Minnesota Real Estate Journal April 2021 by REjournals

page 17

Waiting for the momentum to return: When will downtowns bounce back?

emember back before March of 2020? That’s when commercial real estate publications -- including this one -- wrote regular features on how hot urban downtowns had become. People were flocking to live in multifamily towers in the center of downtowns,

By Dan Rafter, Editor

while restaurants, bars and retailers operating in the hearts of cities across the Midwest were packing in the customers. Today? That’s changed, thanks, of course, to the COVID19 pandemic.

Walk through downtown Minneapolis, Chicago, Indianapolis or St. Louis today, and you’ll get a different feel. Many retailers are shut down. Hotels are nearly empty. And office buildings that were buzzing before March of DOWNTOWN (continued on page 12)

Back to the office: What will that look like?

OVID-19 vaccinations are increasing in the United States, with the country now administering more than 3 million doses a day on average. This is leading to hope that the country can slowly start a return to normal this spring and summer. And part of that process? For many, it will mean a return to the office after more than a year of working from home. But what will this return look like? And what will companies do to make sure that their employees feel safe? Midwest Real Estate News interviewed Dan Park, senior

vice president and asset manager for Newport Beach, California-based KBS, to find out. Here is what Park, responsible for carrying out investment goals in the Midwest markets for KBS, had to say about the country’s eventual return to the office. Will the Midwest still be an attractive market for office workers and companies, even after the pandemic? Dan Park: Midwestern hospitality and quality of life, plus an affordable cost of living, make moving to the Midwest an attractive option for many people. For example, Down-

By Dan Rafter, Editor

town Minneapolis experienced considerable residential population growth during 2020. This market’s strong fundamentals are among the reasons KBS owns two properties in Minnesota: RBC Plaza at 60 South Sixth in downtown Minneapolis and Northland Center in Bloomington and why we continue to watch the region closely for investment opportunities. We also see ongoing promise post-pandemic in the Chicago area, which offers a metropolitan lifestyle at a discount OFFICE (continued on page 10

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EMERGING FROM COVID-19: The pandemic has turned commercial real

WHAT THE EMPLOYEE RETENTION CREDIT MEANS FOR YOU: On March

estate leasing on its head. Retail and restaurants were forced to close for reasons most leases did not anticipate. Without their normal income, tenants started to miss rent payments. Moratoriums were passed by government entities that halted eviction actions that otherwise would have been remedies for landlords. 1 of this year, the IRS issued guidance on the Employee Retention Credit of the Coronavirus Aid, Relief and Economic Security Act. What does this guidance mean for you?

14 PANDEMIC OR NOT, INVESTORS STILL LOVE THOSE GROCERY STORES: Investors haven’t found much to love in the retail sector during the COVID-19 pandemic. There’s an exception, though: grocery-anchored retail.

WHAT WILL LIFE LOOK LIKE IN THE POST-COVID DOWNTOWN? Remember

WHAT WILL BACK TO THE OFFICE LOOK LIKE? COVID-19 vaccinations

COVID THE CULPRIT AS APARTMENT RENTS KEEP TRENDING DOWN:

back before March of 2020? That’s when commercial real estate publications -- including this one -- wrote regular features on how hot urban downtowns had become. People were flocking to live in multifamily towers in the center of downtowns, while restaurants, bars and retailers operating in the hearts of cities across the Midwest were packing in the customers. Today? That’s changed, thanks, of course, to the COVID-19 pandemic. are increasing in the United States, with the country now administering more than 3 million doses a day on average. This is leading to hope that the country can slowly start a return to normal this spring and summer. And part of that process? For many, it will mean a return to the office after more than a year of working from home.

The multifamily sector has remained solid throughout the COVID-19 pandemic. But that doesn’t mean that the last 13 months have been easy for apartment owners in the Minneapolis and St. Paul markets.

PROS EXPECT GOOD TIMES AS LIFE RETURNS TO 15 MULTIFAMILY NORMAL:

Renters were flocking to new apartment buildings in downtowns across the Midwest, often filling these spaces before construction even wrapped. Renters by choice – both young and old – wanted to live in the urban hearts of cities, attracted to their live entertainment, mix of retailers and dining-out choices. That, of course, was before last March, when the COVID-19 pandemic upended life in the United States and all those restaurants, shops, bars and theaters shut down.

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Zumper report: COVID the culprit as Minneapolis apartment rents still trending down By Dan Rafter, Editor

he multifamily sector has remained solid throughout the COVID-19 pandemic. But that doesn’t mean that the last 13 months have been easy for apartment owners in the Minneapolis and St. Paul markets. Just look at the April rent report from apartment site Zumper. According to the report, the median monthly rent for a one-bedroom apartment in Minneapolis fell to $1,250 in March of this year. That’s down 10.1 percent from the same month one year earlier. It’s also down 3.8 percent from the median one-bedroom rent in February of this year . The median rents for two-bedroom apartments dipped, too. Zumper reported that the median rent for a two-bedroom apartment in Minneapolis stood at $1,750 as of the end of March. That’s down 3.8 percent from a year ago and 2.8 percent from the previous month. These dips aren’t surprising. Zumper reported that rent prices have dropped in the country’s most expensive cities. That’s largely because renters moved during the pandemic out of larger cities. The reason? Living in a big, dense city isn’t as much fun when everything that makes urban living exciting is closed.

“The big question, though, is whether median apartment rents will return to pre-pandemic levels and if they will, how soon?” What is interesting, though, is that apartment rents are rising in rural and suburban areas. Zumper pointed to numbers from the National Center for Health Statistics showing that median one-bedroom rents have risen slightly more than 6 percent in larger fringe metropolitan areas since February of 2020, by 5 percent in medium metropolitan areas and about 7 percent in smaller metro areas. During this same period, though, median one-bedroom rents have been flat in large central metro areas. The big question, though, is whether median apartment rents will return to pre-pandemic levels and if they will, how soon? Zumper pointed to rising vaccination rates and a lessening of COVID restrictions as reasons why renters might again return to bigger, destination cities.

Nationally, rents grew for both one- and two-bedroom apartments in February of this year. One-bedroom units rose 0.6 percent to a median price of $1,248, while two-bedroom units increased 0.8 percent to a median price of $1,514. Compared to a year ago, the median one-bedroom rent rose 2.2 percent while the median two-bedroom rent jumped 2.9 percent. No one can predict what apartment rents will do throughout the rest of the year, across the country or in the Twin Cities. The hope, though, is that as downtown Minneapolis and St. Paul slowly reopen both the office workers and the apartment renters will return.

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Emerging from COVID-19: Commercial leasing considerations

By Jessica Swanson and Patricia Weller, Monroe Moxness Berg

he pandemic has turned commercial real estate leasing on its head. Retail and restaurants were forced to close for reasons most leases did not anticipate. Without their normal income, tenants started to miss rent payments. Moratoriums were passed by government entities that halted eviction actions that otherwise would have been remedies for landlords. In most cases, landlord and tenants would enter into agreements providing for abatement or deferment of rent, unique rent structures, extension of lease term to account for such adjustments. But the business effects of the pandemic extended beyond what was initially thought: Businesses were closed longer than anticipated, work from home became more of the norm, limiting customers for retail and restaurants in office-dominated areas, with growing reliance on e-commerce reducing the need for bricks-and-mortar square footage. As the pandemic gradually recedes, there are matters inherent to the emerging commercial leasing environment that both landlords and tenants should consider.

“Although it is next to impossible to predict the future during a pandemic, signs of what a commercial landlord and tenant might expect are beginning to materialize. Going forward, both landlords and tenants should consider COVID-19 amendment compliance, new methods of relief and necessary property modifications and improvement allowances.”

AMENDMENT COMPLIANCE

brewpubs and taprooms. An eligible business may obtain up to $10 million, and grant funds may be used to cover payroll costs, rent payments, utilities, maintenance expenses, supplies, operational expenses, paid sick leave, outdoor seating construction, cleaning materials and other expenses the SBA deems essential.

Every responsible tenant should carefully study the specific terms governing its rent deferral, abatement or other restructuring agreement to ensure complete compliance and avoid triggering landlord remedies, such as rent acceleration. During the amendment process, landlords are given the opportunity to revisit and amend tenant-friendly provisions in the lease that can be affected by the pandemic, such as exclusive use rights, co-tenancy, insurance, maintenance and other operating covenants. It is important for a tenant to note any changes in these key terms so that it may remain in compliance with the lease. In addition to changes in key terms, tenants should be aware of any landlord acceleration rights within the rent relief amendment. An acceleration provision allows the landlord, upon any tenant default or noncompliance, to accelerate the deferred rent amount and/or balance of the rent due for the lease term, making it due and payable immediately. Rent relief amendments also frequently require tenants to pursue relief funds through government programs. Tenants should keep this requirement in mind, so that when new pandemic-related relief programs are established, tenant will ensure compliance with the amendment by pursuing such relief. By understanding the amendment terms and the nuances of staying in compliance with the amendment, tenants can avoid default

Jessica Swanson

and the harsh consequences that come along with it, such as rent acceleration.

GOVERNMENTAL RELIEF MEASURES

The Small Business Administration’s (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loans have been the primary source of COVID-related financial relief for businesses to date. But additional governmental relief is on its way. On March

Patricia Weller

11, 2021, President Joe Biden signed the American Rescue Plan Act of 2021 (the “Act”). The Act created a $28.6 billion Restaurant Revitalization Fund (RRF), which will be administered directly by the SBA. Unlike the PPP, the RRF is a grant, which means businesses do not need to pay it back. Eligible entities include, but are not limited to, restaurants, food stands, food trucks, caterers, bars,

As an additional method of relief, states and municipalities have taken action to temporarily suspend commercial evictions for failure to pay rent through moratoriums. However, as the nation continues to slowly come out of the pandemic, most moratoriums have lapsed. Tenants in a city or state that is or has been subject to an eviction moratorium must learn its terms. For example, some temporary moratoriums state that tenants will have up to six months after the local state of emergency is over to pay their past due rent amount.

PROPERTY MODIFICATIONS AND IMPROVEMENT ALLOWANCES

Both tenants and landlords should consider improvement allowances, construction budgets and performance benchmarks for required property renovations in the upcoming months. Property modifications will be required in most commercial spaces to accommodate social distancing and various government orders. Alterations such as plexiglass dividers, touchless fixtures, foot-operated doors,

APRIL 2021

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“As always, trust and honest communication between landlords and tenants is crucial, and the coming months will offer an opportunity to strengthen the landlord/tenant relationship. as the two parties work together to achieve their common interest of positioning their businesses for success.”

improved ventilation and filtration systems, and exterior dining or seating areas should be considered. The current lease may not provide for these types of unanticipated improvements, and the tenant will be expected to share in such costs. To prepare for these improvements, landlords and tenants should negotiate fixed operating expense payments or hybrids of fixed and variable expenses. The landlord and tenant may also take into account any amounts received from RRF, which can be used for COVID-19 related construction projects.

common interest of positioning their businesses for success.

Jessica Swanson and Patricia Weller are attorneys at the Minneapolis law firm of Monroe Moxness Berg. You can contact them at jwsanson@mmblawfirm.com

and pweller@mmblawfirm.com. For more information, please visit mmblawfirm.com.

FUTURE LEASE NEGOTIATIONS

Most leases are landlord-favorable, and normally only tenants with strong leverage can negotiate rent abatement or deferral provisions. However, the pandemic is laying the ground for a tenant-favorable marketplace, because nearly every tenant is struggling with the same uncertainties, and a tenant already in place who can pay some rent is better than no rent, or the expense of replacing the current tenant with a new one. On the other hand, while a replacement tenant may not be immediately available or financially accessible to a landlord, removing a problematic tenant now for default due to the failure to pay rent may be preferable to accepting less rent from the tenant only to be stuck with them again once things improve. So it remains to be seen whether landlords will continue to be willing to negotiate with tenants to make lease and rent modifications during the next phase of the pandemic. Although it is next to impossible to predict the future during a pandemic, signs of what a commercial landlord and tenant might expect are beginning to materialize. Going forward, both landlords and tenants should consider COVID-19 amendment compliance, new methods of relief and necessary property modifications and improvement allowances. As always, trust and honest communication between landlords and tenants is crucial, and the coming months will offer an opportunity to strengthen the landlord/tenant relationship as the two parties work together to achieve their

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Employee Retention Credit: The impact of Notice 2021-20 on 2020 941s and income tax return filings By Andrew Seifert

Photo courtesy of Luca Bravo on Unsplash.

n March 1 of this year the IRS issued guidance on the Employee Retention Credit (ERC) of the Coronavirus Aid, Relief and Economic Security Act (CARES Act). Through 71 FAQs, Notice 2021-20 formalizes the current IRS FAQs and also provides guidance based on changes made to the ERC program through the passage of the Consolidated Appropriations Act, 2021. The notice only applies to the calculation of the ERC for 2020, and the IRS will be issuing guidance on the 2021 credit at some point in the future. Notice 2021-20 provides answers to questions such as: Who are eligible employers? What constitutes full or partial suspension of trade or business operations? What is a significant decline in gross receipts? How much is the maximum amount of an eligible employer’s employee retention credit? What are qualified wages?

How does an eligible employer claim the employee retention credit? How does an eligible employer substantiate the claim for the credit? Several of the key points in the notice are: PPP and ERC wages: By claiming wages on a Paycheck Protection Program (PPP) forgiveness application, a taxpayer affirmatively elects to not use those wages for ERC purposes. This means a taxpayer cannot reduce wages reported on their PPP loan forgiveness application by the amount of other eligible PPP expenses that they could have otherwise reported on the PPP loan forgiveness application. Accordingly, if a taxpayer does not have other eligible PPP expenses included on their PPP forgiveness application, this could reduce the amount of the available ERC. If you have not yet filed your PPP loan forgiveness application, it is recommended that all other allowable expenses (i.e., expenses other than wages) be reported on a PPP forgiveness application, to the greatest extent possible, while still maintaining an adequate amount of wages for PPP forgiveness.

Impact of ERC on expenses for income tax returns: On the employer’s income tax return for 2020, the deduction for qualified wages, including qualified health plan expenses, is reduced by the amount of the 2020 ERC claimed by the employer. Accordingly, you must know the amount of ERC being claimed to accurately reflect income and deductions on 2020 income tax returns. This is true for both cash and accrual basis.

Form 941-X: An eligible employer must file a claim for refund by filing Form 941-X to claim the ERC to which it was entitled on qualified wages paid in a 2020 calendar quarter. The statute of limitations for filing the 941-X is the later of three years from the date of filing or two years from the date the tax was paid.

Nominal effect suspension: For purposes of a full or partial shutdown, an employer must experience more than a nominal portion of its business suspended. The IRS defines a nominal portion of a taxpayer’s business as either 1) not less than 10% of the business’s total gross receipts (compared to 2019) or 2) not less than 10% of total number of hours performed by all employees of the business. This is just used in determining what is a more than nominal portion of a business.

Given Notice 2021-20’s guidance, we anticipate any qualifying businesses that have already filed for 2020 may need to amend their income tax returns. Other qualifying businesses that have not yet filed should file for an extension in order to fully understand the impact of this guidance prior to filing. Contact us if you have questions or need assistance.

WOTC: An employee cannot be included for purposes of computing the ERC for any period that an employer is allowed a Work Opportunity Tax Credit for that employee for that period.

Need assistance with the Employee Retention Credit?

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use of approved cleaning agents that meet CDC and WHO requirements.

OFFICE (continued from page 1)

to the coastal markets. We own several premier office properties in the Chicago market, including Accenture Tower, 213 West Institute Place, 210 W. Chicago Ave. and Edens Corporate Center, and we believe strongly in this market’s resilience. As the vaccine continues to roll out and everyone becomes more comfortable with public transit, we anticipate that Chicago will likely be restored to its pre-pandemic office levels.

Ultimately, through these efforts, we can aid in limiting the spread of the virus and create environments where tenants and their employees feel safe. We are also constantly looking at ways to improve the tenant experience and what changes might make sense at each of our properties over the long-term.

What have office owners been doing at their properties to safely bring tenants back to work, and what changes are here for the long term?

Park: As 2021 progresses, we are feeling positive about the Midwest office leasing landscape. There are signs that activity has picked up over the last month in the region and across the country. There is a sense that confidence is building, and we should see the results of that sentiment toward the middle or later part of this year as the vaccine continues to become more readily available. In fact, the National Association of Real Estate Investment Trusts’ 2021 outlook anticipates an upswing in office valuations by the end of the year, which should correlate with increased leasing activity and occupancy.

Park: We do our best to listen to our tenants and incorporate building policies and features that aid in the safe return for tenants and their employees. These include a multitude of elements that promote a healthy and safe environment now and well into the future. Some of the immediate changes we made within all of our properties was quickly adding hand sanitizer stations and window and floor decals to promote social distancing. Additionally, we hired extra help to clean lobbies, common areas and high-contact areas, such as counters, doors

What does the office leasing landscape look like at present in the Midwest?

Dan Park

handles, handrails and elevator buttons multiple times a day. Beyond this, in a large portion of our buildings, we’ve upgraded our air filters to MERV-13, which blocks 98 percent of pollutants from the air and captures viruses, bacteria, pollen and fine dust. Other steps KBS has taken at some of our properties include training janitorial staff on proper disinfecting practices and the

From KBS’ perspective, we’ve seen some encouraging leasing activity in our own portfolio. Fredrikson & Byron, a leading Midwest law firm, recently signed a lease agreement for about 178,000 square feet of space at RBC Plaza at 60 South Sixth, a Class A, 40-story, 710,332 square-foot office tower and retail complex in downtown Minneapolis. Our firm also signed more than 2 million square feet in accumulative lease transactions during the COVID-19 pandemic across our portfolio of office assets nationally. The transactions comprise a mix of new leases, renewals and expansions. This is an indication that companies are committed to having a physical office in both urban and suburban locations, and the Midwest is no exception. After COVID-19 is behind us, will we see more companies going to a hybrid work model, where some people work at home on some days and in the main office when it makes sense? Park: Although some companies will offer a hybrid model where employees will have the ability to work from home one or two days a week, we see this as temporary. Employers and employees are seeking collaborative environments that truly can only be found from working together in an office setting. I believe a company’s culture is difficult to achieve when everyone is working from home. Successful organizations all have a unique sense-of-place for their culture to thrive. Over the long-term, we believe that we will see a full transition back to the office as people become more comfortable going back to the office. Additionally, there is no clear sign that the layout of office is changing significantly, an indication that employers and their employees will eventually return to an office environment very similar to what we

APRIL 2021 previously considered normal. While some developers and tenants are configuring more private offices, changing their furniture layout, and creating more space between employees, we haven’t seen anyone completely alter their floorplans long term. We are hearing from tenants that many of their workers have become weary of working from home and their appetite for traditional offices has grown. We expect this appetite to increase as firms recognize the connection between office space and productivity, employee morale and recruitment. What will it take for employees to be comfortable returning to high-rise offices in dense, urban cores? Park: We believe that as people see COVID cases decrease and a significant number of vaccinations are administered, their comfort level will rise, and they will begin to feel safe about returning to dense urban cores once more. Widespread vaccination is important for people to feel comfortable and safe traveling in trains, which is especially relevant in a city like Chicago. Accenture Tower sits above the Ogilvie Transportation Center, one of two main train stations in Chicago’s west loop, which connects the suburbs with Downtown Chicago, so we are familiar with how important commuting by train is to our tenants in this market. We believe train and other forms of public transportation will return to pre-pandemic levels once the vaccine is widely available. It is also important to ensure that tenants and their employees understand what owners and landlords have put in place to ensure their office space is safe and provides a healthy environment. This is why we work in partnership with tenants and remain flexible to ensure we are meeting their specific needs. KBS recently rolled out a software program for tenants that helps companies to return to their offices safely and efficiently. This collaboration with Maptician, a cloudbased, workplace management platform has been a powerful tool for many of our tenants that allows them to basically overlay their floorplates with government mandates and analyze any of the social-distancing requirements to come up with a staffing plan. The software also assists with mapping out staggered work schedules as well as proximity contact tracing. We believe working in step with our tenants will help make them successful in getting everyone back into their workplaces. Dan Park is a senior vice president and asset manager with KBS, one of the largest owners of commercial real estate in the nation.

DISTINCTIVE DETAILS. DIFFERENTIATED RESULTS. DRIVEN TO DELIVER.

12 DOWNTOWN (continued from page 1)

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“I am excited that there are businesses

last year are quiet as employees continue to work from home.

pushing to get people back to the

When will this change? When will downtowns regain the momentum they saw before the pandemic hit? During the last week, Midwest Real Estate News spoke to commercial real estate professionals working in downtown markets across the Midwest. They all agreed that downtowns look very different today. But they also agreed that this is far from permanent.

office. One of my clients is saying that

Downtowns, they say, will be back, and as long as vaccination efforts continue to gain steam, the shoppers, workers and tourists should start to return this year. The slow return to normalcy Adam Barrett, vice president with the Minneapolis-St. Paul office of Colliers, said that employees are slowly returning to the office in downtown Minneapolis. He pointed to figures released by the Minneapolis Downtown Council – Barrett is a member – showing that as of April 1, about 15 percent of employees were back in their offices in the city’s downtown. Barrett himself has been working in the office for all but one week during the pandemic. His own eyes, he says, tells him that activity, both in the form of office workers and visitors, is slowly but steadily on the rise in downtown. “Over the last two or three weeks, I am seeing more traffic downtown,” Barrett said. Some of this traffic has returned not only because of the increase in vaccinations, but as a result of warmer weather. That’s a trend that repeats itself each year in downtown Minneapolis. “Every year people migrate away from downtown when it gets cold,” Barrett said. “When it starts to warm up, you see more people walking along Nicollet. As the weather has broken over the last two weeks, more people have been out walking in downtown. That is natural. Every year is cyclical in downtown: People gravitate away and come back.” At the same time, there has been a push among Minneapolis-St. Paul companies to bring their employees back to the office, with many employers targeting June for the start of these efforts. Other companies, the bigger ones, are looking at a fall return to the office. This includes companies such as Wells Fargo, Target and Thrivent. Another factor that should boost activity in downtown? Children in kindergarten through the 12th grade are now allowed back in Minneapolis public schools. That could have a ripple effect on downtown activity, Barrett said. “I think we’ll start to see more parents returning to the office as those kids return to school,” Barrett said. “I imagine many of

their workers must come back in June at least three days a week. They are saying that they want people back.” those parents are now thinking about when they will return to the office.” At the same time, the Minneapolis Downtown Council is launching efforts to activate the streetscape throughout the downtown area as a way to encourage more people to visit the heart of the city.

The challenge is that people won’t see downtown Minneapolis as safe if there isn’t streetscape activation throughout the area and people moving through the urban center of the city. As Barrett says, it’s a bit of a “chicken-and-egg” dilemma. People won’t return to downtown until they feel safe. But they won’t feel safe until people are there.

Minneapolis and St. Paul, of course, haven’t dealt with just the COVID-19 pandemic. Minneapolis has also been at the center of protests against police brutality and the fatal police shootings of African Americans. Protests hit downtown Minneapolis starting in May of 2020, after George Floyd was killed by police officer Derek Chauvin, who had knelt on Floyd’s neck until the man died. Chauvin’s trial resulted in a guilty verdict on all three counts against the police officer on April 20.

Barrett says that it will have to be the companies and employers who will take the lead in bringing people back to downtown and reversing the perception that downtown Minneapolis is not safe.

Then this April, a white police officer shot and killed 20-year-old African American man Daunte Wright in the Minneapolis suburb of Brooklyn Center. This has resulted in another round of protests.

This doesn’t mean that companies won’t reduce their downtown office space. Barrett says that he expects to see companies cut their office space in downtown Minneapolis-St. Paul by an average of 15 percent to 20 percent.

Protests against police shootings and efforts to defund the police have hit most of the United States this year and last. But in many ways, Minneapolis has been at the center of the Black Lives Matter movement. The city is also seeing a push to reform its police department. Barrett said that the focus today in Minneapolis is rightfully on equity initiatives and the actions of the city’s police force. But public safety matters, too, he said. People will need to feel safe to return to downtown Minneapolis. “I know that there are many companies across the country that have prioritized equity, inclusion and diversity efforts. That’s a positive,” Barrett said. “In Minneapolis, in my opinion, we have not had time to heal yet. Part of that healing process, as well as the progress associated with that healing, will have to take place with employees collaborating, getting together and coming up with ideas. I see many offices really pushing to get employees back in Minneapolis because they want to see that dialogue take place.”

“I am excited that there are businesses pushing to get people back to the office,” Barrett said. “One of my clients is saying that their workers must come back in June at least three days a week. They are saying that they want people back.”

That’s because many employees will continue to work from home at least part of the time. But this reduction in office space doesn’t mean that downtown Minneapolis will crumble. Barrett, in fact, sees the opposite: He predicts that downtown Minneapolis-St. Paul will steadily bounce back throughout the second half of 2021. “Downtown Minneapolis, like many downtowns, still offers things that the suburbs can’t when you are a company trying to attract and retain the best workers,” Barrett said. “You have building owners who have invested heavily in tenant amenities. You have all the retail outlets right there, all the restaurants. Downtown might be going through a rough time now, but that won’t last.” Employers that are pushing for a return to the office say that they are noticing a drop in productivity as their workforce toils mostly from home. That collaboration between employees doesn’t happen over Zoom calls. And while some companies might leave downtown Minneapolis, Barrett said, these moves will be for a host of reasons, not all

APRIL 2021 of them related either to the COVID-19 pandemic or the social unrest. The downtown office scene will change and evolve, too. Barrett said that he expects to see a growth in the number of spec office suites popping up throughout downtown. These suites might offer three- to five-year leases, a break from the typical lease terms of seven to 10 years in downtown Minneapolis. But those big decisions will have to wait. Barrett said that most companies are putting their long-term plans on hold for now, and are concentrating instead on the immediate future of bringing workers back to the office. “A lot is occurring downtown now that is good,” Barrett said. “We just need to get people back in the door. That will activate the streetscape and get us closer to a busier, more active downtown.” A speedier recovery? Jim Damiani, executive managing director with the Minneapolis office of Newmark, said that during the last five-plus years, downtown office landlords had created topof-the-line amenities and services in their buildings. These amenities drew companies to these buildings. And these tenants were then able to advertise them when recruiting top talent. The influx of workers to downtown Minneapolis and St. Paul spurred the development of multifamily housing and retail. As that happened, downtown became a more attractive destination for both state residents and tourists. And the new retail and housing helped draw even more workers to companies with a presence in the downtown neighborhoods of the Twin Cities. The pandemic, though, put a halt to this momentum, Damiani said. “The pandemic either temporarily limited or completely removed some of these experiences for downtown office employees,” he said. But while downtown Minneapolis remains quieter today than it was before the pandemic, Damiani expects the workers and the visitors to return in the not-too-distant future. “I believe that downtown Minneapolis will recover faster than is currently expected,” Damiani said. “Office buildings will return with a downtown experience that includes buildings with improved state-of-the-art air-quality systems and cleaning standards, touch-free common areas and socially distanced ‘third places.’” Like other CRE pros, Damiani is watching the vaccination numbers as they increase across the country. As more people receive their shots, more should also return to downtowns across the country. Employers will feel more comfortable, too, in asking their workers to return to downtown office buildings.

APRIL 2021 Damiani said that he is already seeing signs of this in the Twin Cities. About a month ago, he and his co-workers began noticing longer lines and bigger crowds at some of their favorite lunch spots. He predicts that downtown restaurants, bars and attractions will continue to see growing crowds as more people are vaccinated. Of course, a return to work might look differently in 2021 than it did in 2019. “One thing that has come out of the pandemic is that many companies’ leaders have recognized that employees can be productive working remotely,” Damiani said. “Firms will likely continue to use the offering of one to three days of remote work a week as a recruiting tool.” But that doesn’t mean that companies will shed office space in big chunks. “Office space is here to stay,” Damiani said. “People need office space for collaborations, mentorship and company culture. Many large firms in the United States implemented explorative 100 percent work-from-home in 2013 and 2014. They all eventually came back to the office.” Ready to fill those offices again? Chicago is another major Midwest city with a downtown that has suffered during the last year-plus, both from the pandemic, the resulting shut-down orders and the protests and riots that came in the wake of the George Floyd murder. To get a feel for what’s happening now in downtown Chicago and in urban areas across the Midwest, we spoke with three commercial real estate professionals from the Chicago office of JLL, Christian Beaudoin, managing director of research and strategy; and Keith Largay and Jeff Bramson, who are both senior managing directors and co-heads of the Chicago and Columbus, Ohio, offices of JLL. Beaudoin had the statistics that showed just hard the last 14 months have been on downtown Chicago. He said that office buildings in downtown are now about 20 percent full. The good news? That figure is on the rise. Beaudoin said that as the distribution of vaccines increases, it’s expected that the office occupancy rate in downtown Chicago should rise to 40 percent to 50 percent by Memorial Day. The larger occupiers should follow, too, with the expectation being that office buildings in downtown Chicago will be at 70 percent to 75 percent capacity after Labor Day. Bramson said that he only has to look out his office window to see that downtown Chicago is waking up again. There are cars driving down Wacker Drive. People are milling about the River Walk. That wasn’t happening in the fall and winter of this year. “We’ve been back in the office since late June, early July. Things looked a lot different back then,” Bramson said. “Back then, you didn’t have to look before crossing the street. Now we have to stop at the crosswalks and look

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“The under-35-year-olds are coming back,” Largay said. “They are planning to be in the city and they are planning to spend some of the money they’ve saved during the pandemic.” both ways. I drive from the suburbs. The parking garage I use is full again.” Public transportation, though, is a different story. Bramson said that most people who are working in downtown Chicago are driving into the city today, preferring to avoid the El or Metra trains. This, too, will change, though, Bramson said. As vehicle traffic into the city increases, many of the people who are driving today will grow frustrated and will return to public transportation. And as far as office occupancy goes? Bramson said that the company managing the building that houses JLL’s downtown Chicago office provides a good indicator: That manager expects most of the other tenants in that building to return to the office starting this summer. And by September 1? That’s when the building manager predicted that most companies will have at least the majority of their workforces back in their offices. Largay said that the downtown multifamily market provides a good indicator, too, of what will follow in the office sector. And the news in the downtown multifamily market is good right now. “Apartment leasing velocity was exceptionally slow during the fall and winter,” Largay said. “Starting in the middle of February and continuing now, leasing velocity has picked up tremendously.” This isn’t a surprise to Largay. During the earlier days of the pandemic, and during the winter surge, most everything that is fun about living in downtown Chicago was shut down. Restaurants were only providing carry-out or pick-up service. Bars weren’t open. Theaters were closed. Museums weren’t allowing visitors. “Living in a dense urban city in the north in the winter, when you have small average units, and everyone is stuck at home, that’s really hard,” Largay said. “Everything the city had to offer didn’t exist. All that was left was the higher cost of living in the units.” And because most office workers were working remotely, there was little reason for many people, especially younger people, to continue renting in downtown Chicago. That’s why so many young people left their apartments and moved back home during the pandemic.

That is starting to change now that people are getting vaccinated in higher numbers, Largay said. Those young people who moved out are now tired of living with their parents. Restaurants and bars are reopening. The city’s museums and cultural centers have opened their doors again. “The under-35-year-olds are coming back,” Largay said. “They are planning to be in the city and they are planning to spend some of the money they’ve saved during the pandemic.” And what about the future of office work in downtown Chicago? Will companies provide employees more flexibility? Will some workers come into the office three days a week and work from home the other two? Beaudoin said that this flexibility seems to be a key for office workers. He said that recent research from JLL found that 74 percent of employee respondents wanted to return to the office but also wanted flexibility in their work schedules. Some, for example, said they wanted to work three to four days in the office but also wanted the opportunity to work remotely on the other days. But fully remote workforces? That won’t happen for most companies, Beaudoin said. “Most offices will come back close to normal. That’s what we are forecasting,” Beaudoin said. “But flexibility will remain important. Even pre-pandemic, many companies will moving toward a more flexible work model of people coming into the office three to four days a week and working remotely the rest of the week. The pandemic has only accelerated that trend.” As Bramson says, employees want flexibility while employers want accountability. Employees proved that they could be accountable when working from home. This has earned them some flexibility from their employers. But this doesn’t mean that most companies will want their employees working from home full-time. There’s just too much of the office experience that can’t be replicated when employees are working from home, Bramson said. But many workers have also realized that while they might not want to go into the office every day of the week, they do miss

13 some of the benefits that come with that environment. Because of this, it’s unlikely that most employees will want to work remotely full time either, Bramson said. “Part of the charm of being in an office is the social nature of work,” Bramson said. “People didn’t realize how important that piece of work is. The fear of missing out will come into play, too. If you are the one person not coming into the office, what are your prospects for a raise and advancement?” What remains uncertain, though, is how much downtown office space companies will need. As employees look for flexibility, will companies lower the amount of office space they use once post-pandemic life arrives? The answer? It depends. “In major markets, the real estate occupancy cost is a small percentage of doing business,” Largay said. “You can’t let the tail wag the dog. The fundamental purpose of the office is to get people together to collaborate. So companies won’t be reducing their space so much that they’ll need an ‘A’ team of employees that come in on certain days and a ‘B’ team that comes in on others. The purpose of the office is to have everyone there sharing ideas at the same time. If someone needs the flexibility to work from home on a Friday, that doesn’t lessen the need dramatically for space.” Beaudoin said that according to JLL research, many companies, when you factor in the need for social distancing, are planning to reduce their office space by about 5 percent. As Beaudoin says, that’s not a dramatic number, and shouldn’t be overly disruptive to the office markets in major cities. Beaudoin said that many companies are now making long-term plans. This is important: During the worst days of the pandemic, most companies put their long-term planning for expansion and growth on hold. They instead focused on the day-to-day of getting through the pandemic. In the last quarter, though, office leasing activity has picked up in downtown Chicago, Beaudoin said. Touring activity has risen, too. “Tenants are starting to get back to evaluating what they really need for office space,” Beaudoin said. “Essentially, the market was frozen for a year, from March of 2020 to March of 2021. Now we are getting signals that things are unlocking.” Largay, for one, expects far brighter days ahead for downtown Chicago. “There is a reason why cities have existed for hundreds of years and why the GDP concentrates in cities,” Largay said. “There is a concentration of people, talent, culture, activities and amenities in the cities. That’s why people come to Chicago. There’s the lakefront, the river, the nightlife, the theaters and the bars. There’s the ability for people to socialize and be together. We have all been lacking that this past year. The need for all that will bring people back in.”

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Pandemic or not, investors still love those grocery stores By Dan Rafter, Editor

Cody: We have also seen single-tenant stand-alone retail do well during the pandemic, both in terms of being able to maintain occupancy and from the transaction side. Single-tenant, stand-alone retail has been another bright spot during the pandemic.

nvestors haven’t found much to love in the retail sector during the COVID-19 pandemic. There’s an exception, though: grocery-anchored retail. Grocery stores have remained essential businesses during the pandemic. During the earliest days of COVID-19, they were some of the busiest places in the United States as restaurants shut down to in-person dining, gyms closed, movie theaters went dark and other retailers shut their doors. Today, grocery stores and grocery-anchored retail centers remain popular places for investors to sink their dollars. Minnesota Real Estate Journal recently spoke to three analysts with CoStar Group -- Kevin Cody, senior consultant; Alexander Levy, senior consultant; and Robin Tranthum, consultant – about why investors still love grocery stores. Here is some of what they had to say. Grocery stores have performed especially well during the pandemic. What are some of the reasons for this? Alexander Levy: At the start of the pandemic, a lot of retailers were facing lockdown measures. Grocery stores were one of the few segments that were able to stay open. Not only did grocery stores stay open, they saw an increase in demand. Grocery stores, along with building materials and supply stores and some of the wholesale stores and discounters, proved to be strong during the pandemic. And they have continued to stay strong throughout. Kevin Cody: Grocery stores, because they were deemed essential, stayed open. They are where people went, especially when the stay-at-home orders were first enacted in many states. We have also seen a pickup in online grocery sales. Compared to other types of retail, grocery stores are not as exposed to competition from e-commerce, too. That has also helped these stores remain an attractive investment type. I guess it’s not that surprising that grocery has performed well during the last year or so. This sector was doing quite well before the pandemic, too. Levy: Grocery has definitely been an attractive segment for investors for several years. The retail closures that we track have been mostly apparel and traditional retailers. The necessity-based segment of retail, of which grocery is an important part, has remained resilient. We have also seen that neighborhood retail centers and community centers typically have a grocery tenant today. Those that do, perform better. The occupancy rates hold up better. Just look at indoor malls. They an outsized share of

What about fast-casual chains with drive-throughs, places like Chick-fil-A? Cody: We know that based on sales data, restaurants have been hit really hard by the pandemic. Sales are down across the country. But we have definitely seen some winners in the restaurant industry. The fast-food and quick-service restaurants with drive-through service that also embrace delivery have done quite well. These restaurants are actually expanding their footprints during this pandemic.

“Grocery stores were one of the few segments that were able to stay open. Not only did grocery stores stay open, they saw an increase in demand. Grocery stores ... proved to be strong during the pandemic. And they have continued to stay strong throughout.” apparel tenants. They have seen their vacancy rates rise because of this. If you have a center with a grocery store anchoring it, you’ll see the vacancy rates fall. Do the other stores in a grocery-anchored center see an increase in business because of that grocery store? Levy: Normally they would. Grocery anchors are an important part of these centers. They do draw customers to the other, smaller tenants in those centers. We’ve seen some interesting changes from grocery stores during the pandemic. Many have increased their curbside pickup and delivery services. Do you think some of these pandemic-influenced changes will become standard offerings from grocers? Levy: The technology improvements I think will definitely stick around. Customers have gotten used to those services. I think enhanced delivery and curbside pickup are here to stay. We have certainly

seen a significant increase in these measures. Cody: I would agree. We have some surveys that support the idea that people have been enjoying buying their groceries online. I expect they’ll continue to do it even after the pandemic. It won’t stick around at the same level as it was at last year, but it is a service that customers will continue to use. In addition to grocery stores, what other type of retail has done better than expected during the pandemic? Levy: Power centers have done well, just like the grocery-anchored locations. The power centers tend to have a Home Depot or a Target or Walmart. They usually feature some of the big-box stores. They have done very well during the pandemic. That’s because they offer the necessities. Walmart and Target do offer groceries and other necessity goods. Home Depot offers necessity-based goods. Customers still needed the items they were selling even during the pandemic.

Has there been anything during the pandemic that has surprised you concerning the retail market? Levy: I don’t know how big of a surprise it is, but it is a change. Before the pandemic, experiential retail had been one of the strongest sectors for growth. But because this type of retail was largely shut down at the beginning of the pandemic, it has really struggled during these last 12 months. Experiential retail is struggling the most among all retail types. Movie theaters have been closed or are working with limited capacity. Restaurants were closed for a while. Fitness centers have had reduced capacity. They are starting to reopen now. But we’ll have to see how long it takes for experiential retail to recover. Do you think that experiential retail will regain its momentum once the pandemic ends? Levy: I do think it will bounce back. Just looking at how retail sales have been improving over the past couple of months, we are seeing that consumers are ready and willing to spend. We just need to have things keep opening up. Consumer confidence will build. Robin Tranthum: I think it depends on the type of experiential retailer. Movie theaters and fitness centers, for example, might not get back to the fast pace of growth that they saw pre-pandemic. The main movie companies are putting movies on streaming services. That might keep more people from going to movie theaters in the future if that trend continues. Many people have bought home gym equipment during the pandemic. They might not want to rush out to the gym once the pandemic ends. It will take time for demand to come back to those type of retailers.

APRIL 2021

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Ready for the boom: Multifamily pros expect good times as life returns to normal By Dan Rafter, Editor

Demand has remained high for suburban apartment properties, such as Hinton Heights in Cottage Grove, Minnesota, throughout the pandemic.

enters were flocking to new apartment buildings in downtowns across the Midwest, often filling these spaces before construction even wrapped. Renters by choice – both young and old – wanted to live in the urban hearts of cities, attracted to their live entertainment, mix of retailers and dining-out choices. That, of course, was before last March, when the COVID-19 pandemic upended life in the United States and all those restaurants, shops, bars and theaters shut down. In the last year, urban living hasn’t been quite as attractive, and brokers report that many renters that would have sought out apartments in downtown Minneapolis, Chicago or Indianapolis are instead renting in the suburbs, eager for the wider-open spaces that make social distancing and quarantining easier. But what about today? And what about the rest of 2021? Do commercial real estate professionals expect a resurgence

“Are renters ready to return to the city, and will downtowns shake off the malaise and become vibrant, attractive places in which to live once again?”

in demand for urban multifamily living? Are renters ready to return to the city, and will downtowns shake off the malaise and become vibrant, attractive places in which to live once again? The answers to these questions? An emphatic “yes,” according to the CRE pros interviewed for this story. And that’s good news for multifamily owners and investors in downtowns across the Midwest.

Mike Dury, president and chief executive officer at Merchants Capital, which has locations in Carmel, Indiana; Chicago; Saint Paul, Minnesota; and New York City, said that the demand for apartment units in denser urban locations has fallen since the start of the pandemic. But like other commercial real estate professionals, Dury doesn’t expect this trend to become a lasting one.

Dury said that the pandemic and the restrictions that have come with it have reduced the live/work/play appeal of downtowns. At the same time, major companies continue to operate in work-from-home mode, reducing the number of people in urban centers during the day. Even as restrictions have been lowered, then, downtown restaurants and retailers have little incentive to maintain full operating hours or services. This will change gradually, Dury said, as companies bring workers back to the office and as vaccines continue to roll out across the country. “When you get through this, you will see the jobs pop back,” Dury said. “Not everyone will want to work from home permanently. People will want to live close by their jobs again.”

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Not all downtowns have been hit as hard by the pandemic as others, Dury said. Demand for apartment living has fallen more in urban areas that rely more heavily on mass transit. In markets where a large number of workers take the subway or bus to work each day -- like Chicago -- downtown living will be slower to return to normal, Dury said. Dury pointed to the downtown Chicago location of Merchants Capital as an example. As of March, about half of the employees in that location were working on site, the other half remaining at home. “People want to come back. We just aren’t there yet,” Dury said. “Taking the subway and public transportation is tough right now. The demand for downtown living, then, will be slower to come back in Chicago than it will be in a market like Indianapolis where people drive to work. But I do think the demand for downtowns and urban living will come back.” Despite the challenges faced by denser urban areas, the multifamily market has performed well during the pandemic. It ranks alongside industrial as two commercial sectors that have survived the challenges that COVID-19 has thrown at the industry. Dury said that Class-A multifamily developments in suburban locations have performed especially well during the pandemic. “Demand is high for a more suburban-type environment,” Dury said. “Those folks who can afford to make that move and who have kept their jobs during the pandemic are looking for suburban locations. They continue to work from home. They are higher earners. They are interested in these suburban locations. Class-A in urban areas, though, has gotten hammered a bit. These buildings charge higher rents. People aren’t going to pay those rents if the amenities around them aren’t available and they don’t have to be close to their jobs.” Another slice of the multifamily market that has suffered during the pandemic? Class-C apartments. As Dury says, tenants who rent in these properties have been hit harder by job losses. They’ve missed rent payments through no fault of their own. “As a whole, though, people need a place to live,” Dury said. “Occupancy rates have remained steady throughout the A-, A-minus, B-plus and all asset types in the suburbs. C-class buildings have been hit harder than others. But occupancy rates have been steady and rent collections have mostly remained strong. People are still paying rent because they need a place to live.” Ted Abramson, senior vice president with the Minneapolis office of CBRE, said that the downtown core of Minneapolis has struggled since last March, when COVID first began dominating headlines.

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APRIL 2021

“We have been resistant during this pandemic. Our industrial sector is growing faster than it might have done if it wasn’t for the pandemic. Companies are choosing to put major distribution centers here because of our central location. That will be a huge trend for our market and for pushing our job growth during the next five to 10 years.” This isn’t surprising. The features and amenities that make downtowns special have largely been closed or have scaled down their operations for more than 12 months now. With these amenities so limited, it’s more difficult to attract renters to downtown, Abramson said. “The urban locations are fueled by daytime activity,” Abramson said. “With people not in their offices in Minneapolis and St. Paul, a lot of the restaurants and retailers have limited their hours or are only offering carry-out and delivery services. The things that make downtown special are limited now, which makes it less of a destination.” This, though, should only be temporary. Abramson said that he expects the urban core in the Twin Cities to bounce back as restrictions lessen and more residents are vaccinated. Abramson said that he’s already seen more activity on the streets downtown the last several weekends as he’s ridden his bicycle about town. “I am a believer that the CBDs and microneighborhoods in Minneapolis and St. Paul will return as soon as we see the opening of the economy,” he said. “When we see the restaurants, arts, entertainment and sports return, there will be demand again. There is a cohort of renters that will always want to be in the center of all that activity.” Suburban multifamily projects have always been strong in the Minneapolis/St. Paul market. But the pandemic has provided them with an even greater boost, as some people who might have chosen to rent in urban areas have instead chosen the wider spaces and lower prices of renting in the suburbs. Abramson said that the suburban multifamily market should remain strong in the Twin Cities area, though, even after the pandemic ends. Just as there are certain renters who are a perfect fit for downtown apartment towers, there are also those who are more attracted to the amenities, parking and extra space that come with suburban multifamily locations. “The older Millennial group is starting to get married and have kids,” Abramson

said. “With the pandemic, and with more people working from home, that next phase of life decisions for Millennials is only accelerating. A lot of that is likely fueling the for-sale home market, too.” Jeff Stingley, executive vice president with the Kansas City, Missouri, office of CBRE, said that the multifamily market looks strong in his city, too, despite the hold that COVID-19 has had on the country. “The apartment market here has been as close to the status-quo we saw pre-COVID as a market could be,” Stingley said. Every multifamily submarket in the Kansas City area saw positive rent growth in 2020, except for downtown. That’s not surprising. Downtowns have struggled, and continue to do so, during the pandemic. This ripples over into the apartment markets serving these urban centers. Stingley said that the Kansas City economy has remained resilient during the pandemic, something that has provided a boost to the area’s apartment market. This is largely because Kansas City benefits from a diverse economy. It doesn’t rely on any one industry. The Kansas City area’s largest industry today is healthcare, and that sector is largely resistant to economic downturns. Unlike other cities, a crash in one industry, then, won’t send a good portion of Kansas City’s economy into a spiral. “We have been resistant during this pandemic,” Stingley said. “Our industrial sector is growing faster than it might have done if it wasn’t for the pandemic. Companies are choosing to put major distribution centers here because of our central location. That will be a huge trend for our market and for pushing our job growth during the next five to 10 years.” Kansas City’s downtown has not performed as well as its other submarkets during the pandemic, Stingley said. Part of this is the large number of apartment units that has been delivered to the downtown area. Stingley said that between 2015 and 2020, about 7,500 multifamily units had been delivered to downtown Kansas City. Last year

was a particularly busy one, with about 2,400 units delivered. COVID, of course, has slowed rental activity in these units. As Kansas City’s downtown entertainment, restaurants and retail options were shut down or operated under limited hours, there wasn’t as much of a draw to live in downtown Kansas City. “We faced extraordinary headwinds in downtown last year,” Stingley said. “A lot of these units were fighting for residents.” Stingley said that Kansas City’s downtown, including demand for its apartment units, is poised to bounce back as life slowly returns to normal following the pandemic. The downtown will see fewer apartment units delivered in 2021 and 2022, which will help boost demand for existing stock. Before the pandemic hit, Kansas City’s downtown was in growth mode. The city removed several outdated office buildings and converted them to apartment units. The offices remaining were 90 percent to 95 percent occupied. More jobs were popping up in the urban core, too. Then COVID-19 hit and slowed this momentum. But Stingley predicts that this slowdown will only be a temporary one. “Our downtown is not a gateway market like New York City or Chicago where the rents are so much higher than what you see in the suburbs,” Stingley said. “That changes the cost-benefit analysis here. If you are in one of those more expensive gateway markets, why would you pay $3,500 to $5,000 a month for an apartment when the bars, restaurants and entertainment options aren’t all open? We don’t have that same issue here. Our downtown isn’t that expensive.” As employees steadily return to office buildings, Stingley said, the amenities and features that make downtown Kansas City attractive will also reopen. That will make this urban core a desirable place to live once again. And this will bring the renters back, Stingley said.

APRIL 2021

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American Engineering Testing, Inc.

Bell Bank

Vice President, Environmental Services

Senior Vice President, Commercial Real Estate Banker

Gail Cederberg, PhD 550 Cleveland Avenue North St. Paul MN 55114 P: 651.659.1322 gcederberg@amengtest.com www.amengtest.com

Gail Cederberg, PhD is the Vice President of the Environmental division. Gail works with division, regional, and branch managers across AET to lead and expand the environmental engineering, field, and testing services to key clients. She has over 30 years of experience with all aspects of environmental services, along with geotechnical and construction materials testing. Gail is an expert in bringing a full suite of AET services to her clients that fit their specific consulting and testing needs, thereby reducing project costs and schedules. Dr. Cederberg is a sought-after mentor, leader, and trusted project partner American Engineering Testing (AET) offers a wide array of testing and consulting services to support your projects. Specialties include environmental consulting, expert geotechnical and pavement engineering, forensic engineering, building technology, construction materials testing, and petrography/chemistry services.

Do you have a favorite quote or saying?

“You must do the thing that you think you cannot do.” - Eleanor Roosevelt

Name a charity or cause that you are passionate about:

I believe that adequate housing is a fundamental human right, defined as “the right to live somewhere in security, peace, and dignity.” I support and am passionate about Habitat for Humanity (www.tchabit.org) and Project for Pride in Living (PPL) www.ppl-inc.org.

Kelly Manke

5500 Wayzata Blvd. Minneapolis, MN 55416 P: 952.905.5033 kmanke@bell.bank bell.bank With more than 18 years of banking experience, I enjoy working with developers, investors and entrepreneurs, finding financing solutions for their projects. I hold a bachelor’s degree from the University of Wisconsin – Madison with dual majors in finance and real estate as well as an MBA from the University of Minnesota. Bell Bank, one of the nation’s largest independently-owned banks, has more than $9 billion in assets. Our unique Pay It Forward program has been changing lives since 2008.

Do you have a favorite quote or saying?

“I can’t say that there’s anything that I can’t do - just things that I haven’t done yet.” - Richie Parker

Name a charity or cause that you are passionate about:

St. David’s Center is close to my heart. It is a preschool, children’s mental health clinic and pediatric therapy clinic. www.stdavidscenter.org

Bell Bank

Bridgewater Bank

Senior Vice President, Commercial Real Estate Banker

Senior Vice President Business Services

Ann Olson

5500 Wayzata Blvd. Minneapolis, MN 55416 P: 952.905.5024 acolson@bell.bank bell.bank I have more than 13 years of banking experience working on transactions for all types of properties. This experience helps me develop loan solutions and serve clients. I graduated from the University of Wisconsin with a degree in finance and real estate and earned an MBA from the University of Minnesota. Bell Bank, one of the nation’s largest independently-owned banks, has more than $9 billion in assets. Our unique Pay It Forward program has been changing lives since 2008.

Do you have a favorite quote or saying?

Katie Klug

4450 Excelsior Blvd., Suite 100 St. Louis Park, MN 55416 P: 952.893.6868 Direct: 651.605.2676 katie.klug@bwbmn.com www.bwbmn.com As Senior Vice President, Business Services, Katie Klug meets the needs of Bridgewater’s business clients by providing them with simple banking solutions. Her relationship-focused approach to banking means she develops lasting relationships and knows what tools her clients need to operate efficiently in today’s marketplace. With over 20 years’ experience, Katie is the Twin Cities’ go-to entrepreneurial banking expert. Recognized as a premier, full-service Twin Cities bank, Bridgewater Bank is dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs and high-net-worth individuals. By pairing a range of deposit, lending and business services solutions with a responsive service model, Bridgewater has grown into one of the largest locally led banks in the State of Minnesota.

Believe in yourself unconditionally and live by the Henry Ford quote, “Whether you think you can, or you think you can’t - you’re right.”

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

I am passionate about rebuilding Lake Street since the May 2020 riots. The Lake Street Council is a great nonprofit that is helping to rebuild Lake Street’s small businesses. www.visitlakestreet.com

“I would tell myself to attend the networking events, take the coffee meetings and get out there as much as you can! You never know what opportunities await and what doors are waiting to be opened.” “I had a sister that passed away from SIDS when I was little, it’s now a cause my family contributes to regularly. Another fantastic organization is CommonBond Communities, where they focus on affordable housing throughout the Upper Midwest. I’m on their Gala Planning Committee and continuously humbled by the work they’re doing.” (sids.org) & (commonbond.org)

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APRIL 2021

Crawford Merz

Culligan Legal & Business Counsel, PLLC

Project Manager

Owner/Attorney

Lauren Post

33 South 6th St., #4510 Minneapolis, MN 55402 P: 612.545.5819 | F: 612.874.9015 laurenp@crawfordmerz.com www.crawfordmerz.com As Project Manager, Lauren facilitates the planning and implementation of tenant improvement projects. Lauren is a skilled estimator and has strong communication skills that lend to the success of each project she works on. She works closely with architects, subcontractors, and superintendents on each project to ensure it runs smoothly. At Crawford Merz, we excel at providing clients quality construction services for their tenant improvement and groundup projects. Our skilled team approaches each project with efficiency, energy and responsiveness.

Do you have a favorite quote or saying?

“Work hard and be nice to people.” - Anthony Burrill

Name a charity or cause that you are passionate about: Kids in Need Foundation www.kinf.org Habitat for Humanity www.habitat.org

Michelle Culligan

1805 Eagle Ridge Drive #8 Mendota Heights, MN 55118 P: 612.308.0874 | F: 816.895.4801 michelle@culligancounsel.com With over 30 years experience as a lawyer in private practice, general counsel for a commercial RE company, business owner of a union commercial contractor, and entrepreneur launching and growing a startup business, I understand the demands of your business and provide experienced legal advice based on sound business judgment. Culligan Legal & Business Counsel provides experienced legal and business advisory services, specializing in commercial real estate, construction, small businesses, general corporate law, and offering outside general counsel services.

What advice would you give to your younger self?

Recognize with each phase of your career that you’re creating your unique path, have confidence and patience in your choices, and don’t waste energy comparing yourself to the progress of others.

Name a charity or cause that you are passionate about:

Progress Valley is a nonprofit providing life-changing integrated, comprehensive and gender specific chemical health treatment services for adult men and women since 1972, including sober housing and outpatient services.

EFH Realty Advisors, Inc.

Associate Broker

President

Jodi Walfoort

Susan Whalen

2999 W. County Road 42, #206 Burnsville, MN 55306 P: 952.890.6450 | F: 952.890.5476 jwalfoort@efhco.com www.efhco.com

2999 W. County Road 42, #206 Burnsville, MN 55306 P: 952.890.6450 | F: 952.890.5476 susan.whalen@efhco.com www.efhco.com

Associate Broker Jodi Walfoort is a valuable, experienced resource for her clients, providing significant commercial real estate expertise – prior to joining EFH she owned her own brokerage – and a unique talent to see and understand multiple perspectives. She is appreciated for her diligence, integrity, persistence and ability to provide solutions to any transaction challenge.

As the president of EFH’s brokerage division, Susan Whalen represents clients in property acquisition, repositioning, sales and leasing and brings her deep understanding of commercial real estate to every relationship. With a background in construction and development, Susan’s experience ensures that each EFH client has access to the unique solutions they need, which can include leveraging the full strength of the company’s integrated expertise in commercial development, construction and portfolio management.

For the past 35 years, EFH Realty Advisors, Inc. has been a trusted partner across Minnesota and beyond because of its commitment to placing its clients’ needs above everything else and proven expertise in all aspects of commercial real estate. From industrial and office spaces, to healthcare, retail, entertainment and more, EFH offers a full range of brokerage, property management, construction and development services.

Do you have a favorite quote or saying?

A quote that resonates with me is “In the middle of every difficulty lies opportunity.” - Albert Einstein

Here are two quotes I find particularly insightful: “When your work speaks for itself, don’t interrupt.” - Henry J. Kaiser; and “Keep in mind that the true measure of an individual is how he treats a person who can do him absolutely no good.” - Ann Landers

Name a charity or cause that you are passionate about:

I have a special place in my heart for children with special needs and support organizations such as A Foundation Building Strength (www.buildingstrength.org), Pacer (www.pacer.org), Bridgeview (www.spps.org/Bridgeview), and Interfaith Outreach (www.iocp.org).

Providing quality opportunities for our nation’s brightest young minds has special purpose for me. Davidson Institute for Talent Development (www.davidsongifted.org) understands and serves the unique needs of profoundly gifted children that are too often overlooked as not having exceptional hardships by providing advanced programming, support and unique opportunities for these children and their families.

Diehl & Partners, LLC

The Excelsior Group

Principal

Vice President

Lisa Diehl, CCIM, CPM

Misty Bowe, CCIM

5301 Ayrshire Boulevard Edina, MN 55436 C: 612.508.6410 | P: 952.285.5244 Lisa.Diehl@CloseTheDiehl.com www.CloseTheDiehl.com

1660 HWY 100, Suite 400 St. Louis Park, MN 55416 P: 952.525.3336 misty.bowe@excelsioradv.com www.excelsioradv.com

As founder and principal of Diehl & Partners, LLC, she has had both feet in the real estate industry for over 30 years. Her specialties include: brokerage and site selection for retail, office, and land transactions. Representing landlords and tenant, she delivers a diverse skill set with expertise and professionalism.

Misty is responsible for providing consulting and advisory services to clients including healthcare systems and private practice, offering a unique understanding of the issues specific to their practices. She brings clients unbiased, uncompromised representation and is a true advocate and extension of their internal team.

Diehl & Partners, LLC is a boutique Minnesota commercial real estate brokerage firm committed to creating value for our clients by offering strategic real estate solutions with integrity, trust and loyalty.

Excelsior Advisory is a user-focused commercial real estate provider offering objective, conflict-free real estate services based upon client’s specific needs, acting as their in-house real estate department.

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

Find a mentor early in your career, don’t be afraid to ask questions, become involved in an organization related to your industry, and continue to harness the power of technology. Listen before you speak!

www.AEOA.org. The Arrowhead Economic Opportunity Association (AEOA) helps to strengthen communities on the Iron Range by providing opportunities and services to people experiencing social and economic challenges.

Believe in yourself, continue the curiosity to learn and understand your worth! Women offer a different perspective than men and that is extremely valuable in the business world.

Launch Ministry was founded in 2009 as a response to the increasing needs of 18-29 year olds as they navigate the complex realities of adulthood without the resources necessary to thrive. Launchministry.org

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The Excelsior Group

Greiner Construction

Vice President

Director of Business Development

Katie Trevena

Heather Weerheim

1660 HWY 100, Suite 400 St. Louis Park, MN 55416 P: 952.525.3332 katie.trevena@excelsioradv.com www.excelsioradv.com

121 S. 8th Street, Suite 1200 Minneapolis, MN 55426 P: 612.338.1696 hweerheim@greinerconstruction.com www.greinerconstruction.com

In her role with The Excelsior Group, Katie partners with companies of all sizes from startups to large multi-national corporations looking to lease new space, renew or restructure an existing lease, sublease, buy, sell, or develop commercial real estate. She aims to understand and strategically solve client’s real estate needs in a creative and collaborative manner.

Heather Weerheim, director of business development, brings her relationships and tenacity to the commercial real estate community. Positioning Greiner’s strategic growth initiatives, Heather’s experience in property and project management allows her to navigate the industry optimizing success for our partners.

What advice would you give to your younger self?

Your mindset is key! Push away the negative thoughts of self-doubt and focus on progress not perfection. Celebrate your wins and learn from your failures.

Name a charity or cause that you are passionate about: Various organizations such as Second Harvest Heartland, Every Meal and ICA food shelf focusing on food insecurity right in our own communities.

You dream it. We build it. Greiner delivers new construction; adaptive reuse; building expansions and campus additions; and renovation projects for the following industries: Commercial/ office, healthcare, multi-family housing, financial, hospitality, and industrial.

What advice would you give to your younger self?

Although a Green Bay Packer fan I appreciate this quote from former Vikings Coach, Bud Grant. “If you talk, you only repeat something that you already know. But if you listen, you may learn something that you don’t know.” My younger self could have benefited from this quote.

Name a charity or cause that you are passionate about: Project for Pride in Living. The youth in our community are our future. I love the support and tools that PPL provides empowering teens to better their future. www.ppl-inc.org

Hope Law PLLC

Michel Commercial Real Estate

Attorney

Broker

Roseanne Hope

Heidi Addo

4999 France Avenue South #245 Minneapolis, MN 55410 P: 612.669.7017 roseanne@hopelawoffice.com www.hopelawoffice.com Roseanne Hope has decades of commercial real estate legal experience advising landlords, tenants, small businesses, developers and investors on real estate and business matters. Her transactions include sales and acquisitions, leasing, financing, development, workouts, land use and general business advice. She is a small business owner of Hope Law (2015-2021) and Compendium Business Strategies (2009-2013) and previously practiced commercial real estate law with large national law firms. She is also a licensed broker. Roseanne is the founder of Hope Law, a real estate and business law firm located at 50th and France in Southwest Minneapolis/Edina. We undertake a strategic and confidential approach tailored to your real estate and business objectives. With vast experience in complex transactions, we provide you with expert advice at a tremendous value. You will receive the competence and professionalism expected of a large law firm with the personal and responsive approach of a boutique firm. We work closely with you and your team to achieve timely, cost effective and successful results.

Do you have a favorite quote or saying?

“Do something that scares you every day” Eleanor Roosevelt

12930 32nd Avenue North Plymouth, MN 55441 P: 612.805.5023 haddo@michelcommercialre.com www.michelcommercialre.com Michel Commercial Real Estate sells multi-family housing. The firm is

known for extensive regional & national marketing, strong relationships, and negotiation expertise. Representing both private and institutional investors.

Do you have a favorite quote or saying? “Persistence Guarantees Success” -Ghanian Proverb

Name a charity or cause that you are passionate about:

Jeremiah Program- Helping Single Mothers and Their Children Prosper www.jeremiahprogram.org

Name a charity or cause that you are passionate about: Camp Fire Minnesota and One Village Partners board member; MNCREW co-founder, board member and 1st president

MSP Commercial

NTH, Inc.

Vice President, Property Management

Principal

Kristen Hedin, CPM, RPA

Anna K. Coskran

1215 Town Centre Drive Ste 130 Eagan, MN 55123 P: 651.287.8888 | C: 320.493.5666 khedin@mspcommercial.com mspcommercial.com

81 South 9th Street, Suite 330 Minneapolis MN 55402 P: 612.359.3205 acoskran@nth-inc.com www.nth-inc.com

With a 15-year career dedicated to medical environments, Kristen Hedin is an expert in healthcare facility compliance and regulations, clinical best practices, and medical office maintenance. As Vice President, Kristen oversees department policies and procedures, mentors associate property managers, and manages a portion of MSP’s portfolio, focusing her efforts on ambulatory surgery centers and complex medical facilities.

Anna is a real estate professional who provides organizations with informed and innovative solutions. Her knack for diplomacy serves clients well during negotiations. Outside of client work, Anna serves on the Minneapolis Downtown Council Board and Executive Committee and is a member of the Minneapolis City of Lakes Rotary Club.

MSP Commercial provides healthcare real estate expertise to medical providers throughout the Twin Cities. We manage over 1.2 million sf of healthcare property and also specialize in medical building development and project management. Our team of professionals leverage their industry experience and relationships to meet and support our clients’ environmental, financial, and business goals.

What advice would you give to your younger self?

Have patience, work hard and good things will come. Also, network, network, network! The real estate industry is truly a small world and you never know who you will run into in the future. Positive relationships will always result in positive outcomes.

Name a charity or cause that you are passionate about: Children’s Miracle Network is a great organization that helps fund Children’s hospitals in the area. My brother spent time at Children’s Minnesota hospital when he was a baby and received life-changing care from their providers. childrensmiraclenetworkhospitals.org

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions. NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

Trust yourself and your instincts; you know more than you think you do. Work with smart people you like and respect. Be curious, ask questions, always be learning.

Name a charity or cause that you are passionate about: Being of service! Rotary is committed to take action to create lasting change https://www.rotary.org/en. With the Minneapolis City of Lakes Rotary Club https://www.colrc.org/, I appreciate our local and international projects.

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NTH, Inc.

President & Principal

Associate

Bettina L. Hoye

APRIL 2021

Justine Beran Logelin

81 South 9th Street, Suite 330 Minneapolis MN 55402 P: 612.359.3203 thoye@nth-inc.com www.nth-inc.com

81 South 9th Street, Suite 330 Minneapolis MN 55402 P: 612.359.3204 jlogelin@nth-inc.com www.nth-inc.com

Tina is a real estate broker who helps organizations align space decisions with business goals. Tina’s sound judgment, strategic perspective, and ability to stay cool-headed while navigating complex transactions is appreciated by clients and colleagues. Tina’s leadership is evident in board and committee service for local nonprofits and professional organizations.

Justine brings a background in finance and asset management to project management. With her leadership, clients receive an informed, thoughtful approach to real estate projects. Justine’s recent clients include Pohlad Companies, Bridgewater Bank, Minnesota Opera and The Minikahda Club. Outside of client work, Justine co-chairs ULI Minnesota’s Young Leaders Group.

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions. NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

Live in the moment. Don’t spend so much effort on what is next that you don’t enjoy what is now.

Name a charity or cause that you are passionate about: Organizations that focus on basic needs in our community hold a special place in my heart. Two such groups I support are Keystone Community Services www.keystoneservices.org/ and Catholic Charities www.cctwincities.org/.

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions. NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

Resist scheduling each detail & career move. Some of the best opportunities in projects and my career have come when I leave space for new ideas & opportunities.

Name a charity or cause that you are passionate about:

Access to housing & homeownership! I serve on the Board of NeighborWorks Home Partners, which is an organization with programs that help the community buy, fix and keep their homes https://nwhomepartners.org/.

Old Republic National Title Insurance Company

NTH, Inc.

Danielle L. Warren

Barbara Chirinos

Associate

Vice President, National Business Account Executive

81 South 9th Street, Suite 330 Minneapolis MN 55402 P: 612.359.3216 dwarren@nth-inc.com www.nth-inc.com

400 Second Avenue South Minneapolis, MN 55401 P: 612.371.4939 BChirinos@OldRepublicTitle.com www.OldRepublicTitle.com

Dani brings enthusiasm and dedication to real estate, design and construction projects. Dani’s recent client work includes project management for The Family Partnership, Minneapolis Regional Chamber, and The Minneapolis Foundation. Dani participated in CoreNet’s Diversity & Inclusion Certificate Program and serves on the Saint Paul Area Chamber’s YPro Committee.

During her 30+ years as a title insurance professional, Barb Chirinos has been honored to work on behalf of her team and her customers to provide reliable service culminating in a smooth closing for all. A variety of real estate disciplines just adds to the fun and feeds her love of the business. A true deal junkie to the end.

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions. NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

We are all just real people. Never be intimidated by someone’s perceived status. Most people are just trying to figure life out. Be patient and stay open to helping others.

Name a charity or cause that you are passionate about:

Talking about mental health! The Family Partnership invests in health and happiness for our neighbors. Promoting equity by supporting emotional well-being in our most vulnerable communities, helping build better futures www.thefamilypartnership.org/.

Old Republic Title has built a solid reputation in the United States. We have a conservative financial management philosophy to maintain stability through changing tides in the real estate, lending and financial markets.

What advice would you give to your younger self?

Follow your heart, mind, passion and intuition. I saw a post this week that talked about this: As a woman, your strength might be labeled Aggressive, Bossy or Difficult. But keep being Assertive, keep Leading and keep telling the Truth.

Name a charity or cause that you are passionate about: Gilda’s Club Twin Cities www.Gildasclubtwincities.org No matter how cancer has entered your life, no matter where you are in the journey, you’ll find the support you need at Gilda’s Club. For free. Because the last thing someone dealing with cancer needs is another expense.

Oppidan Investment Company

Vice President of Investment Relations

Senior Housing Associate

Jamie Korzan

Michelle Riedel

400 Water Street, Suite 200 Excelsior, MN 55331 P: 952.540.4185 | F: 952.294.0151 jamie@oppidan.com www.oppidan.com

400 Water Street, Suite 200 Excelsior, MN 55331 P: 952.294.1258 | F: 952.294.0151 michelle@oppidan.com www.oppidan.com

As Oppidan’s Vice President – Investment Relations Officer, Jamie is responsible for helping position the company for financial success by building & maintaining exemplary communications between Oppidan & its investors. She is a single point of contact for Oppidan partners & investors while managing & creating all monthly report packages including the annual reports.

Michelle joined Oppidan at 2011 and currently serves as a Senior Housing Associate. Michelle helps lead the senior housing operations team working closely with the management teams onsite to enhance marketing and sales efforts and find unique ways to ensure our communities stand out. She also works closely with the development and construction teams through out the design process for new communities.

Oppidan is a national property development firm that has developed more than 550 projects valued at more than $4 billion and spanning 25 million-square feet throughout 39 states and parts of Canada.

What advice would you give to your younger self?

I would tell my younger self to not live in fear of failure, rather understand it’s a part of life. The most growth and some of your greatest successes will emerge from a past failure.

Name a charity or cause that you are passionate about:

My nephew was born with a genetic neurological disorder called Angelman Syndrome. The Angelman Syndrome Foundation’s mission is to advance awareness and treatment of AS through education, research and support for families affected by this disorder. www.angleman.org.

Oppidan is a national property development firm that has developed more than 550 projects valued at more than $4 billion and spanning 25 million-square feet throughout 39 states and parts of Canada.

What advice would you give to your younger self? Follow your passion and trust your gut.

Name a charity or cause that you are passionate about: Alzheimer’s Association https://www.alz.org/mnnd

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Oppidan Investment Company

Opus Design Build, L.L.C.

Corporate Counsel

Regional Vice President of Construction

Kathleen Ritter

Beth Duyvejonck

400 Water Street, Suite 200 Excelsior, MN 55331 P: 952.294.1251 | F: 952.294.0151 kathleen@oppidan.com www.oppidan.com

10350 Bren Rd West Minnetonka, MN 55343 P: 952.656.4596 Beth.Duyvejonck@opus-group.com www.opus-group.com

As Corporate Counsel, Kathleen uses her wide-ranging experience in law, business administration, and property management daily to find simple solutions to complex issues. Kathleen is a graduate of the University of Notre Dame and CWRU School of Law. She lives in Richfield with her husband, son, two cats, and a labradoodle.

The most tenured female project manager in Opus history, as Regional Vice President, Beth manages the Minneapolis and Des Moines construction operations and leads a team of project managers working on projects across multiple sectors. She is known for strong, sustained performance and leadership experience outside the traditional project management role.

Oppidan is a national property development firm that has developed more than 550 projects valued at more than $4 billion and spanning 25 million-square feet throughout 39 states and parts of Canada.

What advice would you give to your younger self?

The Opus Group® is a family of commercial real estate development, construction and design companies. Our dedicated professionals offer decades of experience across multiple sectors to best serve our clients.

Name a charity or cause that you are passionate about:

What advice would you give to your younger self?

Don’t lie, cheat, or steal. Never cut ethical corners. You WILL suffer for this commitment. But you will sleep at night. Mission Haiti missionhaitiinc.org

“I am the one thing in life I can control” (from Hamilton). I would tell my younger self to take a deep breath and enjoy the ride.

Name a charity or cause that you are passionate about:

I am passionate about advocating for career opportunities in construction, science and technology. Our collective success depends on a diverse and inclusive future workforce. www.constructioncareers.org/

Opus AE Group, L.L.C.

Paramount Real Estate Corp.

Vice President of Interior Design

Vice President

Jennifer Koehler, CID

Nancy Powell

10350 Bren Rd West Minnetonka, MN 55343 P: 952.656.4573 Jennifer.Koehler@opus-group.com www.opus-group.com

1650 W 82nd St, Suite 725 Bloomington, MN 55431 P: 952.854.9210 npowell@paramountre.com www.paramountre.com

As VP at Opus AE Group, Jennifer oversees interior design for all Opus offices across the country. Her approach is built on forming successful collaborations with each client, from concept meetings to project delivery. Jennifer has over 30 years of experience providing design expertise in multiple sectors of real estate.

Representing property owners and tenants, Nancy Powell specializes in

Do you have a favorite quote or saying?

Three favorites: “Hire character – train skill.” Peter Schutz; “If you believe business is built on relationships, make building them your business.” Scott Stratton; “Work hard and be nice to people.”

Name a charity or cause that you are passionate about:

We recently lost our dear friend and former colleague Jim Heller. His wife Lori Larson created the Jim Heller End ALS Memorial Fund. Please consider donating. www.givemn.org/story/Jimheller

the sale and leasing of office and industrial properties in the Twin Cities market. Her extensive market and construction knowledge, and creative

deal making abilities work in partnership to the benefit of her clients. Years of experience have taught her that success comes from truly understanding

the client’s often evolving goals and motivations and then working tirelessly to satisfy each unique real estate objective.

Paramount is a Minneapolis/St Paul based commercial real estate company specializing in representation, consultation, and property management services for individuals, corporations and institutional clients.

What advice would you give to your younger self? Don’t be afraid of failure. Trust yourself and go for it.

RMA Real Estate Services, LLC

Ryan Companies

President

Director of Real Estate Development

Emily Becker

Ann Duginske Cibulka, MBA

5402 Parkdale Drive, Suite 105 St. Louis Park, MN 55416 P: 952.921.7364 ebecker@rmasvc.com www.rmasvc.com

533 South Third Street, Suite 100 Minneapolis MN 55115 P: 612.492.4838 Ann.Cibulka@RyanCompanies.com www.ryancompanies.com

As President and Co-Founder of RMA Real Estate Services LLC, Emily oversees all business aspects of RMA Real Estate Services including the property management portfolio. Emily is a Director on the Board of the Minnesota Shopping Center Association (MSCA) and a member of the St. Cloud State Real Estate Alumni Association.

Ann leads all Healthcare real estate development for Ryan’s North Region. Ann guides customers and project teams from project vision and strategic planning, through financial analysis and feasibility testing, and ultimately, to project execution, lease-up, and tenant operations. Ann’s unique understanding of strategic planning and economic development enables her to help customers develop long-term growth strategies and navigate the complex real estate development process.

RMA Real Estate Services offers 3rd party commercial property management solutions throughout the Midwest. We focus on state of the art technology solutions and combine those tools with ownership, management and accounting experience to create a custom solution for our clients.

Ryan Companies offers end-to-end real estate solutions. Services include development, architecture + engineering, construction, real estate management and capital markets; strategic sectors include healthcare, industrial, retail and senior living.

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

Some of the greatest achievements begin by going outside your comfort zone.

4-H Program and Youth Development www.extension.umn.edu/4-h/about-4-h.

Our work in real estate can be complicated and I’ve learned to be successful, you need deep focus and daily momentum to make things happen. A quote I admire that keeps me working hard everyday is: “Start by doing what’s necessary, then do what’s possible, and suddenly you are doing the impossible.” In my off time, I volunteer as a Small Business Mentor for WomenVenture, a nonprofit that empowers entrepreneurial women with tools, capital, and support to lead businesses that create living wage jobs. I am inspired by what women can accomplish and motivated to help women working to attain economic selfsufficiency. www.womenventure.org

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Stewart Title, Minneapolis Commercial Division

Taft Stettinius & Hollister LLP

Vice President Business Development

2200 IDS Center, 80 South Eighth Street Minneapolis MN 55402 P: 612.977.8635 | F: 612.977.8650 jdrewes@taftlaw.com www.taftlaw.com

Julie A. Drewes

Kathleen Geherin

Partner

333 South Seventh Street Suite 2450 Minneapolis, MN 55402 P: 612.834.7107 kathleen.geherin@stewart.com stewart.com/minneapolis

Julie represents real estate investment funds, REITs, and development companies in transactions including acquisitions, dispositions, and financings involving multi-property and multi-state portfolios. She received her J.D. from the University of Minnesota Law School, magna cum laude, Order of the Coif.

With over 20 years of industry experience, I am honored to be a part of the Stewart Title team. I am passionate about being a trusted business partner to our customers. Developing strong relationships built around the highest level of service, integrity and commitment to excellence is the foundation of my success. A National Title Insurance Underwriter, Stewart Title believes in building strong relationships, which are the cornerstone of every closing, every transaction and every deal. Since 1893, our loyal associates work hard to enable and protect real estate ownership for our customers.

Do you have a favorite quote or saying?

“Work hard, be kind, and amazing things will happen.” -Conan O’Brien. This simple, yet impactful quote inspires me daily and is a great road map for our younger generation.

Name a charity or cause that you are passionate about: TreeHouse is a local organization on a mission to end hopelessness among teens. Since 1979, TreeHouse has been serving teens, helping them build healthy relationships and resiliency rooted in living hope while planning for the future. treehousehope.org

The collaborative approach of our 620+ attorneys, our advanced technological resources, and the depth of our legal services, transform what clients can expect from their legal team.

Do you have a favorite quote or saying?

From Lou Holtz: “Your talent determines what you can do. Your motivation determines how much your’re willing to do. Your attitude determines how well you do it.”

Name a charity or cause that you are passionate about: Minnesota Teen Challenge, www.mntc.org

TCF Bank

Wipfli, LLP

Senior Vice President

Senior Manager, Tax

Molly Rutzick

APRIL 2021

Colleen Block, CPA

11100 Wayzata Blvd., Ste. 600 Minneapolis MN 55305 P: 952-512-6439 mrutzick@tcfbank.com www.tcfbank.com

150 South 5th Street, Suite 2000 Minneapolis, MN 55402 P: 952.548.6713 | F: 952.548.3500 cblock@wipfli.com wipfli.com

Commercial real estate lender and relationship manager providing financing products and solutions for developers of affordable housing. Specializing in the federal Low Income Housing Tax Credit “LIHTC” program, TCF provides construction and rehab financing to real estate developers for the development and preservation of affordable housing, and also invests in affordable housing.

Colleen focuses her time in Wipfli’s construction and real estate practice. In addition to serving client needs with business and individual tax planning and compliance, she consults with business owners on their current challenges, ever-changing tax laws, and opportunities for tax deferrals and credits to help meet their goals.

Do you have a favorite quote or saying?

“Look up and not down; look out and not in; look forward and not back, and lend a hand.” -- Edward Everett Hale

Name a charity or cause that you are passionate about: Make A Wish Foundation and Wounded Warrior Project.

Wipfli ranks among the top 20 accounting and business consulting firms in the nation. Our service teams provide industry specific knowledge to offer personalized solutions as your trusted business advisor.

Do you have a favorite quote or saying?

It is not in numbers, but in unity, that our greatest strength lies. - Thomas Paine

Name a charity or cause that you are passionate about:

Angel Foundation - https://mnangel.org. Twin Cities nonprofit providing financial assistance, education, and support to local adults with cancer and their families.

Wipfli, LLP

Senior Manager

Tax Manager

Dannielle Lewis

Aja Steinfeldt, CPA

150 South 5th Street, Suite 2000 Minneapolis, MN 55402 P: 952.548.3334 dlewis@wipfli.com wipfli.com

150 South 5th Street, Suite 2000 Minneapolis, MN 55402 P: 952.548.6703 asteinfeldt@wipfli.com wipfli.com

Dannielle focuses on serving clients in the real estate industry and is the leader of the opportunity zone group. She also works in the national tax office specializing in real estate tax, §1031s and §163(j) business interest expense. Additionally, she advises clients on complex tax transactions involving partnership interest exchanges.

Aja serves as a tax manager in Wipfli’s construction and real estate practice. In addition to providing tax return compliance, Aja consults with entities and their owners on a variety of matters including current business challenges, ever-changing tax laws and opportunities for tax deferrals and credits.

Wipfli has a reputation of being a trusted business advisor. We have a dedicated team of industry experts who utilize their collective knowledge and experience to bring the best service.

Do you have a favorite quote or saying?

“You have power over your mind - not outside events. Realize this, and you will find strength.” - Marcus Aurelius

Name a charity or cause that you are passionate about:

Angel Foundation is a Minnesota non-profit whose mission is to provide support to local adults with cancer and their families. https://mnangel. org/

Wipfli’s specialized team of tax professionals works closely with local, regional, and national commercial and residential real estate clients bringing a unique breadth of solutions for streamlining, growing and protecting real estate investments.

Do you have a favorite quote or saying?

“Success is not linear. Success is when you fall and have the courage to get back up. When you keep pushing through. Trust the process. Embrace failure and appreciate the wins along the way.” -Robin Arzon

Name a charity or cause that you are passionate about: Project for Pride in Living - www.ppl-inc.org

WHEN THE WORLD TURNS UPSIDE DOWN,

IT’S TIME TO REDRAW THE MAP

In times of disruption, tried-and-true solutions won’t do. You need more — more innovation, broader perspective, keener foresight. We’ve learned this in our three decades of service to the real estate community. Through ups and downs. In good times and hard times. We’re ready to put our experience to the test again and help you find the way forward.

Visit us at: MMBLawFirm.com

A STATE FULL OF RESOURCES. A FULL-SERVICE RESOURCE TEAM READY TO HELP.

From data centers to agribusiness, our economic development team specializes in helping businesses start and expand here. Get started with our cost-free services:

Let’s grow your business. econdev.greatriverenergy.com