is about anything, it’s about risk management. That’s something I’ve learned over the last 40 years. It’s a risk-management business. Looking back, it’s clear that we managed risk well.”

Succeeding in a field as competitive as commercial real estate takes a different type of mindset and personality. Allen possesses the confidence necessary to succeed. He also studied the market and focused on one asset class, industrial, becoming an expert in it.

“Unless you are a machine, successful multitasking just doesn’t work,” Allen said. “I took my confidence, focused on one type of real estate and bet on myself.

I’m also laser focused when I’m involved in a deal. I want to know everything there is to know about a property. I can tell you what we are paying the guy who empties out the dumpsters each week. We always have the data and information we need to complete our next project with confidence. You need to be that focused. This business is about taking the right kind of risks at the right time with the right people. You increase the odds of that happening by knowing all the data.”

Allen also understood his market. He had a knack for buying and selling properties at the right time.

counties and municipalities seeking financial support in the form of tax dollars to offset huge losses in revenue already occurring.

For those states where the assessment date fell within the pandemic timeline or for businesses with high dollars at stake, there may be opportunity or additional incentive to challenge an assessment. With most assessor offices being closed, however, meetings to discuss any reduction could be pushed out until much later in the year.

While the 2020 assessment might well be insulated, reductions in current business revenue associated with the coronavirus should be incorporated into determination of the 2021 assessment. It would be reasonable to expect and/or advocate for a 2021 property assessment reduction due to the COVID–19 economic conditions of 2020.

Chad Zeznanski is the practice leader of Wipfl’s Property Tax & Real Property Appraisal Services. He has more than 20

years proven performance as a Real Estate, Property Tax Consultant & Analysis, Commercial Appraiser, Site Acquisition Specialist, Real Estate Developer and Commercial Broker.

He has represented and successfully reduced property taxes for REITs, Private Equity, and Multi-National Companies across the country and is currently overseeing a combined real property portfolio of over eight billion dollars. He focuses on exceeding client expectations by continuously striving to maximizing property tax saving opportunities. This includes enforcing policies, standards and guidelines, researching tax issues, reviewing valuations of real property, negotiating assessment reduction and settlements, and the preparation and presentation of assessment appeals and supporting litigation.

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The smartest, safest choice for office space Locations available throughout the Twin Cities from 5,000 – 75,000 SF Hoyt Properties Inc. is the largest flex developer in the Twin Cities

CONTACT BELOW TO DISCUSS FURTHER HOYT PROPERTIES INC. 612.338.7787 snelson@hoytproperties.com www.hoytproperties.com www.flexspacemn.com

Results that transform

Helping commercial real estate investors, owners and developers maximize their investments and leverage the right technology to achieve their goals, time and again.

Wipfli offers our congratulations to the winners of the 2020 Minnesota Real Estate Awards.

wipfli.com/real-estate

2020 MINNESOTA REAL ESTATE AWARDS

2020 MINNESOTA REAL ESTATE AWARDS SPECIAL SECTION Suburban Multifamily

Medical Property

Interior Design - Office / Headquarters

Greater Minnesota

Redevelopment/Reuse/Historic - Education

Redevelopment/Reuse/Historic - Retail &

Redevelopment/Reuse/Historic - Mixed Use

Industrial / Manufacturing / Science

Restaurant

Retail / Restaurant

Emerging Leader of the Year

Architect / Engineer of the Year

Mortgage Broker / Banker

Hospitality

Senior Housing - South/Southeast

Most Significant Sale Transaction

Real Estate CPA of the Year

Redevelopment/Reuse/Historic - Housing

Redevelopment/Reuse/Historic - Office

Most Significant Lease Transaction

Interior Design - Housing

Senior Housing - Southwest

Senior Housing - North / Northwest

Urban Multifamily - Minneapolis CBD

Affordable Housing

Interior Design - Retail / Restaurant / Hospitality

Real Estate Woman of the Year

Redevelopment/Reuse/Historic - Medical

Property Management Company of the Year

Developer of the Year

Broker of the Year

City / Municipality of the Year

Executive of the Year

Interior Design - Multi-tenant Office

Urban Multifamily

General Contractor of the Year

Property Manager of the Year

2020 MINNESOTA REAL ESTATE AWARDS

SUBURBAN MULTIFAMILY Nolan Mains The design team reimagined the potential of this once neglected site to create luxury living and a one-of-a-kind gathering space at 50th and France to be called Nolan Mains. As the first major development in Edina’s 50th and France shopping district in over 10 years, Nolan Mains sought to expand existing walkways, create a public plaza, provide additional parking for shops and dining and offer 100 new, luxury apartments. Nolan Mains offers a ground-level retail experience, with a four-sided design approach, connecting existing retailers, with five levels of apartments above. An overall objective was to create an experience found in a boutique hotel. The design team paid close attention to every detail, from the selection of materials, art and furniture to placing an emphasis on branding, a distinctive design aesthetic, and lifestyle-oriented amenity spaces to make Nolan Mains a success.

Aria - Edina Aria is a luxury apartment community set within the heart of Edina’s exclusive shopping and entertainment district. The 308,905 sq-foot community with 184 units offers alcoves, one-, two- and three-bedroom apartment homes as well as two-bedroom, two-story direct-entry townhomes. Each unit is spacious and inviting complete with private exterior terraces or balconies.

Chamberlain Apartments Kraus-Anderson completed the development and construction of The Chamberlain Apartments in Richfield, Minnesota, the first multifamily expansion project in the city in nearly 30 years. KA worked in partnership with Inland Development Partners and the City of Richfield to renovate three existing buildings and construct three new buildings on the property. The project added 316 units to the city, with 20 percent of them dedicated to affordable housing. The amenity-rich development includes an outdoor patio and grill stations, pool, playground, dog run, fitness center, conference room, two-story atrium with a bar, and a hidden game room that opens through a book shelf. The Chamberlain project was inspired by the Minneapolis-Saint Paul airport’s original name, Wold-Chamberlain Field, honoring local World War I pilots Earnest Wold and Cyrus Chamberlain.

Elevate at Southwest Station Elevate Apartments offers residents in the southwest suburbs of Minneapolis a fresh and modern place to call home. Residents have access to a full amenity package such as a community room, business center, family/kid's room, fitness center, pet wash, package concierge system and roof top patio. In each of these spaces and throughout the building, special attention was paid to focus on classic design elements that will stand the rest of time. The use of a neutral color palette is intentional to feature the natural color and texture of wood, concrete, and stone, along with the use of accent lighting to help the materials stand out in each space.

Loden SV Loden-SV is based on three key design elements: authenticity, naturalism, and youthfulness. With an overall concept rooted in Scandinavian design combined with a focus on brand integration, the Loden experience starts at the front door and is carried throughout the building.Upon arrival through a drivable, shared plaza space, an accentuated two-story lobby and clubroom welcomes in residents and visitors via patterned-lit portal. Once inside, amenities are laid out so they flow into one another for large convocations or intimate gatherings. Places to “plug-in” and work remotely are provided within the amenity areas to generate a sense of community for residents, and a state-of-the-art fitness center offers boutique gym services. Pets are not forgotten with a large dog spa, outdoor park, and space for indoor play during the cold winter days. A large bike lounge rounds out the amenity spaces, providing residents access to the local trails, lakes, and parks including rentable bikes, paddleboards, and kayaks.7

The Venue The Venue is an exciting, new addition to beautiful downtown Chanhassen, directly next door to the famous Chanhassen Dinner Theater. This six-story, 134-unit market-rate apartment building was brought to life by the efforts of the owners, Roers Companies and United Properties, the LHB Inc. design team, and Stevens Construction. Anchored by a new 19,000-square-foot ALDI store, the Venue project brings amenity-rich living and convenience to the underdeveloped market of Chanhassen. The property features golf simulator, fitness center, rooftop terrace, indoor club and coffee lounge, private patios and balconies, underground heated parking, and much more. Offering studio to 3-bedroom apartment homes, the Venue is Chanhassen’s first lifestyle-driven apartment community.

GREATER MINNESOTA Riverwalk Riverwalk Apartments is the first downtown waterfront luxury apartment complex in Rochester, where residences enjoy a southern river view and stadium seating facing Mayo Field. The building includes 152 units, 5 stories of wood frame atop 2 levels of precast podium. Construction included demolishing 4-single family homes and extensive excavation efforts due to the nearby Zumbro River.

Amenities • Elevated pool deck and hot tub spa with sundeck lounge area, entertainment courtyard, gas grilling stations, bocce ball court, game room, fitness studio and club room all on same level as the pool deck.

• Grand two-story lobby with complimentary coffee café, indoor fire pit and lounge locations, business center, underground parking, resident storage units, bike rack and repair station, and electric vehicle charging stations.

111 Vine Street Owatonna, MN 111 Vine Street is a 5 story 54 unit market rate apartment building in downtown Owatonna. The building features 9 foot ceilings, in unit washer and dryers, granite counters, stainless appliances, individual HVAC, underbuilding parking, a fitness center and a community room with fireplace and rooftop terrace with grills and a fire table. .

Absolute Air - Faribault, MN Absolute Air, created in June 2018 as a partnership with five local, well-established companies, set out with the intention to build a common production plant to supply oxygen, nitrogen, and argon gases to current and future customers. The facility includes a $32 million investment in a new state-of-the-art liquid cooling air separation plant, built to accommodate a secure supply chain for today and the future. The project includes a 170-foot high distillation column essential to serving the production needs of a gas separation plant. The project will employee up to 20 skilled workers within 3-years of project completion, as the distribution fleet relocates to the project facility in Faribault, MN. The location in the Northern Industrial Park in Faribault, MN, directly off Interestate-35 and 45-minutes south from the Twin Cities Metro, serves as a positive nexus to quickly move the product to market, for fast and efficient delivery for new and existing customers.

Congratulations to all Finalists!

It is an honor to have you as clients and colleagues!

2020 MINNESOTA REAL ESTATE AWARDS

GREATER MINNESOTA Delta Dental Bemidji Operations Center Delta Dental of Minnesota’s new Customer Service and Operations Center provides an open-office environment for customer service, leadership offices, crunch collaboration rooms, wellness and fitness areas with locker rooms, breakrooms, storage, meeting/conference rooms, kitchen areas, training rooms and facility support systems space. The 38,000 SF, one-story (with mezzanine) building will accommodate 175 employees within the first five years, with room to expand up to 200 employees within 10 years. This project is being was completed under a design-build delivery method. The design was developed through a series of collaborative planning, programming and design meetings held between Kraus-Anderson, the architect and Delta Dental representatives. This expansion is the result of recent and projected membership growth, new product offerings and development of technology infrastructure, allowing Delta Dental of Minnesota to continue providing industry-leading support for its customers and dental partners. The new Customer Service and Operations Center will make Delta Dental of Minnesota a top ten employer in the city of Bemidji.

The Maven on Broadway Designed to meet the increasing demand for multifamily housing options in the vibrant downtown core, Opus partnered with Titan Development & Investments on a new multifamily mixed-used project in downtown Rochester. It is the first of its kind in this prosperous, growing city in southeastern Minnesota. Located between South Broadway and First Avenue, it is within walking distance of Mayo Clinic's main campus, as well as shopping and restaurants in the core of downtown Rochester. The six-story building includes 154 residential units and 9,000 square feet of ground-level retail space. Units feature high-end finishes throughout and include studios up to penthouse units and furnished units.

MOST SIGNIFICANT LEASE TRANSACTION RBC Gateway RBC Wealth Management signed a lease for 310,000 square feet (sf) at the Gateway project, United Properties's skyline-altering skyscraper now under construction in downtown Minneapolis. Paul Donovan and Jaclyn May of Cushman & Wakefield represented the tenant in lease negotiations.

Results that transform

Helping commercial real estate investors, owners and developers maximize their investments and leverage the right technology to achieve their goals, time and again. áǣȵˢǣ Ȓǔǔƺȸɀ Ȓɖȸ ƬȒȇǕȸƏɎɖǼƏɎǣȒȇɀ ɎȒ Ɏǝƺ ɯǣȇȇƺȸɀ Ȓǔ Ɏǝƺ 2020 Minnesota Real Estate Awards.

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2020 MINNESOTA REAL ESTATE AWARDS

REDEVELOPMENT/REUSE/HISTORIC - MIXED USE Commission House Commission House is a newly renovated historically designated building, featuring studio apartments and retail spaces.

Built in 1889, the building’s original use was defined by its current name – a commission house, or brokerage house for local trade. At the time, Lowertown functioned as a hub for trading and Commission House served several merchants, who distributed goods hauled in via steamboat or rail. Most recently it served a similar purpose for the Seestedt’s Carpet company – which called it home for over 50 years!

Blair Arcade and The Blair Apartments The project, Blair Arcade and The Blair Apartments, is a mixed-use property located on the corner of Western and Selby Avenues in the historic Cathedral Hill area of St. Paul. Once one of the more economically depressed areas of St. Paul, Selby Avenue is an area of resurgence, with an influx of new businesses, restaurants, and residents. Blair Arcade includes 67,000 SF of office/retail and is spread over two connected buildings, Blair East and Blair West. The east portion includes the ground floor and lower level of a historic 1887 stone building, with privately-owned condos above, and is home to well-known retailers Nina’s Coffee and Estetica Salon.

Schmidt's Rathskeller The complex’s Office Building (Schmidt's Rathskeller) within the locally designated and National Register-listed Jacob Schmidt Brewing Company Historic district was originally constructed in 1934 with 1950s alterations. It is located at the north side of the brewery complex along West 7th Street, a busy commercial corridor. The building houses office and retail space on the first and second levels, with support spaces and a restored Rathskeller at the lower level. The building also includes the tiny historic adjacent Well House building. The current tenants within the building include: Rose Street Patisserie, Bread Lab, Worker Bee, and Fort Road Federation.

TractorWorks Originally built at the turn of the 20th century as a distribution facility for John Deere, and recognized by the National Register of Historic Places as a contributing member of Minneapolis’ Historic Warehouse District, the TractorWorks building is now home to bespoke spaces for a variety of commercial, retail, and restaurant tenants. The interior juxtaposes modern glass and steel finishes and wood and polished concrete floors with elements of the original construction. Exposed brick walls, timber columns, and concrete pillars surround wooden freight elevator gates, steel vault and fire doors, and other unique preserved artifacts.

Congratulations to all the 2020 Minn ne s o t a R e a l E state Award Winners!

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RETAIL / RESTAURANT RH Minneapolis: The Gallery in Edina RH Minneapolis, The Gallery in Edina, represents the brand’s quest to revolutionize physical retailing, as well as its continued foray into hospitality, with a glass-encased restaurant and wine and barista bar, which open onto a beautifully landscaped rooftop park.

Comprised of three levels and nearly 60,000 square feet of indoor and outdoor space, this iconic retail experience features artistic installations of luxury home furnishings in a gallery setting, including expansive spaces devoted to interiors, modern, and outdoor collections. RH Minneapolis offers a destination for socializing, eating and drinking, and enjoying the outdoors to provide a completely reimagined shopping experience. Inspired by RH CEO’s travels, the building reflects the Classical architecture and formal gardens of Europe. The attention to detail in the manicured landscape continues inside with the organization of spatial relationships, exquisite materials, and seamless detailing, delivering a refined experience.

Thr3 Jack Thr3 Jack, a restaurant equipped with six golf simulators, opened in the United Properties owned Nordic building in the heart of North Loop in October 2019. The best-in-class simulators have advanced motion-capture technology that allow golfers to play a round of golf on the world’s most famous courses all year long. The simulators are also equipped with non-traditional golf-based versions of darts, corn hole, ski ball and hunting games.

Designed by the award-winning national design firm, ESG Architecture & Design, the 8,700 square foot space includes a fine-dining restaurant and bar that seats 200 people and features elevated contemporary American food.

Graze Restaurant This project is a two-story food hall restaurant with a bar on each floor located in the heart of Minneapolis. On the first floor there is a coffee and pastry shop that was built in the corner to allow the convenience of a takeout window being put in - this gives customers the opportunity to for a quick and easy coffee/pastry option. Inside there is a communal space with a substantial number of outlets giving customers a place to plug in their computer or any other device for quick charge. The first floor also includes other small and locally driven restaurants with seating. There is outdoor seating on 2nd floor deck patio and green space on main level for the purpose of giving customers a front row view to the beautiful Minneapolis city.

Lat 14 Asian Eatery Lat 14 was conceptualized as a restaurant serving food from the 14th Latitude (including Laos, Thailand, Cambodia) in a glamorous, modern application—a tall order for a restaurant slated to be built in a faded Perkins location. The construction and design Team removed walls, opened up the ceiling, used a wide variety of modern and vibrant finishes and furnishings, and added focal design features to completely transform the overall image of the restaurant, including changing the recognizable Perkins exterior to a shape that’s now signature to Lat 14.

RAAG Kamarron Design, Inc. was contacted in the spring of 2019 to begin a design renovation on an existing building; formally home of Pig & Fiddle and Sakana restaurants. The space was a very chopped blend of past tenants, lacking in design and an inspired layout. The space was choppy with a closed vestibule and a hallway which opened directly into the men’s bathroom. It also had a poorly laid out floor plan with two open ended bars. The color palette and the design was a mix of a rustic casual restaurant (Pig & Fiddle) and a Japanese sushi restaurant (Sakana). The new tenants were the owners of Indian Spice House restaurant & grocery in Eden Prairie.

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2020 MINNESOTA REAL ESTATE AWARDS

MORTGAGE BROKER / BANKER Brett Olson In 2019 I originated approximately $270 million in new loans with an average loan size of $20 million helping the Minneapolis Grandbridge office lead the Grandbridge network of over 20 offices close $850 million in loan volume. I closed loans with 10 different capital providers including local and regional banks, life insurance companies, Fannie Mae, and Freddie Mac. I was one of five Grandbridge producers to be awarded the 2019 Truist Performance Award from our parent company Truist Financial, the sixth largest US financial institution.

Kyle Jemtrud As a direct lender I financed 122 million in multifamily in the midwest.

REAL ESTATE CPA OF THE YEAR Jim Lockhart Jim Lockhart serves as the regional leader of the Construction and Real Estate Industry Practice for the Twin Cities offices of Wipfli LLP. He has nearly 20 years of experience dedicated to providing extraordinary, proactive advice to help clients succeed and grow. He serves a full range of construction and real estate organizations specializing in investment and development due diligence, financing, tax and business structuring, construction services, and exit strategies. Jim has spent the majority of his career in the construction and real estate industry. He draws on his vast experiences, having worked in regional and Big Four accounting firms and development and construction companies. Jim leverages the depth of his experience and relationships to his clientsâ&#x20AC;&#x2122; advantage. He began his career as an attorney advisor to the U.S. Tax Court in Washington, D.C.

2020 MINNESOTA REAL ESTATE AWARDS

MOST SIGNIFICANT SALE TRANSACTION Ford St Paul Redevelopment Sale of 122 acre redevelopment of the former Ford Plant in the Highland Park neighborhood of St Paul, MN along the banks of the Mississippi River to Ryan Companies for $61 million. The Ford Plant redevelopment is considered to be one of the best redevelopment sites in the country based off of location, demographics, and development opportunity. The development will consist of 3800 housing units, 265,000 square feet of office, 150,000 square of retail space, and 50 acres of open space. The St Paul Plant sale is the largest land transaction in State of MN that CBRE is aware of.

ATRIA Corporate Center Pennsylvania-based Pembroke IV paid $55.5 million to purchase ATRIA Corporate Center in Plymouth. The 350,631-square-foot Class A suburban office center includes a cafe, a fitness center, a conference center, five-story atrium and unique 75,000 square foot floor plates. The building has achieved LEED GOLD, Energy Star, and BOMA 360 Performance Program. Cushman & Wakefield's Capital Markets Team of Tom O'Brien, Terry Kingston, Scott Pollock, Avery Ticer and Sam Maguire negotiated the sale.

Industrial Equities - LINK In April 2019, the Colliers International | Minneapolis-St. Paul Investment Services team and RJ Financial Group represented the seller of a transaction for a 34-building portfolio. Blackstone Real Estate Investment Trust purchased the property for $247.2 million. Colliers’ Mark Kolsrud and RJ Financial Group’s Richard Jeske partnered to represent John Allen, CEO and sole principal of Industrial Equities, in the selling of the portfolio, which totaled nearly 2.5 million square feet. The buildings are located throughout the Twin Cities in Blaine, Brooklyn Center, Brooklyn Park, Burnsville, Crystal, Eagan, Fridley, Golden Valley, Minneapolis, New Brighton, Roseville and St. Paul, and the sale prices per building fell between $2.3 million and $15.2 million.v

Midway Mile Industrial Campus The Midway Mile Industrial Campus consisted of 18 buildings totaling 1.85 million square feet. This portfolio of last-mile industrial space was strategically located equal distance between Minneapolis and St. Paul CBDs in one of the best infill submarkets. The pricing expectations from our institutional seller, Clarion Partners, were aggressive. They had purchased the portfolio in 2005 and even through the recession they were able to achieve a 10-year occupancy average of nearly 93%.

** The Westwood Advertisement which ran in the 2020 MN Awards Brochure printed incorrectly. We apologize for any confusion.

2020 MINNESOTA REAL ESTATE AWARDS

REDEVELOPMENT/REUSE/HISTORIC - OFFICE Bridgewater Bank Corporate Center The Bridgewater Bank Corporate Center (BCC) is the redevelopment of a 1-story vacant commercial building into a 4-story 84k sf mixed-use office building with 3-levels of structured on-street parking producing 268 new permanent jobs and an estimated 100 temporary jobs. There are 282 parking stalls constructed of which 168 parking stalls will be public. The ground floor contains a branch bank and retail, including a 4k sf restaurant.

The BCC headquarters is located on the 2nd and 3rd levels with an entrepreneurial hub on the 4th floor which provides opportunity for local small businesses and minority owned businesses. These entrepreneurial opportunities will connect job diversity to the surrounding housing that currently exists in the Park Commons District of St. Louis Park made up of single family, multi-family, affordable, NOAH and senior housing.

Edina Commerce Center Edina Commerce Center was built in 1973 by developer Sam Marfield. Marfield, as he did with dozens of his developments, included a large sculpture at the front of the property, in this case a large reddish-brown horse. For many years, Edina Commerce Center was a hub of activity and housed dozens of young, growing companies. Many of these companies would eventually expand and move into their own facilities elsewhere. After 40+ years, the property had become tired and largely empty. When The Terrace Group purchased the property in late 2016, the building was actually 100% occupied, but a large section was occupied by one of the sellers and it was known that not long after the purchase nearly 50% of the building would be vacant. Worse yet, much of the vacancy was located in the “elbow” portion of the building, making loading a challenge.

McGough Headquarters The new McGough Headquarters houses nearly 250 employees. The project salvaged and transformed a 60-year-old trucking terminal located next door to its former Roseville office to accommodate the company’s rapid growth. McGough – known for its complex historical restorations and renovations of Minnesota landmarks such as Historic Fort Snelling, the Cathedral of St. Paul, Basilica of St. Mary, and James J. Hill Reference Library – was intrigued by the idea of reviving the aging trucking terminal that happened to be in eye-shot of its former headquarters’ front doors. Not only did the idea allow the company to minimize the impact of relocating its headquarters for its employees, it also allowed the company to apply its in-house expertise in reuse, restoration and sustainability to its own project.

The building highlights the unique capabilities and quality workmanship for which McGough is known.

The Guardian Building Greiner provided pre-construction and construction services for renovations to the historic Guardian Building in Lowertown St. Paul. Located at 366 Jackson Street, this Richardsonian Romanesque styled building is made almost entirely of Portage Entry brownstone and is one of the few of its style still standing in Minnesota. It was constructed by Edward Bassford in 1890 and opened its doors as Merchants National Bank in 1892. Thanks to the building’s distinguished architecture, it has endured the test of time and continues to stand as a historic icon of Lowertown St. Paul.

The Kickernick Building Built in 1896 for a boot and shoe company, the Kickernick has been lovingly restored and refreshed for modern use. From its stylish new lobby to its fully renovated upper floor, the Kickernick blends period touches like exposed brick and wood beams with modern amenities and décor. The building location provides 18,000 parking stalls within a five block radius and is adjacent to light rail and within easy walking distance of Target Center, Target Field, restaurants and shopping. The century-old Kickernick is positioned to remain a fixture of the Minneapolis skyline for years to come.

2020 MINNESOTA REAL ESTATE AWARDS

SENIOR HOUSING - SOUTHWEST Riley Crossing Senior Living Riley Crossing Senior Living opened in November 2019 to provide 137-units of full continuum senior housing (independent, assisted, memory and enhanced care) with a 10,000 SF 94 child licensed day care center. The community is located in Chanhassen at the crossroads of Highway 212 and County Road 101 in between Lake Riley, Lake Susan and Rice Marsh Lake.

Riley Crossing provides senior living options to help older adults age-in-place, keeping them as independent as possible. The focus of our community is on family. We offer space where different generations can connect and interact, both inside and outside across the site at Riley Crossing.

Avidor Edina Avidor Edina is a premier 55+ active adult community located in the heart of Edina. The six story, 271,000 square foot project features 165 residential units with heated underground parking. The building is positioned within a steep slope surrounded by abundant native landscaping, giving the building a “right-at-home” feeling for both the community and its residents. Avidor Edina Residences include junior one bedroom, large one bedroom, two bedroom and two bedroom penthouse style units. Luxury amenities include a pool with sun deck, outdoor grilling stations, fire pits, fitness club, bistro bar, a yoga studio, a coffee lounge, a business center and dog run. This one-of-a-kind luxury retirement community brings a new breed of 55+ housing for those looking to enjoy an active and inspired next chapter of their lives.

Eden Prairie Senior Living Eden Prairie Senior living is a senior living community comprised of five levels of living with independent, assisted, and memory care units. The building has many amenities such as dining facilities, pub room, library, theater, and fitness.

Havenwood of Minnetonka Havenwood of Minnetonka is a 133,034 sq. ft. luxury senior living community with 100 units with amenities that include the services of a well-known chef in the on-site restaurant. The Havenwood of Minnetonka project is the third of six under Roers’ growing Havenwood senior brand in Minnesota and Wisconsin since it launched in 2017.

Orchards of Minnetonka Orchards of Minnetonka Senior Living is situated on a seven-acre parcel located in the city of Minnetonka, a mature suburb in Hennepin County. The vacant lot was transformed into a four-story building with one story of below grade parking and amenities. Conveniently located near Hopkins Crossroad and Wayzata Boulevard/I-394, the site has great freeway access with shopping, services and healthcare all located within a mile of the site. Designed to enrich residents' lives with a full continuum of care, the building contains 147 units of senior housing - 127 independent/assisted care units and 20 memory care units - plus one guest suite. Orchards of Minnetonka offers residents and their visiting families and friends a comfortable environment with many amenities.

Prairie Bluffs Senior Living Prairie Bluffs is a senior living community in Eden Prairie that combines a continuum of care that enables residents to age in place. The building includes 4 different types of accommodations and services including independent living, assisted living, memory care, and transitional care. The variety in housing provides residents with access to numerous health care service options, affording the ability to stay in one location as needs change over time.

University of Minnesota, Pioneer Hall Nominee: Redevelopment/Reuse/Historic – Housing

McGough congratulates all of the Minnesota Real Estate Journal 2020 Award Finalists!

McGough Headquarters Nominee: Redevelopment/Reuse/Historic – Office

2020 MINNESOTA REAL ESTATE AWARDS

AFFORDABLE HOUSING Union Flats Union Flats is located northwest of the intersection of Charles Avenue and Hampden Avenue in Saint Paul, Minnesota and sits conveniently near parks and restaurants around the Raymond Avenue light-rail station in the Midway neighborhood of Saint Paul. This workforce/family focused building complements a developing neighborhood while creating more affordable housing in a main housing hub. The surface parking along the west side of the building runs parallel to an existing railroad spur and is a subtle historic preservation gesture. The primary cladding materials are brick, formed metal panels, fiber-cement siding and panels, and a substantial amount of glass that generously exceeds the minimum required glazing.

Hook & Ladder Apartments Hook & Ladder Apartments, located in the heart of the Northeast Minneapolis Arts District in the Holland Neighborhood, is a new, multi-family housing development comprised of 118 affordable apartment homes in two buildings. One of the buildings was built to meet Enterprise Green Community practices, while the other was built to meet the Passive House Institute US (PHIUS) standard – Minnesota’s first multi-family apartment building built to these stringent certification standards.Building energy experts will study the buildings’ environmental performance, and compare the energy cost and consumption differences between the development’s two adjacent buildings. The results will be shared with the industry in order to further acceptance of constructing incredibly energy efficient multi-family buildings.

Mino Oski Ain Dah Yung Mino Oski Ain Dah Yung (Good New Home in Ojibwe) is a Minnesota first-of-its-kind unique model of housing specifically designed for homeless Indigenous Youth. The project grew from an innovative partnership between the Ain Dah Yung Center and Project For Pride In Living, combining distinct but complementary skillsets to provide a place for Native youth to heal and thrive. Native American Architect, Michael Laverdure, along with Native-owned Contractor, Loeffler Construction & Consulting, made this project come to life with the help of Fox Advancement in securing financing through various public and private entities.

Mino-Bimaadiziwin Set to officially open its doors later this fall, Mino-Bimaadiziwin is a 110-unit affordable housing complex that provides desperately needed housing relief to underserved Native populations in the Twin Cities metro area. The project will offer 10 studios, 15 one-bedroom, 55 two-bedroom and 30 three-bedroom apartment units in a six-story building. Each one of its 110 units will be available to residents making below 60 percent of the area’s median income, with 35 units reserved for families making below 30 percent of the area’s median income. The building will also provide 16,000 sq. ft. of community space—including a culturally specific healthcare center and a Red Lake Nation embassy serving members living off the Red Lake Indian Reservation in northern Minnesota.

REDEVELOPMENT/REUSE/HISTORIC - MEDICAL Voyage Healthcare Clinic Working closely with independent multi-clinic healthcare practice Voyage Healthcare (formerly North Clinic P.A.) MSP Commercial repurposed the former Chalet Liquor store in Crystal into a primary care clinic. The site’s convenient retail surroundings and proximity to Highway 100 was ideal for Voyage Healthcare to relocate and expand their nearby Robbinsdale Clinic, minimizing disruptions to their current staff and patients, while adding easy accessibility and convenience.

Allina Greenway Clinic & Urgent Care Intentional innovation in primary care is the principal theme of Allina Health’s Greenway Clinic and Urgent Care. Allina’s objective for this project was to “create a clinic unlike any other”. Through a highly collaborative discovery and design process, Allina and the design team did a deep dive to understand the demographics and desires of the broad patient base working and residing on the cusp of three Minneapolis neighborhoods: Uptown, Lakes and Linden Hills.

GENERAL CONTRACTOR OF THE YEAR Doran Companies The following developments were designed by Doran Architecture and built by Doran Construction. These are all top-quality design/build developments and we are extremely proud of our teams and the effort they put forth to provide great value to the communities. The highly designed Expo, which includes two buildings – a high rise and low rise – is now nearing completion. The 368-unit luxury apartment community will incorporate five stories of wood frame residences, townhomes, underground parking with post tension concrete, and a 25-story tower. The space to the east of Expo is in the planning stages for a proposed 293 units spanning across 557,349 sq-ft.

Allstar Construction Allstar Construction has enjoyed continuous growth, with revenue CAGR of 27% over the last 3 years and 2019 revenue up 12% over the prior year. Our headcount was up 12% this past year to support this growth. Other accomplishments in 2019 included opening the Allstar Construction Fargo (ND) branch. We also executed 1,462 repair/rehabilitation projects in 2019.

Crawford Merz In 2019, Crawford Merz successfully completed over 500 projects, increased diversity within our office and had several of our projects featured in the news as well as win prestigious awards. These accomplishments are attributed to Crawford Merz’s proven process, resulting in a framework for building and fostering long lasting relationships and success for our clients.

As the preferred contractor for the Mall of America, we completed a total of 228 projects for a variety of clients within the mall. These projects ranged from new restaurants and retail stores to experiential attractions. Some of the retail highlights include the buildout of the Walgreens store, TOMS Shoes and Fourpost and a collection of emerging brands testing their concepts in a store setting. We have also helped bring exciting attractions to the mall including The Void, an immersive virtual reality experience and two 5D Extreme Attractions inside Nickelodeon Universe. These projects have allowed the Mall to offer people of all ages more options for entertainment and become a destination for the newest technology.

2020 MINNESOTA REAL ESTATE AWARDS

INTERIOR DESIGN - MULTI-TENANT OFFICE The Andrus Building Completed in 1898, The Andrus building is the oldest on Nicollet Avenue. Its neoclassical features needed to be repositioned with the proper amenities to attract modern downtown tenants, while returning the grandeur it once had. Even the building’s name required a reposition – while it was originally christened as “The Andrus,” it had been known as Renaissance Square prior to the renovation and rebrand. We knew our work would need to help redefine the space as a destination in Minneapolis office addresses while finding appropriate ways to acknowledge both the building’s history and the more recent vibrance in that section of downtown Minneapolis. Adding complexity to the project, the site is on the national register of historic buildings. The result? An ideal old/new mixed-use landmark on a prime downtown corner.

701 Carlson Tower The Carlson Company, and their iconic towers, are a landmark in the western Twin Cities. But the 16-floor, 257,000SF buildings haven’t seen an interior redesign since they were built in 1989. Known for brands like the Radisson Hotels and travel management company CWT, the project presented a unique challenge for RSP. How do we incorporate an element of hospitality into the headquarters of a company known for their hospitality brands? Adding tenant amenities, incorporating striking modern design and maximizing available square footage were key to turning the existing areas into Class A office space.

Several amenities, including training rooms and boardroom spaces, were relocated and redesigned as part of our work. They were placed adjacent to the elevator bays to improve access for all building tenants, and they now have their own dedicated pre-function space.

Clad in tile sourced from Italy, the space is connected to the main lobby by a hallway featuring velvet booth seating.

The Nordic & Sable The 208,000 square foot Nordic recreates the authenticity of a classic warehouse building with the modern efficiencies of a twenty- first century building. With retail on the ground floor and office on the upper levels, the eleven-story brick-clad office is designed with modest pilasters and decorative details to relate to the historic neighborhood context and scale. Sable includes 57 units of owner-occupied condominiums in 60,000 square feet that allow short-term rentals. Amenities include a Members’ Lounge and Rooftop deck with spectacular downtown views. A shared parking ramp allows for same level parking and eases access for office and retail visitors to the neighborhood. The Sable aesthetic draws on the historic patterns, proportions, and textures of the North Loop.

Eagandale - 1305 Corporate Center Drive Welcome to one of the Twin Cities’ premier suburban Class A properties--Eagandale Corporate Campus. Eagandale is strategically located in Eagan, MN and is an equal distance to both downtown Minneapolis and St. Paul, just across the Minnesota River making it an easy commute for employees across the metro. Nestled in the privacy of a wooded vista, the campus has tree top views of the downtown area skylines while offering tenants a serene landscape and welcoming environment—a prime location with direct access to area amenities, hotels, high-tech services, and a talented local workforce. Each floor of this refurbished building speaks to a contemporary office environment and has been newly remodeled in bold palettes to render a modern aesthetic in which to create. Non-traditional break areas have become spaces of chance encounter and productive collaboration. Vibrant social spaces complement a fully equipped micro-market and kitchenette with food and beverage services on site to mix work and play, promoting the flexible mobility most desired in today’s workspace

2020 MINNESOTA REAL ESTATE AWARDS

MEDICAL PROPERTY Aris Clinic Woodwinds Aris Clinic was founded by Shalene Kennedy, MD to help address the significant lack of mental health services currently available to children and teens in the Twin Cities. The new Aris Clinic Woodwinds facility is a 16,000 sq. ft. mental and behavioral health clinic serving adolescents in Grades 7-12. It is conveniently located in the heart of Woodbury, in a “healthcare hub” within 5-minutes from Woodwinds Hospital, Applewood Pointe of Woodbury, Summit Orthopedics, Midwest ENT and other healthcare providers, plus nearby retail and access to I-494 and I-94. Woodwinds allows Aris Clinic to tailor its services at this location specifically to the young adult and teenage patient population, while the original Aris Clinic Currell location can now focus solely on serving elementary and early middle school age children.

Shriners | CityPlace II New Construction Shriners Hospitals for Children partnered with Davis to secure its first leased outpatient clinic in the market and they were zealous to make their dreams a reality, while also growing their outreach and driving their mission. Davis was successful in maneuvering through the large non-profit’s local and national boards to gain the various required levels of approval, while negotiating a waiver for a major site exclusive use clause on orthopedics for the preferred site and simultaneously financing and starting construction at only 50% preleased to meet Shriners very tight timeline for occupancy (to accommodate the sale of their current hospital).

Twin Cities Orthopedics Waconia Twin Cities Orthopedics – Waconia Therapy and Performance New grounds up 18,938 SF state of the art facility with future expansion possibilities of 18,800 SF provides physical therapy, hand therapy, a rehabilitation pool and sports performance services.

Woodbury Medical Woodbury Medical is a fully occupied multi-tenant medical office building situated just off Interstate 494. Built as Phase II on a plot purchased by MSP Commercial in 2016, it is a sister MOB to the Minnesota Eye Consultants clinic built in 2017. To create a cohesive feel, the buildings feature similar contemporary facades, containing a mix of natural stone, architectural metals, brick and vision glass. Occupying the second floor, Summit Orthopedics anchors this easily accessible building with a specialty care clinic and Ambulatory Surgery Center.

Summit Orthopedics chose to relocate their Landmark Surgery Center fo Excellence for hand, wrist, and elbow to this location, allowing them the opportunity to expand non-surgical treatment offerings like innovative regenerative medicine therapies and spine injection services.

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2020 MINNESOTA REAL ESTATE AWARDS

BROKER OF THE YEAR Jill K. Rasmussen Jill K. Rasmussen, CCIM, SIOR is a talented and respected member of the commercial real estate community who has established herself as a leading office and healthcare specialist. With over 35 years of industry experience, Jill provides her clients with strategic planning, brokerage, and development advisory services and is widely recognized for her ability to provide unique insights, innovative solutions, and sound real estate strategies.

Brian Bruggeman As a vice president in the Colliers International Minneapolis-St. Paul Medical Office group, Brian Bruggeman (CCIM, SIOR) focuses on assisting health care providers with developing and implementing their real estate strategies around the Twin Cities and greater Midwest region. Over the course of his more than 10-year career in commercial real estate, he has established relationships with a variety of members of the health care industry, including physicians, independent clinic administrators and hospital system executives. And he’s only just getting started—at 32 years old, Brian is the youngest vice president at Colliers MN.

Eric Batiza • Completed Leasing 1.8 million sf Northern Stacks business park. 100% leased • ACVR Warehouse Sale, St. Paul: 220k multi-floor warehouse sale to Buhl Investors • Former Sears DC Sale, Mpls: 399k SF warehouse sale to Onward Investors; now listing for lease on Onward’s behalf • SBS Transportation lease: 345 Industrial Blvd, Mpls: 103k SF lease – represented LL (partnered with Brad Bohlman) • Wells Fargo lease renewal: Hennepin BC, Mpls: 95k SF lease renewal – represented LL (now represents Hyde/Mortenson in leasing the buildings) • Alula lease: Midway Innovation Center, St. Paul: 68k SF – represented LL

Paul Donovan Paul capped off another career year in 2019 as Cushman & Wakefield's Top Producer in Minnesota. Putting in one of his best years in the nearly 20 years since he joined the company, Paul worked with teammates Jaclyn May and Jeremy Striffler to represent all types of major clients including global corporations, top local and national law firms, charter schools and nonprofit organizations.

Chief among Paul's noteworthy transactions in 2019 was the representation of RBC Wealth Management. Paul led a long and comprehensive site search for RBC, which resulted in a 310,000-square-foot (sf) commitment to the new 37-story Gateway Tower in downtown Minneapolis, the first truly skyline-altering construction project in the city in nearly two decades. Gateway likely wouldn't move forward without RBC's commitment, and will also include a Four Seasons hotel.

Ross Hedlund The corporate services group at Frauenshuh, with the leadership of Ross Hedlund, finished a strong year in 2019 with a number of notable projects and accomplishments, including: • Represented HealthPartners on the acquisition of 6.6 acres of land, also enabling Dominium to complete an adjacent purchase of 13.2 acres in order to replat and create a 20 acre mixed-use medical and residential development in Woodbury adjacent to Bielenberg Gardens set to break ground in 2022.

• Represented Concordia University on the purchase of the 100,000sf Central Medical Building in St. Paul • Represented Park Nicollet on the 18,552sf built-to-suit physical therapy project in Burnsville • Represented Wooddale Church in the acquisition of the Music Box Theater in Minneapolis enabling them to have a long-term permanent downtown Minneapolis location

REDEVELOPMENT/REUSE/HISTORIC EDUCATION University of MN Pioneer Hall Built in the 1930s, Pioneer Hall was the University’s first dormitory for men. Its separate, back-to-back, C-shaped buildings formed two courtyards.

A central link connected the wings with dining located below grade. The facility was organized as a series of vertical houses with 16 courtyard entries and stair towers. A 1977 renovation introduced a horizontal corridor system connecting all houses on each floor. After many decades of service, Pioneer Hall no longer met student needs. The facility lacked basic accessibility: multiple floors with no elevators, substandard restrooms and extremely narrow corridors. The subterranean dining and kitchen facilities were dark, outdated and inadequate. MEP systems required major upgrades and the building exterior needed restoration.

Arvonne Fraser Library Hennepin County and the Hennepin County Library partnered with Shaw-Lundquist construction and MacDonald and Mack Architects to transform a historically significant, but underutilized and fragile library, in poor condition, into a light-filled robust community amenity.

The project team completely renovated the Ralph Rapson-designed Arvonne Fraser Library, formerly Southeast Library, in Minneapolis, preserving the architect’s iconic elements while increasing the space’s utility for the neighborhood. Rapson originally designed the modernist building for use by a credit union, using his signature style waffle-pattern concrete ceiling, clerestory layout, exposed brick walls with a bank vault, and a unique boardroom in the windowless basement. These elements deserved special treatment but created unique preservation challenges.

Concordia St. Paul The Ries Tower project (formerly known as Central Midway) located at 393 Dunlap Street in St. Paul is a strategic repositioning and reuse project undertaken by Concordia University - St. Paul (CSP). The property is situated on the I-94 corridor between downtown Minneapolis and St. Paul and has long been a visual skyline landmark. The project consisted of CSP’s acquisition of this 9-story, 115,000 sq. ft. office tower, constructed in 1966. The acquisition followed a multiple year period in which CSP occupied the property as a lease tenant and increased its original occupancy from to just over 10,000 square feet in 2015 to over 30,000 square feet, at the time of closing the acquisition in March of 2019. In addition to CSP, the tenant roster includes a mixture of several dozen third-party private tenants in the healthcare, service business, general office and professional services sectors.

2020 MINNESOTA REAL ESTATE AWARDS

INDUSTRIAL / MANUFACTURING / SCIENCE Northern Stacks V - Heraeus Medica At one time the highest scored Superfund site in the US, the 1.8 million sf Northern Stacks is now the premier industrial park in the Twin Cities.

The recently completed 9 building park is now 100% leased. Heraeus Medical was the last tenant to occupy space in the park, leasing 62,000 sf in Northern Stacks V for a work class medical research and development facility.

Crown Iron Works Mortenson developed and constructed the 68,000-square-foot Crown Iron Works world headquarters in Blaine, finishing the project in May 2019. This was a mere six months after they broke ground in November 2018. Crown Iron Works, an equipment manufacturer for the oilseed processing industry, had decided to transfer its headquarters from Roseville to Blaine because another company had purchased the building that housed their current headquarters. 45 North Group coordinated the project management for site build, and Mohagen Hansen handled the architecture. In addition to office space, the project entailed designing a sizable lab and extraction facility for the multi-purpose industrial building.

Dodd Road Business Center Dodd Road Business Center in Eagan is a speculative industrial bulk warehouse project that is 153,000 square feet and 32' clear height. The project offers users a functional modern space, an attractive brick facade, and convenient access to major transportation routes. This speculative project was developed to offer flexibility to a variety of users in the dynamic Southeast market. Two access points into the project offer ease of access, with parking for 177 autos, 41 dock and two drive-in doors. Additional trailer parking is available in the truck court.

Eagan Gateway Industrial The project comprises three ground up industrial buildings totaling 310,000 SF in Eagan Minnesota. The buildings range in size from 47,000 SF to 135,000 SF and host clear heights of 24 and 32' clear. While built on a speculative basis, the project completed in July 2019 and is now 100% leased with Hy-Vee's distribution center as the anchor of one of the three buildings.

EMERGING LEADER OF THE YEAR Jeremy R. Jacobs Jeremy R. Jacobs has excelled in several career paths, and he’s not even 40. Let’s start with his time in the military. He served as judge advocate general in the U.S. Army and was deployed to Baghdad as a part of Operation Iraqi Freedom in 2008, working to negotiate the restitution Iraqis needed for damage that may have been perpetrated

by U.S. forces. At the conclusion of his 13-month deployment, he received a Bronze Star. After leaving the service, he moved to Minnesota with his wife, Kate Buzicky, and began working at Ryan Cos. as a developer. Getting hands-on experience with projects such as the remodel of the historic Plymouth Building in Minneapolis and the construction of Grove Health West in Maple Grove, he caught the eye of Mortenson Development, where he rose from developer to team leader. While at Mortenson, he spearheaded projects including One Discovery Square in Rochester, Crown Iron Works in Blaine and Allina Health System’s Regina Clinic in Hastings.

Amy Johnson To describe Amy Johnson as anything less than passionate about working in the real estate world would be an injustice. Amy has relentless, signature energy and a focus on results. As Director of Leasing and Marketing for two of the fastest growing companies in the area — Roers Companies (a real estate development firm) and Core Living (Roers’ property management company) — she oversees the company’s marketing as well as leads the lease-ups, property marketing and sales of both businesses.

Jeremy Striffler Jeremy Striffler is one of Cushman & Wakefield’s rising young brokers in Minneapolis-St. Paul. Now entering his sixth year as a broker for the company, Jeremy has risen to the top tier of producers in Minnesota. This year he was for the first time named a Top Producer in the office, meaning he generated more revenue than 80 percent of his colleagues.

Jeremy has taken on increasing responsibilities in the downtown Minneapolis office and has shined. He’s completed more than 125 transactions totaling 2.4 million square feet-plus and a gross revenue of more than $7 million.

Sean Sweeney In 2019, in only my second full year after starting my own development company, I successfully broke ground on 5 new construction multifamily development projects in Minneapolis. The projects total 291,544 gross square feet and 310 total units with a total construction value over $65,000,000. My projects have been recognized for their innovative modern design and attention to detail. These qualities have resulted in faster than average lease up velocities and per square foot rents unprecedented in their respective neighborhoods. I had a 6th project approved by the City of Minneapolis in November 2019. That project began construction in early 2020.

SENIOR HOUSING - NORTH / NORTHWEST Applewood Pointe of Champlin at Mississippi Crossings To date, there are 15 communities located within the Twin Cities and three future cooperatives currently serving nearly 2,000 adults. Our newest senior cooperative in Champlin is situated directly on the legendary Mississippi River with river access, a trail system, walking paths, park benches and more. Applewood Pointe of Champlin at Mississippi Crossings builds on the success of the Applewood Pointe cooperative communities brand essence and reputation, driving swift reservations and signed purchase agreements well before groundbreaking and construction began.

Wyndris Designed to attract baby boomers looking to downsize, Wyndris brings a unique, upscale, 62+ community to Northeast Minneapolis. The fresh and contemporary design featuring vibrant colors, warm woods, clean lines, ornate lighting, and numerous social spaces creates a youthful and inviting community that generates positive energy and feels like home. The amenity-rich lifestyle energizes residents and redefines senior living. Unique to senior living, Wyndris offers a cafe, craft room, dog run and washing station, outdoor patio, wellness room, and a clubroom complete with a fireplace lounge, kitchen, shuffleboard, and dining area. The myriad of amenities allow residents to retain a high level of control and independence, while also promoting socialization.

2020 MINNESOTA REAL ESTATE AWARDS

INTERIOR DESIGN - RETAIL / RESTAURANT / HOSPITALITY RAAG Lat 14 was conceptualized as a restaurant serving food from the 14th Latitude (including Laos, Thailand, Cambodia) in a glamorous, modern application—a tall order for a restaurant slated to be built in a faded Perkins location. The construction and design Team removed walls, opened up the ceiling, used a wide variety of modern and vibrant finishes and furnishings, and added focal design features to completely transform the overall image of the restaurant, including changing the recognizable Perkins exterior to a shape that’s now signature to Lat 14.

Falling Knife Brewery Falling Knife Brewing is a production brewery that features a 20-barrel brewhouse and a full-service 149-person taproom. The renovation of the former NorthGate Brewing space in Mid-City Industrial Park now boasts a clean, comfortable, and inviting space geared towards beer lovers, music lovers, and pin ball enthusiasts alike.

Wings Financial Credit Union - Lakeville Wings Financial Credit Union was founded in 1938 by seven Northwest Airlines employees. Today, as a member-owned cooperative, Wings is proud to continue to serve aviation industry employees, as well as over 250,000 members. With nearly 30 branch offices nationwide and over $5.4 billion in assets, Wings is Minnesota’s largest credit union and ranks among the nation’s top 40 credit unions..

PROPERTY MANAGEMENT COMPANY OF THE YEAR Zeller 2019 was a significant year for Zeller’s Property Management team in Minneapolis-St. Paul. Our company’s 2 million SF portfolio in downtown Minneapolis, managed by senior individuals with over 30 years of commercial real estate experience, consisting of the Class-A office buildings, LaSalle Plaza and Fifth Street Towers, were both awarded The Outstanding Building of the Year (TOBY) awards for excellence for buildings between 500,000 and 1 Million Square Feet and for buildings over 1 Million Square Feet, respectively, by BOMA Greater Minneapolis. Additionally, both properties were awarded the Kingsley Associate Excellence Award that recognizes individual office properties for outstanding performance and tenant experience.v

Colliers International The Colliers International | Minneapolis-St. Paul Real Estate Management Services (REMS) team manages the properties to which we are entrusted for by our clients in Minnesota. A full-service commercial real estate organization, Colliers provides property management, brokerage, investment sales, engineering and property maintenance, global corporate solutions and project management services.

The Colliers MN REMS team has grown impressively, experiencing the most third-party client growth in the past three years with more than 200 new assignments, per the Minneapolis-St. Paul Business Journal. 2019 was an outstanding year, with the team adding properties to the tune of two per week thanks to the 30 REMS team members’ phenomenal customer service, creativity and flexibility. The 104 properties added totaled 11 million square feet, bringing the total number of square feet managed by the Colliers REMS team at the end of 2019 to more than 27 million square feet.

Cushman & Wakefield PM 2019 was a significant year for Cushman & Wakefield's Asset Services (Property Management) division in Minneapolis-St. Paul. Especially in an age where more owners are considering self-managing their owned portfolio, it became even more important for the company to provide substantial value to owners through its property management service. We finished the year with 30M square feet under management and were ranked one of the top Property Management firms in Minneapolis-St. Paul for the 17th year. The Asset Services team manages more than 260 facilities and includes 100 property and facility management experts, 115 engineering professionals and thirty client accounting professionals. The company's portfolio includes some of the most prominent properties in the Twin Cities, such as Normandale Lake Office Park, Centennial Lakes Office Park and Ford Center.

Ebenezer Management Services • 8,166 housing units • 17th Largest Senior Housing Provider in the Nation. As reported in the July/August issue of Argentum's Senior Living Executive magazine • 3,917 Dedicated Employees • 100 Ebenezer owned and managed communities • 2 states, Minnesota & Iowa • 95.4% Average monthly census during 2019 for all stabilized communities • 9 years of being a Star Tribune Top Workplace • 100% of AL/SNF communities took the Safe Care For Seniors Pledge • Jon Lundberg, President & CEO, and Erin Hilligan, VP for Operations, are Leading Age Board Members

Norhart So many industries have embraced technologies to improve the services they provide. Apartment management companies haven’t done that. For some, the apartment industry is in the stone age – still operating business the old fashion way. While many see technological advancements from the investment perspective to obtain a high and stead rate of return, we see the value technology can serve. In the last year, we’ve seen firsthand how our technological advancements can improve people’s lives.

2020 MINNESOTA REAL ESTATE AWARDS

CITY / MUNICIPALITY OF THE YEAR City of Roseville McGough Construction is a large commercial contractor headquartered in Roseville. They recently completed redevelopment of a 5.5 acre trucking terminal, keeping the existing warehouse portion of the building and adding a new modern office wing to create a unique working environment for its employees. The REDA established a Redevelopment Tax Increment Financing (TIF) district to assist with the project. The City wanted to retain a business that has been in Roseville since the 1950s. This project allowed McGough to consolidate its Roseville and the White Bear Lake locations and added space to accommodate employment growth over the next 10 years. Colder Products Company (CPC) is a provider of quick disconnect couplings, fittings and connectors for plastic tubing. They currently lease a total of 85,000 square feet in three facilities in the St. Paul area and wanted to consolidate into one headquarters facility. Working with Ryan Companies, they identified a blighted 10-acre trucking terminal in Roseville to redevelop into a 134,000 square foot office, research and production facility. Currently under construction, CPC will be able to add 100+ jobs to their current 375 employees, ranging from engineers to production staff. The REDA established a Redevelopment TIF district to assist CPC in redeveloping the blighted site that had many building code issues.

City of Lakeville The City of Lakeville issued commercial and industrial permits valued at $63,253,742 in 2019. Commercial development projects included Compeer Financial (new 30,000-square-foot two-story office building), Hampton Inn & Suites (new four-story, 117-unit hotel), and ALDI’s grocery store (new 23,000-square-foot building) - all opening in the I-35 and County Road 70 Interchange Area. These three projects alone resulted in $14 million worth of building valuation and a significant number of new jobs. Lakeville also added two new restaurants in 2019: Northern Taphouse near the I-35 corridor and B-52 Burgers + Brew in downtown Lakeville. Hy-Vee Fast & Fresh convenience store opened in its 8,700-square-foot building in August 2019, the first of its kind in Minnesota. HealthPartners Park Nicollet Clinic began construction on a 2-story, 28,420-square-foot medical office building to replace its former location in a multi-tenant building, allowing the clinic to offer more health care services in Lakeville.

URBAN MULTIFAMILY Rafter Two blocks from the Mississippi River, on one of Northeast Minneapolis’s busiest streets, is Rafter, a 26-story, luxury high-rise apartment tower.

Rafter enhances the existing energetic neighborhood with 6,000 square feet of retail space along Hennepin Avenue and 4th Street NE, and 283 units of market-rate apartments with associated amenities. A seven-story, 279-space attached parking structure serves both retail and Rafter residents. Rafter adds height and density to a previously underutilized site (a fatigued, single-story branch bank structure). It strengthens the retail corridor with new commercial space, while a 50’ x 50’ public plaza along Hennepin Avenue improves the pedestrian experience through active ground floor use. Showcased on 4th Street, a three-story-tall mural by local artist Chuck U emphasizes the project’s ties to the local arts community and hints at the project’s dedication to the art community.

Green on 4th Green on 4th is a new construction, mixed-income 243-unit apartment development in the Prospect Park neighborhood of Minneapolis located half-a-block from the 29th avenue LRT stop. With 177 market-rate units, and 66 units of much needed affordable housing, Green on 4th has brought a diverse housing stock to an area that is seeing rapid gentrification.

Irvine Exchange Irvine Exchange brings a modern living experience to historical St. Paul. The 175-unit multifamily development connects residents to the best St. Paul has to offer where the riverfront, Irvine Park neighborhood, and downtown convenience meet. Located at the intersections of Exchange Street, Chestnut Street and Eagle Parkway, the new development transforms what was once a City-owned surface parking lot, into a vibrant neighborhood node. The rooftop deck, courtyard with pool and spa, and individual unit rooftop decks are designed to take advantage of the views of the Mississippi River and highlight the site as a gateway from the historic Irvine Park neighborhood to downtown and river attractions. Additional amenities contributing to the luxurious lifestyle include a hospitality bar, community room with a fireplace, lounge seating and kitchen, a reading lounge and a fitness room

JAX Apartments - Minneapolis JAX Apartments is located on the southeast corner of 24th Avenue NE and Jackson Street NE in the vibrant Holland neighborhood of Northeast Minneapolis. Prior to development the site was a vacant lot. The multi-family apartment building is 4 stories and contains 65 units. The first floor includes 6 units, 5 of which have walk-out entries with private patio spaces. Also on the first floor are common amenity spaces including a lobby, art studio, bike storage and fitness room. An enclosed parking garage with space for 32 vehicles is tucked in the building’s southeast corner, separated from the street and public sidewalk by the active uses of the walk-out units and amenity spaces. The art studio holds a very visible position on the street corner with large storefront windows that allow people on the street to see activity within.

Lowa46 Lowa46 is a 5-story mixed use development located on the Blue Line near Minnehaha Regional Park on 46th and Hiawatha in the Longfellow neighborhood of Minneapolis. The development replaces an existing 1990s warehouse with a living community that weaves retail and housing together in a high quality, pedestrian-focused streetscape that enhances the neighborhood. The developer understood the neighborhood had poor access to grocery retail and was considered a “food desert” by the USDA. The project fills a market need by offering 148 units of market rate one- and two-bedroom apartments above the first-of-its-kind small scale urban Cub Foods grocery store, pedestrian-level retail, and a large public plaza. Open 5 a.m. to midnight seven days a week, the new Cub has grocery, a coffee shop, full-service deli and a popcorn bar, providing a convenient resource for the Lowa46 residents upstairs and the 5,000 people within a 10-minute walking distance.

2020 MINNESOTA REAL ESTATE AWARDS

PROPERTY MANAGER OF THE YEAR Kevin Connolly For nearly three decades, Kevin Connolly, General Manager at Fifth Street Towers, has played a key role in the Minneapolis commercial real estate market and 2019 was no exception.

Kevin helped position Fifth Street Towers as a premier Class A office tower that combines superior convenience and services with efficiency and connectivity, while respecting the community and the environment. In 2019, Fifth Street Towers was awarded The Outstanding Building of the Year (TOBY) awards for excellence for buildings over 1 Million Square Feet by BOMA Greater Minneapolis and was awarded the Kingsley Associate Excellence Award that recognizes individual office properties for outstanding performance and tenant experience.

Todd Balsiger Added 31 buildings totaling 6.5M sf to the MN JLL Property Management portfolio in 2019

Gayle Dreon Currently, Ms. Dreon manages a portfolio of ten medical office building properties totaling 750,000 SF throughout Hennepin County for one of our largest clients, that includes the iconic Southdale Medical Center building campus in Edina adjacent to the Fairview Southdale Hospital. Gayle has managed the Edina campus for 19 years and directed the evolution of the tenancy over time from general and primary wellness care medical practices to specialty care and high-tech treatment clinics such as diagnostic imaging, cancer care and chemotherapy, orthopedics, plastic surgery and behavioral health treatments. Nearly 4,000 patients enter the facility daily. Major tenants currently include Fairview Health, Park Dental, Minnesota Oncology, Suburban Imaging and PrairieCare and Ms. Dreon manages these tenant relationships in a professional and supportive manner as required, yet in a strategic and financially prudent manner on behalf of our client.

Ashley Lair Ashley Lair is on the younger end of the spectrum when it comes to Cushman & Wakefield property managers in Minneapolis-St. Paul, but she has shown both through her work and dedication to the industry that she’s a leader, both today and for the future. As a Senior Property Manager, Ashley oversees Class A suburban office and medical office properties totaling over 350,000 square feet. Her assignments, Crescent Ridge Corporate Center I in Minnetonka and Arbor Lakes Medical in Maple Grove, house more than 35 tenants employing more than 1,000 workers.

David Reller Starting as an assistant real estate manager in 2014, David Reller rose through the ranks quickly to his current title of senior real estate manager at Colliers International | Minneapolis-St. Paul. Dave leads the Colliers Real Estate Management Services (REMS) Retail team and personally manages a portfolio of more than 1.1 million square feet of retail properties. In fall 2018 when Colliers MN CEO Jean Kane walked into his office and wrote a lofty goal on his whiteboard, he stepped up to the plate. The goal? To become the number one third-party retail real estate management service provider in Minnesota by September 2019.

REDEVELOPMENT/REUSE/HISTORIC RETAIL & RESTAURANT Hope Engine Company No. 3 The Hope Engine Company No. 3 was constructed by the City of Saint Paul in 1872 as one of the volunteer departments that served the City until 1877. It is the oldest extant fire station in Saint Paul and the city’s last extant volunteer fire station. From 1877 through 1965, the building served as a fire station for the Saint Paul Fire Department. From 1965 through 2010, a local contractor used the building as a warehouse and constructed large storage buildings around the fire station. While many of the historic details at the interior and exterior were preserved, the additional construction on the site made its reuse complicated. The building sat vacant and was sold in early 2015; it was subject to a lawsuit to prevent its demolition and the current owner was able to restore the building as an amenity for the adjacent hotel and greater neighborhood.

Both levels of the building were found to be largely intact, with plaster walls, bead board ceiling, wood stair, historic wood windows, wood floors at the second level, along with the original partition layout and decorative wood trim.

Central Block Remodel at The Shoppes at Arbor Lakes The Shoppes at Arbor Lakes is a 391,151 square foot lifestyle center in Maple Grove, Minnesota managed by CBRE featuring a retail main street of approximately a quarter mile over three blocks. It is located just east of the convergence of 1-694 and I-494, with easy access from both highways. The shopping center is comprised of 65 stores and 9 restaurants anchored by Whole Foods Market, Trader Joe’s, Pottery Barn, Forever 21, and H&M.

Northern Stacks Boiler Room Project is the creative reuse of the former 2-million-square-foot NIROP facility’s 75-year-old Boiler Room. This structure was originally built to house the coal fired smokestacks heating the World War II era production facility. When 75% of the former manufacturing plant was demolished and redeveloped into the Northern Stacks Business park, this structure was restored, and adapted into the Forgotten Star Brewery & Event Center.

Thr3 Jack Thr3 Jack, a restaurant equipped with six golf simulators, opened in the United Properties owned Nordic building in the heart of North Loop in October 2019. The best-in-class simulators have advanced motion-capture technology that allow golfers to play a round of golf on the world’s most famous courses all year long. The simulators are also equipped with non-traditional golf-based versions of darts, corn hole, ski ball and hunting games. Designed by the award-winning national design firm, ESG Architecture & Design, the 8,700 square foot space includes a fine-dining restaurant and bar that seats 200 people and features elevated contemporary American food. The cocktail program has playful twists on country club classics and the drink menu also includes local beers and a selection of wine. The bar’s indoor/outdoor concept will have a 50-seat patio during the summer months, along with three ergonomic stations for service without the wait.

2020 MINNESOTA REAL ESTATE AWARDS

INTERIOR DESIGN - OFFICE / HEADQUARTERS Rachel Properties Rachel Properties was founded in 2006 by Don Rachel with a vision and passion to provide next level services and value in the civil construction market. From its Minnesota base, and focusing primarily on earthwork, demolition, utilities and specialty contracting services, Rachel has grown into a $100 million a year multi-discipline construction company. Having outgrown its current office building, Rachel asked HTG Architects and Bauer Design Build to create a new headquarters that reflected its vision for the future and its passion for providing a safe, fun and nurturing environment for its employees.

Amplifon When Amplifon, an international hearing health care company, announced it was moving its North American headquarters from its suburban office in Plymouth to downtown Minneapolis, it was clear the company was opting for something sleek and modern, a conscious contrast to the public image of hearing aids. Branding was also an important factor in this project. Amplifon’s Plymouth office was outdated and lacking amenities like abundant natural light and technology to connect with their offices around the world.

Amplifon moved to Minneapolis in January 2019, taking over the 23rd and 24th floors of the Fifth Street Towers’ 150 Tower. The broker of the deal was Carlson Partners; Crawford Merz was the contractor; and ESG Architecture & Design designed the 40,000 square foot space. Marc Lundeberg, Amplifon America’s executive vice president, described the move as “one of the Legos in building a forward-thinking company”.

Chartwell Chartwell Financial Advisory, a national leader in financial advisory, wanted a new workplace that would better reflect its brand values and commitment to its clients and employees. Previously working in two partial suites on separate building floors, the company relocated to a new suite stretched across one floor. Working closely with Chartwell’s diverse internal focus group, our team defined overall projects goals to design a space that considered not only leadership’s vision, but the vision of the entire firm across all positions, ages, departments, and genders.

Greenway Dental Dr. Sam LaChance, owner of Greenway Dental describes his practice as a community focused dental office, where patients are heard and included in decision making, amenities are offered to make patients comfortable. The total area of the clinic is 1831 SF. It has five Operatories. The project is located on Lyndale Avenue in the vibrant Uptown area. It is close to both the Midtown and Loring Greenways.

Marsh & McLennan Agency Mohagen Hansen Architecture | Interiors was selected by Marsh & McLennan Agency (MMA) to provide design services for an office relocation and renovation for their Midwest Headquarters office. MMA is the local, Twin Cities location and is part of Marsh & McLennan Companies which is a nationally known full-service insurance, retirement and risk management firm employing nearly 75,000 professionals. This location employs nearly 300 employees with an office space that was previously located in Brooklyn Park, MN. MMA sought to relocate to a space within the Twin Cities metro area to increase access to top talent and be positioned in a centralized location for clients. MMA strategically selected a tenant space in Golden Valley, MN on the North side of 394 near the West End shopping and dining area of St. Louis Park, MN. By selecting this address north of 394, MMA avoided higher rent costs while still capitalizing on this premier location, which also allowed staff to utilize free and ample parking, a rare amenity for the Twin Cities metro area. The building selected offered opportunities for improvement, many of which were proposed by MMA and financially covered by the Landlord. Renovations included: an addition of skylights, two new large exterior windows, an outdoor patio, an exterior canopy, new rooftop HVAC units, parking lot updates, sidewalk replacement, new restrooms, and the replacement of a dock door floor to ceiling window.

Winslow Capital Management Winslow Capital, a growth equity investment firm, was looking to expand and relocate to a higher floor within their home at the IDS Tower. The expansion would allow the company to encompass one full floor which, in turn, would allow them to better fully express their new brand identity to clients immediately upon entering the 41st floor. Winslow Capital looked for a partner who could not only navigate the financial landscape from a strategic business standpoint, but who could also produce an innovative design that was timeless, impressive and personified their new brand direction.

The design consists of a sophisticated, neutral palette serving as a seamless backdrop for the strategic placement of glass, allowing light to permeate the entire suite. The engaging reception area and adjacent conference center allows multiple groups to circulate and flow throughout the enhanced front-of-house throughout the day, but also allows for a grand entertainment area for special events or all-company meetings. The more private and back-of-house functions are positioned adjacent and allow for access to the remainder of the staff.

ARCHITECT / ENGINEER OF THE YEAR Dan Parks Dan is a Westwood shareholder and professional engineer with 37 years of experience in land development and engineering. He manages Twin Cities area projects in the land group serving both commercial and residential markets. Dan’s passion is helping clients maximize the development value of their property by understanding their needs as well as the opportunities unique to the land and surrounding community. He assembles strong teams that deliver high-quality designs and services while always having time to provide technical and business mentorship to colleagues at all levels within the firm. His background in hydrology has led him to be a pioneer in innovative solutions for some of the most challenging City and Watershed project design requirements.

Patrick Giordana After over 30 years as a leader in the field of Medical Architecture, Patrick Giordana has partnered with Davis Healthcare Real Estate to start his own design firm (Synergy Architecture Studio) headquartered in downtown Minneapolis. In 2019 alone, Pat has successfully designed over 150,000 SF of Class-A medical office buildings and tenant spaces, 80,000 SF of which is currently under construction and set to open in 2020.

2020 MINNESOTA REAL ESTATE AWARDS

SENIOR HOUSING - SOUTH/SOUTHEAST The Legends of Woodbury The Legends of Woodbury is a 216-unit affordable senior housing community consisting of one, two and three-bedroom apartment homes. The land was previously used as an RV park and was purchased from Poss, Inc. The development is made up of two apartment buildings connected by a central clubhouse. The two-story clubhouse includes a large clubroom and kitchen, fitness center, pub and card room, three-season porch, theater, arts and crafts studio, library and salon. Exterior amenities include a courtyard, gazebo, patio and grilling space, walking path and more. The development also includes a two-acre connection to the citywide trail system and associated green space. The Legends of Woodbury combines the comfort and fun of large community spaces with contemporary, low-maintenance apartment living. It is a 50+ property and amenities were designed with seniors in mind.

Applewood Pointe Eagan Applewood Pointe of Eagan builds on the success of the Applewood Pointe cooperative communities brand essence and reputation, driving swift reservations and signed purchase agreements well before groundbreaking and construction began. Applewood Pointe Eagan reminds you of being home again. Pitched roofs, covered balconies, and multiple common areas allow the residents of this project to meet new friends, catch up with some old colleagues, join in a card game, or play a game of bocce in the back yard. The center of the U-shaped building has a beautiful entry with robust landscaping and an inviting water feature as you approach the building.

The Glen at Valley Creek The Glen at Valley Creek is a senior apartment building in the growing Twin Cities suburb of Woodbury, one of the highest cost areas in Minnesota, which opened in November 2019. The 2.93-acre site was a remnant of the city’s past, a homestead built in 1885, surrounded by the modern residential and commercial uses. The Washington County Community Development Agency (CDA) redeveloped the underutilized land at the highest allowable density into 42 apartments affordable to our extremely-low and very-low income seniors. The Glen at Valley Creek is positioned to help seniors live independently for as long as possible with a variety of design features and on-demand services. The Glen at Valley Creek is 100 percent affordable to very low income seniors (50% of the Area Median Income/AMI) with a subset of units set aside for extremely low income households (30% AMI). In addition, six units have Project Based Voucher rental assistance.

Havenwood of Burnsville Havenwood of Burnsville is a 134-unit senior living community that is 4 stories tall, has a pitched roof, and a full underground parking garage. The building includes a mix of independent living, assisted living and memory care suites, along with a wide variety of common area amenity spaces available to residents. The community offers a wide variety of apartment sizes ranging from studios to two-bedroom. The homes include full kitchens, laundry, senior friendly toileting and bathing facilities, and ample storage spaces. The common area amenity spaces within this community include a two-story lobby, mail lounge, overlook library, multi-purpose community room, a full commercial kitchen, a restaurant style dining room with deli, private dining room, outdoor dining patio, salon and spa, and a fitness center with a public entrance.

URBAN MULTIFAMILY MINNEAPOLIS CBD City Club Apartments CBD Minneapolis City Club Apartments CBD Minneapolis is a modern, amenity and service rich mixed-use apartment community that has responded to the need for affordable downtown living in Minneapolis. The target renters are young professionals and those earning between $45,000 and $65,000 annually, a niche not currently being served. Located in the heart of the CBD on 10th Street between Marquette Ave. and Nicollet Ave., City Club Apartments—CBD Minneapolis’ stunning 17-story high-rise features 307 apartments and penthouses. The developer preserved the adjacent 1907 Handicraft Building and historic Guild Assembly Hall and has converted them into to a two-story restaurant/bar, entertainment and event space. The buildings feature 100-year-old wood trusses, soaring 30 foot ceilings and a European inspired green corridor and expansive entertainment patio connecting the restaurant and new high-rise to downtown Minneapolis.

Fit Apartments Fit Apartments (formerly Grant Street Commons) is an 8-story mid-rise apartment building with two levels of subterranean parking in downtown Minneapolis. Unrenovated since it was built in 1984, the building is located in the Elliot Park neighborhood which is experiencing significant redevelopment -- including a light rail transportation system, U.S. Bank Stadium (home of the Minnesota Vikings), a brewery, boutique hotel, new office construction, condominium and neighboring apartment developments. Calvera purchased the property in 2017 as its first acquisition in the Twin Cities and immediately sought to revive this property to be part of the positive change in Elliot Park.

Ironclad Bordering the historic Mill District, Ironclad is a mixed-use development located at the intersection of Chicago and Washington Avenues. It links US Bank Stadium to Gold Medal Park, the Guthrie Theater, the Mississippi Riverfront, and the Stone Arch Bridge.

Designed by Collage Architects and constructed by Kraus-Anderson Construction, the high-end development includes a 14-story, 172-unit apartment building, 12,000 SF of commercial space, and an 8-story, 142-room Moxy hotel. Resident amenities include a fitness studio, bike repair facility, and electric vehicle charging stations, as well as a rooftop with swimming pool, hot tubs, and fire pits.

The Vicinity This is a transit-oriented residential mixed-use development located in close proximity to downtown Minneapolis within the historic Mill District Neighborhood. The redevelopment replaced an existing surface parking lot and is a true mixed-use development with housing, restaurant and retail uses. The building extends the active services along 2nd Street, enhancing a livable and pedestrian-friendly neighborhood. The site is located within walking distance to downtown and has immediate access points to bus routes, the Downtown East light rail station, bike lanes and sidewalks. This building includes 98 market-rate apartment units, 25 affordable apartment units, approximately 7,400 square feet (SF) of retail and restaurant space, 4 for-sale walk-up townhome condos, and 138 enclosed parking stalls.

2020 MINNESOTA REAL ESTATE AWARDS

REDEVELOPMENT/REUSE/HISTORIC - HOUSING The Jax The Michaud Brothers Building (The Jax) at 249-253 4th Street East in Saint Paul, was built by the Butler Brothers firm and commissioned by the three Michaud brothers to house their grocery wholesaling business. The building has long been associated with the Jax Manufacturing Company, a long-time tenant that produced automobile seat covers. The building was listed in the National Register of Historic Places (NRHP) in 1983 as a contributing structure to the Lowertown Historic District; it is also a local historic resource in the City of Saint Paul. The building was one of the first poured concrete buildings in Saint Paul and also represents the commercial building trends of the Lowertown Historic District, such as the brick masonry, high-style sheet metal cornice, concrete storefront cornice, and original double-hung and pivot windows.

1500 Nicollet 1500 Nicollet is a 183-unit affordable multi-family development, with over 7,000 square feet of retail space, located in the downtown Loring Park Neighborhood of Minneapolis, MN. Minneapolis Leased Housing Associates IX, LLLP (Dominium) acquired six adjoining parcels to consolidate the property on November 8, 2017 in order to allow for the envisioned development. Construction was completed in October 2019.

This development is the first project in the Dominium portfolio as well as the City that has implemented income averaging. The project provides affordable workforce housing that is both rent and income restricted to families earning between 40% - 80% of the Area Median Income, with 20% of the units additionally restricted at the “Fair Market Rent” levels. The unit mix consists of 1 studio, 43 one-bedrooms, 95 two-bedrooms, and 44 three-bedrooms.

University of MN Pioneer Hall Built in the 1930s, Pioneer Hall was the University’s first dormitory for men. Its separate, back-to-back, C-shaped buildings formed two courtyards. A central link connected the wings with dining located below grade. The facility was organized as a series of vertical houses with 16 courtyard entries and stair towers. A 1977 renovation introduced a horizontal corridor system connecting all houses on each floor.

After many decades of service, Pioneer Hall no longer met student needs. The facility lacked basic accessibility: multiple floors with no elevators, substandard restrooms and extremely narrow corridors. The subterranean dining and kitchen facilities were dark, outdated and inadequate. MEP systems required major upgrades and the building exterior needed restoration.

INTERIOR DESIGN - HOUSING Waterstone Place Apartments Originally built in the early 2000s, Waterstone Place was transformed into a suburban retreat reminiscent of the esteemed lake house lifestyle. The entire clubhouse was completely gutted to create a more functional public space that incites social connection. The clubhouse features a luxurious lounge area, a demonstration kitchen and dining tables for a complete culinary experience, a game area and a state-of-the-art fitness center. The leasing office was also relocated to be near the amenity spaces. The close proximity made it easy for the leasing staff to market the new amenities to prospective tenants and the relocation allowed the original leasing office to be converted into an apartment unit for additional income. The landscaping bordering the leasing office was redesigned to distinguish that portion of the building from the rest of the building and exterior signage was installed to increase visibility of the leasing office from the street. On top of completely renovating the clubhouse and relocating the leasing office, the units, lobby and corridors were updated to reflect the modernized design aesthetic, creating a comfortable living space for the residents. Interior signage was also installed for enhanced wayfinding.

Eagan Place Apartments Outdated in design and amenity offerings, Eagan Place Apartments was substantially renovated to elevate the community experience and design aesthetic to align with market standards, providing residents with an upscale living environment that caters to their lifestyle.

The building was restructured and expanded to achieve these project goals. The front entrance was expanded and the floor was filled in to create an open atrium space and add more amenity areas. A new open, straight stair and custom light fixture were installed to modernize the aesthetic, connect the residents to the lower level amenity space and create an aesthetically appealing focal point. The exterior façade was also updated to align with the new brand of the housing community.

Sable Sable, a 57-unit condominium building located in downtown Minneapolis’ North Loop neighborhood, is surrounded by dining, shopping, and local sports venues. It is defined by 3 words: Eclectic, Boutique, and Soho; this final interior concept was the driver for all elements in the project right down to the functional programmatic elements and space plans required for a high-end luxury condominium building. Final design, finishes, and furnishings all evoke these concepts to provide a new offering in the North Loop neighborhood. Amenities include a large lobby space with dramatic fireplace, custom brass bar for happy hours, and a variety of seating options for residents to socialize and work. Unit entries are framed with wood veneer and custom wall sconces to create a hospitality feel when coming home.

Two-unit palettes are provided within the unit mix for a variety of options for potential buyers along with 2-story penthouse options as well. A large rooftop deck surrounded by beautiful plantings provides ideal views of downtown Minneapolis while congregating at the outdoor bar and grilling stations, firepits, and banquette seating. An adjacent parking structure allows residents direct floor access from their car, providing an elevated level of service.

HOSPITALITY The Fillmore Theater and Element by Westin at Target Field Station United Properties has been creating deep roots in the Twin Cities for more than 100 years, and its Target Field Station project caps the company's commercial real estate development activities in the North Loop neighborhood of downtown Minneapolis, which includes the Ford Center, Be The Match Headquarters and Caribou Coffee.

Located on a .74-acre site adjacent to Target Field and the light rail’s central transit hub, the 150,000-sq.-ft. building features The Fillmore Minneapolis music hall at 525 Fifth St. N. and Element Minneapolis Downtown at 501 Sixth Ave. N. The Fillmore Minneapolis occupies 36,000 sq. ft. and features an intimate, 1,850-guest-capacity venue for music performances. Element Minneapolis Downtown features 156 guest rooms and inviting public spaces, including a rooftop patio.

2020 MINNESOTA REAL ESTATE AWARDS

DEVELOPER OF THE YEAR United Properties 2019 was a milestone year for United Properties (UP), which has been creating deep roots and imagining new possibilities in the commercial real estate industry for more than 100 years. Construction began on RBC Gateway, the largest project in the company’s history and one of the largest privately undertaken developments in the history of Minneapolis. At groundbreaking, nearly 85% of the office portion of the project was leased, with only two floors remaining — a level of leasing that was virtually unprecedented for a project of this size and scope, according to President Bill Katter.Working with the City of Minneapolis and other project partners, UP is building a 37-story tower that includes Class A office space, including the U.S. headquarters of RBC Wealth Management; the Twin Cities’ first five-star hotel, the Four Seasons Hotel – Minneapolis; luxury condominiums, branded as Four Seasons Private Residences Minneapolis; a public plaza and greenspace; and street-level retail. UP and its parent company, Pohlad Cos., announced plans to move their corporate offices to RBC Gateway in 2022.

Doran Companies This past year was an exceptional year for Doran Companies. As a development-led company, we exceeded internal goals and continued our aggressive presence in the Twin Cities market.In Maple Grove we commenced construction on the third phase of The Reserve at Arbor Lakes. Phase one and phase two included a combined 450 units and 621,275 square feet. The third phase of this project will add an additional 151 units and 251,571 square feet.Construction is moving along at the Expo in Minneapolis. The 368-unit luxury apartment community will be delivered in two phases, one of which was recently turned over.After the development team gained approval on The Birke in Minnetonka in 2019 for a proposed 175-unit luxury apartment complex just off 394 at Wayzata Boulevard and Fairfield Road, construction began and the building will be delivered this year.

Kraus-Anderson Development 2019 was a monumental year for Kraus-Anderson Development Company. One of KA Development’s biggest achievements of the year was the completion of Chamberlain Apartments in Richfield. The project was a partnership with Inland Development Partners and the City of Richfield to rehab three existing multifamily buildings and construct three new ones. The complex was the first multifamily expansion project in Richfield in nearly 30 years. Of the 316 units, 20 percent of them are dedicated to affordable housing. As the first development of its kind in Richfield, this creative use of space and design will address the affordable housing crisis, redevelop a dynamic area of Richfield, and will be a model for communities to build upon in the future.

Roers Companies Roers Companies has been a sizable developer for several years but has flown under the radar in the Twin Cities until recently. The company’s focus on metro development has moved it from the 17th-largest developer on the Minneapolis/St. Paul Business Journal’s annual list to the fifth-largest. In the past three years, It developed 1.9 million square feet of metro projects and more than 3.2 million sq. ft. across the six-state region. Since its founding in 2012, Roers has developed 35 total projects and completed $600 million in construction.

Schafer Richardson In 2019, the Schafer Richardson Development Team completed work on $83,560,000 in projects, including 250,000 square feet of multifamily residential units and 340,000 square feet of commercial space. This work included completion of the redevelopment of Osborn370, the former 20-story Ecolab Tower in downtown St. Paul, which is now home to over 25 growing businesses, vibrant community space, and a socially-minded coffee shop in the lobby. The Schafer Richardson Team also completed the redevelopment of the former WeatherRite industrial building located at 700 N. 5th Street in the North Loop neighborhood of Minneapolis into a thriving multi-tenant commercial building. The 700 N. 5th Street project added two retail tenants welcoming a new craft cidery in late 2018 and a brewery in November 2019; in addition, a 48,000 square foot office tenant opened its doors in November 2019 to bring the building to 100% occupancy.

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2020 MINNESOTA REAL ESTATE AWARDS

REAL ESTATE WOMAN OF THE YEAR Sara Martin Sara Martin started at Colliers International | Minneapolis-St. Paul 17 years ago as an associate broker. She’s since risen to be a vice president at Colliers, completing 2.6 million square feet in transactions for a total of consideration of more than $226 million. Her current property portfolio is more than 2.6 million square feet, and her current client list includes Chick-fil-A, Club Pilates, Face Foundry, Yoga Six, Pure Barre, IHOP, Totally Tan, Caliber Collison and other popular retailers with locations springing up around the metro.

Wendy Aaserud Wendy Aaserud has more than two decades of experience in the commercial real estate industry, much of it in a leadership role for Cushman & Wakefield’s Asset Services division in Minneapolis-St. Paul.

Wendy is integral in new business pursuits and helps guide policy and decision-making for the office. As the leader of Cushman’s Property Management team, Wendy is key in making sure employees are utilizing industry and company best practices in their management and ensuring that Cushman & Wakefield clients are receiving best-in-market service. Wendy’s managed portfolio in 2019 included more than 11 million square feet of retail, office and industrial properties and her work has been an integral part in the company being ranked in the top Property Management firms of the Twin Cities for 18 years.

Jody Fearing Trede Jody is a road paver, a disrupter, a change making heroine, and for all the right reasons. As a Certified Public Accountant (CPA), Certified Management Accountant (CMA) and Chartered Global Management Accountant (CGMA) she is a highly accomplished visionary leader with a dual focus on strategy and successful business execution. She joined Michaud Cooley Erickson (MCE) as Interim Chief Financial Officer only two years ago and has made waves of efficiency improvements within the company. She joined MCE in a pivotal time of a leadership transition offering her expertise in successful business leadership through operational excellence and cultivated a strong organizational culture.

Jill Rasmussen Jill K. Rasmussen, CCIM, SIOR is a woman who has perfected the art of managing clients and industry obligations with family life and personal wellbeing. She effortlessly conquers each challenge presented to her and finds a way to emerge successful every time. She is well-respected on a global level, generously philanthropic locally and adored by all she encounters.

EXECUTIVE OF THE YEAR Paul Hyde • 1.8 million sf Northern Stacks Industrial Park 100% leased • 76 Commerce Center 5, a 266,000 sf Bulk Warehouse in Denver, CO, 100% leased (with Mortenson as partner) • Started construction on 352,000 sf 76 Commerce Center 4, a Bulk Warehouse in Denver CO • Acquired 125 acre Highpoint Industrial site in Denver CO, where we will develop a 2 million sf industrial park with Mortenson as our partner • Sale of Twin Lakes IV and MBC 2 office warehouse buildings to AEW • Acquisition of 140,000 sf Hennepin Business Center with Partner Mortenson • Redevelopment of 28,000 sf NordØst Exchange in NE Mpls • Lease with Billy Sushi in our Hennepin Steam Building in North Loop • In my volunteer role, lead the development of the Westminster Presbyterian Church addition on Nicollett Mall, designed by James Dayton and construction by Mortenson Construction • Top 8 Real Estate Developers and Top 18 Property Managers / Mpls St. Paul Business Journal

Mark Davis As CEO of Davis, Mark A. Davis has dedicated the last 30 years to developing award winning, state-of-the-art medical buildings that have had a profound impact on the people, landscape and economy both within the local metro and across the nation. His work has improved the overall healthcare experience for people, families and communities, and act as a prime example of what success in the commercial real estate sector looks like. Over the past 30 years, Mark has grown his company (Davis) into a full-service commercial real estate operation, providing dispositions, acquisitions, brokerage, development, investment and strategic planning to his client base. Through this full-service model, Mark has personally overseen the transformation of over 1 million square feet of medical space—An impressive and award-winning industry achievement. Additionally notable is the expansion of the Davis property management division, which under Mark’s carefully strategic direction to-date provides management services to 55 medical office buildings, totaling 2,500,000 square feet nationwide.

Brian Roers Brian Roers led the fast-growth juggernaut of not one but two companies in 2019, Roers Companies (the regional developer of multifamily, senior and student housing) and Core Living (a property management firm). As co-founder of both with his brother Kent, Brian’s leadership has made both companies major players in the Midwest real estate market. Roers placed #5 in the Minneapolis/St. Paul Business Journal list of Largest Developers in 2019, while the Journal slotted Core Living at #8 in the publication’s “Fast 50” companies thanks to a growth rate of 137.31%. Core Living also was named one of Inc. Magazine’s “5,000 Fastest-Growing Companies in America” in 2019.

Sparked by Brian’s hard work ethic, since opening the doors in 2012, his team has developed 35 properties totaling more than $600 million in completed construction, with a development footprint that now covers more than 3.8 million square feet and more than 3,700 multifamily, student and senior housing units across the Midwest.

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COMMERCIAL & RE TTA AIL CSM Commercial develops, owns and manages office, industrial, and retail real estate nationwide. In its 40 years of operation, CSM has built, acquired or redeveloped 140 commercial properties coast to coast, including more than 15 million square feet of space. Our unique approach to design and development results in construction that is well-built, easily maintained and flexible for future use. CSMâ&#x20AC;&#x2122;s in-house resources provide unparalleled expertise and cohesive solutions for clients.

LODGING CSM Lodging is one of the top 50 hotel management comp m anies in the US with a proven track record of success. Some of our accolades include; Marriott Developer of the Y Yeearr,, Marriott Classic Premium Hotel of the Year and Best Conversation Hotel of the Y Yeear. CSM has built an nd managed nearly 50 hotels for some of the nationâ&#x20AC;&#x2122;s most prestigious brands, including Marriott, Hilton and Hyatt. We develop, design and operate hotels from coast to coast with unique and comprehensive experience.

RESIDEN NTIAL With more than 77,,800 residential units developed, managed and owned nationwide, CSM Residential is a highly respected residential property management comp ny nationwide. We understand that communities are pan more than just a building, they are our residents home. Ultimatelyy,, our goal is to drive value for our residential investments to be; more competitive in the market, more profitable and more attractive to residents over the long-term.

CSM Corporatio on and Gary Holmes Congratulate

J h Allllen John nt Gary S. Holmes 2020 Lifetime Achievement Award Recipien