VOLUME 33, NUMBER 2
©2017 Real Estate Publishing Corporation
February 2017
The early signs of a tech boom in CRE By Andy Gutman, Farbman Group
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Greater MN – 2016 Apartment Trends/2017 Expectations By Mitchell Simonson, MAI
O
ver the past 12 months, Chadwick Appraisals has appraised numerous Greater Minnesota apartments ranging in size from about 20 to 150 units. The geographic region has spanned the “banana belt” surrounding the Minneapolis/St. Paul metropolitan area. The
primary cities forming the “banana belt” include Rochester, Mankato, St. Cloud and Duluth. This allows us to complete in-depth analysis of historical income and expense statements on assignments completed throughout the year. Additionally, our firm supplements the internal observations and data by constantly interviewing apartment owners, brokers, property managers and lenders. This article discusses general rent, vacancy, operating Greater MN to page 15
hile the real estate industry has generally not been an early adopter of new technologies, the last several years have been different— we have seen the beginning of a true Gutman tech boom in the industry. The relatively aggressive integration of new technologies and tools is an exciting development, and real estate professionals are not only becoming more tech savvy, they are continuing to find new ways to use these new solutions to innovate and add meaningful value to brands and businesses. In a relatively short amount of time, tech has evolved from a rare luxury to an inescapable reality and an invaluable piece of the professional toolkit. Real estate professionals are taking advantage of increasingly powerful, affordable and user-friendly drones to take stunning aerial footage of properties and CRE Tech to page 13
Numbers from Real Capital Markets prove one thing: CRE had a boom year in 2016 by Dan Rafter
H
ow strong a year was 2016 for commercial real estate? The numbers from Real Capital Markets, a global marketplace for buying and selling commercial real estate, say that last year was a record-breaker for the industry. Real Capital Markets facilitated the disposition of 8,508 commercial properties, bank REO properties and loans in
2016. That is an alltime high for the marketplace. The number of transactions closed through Real Capital Markets matters because it is the technology platform Shanahan that most brokerage firms use. If Real Capital Markets reported a record year in 2016, that means that the commercial
real estate industry in general enjoyed a boom year, too. More than 50 percent of U.S. commercial assets sold are brought to the market through Real Capital Market's online marketplace, according to data from the company. “We continued to see an incredible appetite for commercial real estate investments, from foreign and domestic sources,” said Steve Shanahan, executive managing director of Real Capital Markets, in a written statement. “It was
another record-breaking year." Of the more than 8,500 commercial property and loan dispositions facilitated by Real Capital Markets last year, 35.9 percent were multifamily assets, 19.5 percent commercial office buildings, 18.1 percent retail assets and 10.6 percent industrial assets. “RCM’s Investor Sentiment Survey showed that investors are still aggressively looking for acquisitions and are intently focused on keeping the course Boom Year to page 14
February 2017
Minnesota Real Estate Journal
Contents
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FEBRUARY 2017 • VOLUME 33, NUMBER 2
GREATER MN – 2016 APARTMENT TRENDS/2017 EXPECTATIONS NUMBERS FROM REAL CAPITAL MARKETS PROVE ONE THING: CRE HAD A BOOM YEAR IN 2016 THE EARLY SIGNS OF A TECH BOOM IN CRE
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MORE GOOD NEWS FOR MULTIFAMILY BROKERS, DEVELOPERS: NUMBER OF RENTER-DOMINATED CITIES KEEPS GROWING
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WANT TO SPEND LESS ON COMMERCIAL CONSTRUCTION COSTS? BUILD NOW, NOT LATER
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Departments PEOPLE
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NEWS
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Minnesota Real Estate Journal (ISSN 08932255) Copyright © 2017 by the Minnesota Real Estate Journal is published for $85 a year at 12 times per year by Jeff Johnson, 13700 83rd Way North, Suite 206, Maple Grove, MN 55369. Monthly Business and Editorial Offices: 13700 83rd Way North, Maple Grove, MN 55369 Accounting and Circulation Offices: Jeff Johnson, 13700 83rd Way North, Maple Grove, MN 55369 Call 952-885-0815 to subscribe. For more information call: 952-885-0815. POSTMASTER: Send address changes to Minnesota Real Estate Journal, 13700 83rd Way North, Suite 206, Maple Grove, MN 55369 ©2017 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher.
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Minnesota Real Estate Journal
February 2017
People JOE GEAREN JOINS MARCUS & MILLICHAP 13700 83rd Way N, STE 206 Maple Grove, MN 55369 For information call 952-885-0815
President | Publisher Jeff Johnson jeff.johnson@resummits.com Associate Publisher Jay Kodytek jay.kodytek@resummits.com Consulting Editor Dr. Tom Musil tamusil@stthomas.edu Conference Manager | Art Director | Graphic Designer | CE Specialist Alan Davis alan@resummits.com
EditoRial advisoRy BoaRd JOHN ALLEN Industrial Equities ROBERT ANGLESON Navigator Real Estate JEFF EATON Cushman & Wakefield/NorthMarq MARK EVENSON Evenson and Young PATRICIA GNETZ US Bank TOM GUMP TAG Consulting DAVID JELLISON Liberty Property Trust
Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services and real estate capital markets firm with offices throughout the United States and Canada, today announced that Joe Gearen has joined Marcus & Millichap’s Capital Corporation as Associate Director, Loan Originations, according to Craig Patterson – Regional Manager for Marcus & Millichap Minneapolis. Gearen will be based in the company’s Minneapolis office. In his new position, Gearen will be responsible for originating commercial real estate debt and equity solutions in the Midwest. “Joe has significant commercial real estate experience and has had immense success over his 18-year career,” said Patterson. “We are pleased to welcome a true leader who is so well-versed in the many aspects of the commercial real estate industry.” Prior to joining Marcus and Millichap Capital Corporation, Gearen was a Vice President for Zeller Realty Corporation, where he was responsible for acquisitions and underwriting commercial real estate properties throughout the Midwest. Zeller owns and operates approximately 9 million square feet of commercial assets. Gearen also spent five years at Transwestern and First Industrial Realty Trust, respectively.
CHAD JOHNSON Hellmuth & Johnson BILL WARDWELL Colliers International JEFFREY LAFAVRE IAG Commercial WADE LAU Founders Properties MIKE LE JEUNE Fabcon JIM LOCKHART WIPFLI DUANE LUND Exchange Realty CLINT MILLER Cushman & Wakefield/NorthMarq DR. THOMAS MUSIL WILLIAM M. OSTLUND CBC Griffin Companies WHITNEY PEYTON MIKE SALMEN Transwestern
13700 83rd Way N, STE 206 Maple Grove, MN 55369 For information call 952-885-0815
Dominium Promotes Ryan Williams to Development Associate Dominium, a leading apartment development and management company, announced that it has promoted Ryan Williams to development associate at its home office in Plymouth, Minn. In his new role, Williams will be responsible for overseeing design and construction, securing financing and placing equity for investments in new and existing apartment communities throughout the United States. Previously, Williams was a staff associate for Dominium, where he was responsible for assisting project partners with new project development and
financing, financial underwriting and property research for new developments and acquisitions. Prior to that, Williams was a broker intern with NAI MLG Commercial Development and a development intern for Dominium. Williams has a Bachelor of Business Administration in real estate and economics from the University of Wisconsin-Madison. He currently resides in St. Louis Park, Minn.
Dominium Promotes William Boulay to Development Associate Dominium, a leading apartment development and management company, announced that it has promoted William Boulay to development associate at its home office in Plymouth, Minn. In his new role, Boulay will be responsible for overseeing design and construction, securing financing and placing equity for investments in new and existing apartment communities throughout the United States. Previously, Boulay was a staff associate for Dominium, where he was responsible for financial underwriting and property research for new developments and acquisitions, and assisting with design processes and construction management. Prior to that, Boulay was an associate planner with Olsson Associates. Boulay has a Bachelor of Arts in environmental science and political science from Northwestern University and a Master of Public Policy in Economic Development and Sustainability from the University of Minnesota. He currently resides in Minneapolis.
Jeff Budish Joins Colliers International | MinneapolisSt. Paul Colliers International | MinneapolisSt. Paul is pleased to announce the recent addition of Jeff Budish to the investment sales team where he will be specializing in retail and multifamily transactions. Budish will work with both private and institutional capital markets and will work closely with a wide range of clients in the acquisition and disposition of investment proper-
ties and development sites. “I am excited to be joining Colliers considering their depth of experience locally and nationally in investment sales and the extensive local presence in retail leasing and management” states Budish. “Our team will provide a wellrounded perspective to clients in all asset types and in a very collaborative environment, which is where I believe the market is heading.” “We are thrilled to have Jeff Budish join our team,” says Bill Wardwell, Executive Vice President with Colliers International | MSP. “His extensive expertise and knowledge of the Twin Cities real estate investment sales market will only help strengthen our ability to provide a complete package of services for office, retail, industrial, and multifamily investment clients.”
Cresa Minneapolis promotes Stephanie Paul, J.D., to Senior Advisor Cresa Minneapolis, Inc. is pleased to announce Stephanie Paul has been promoted to Senior Advisor. Stephanie joined Cresa in 2015 and has continuously reinforced the mission, vision, and values of the organization. “Stephanie’s knowledge and legal background greatly strengthen our team’s capabilities. Co-workers and clients alike appreciate her consistency and reliability. We are fortunate to have her on our team,” says Cresa Managing Principal, Gwen Schultz. She has dedicated her time and passion to working on a variety of client requirements for Cresa, and has particular expertise with collaborating on one of Cresa’s largest accounts, to which her contributions are significant.
Dominium Promotes Michael Hudson to Development Associate Dominium, a leading apartment development and management company, announced that it has promoted Michael Hudson to development associate at its home office in Plymouth, Minn. In his new role, Hudson will be responsible for overseeing design and construction, securing financing and
People Section Continues to Page 16
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Minnesota Real Estate Journal
News Welsh Construction builds 52,000 square foot facility within the Destination Medical Center Development District The Lofts at Mayo Park in Rochester held a ribbon-cutting ceremony on Tuesday, February 21. The ribbon-cutting marks the opening of Rochester’s newest upscale, market rate apartment complex. The site is located within the Destination Medical Center Development District located between 107 and 121 Sixth Ave. SE. The four-story project is being developed by Helen and Chris Roland, trustees of the George F. Pougiales Trust. Welsh Construction worked with the Roland’s to execute their vision for the short-term and extended stay residential development near Mayo Clinic. The ribbon-cutting, hosted by the Rochester Area Chamber of Commerce, included remarks from Laurie Ackerman, Director of Sales and Marketing for Opportunity Services and Chamber Ambassador, Helen and Chris Roland,
trustees of the George F. Pougiales Trust and Judy Braatz, Membership Development Director at the Rochester Area Chamber of Commerce. “We're always happy to have additional housing choices in Rochester. The Destination Medical Center Initiative will generate tens of thousands of new jobs. The workforce needed to fill those jobs will require a myriad of housing options,” says Rob Miller, president of the Rochester Area Chamber of Commerce. The development features 29-units and was designed by Minneapolis-based Snow Kreilich Architects. The project design was inspired by a competition where six entries were reviewed at the Rochester Art Center. Amenities of the Lofts at Mayo Park include modern exterior finishes, underground parking, roof deck patios, a glass-front lobby and conference room and private patios and balconies. Additionally, 14 of the 29 units are fully-furnished for future tenants. The development is located on Mayo Memorial Park, one of Rochester’s oldest and most well-connected parks. The building’s common
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February 2017
spaces provide expansive views of the park, the Zumbro River and downtown Rochester. “The construction of the Lofts at Mayo Park will add much-needed market-rate residential options near the Mayo Clinic. It was rewarding to work with the client, city and local utility companies to create this opportunity for potential residents in need of being in close proximity to the Mayo Clinic hospital,” says Patrick Schei, Division Manager at Welsh Construction. The George F. Pougiales Trust owns and operates a variety of properties located in and around downtown Rochester, Minnesota. The Trust is working to redevelop the properties into community assets in Pougiales’ memory. A formal grand opening for the Lofts at Mayo Park will be held later this year once exterior landscaping has been completed.
Dougherty Mortgage LLC closes $13 million Fannie Mae loan for Willow Run of Crest Hill
Dougherty Mortgage LLC, a full service national mortgage banking firm, recently closed a $13 million Fannie Mae loan for the refinance of Willow Run of Crest Hill, a 211-unit market rate multifamily apartment property located in Crest Hill, Illinois. The Fannie Mae 10-year term loan has a 30-year amortization schedule and was arranged through Dougherty’s Oak Brook, Illinois office.
Dougherty Mortgage LLC closes $11.7 million Fannie Mae loan for The Estara Apartments Dougherty Mortgage LLC, a full service national mortgage banking firm, recently closed an $11.7 million Fannie Mae loan for the acquisition financing of The Estara Apartments, a 216-unit market rate multifamily apartment property located in Dallas, Texas. The Fannie Mae 7-year term loan has a 30-year amortization schedule and was arranged through a partnership with Old Capital Lending and Dougherty’s Minneapolis and Vienna, Virginia offices for borrow-
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The Lindsay Group Assumes Management of Edina’s One Corporate Center Financial Plaza; Adds Property Management Group The Lindsay Group, a Twin Citiesbased commercial real estate developer, builder and property manager, announced that it has assumed management of one of Edina’s premier office parks, One Corporate Center Financial Plaza V and VI.. The Lindsay Group will provide comprehensive property management services to the Edina office building complex, located just north of the intersection of Highway 100 and I-494. On a combined basis, the complex offers 148,000 sq. ft. of office space. The park consists of 14 separate one and two-story buildings, ranging in size from 7,000 to 18,000 sq. ft. According to Peter Lehner, head of property management for The Lindsay Group, “all of the buildings are fully occupied and in excellent shape, and are located in a
Minnesota Real Estate Journal
highly desirable and convenient Edina business neighborhood.” Simultaneously with the announcement, The Lindsay Group said it is establishing a third-party property management service, Falcon Management Group, to provide comprehensive commercial property management services for its own portfolio of investment properties as well as properties of other corporate and individual or institutional investor clients. Commenting on the move into property management services, J. Lindsay, principal, said, “We have discovered there is a great need, both here in the Twin Cities, Florida, California and in other states where we have invested, for truly responsive, ethical and performance-focused third party property management services. We intend to serve that need.”
CBRE to Market 2.17-Acre Sons of Norway Property in Minneapolis’ Uptown Neighborhood Sons of Norway will begin search for
new headquarters location. CBRE and Sons of Norway announced plans today to market the Sons of Norway site in the Uptown area of Minneapolis for redevelopment and identify a new headquarters for the organization. Sons of Norway, the financial services and international cultural organization based in Minneapolis, plans to create a fresh workplace that will enhance its already positive company culture and attract high-caliber employees. CBRE Senior Vice President John Lorence and First Vice President Neil Kolatkar will represent Sons of Norway in its search for an attractive environment for its 40 plus employees. “With all of the momentum in the Uptown area, now is the time to market our property and focus on creating an exciting new home for our employees, where we can serve our community, members and stakeholders for decades to come,” said Sons of Norway CEO Eivind Heiberg. After more than 55 years at its namesake building at 1455 West Lake Street, the organization will also be able to
February 2017
maximize the value of its Uptown property. Vice President Brian Pankratz and Senior Vice President Ted Abramson of CBRE’s Minneapolis office will market the 2.17-acre site for redevelopment. A development project at the site, one of the largest contiguous blocks in the Uptown area, could include a variety of uses at higher density likely anchored by housing. Due to its infill location, frontage onto Lake Street and size, the Sons of Norway property will garner significant interest. “Both local and national developers will have significant interest in an A+ location of this size as often sites this large require assembling multiple parcels,” said Mr. Abramson, who specializes in multifamily properties. The disposition assignment is comprised of five parcels, including the 60,000-square-foot Sons of Norway office building and adjacent surface parking. “The Sons of Norway site offers recreational, lifestyle and transit amenities at people’s fingertips,” said Mr. Pankratz, a member of CBRE’s Land
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Services group. “This large contiguous site with great proximity to the core of Uptown and the Chain of Lakes is an ideal location for continued growth in the neighborhood.” The site is one block west of the Lake Street and Hennepin Avenue intersection and the Calhoun Square shopping center. The CBRE disposition team projects the site is suited for housing development due to the strong absorption of multifamily product delivered in the area over the last three years.
Studio Hive joins DLR Group DLR Group is excited to announce the acquisition of Minneapolis-based interior design firm Studio Hive. Founded in 2003 by Janice Carleen Linster, FASID; Shari Bjork, LEED AP; and Shawn Gaither, AIA, Studio Hive is consistently ranked as one of the leading interior design firms in the Twin Cities. Studio Hive’s 14 design professionals will relocate to DLR Group’s Ren-
Minnesota Real Estate Journal
aissance Square location at 520 Nicollet Mall by April.
Cushman & Wakefield NorthMarq Hired to Sell Former Saint Paul Public Schools Building Saint Paul Public Schools has hired Cushman & Wakefield NorthMarq to facilitate a sale of the former Riverside Elementary school building at 900 Albion Avenue in St. Paul. The team of Paul Donovan, Jaclyn May and Jeremy Striffler will list the property for sale, with the most likely outcome a thoughtful redevelopment of the 5.4-acre site. The site is guided for mixed-use, as part of the West Seventh Street transit corridor, and is also part of the popular Highland neighborhood and a short drive from the St. Paul Central Business District. “There are a lot of great things happening on West Seventh,” said Tom Parent, Director of Facilities for St. Paul Public Schools. “But this property isn’t part of the school district’s strategic needs for the next decade, and the
resources that go into it are better utilized in supporting our 71 other sites.” The West Seventh Street and Highland Park areas have been magnets for new multifamily, hospitality and retail development and redevelopment during the past decade. Nearby Shepard Road and West Seventh are popular corridors for mixed-use multifamily housing. Positioned on the southwest quadrant of Seventh Street and Interstate 35E, the location provides easy access to the downtown St. Paul core, as well as the Mall of America and Minneapolis/St. Paul International Airport.
Prime Therapeutics to build new, consolidated office space in Eagan, Minn. Four of six Minnesota locations to move, field sites in other states not affected Prime Therapeutics LLC (Prime), a pharmacy benefit manager (PBM) serving 17 Blue Cross and Blue Shield plans – including Blue Cross and Blue Shield of Minnesota – signed a lease
February 2017
with real estate developer United Properties, to build a new facility in Eagan. This facility will consolidate its two Eagan offices plus its Edina and Mendota Heights offices. With its current Eagan building leases starting to expire in 2018, Prime worked over the past several months to evaluate a variety of locations in the Twin Cities area – both existing office space and new construction. In collaboration with JLL and Greater MSP, Prime was able to find the best longterm solution in a 30-acre site known as “Boulder Lakes.” The property is located on Lake Shanahan, south of Interstate 494 and east of Dodd Road in Eagan. Prime’s Minnesota sites in Bloomington and on Lexington Avenue in Eagan will remain open. Prime has more than 3,600 employees, with more than 2,000 in Minnesota. The new Prime facility in Eagan will house Prime’s IT and operations teams and will be flexible enough to accommodate Prime staff from consolidated News to page 20
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Minnesota Real Estate Journal
February 2017
More good news for multifamily brokers, developers: Number of renter-dominated cities keeps growing by Dan Rafter
H
ere is some good news for brokers and developers working in the multifamily business: In 21 U.S. cities with a population of 100,000 or more, more than 50 percent of the households are made up of renters, And according to research from ABODO, the number of cities that can claim this is only going to grow. ABODO earlier this week released a report identifying those major urban areas in which more households rented than owned. Relying on numbers from the U.S. Census Bureau, ABODO researchers found that of more than 400 urban areas with populations of more than 100,000, 21 are composed of at least 50 percent renters. Now, that number might not seem that great. But ABODO is predicting that the number of renter-majority cities will only continue to grow. The company points to a report from the Pew Research Center saying that 3 million former homeowners moved from
owning to renting in 2011. That’s up from 2.5 million who made the same switch in 2001. There are several cities in the Midwest in which 50 percent or more of the households rent rather than own, according to Abodo. In Columbia, Missouri, for instance, 53.3 percent of households rent, while in LaFayette, Indiana, 52.9 percent rent. In Champaign, Illinois, 52.5 percent of households rent, and in Clarksville in Kentucky and Tennessee, 51.9 percent of households are renters.
What might be most surprising is some of the big cities in which more vhouseholds don’t rent. In Chicago, for instance, only 36.1 percent of households rent instead of own. Age, of course, has a lot to do with this trend. According to ABODO, the majority of renters in the company’s list of renter-dominated cities are under 44, with the highest percentage — 24.29 percent — falling between the ages of 25 and 34. Owners are older, with ABODO reporting that 77.16 percent of owners are older than 45.
It matters, too, if a city is a college town. ABODO found that many of the cities on the list are college towns, including, of course, Champaign, Columbia and LaFayette. In these cities, more than 50 percent of renter households were occupied by nonfamilies — many of them, of course, being college students. What do all these numbers mean? Only that there remains plenty of opportunity in the multifamily sector for both developers and brokers. Renting is becoming the top choice of a growing number of households across the country. And while the majority of cities and communities across the United States remain populated by more owners than renters, you can bet that the number of renters will only continue to increase. Just look at the centers of such cities as Chicago, Minneapolis, Kansas City, Cleveland and Detroit. In these urban areas — and many others across the Midwest — renting is becoming an ever more popular option. And as the ABODO report shows, this is a trend that isn’t slowing any time soon.
February 2017
CRE Tech From page 1
projects, and a number of new apps and software solutions have gained traction in a marketplace suddenly hungry for new tech. From iTenant, an app that makes it easier for landlords to share detailed information about their properties with tenants and prospective tenants as well as offer on-line sign-in to tenant amenities like fitness centers and conference rooms, to Yardi, a popular financial and property management platform, the list of new tech tools provides a number of practical ways for real estate professionals to save time, save money, communicate more effectively, operate more efficiently and ultimately boost productivity. New tools and tech It is remarkable how quickly real estate companies have come to rely on tech tools. A new generation of products and platforms delivers much more than the “wow� factor. They can make a significant impact on the bottom line. As new custom-designed commercial real estate apps and technologies continue to emerge, the range of ways in which they can help real estate companies and their clients and professional partners work more efficiently and cost-effectively continues to grow. One tool we utilize is View The Space (VTS Hightower), a software that is designed to coordinate leasing workflow into a unified, accessible platform that clients can use to get realtime updates. Potential tenants can use VTS to evaluate properties, including a comprehensive financial analysis. At the opposite end of the leasing spectrum, landlords can take a look at who has viewed a given property, and can get an up-to-the-minute update of the status of deals that are in progress. Needless to say, this level of transparency and utility in an industry where information is currency and updates can be extremely time-sensitive facilitates more informed decisionmaking. Other popular and effective tools include programs like Buildout, a tool that greatly streamlines and synthesizes the property marketing process, use of Drone footage as a marketing tool and August Smart Locks and other smart lock technology that greatly alleviates security concerns and logistical headaches by providing users with a unique virtual key through their smart phone that they can use to access a locked space. Tech has played an increasingly prominent role in my own work: NAI Farbman has made extensive use of a proprietary custom-designed app that makes it possible for clients and team members alike to review Farbman Group properties. Like growing numbers of real estate companies, we also use new tech tools to give clients a detailed view of our properties without
Minnesota Real Estate Journal
having to actually visit the space. In addition, we use FastOffice, a tool that allows us to create live space plans that integrate furniture and 3D renderings. Other tech tools taking off include: Honest Buildings, a program that ensures competitive bidding and coordinates consistent parameters between a host of different vendors. Documents can be posted online to ensure that
everyone is on the same page, and Honest Buildings eliminates the disparities and inefficiencies that come with different deadlines, timelines and inconsistent submissions. ProLease, tenant representative lease administration software that monitors existing owned and leased spaces, as well as leases that will soon be up for renewal. ProLease and other similar tools offer users detailed financial
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information. Liquid Space, a platform that posts available space on a per-day and even per-hour basis–maximizing the value of assets that are underutilized or unleased. Users can access a central database so that anyone looking for a specific category of space on a shortterm basis can find a solution. CRE Tech to page 16
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Minnesota Real Estate Journal
February 2017
Want to spend less on commercial construction costs? Build now, not later by Dan Rafter
Boom Year
R
eady to tackle a large-scale commercial construction project? Mortenson has some advice: Build now. That's because Mortenson's quarterly Construction Cost Index predicts that commercial construction costs will rise in six major markets across the country, including three in the Midwest. And that's a good sign that construction costs across the country will rise in 2017 and beyond, too. Milwaukee is a good example. According to Mortenson, building owners should plan on an annual increase of 4 percent in project costs during the coming year. Mortenson predicts a construction cost increase of 4 percent, too, in Chicago during 2017 and an increase of 3 percent to 3.3 percent for Minneapolis. Rising construction costs are not a new development in either of these markets. Mortenson reported that in the
From page 1
fourth quarter, the construction cost index in Milwaukee rose 1.7 percent compared to where it stood in the third quarter. For 2016 overall, construction costs rose 3.5 percent in Milwaukee, Mortenson reported. In Minneapolis, commercial construction costs rose 1.1 percent in the fourth quarter of 2016 versus the third.
These costs rose a total of 2.7 percent during all of 2016. In Chicago, commercial construction costs rose 4.3 percent in 2016. The message here is simple: If you want to build, don't put off your work. The costs of construction should only increase.
with tried and true property sectors,� Shanahan said. “Many investors remain optimistic in spite of economic conditions, potential interest rate changes, as well as domestic and international events that could impact shortterm activity.� Completed in the fourth quarter, the RCM Investor Sentiment Survey found that the multifamily sector remains the commercial real estate investment of choice, favored by about half of the participants (49 percent). Industrial, retail and office assets were neck and neck for second place among the most appealing sectors with 34, 32 and 32 percent, respectively. Land and hospitality assets were listed as targets by 20 percent and 15 percent of principals, respectively.
February 2017
Minnesota Real Estate Journal
Greater MN From page 1
expense, and capitalization rate trends in outstate Minnesota. A quick overview of each is summarized below, followed by more details. Rents – Generally speaking, rents remained strong in 2016 with most communities able to increase rents. The exception is Fargo/Moorhead where rents are flat as supply exceeds current demand. Vacancy Trends – Vacancy rates in communities such as St. Cloud, Mankato, Rochester, county seats and smaller communities remained quite low. Fargo/Moorhead is experiencing significant over supply and vacancies have climbed to 9.2%. Operating Expenses – Operating expenses in outstate Minnesota have held pretty stable. With rising sale prices, real estate taxes continue to be a concern for property owners. Cap Rates – Cap rate compression was prevalent in 2016 and more noticeable in the larger metro areas such as St. Cloud, Rochester, and Mankato. More buyers extended out from the Minneapolis/St. Paul metropolitan in search of investment opportunities with higher yields. Rent Trends – The quick story here is
rents continued their upward ascent that has now been in place for several years in the outstate MN apartment market. Overall, low vacancies and steady renter demand allowed owners and managers to implement one or more rent increases. A few participants reported rent growth of 5% to 8%. However, not all properties are operated and managed the same and some owners tend to be more conservative with regard to rent growth.
It seems the one notable exception is the Fargo/Moorhead metropolitan area. As the physical vacancy rate approaches 10%, rents have held flat for the last 18 months and new apartments coming online are offering rent concessions to lease-up (Appraisal Services, Inc.). Another market to keep an eye on over the next 12 to 18 months is the St. Cloud metropolitan area as multiple projects are under construction. At present, the
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St. Cloud market remains healthy with rent growth reported across all apartment classes. By and large, rent increases occurred in 2016 across smaller communities such as county seats. This is attributable to fewer new units being added in these areas as rents are lower and make it more difficult to justify new construction. Some participants opined rent increases may slow some in 2017. Vacancy Trends – In 2016, it seemed every outstate community surveyed with the exception of Fargo/Moorhead had stabilized vacancy rates (less than 5%). There was some thought one year ago that vacancies may rise slightly in 2016. However, based on the data, this did not appear to be the case. According to data compiled by Fargo appraisal firm Appraisal Services Inc., the current vacancy rate in Fargo-Moorhead metropolitan area is 9.21%. This represents a substantial increase from 6.4% one year ago. The following table shows the quarterly vacancy rate and number of units under construction in the Fargo-Moorhead metropolitan area over the past five years.
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CRE Tech From page 13
It isn’t just client-facing tools that we rely on, our in-house tech occupies an increasingly prominent niche in our professional ecosystem. We have replaced basic reporting software that had limited functionality with powerful and intuitive new tech-driven systems. As a result, instead of monthly reports, we can view real-time information about our finances and operations and generate up-to-date reports on-demand. Tech helps us educate and communicate not only with our team and with clients, but with the general public, through regular podcasts. The next step While the current state of real estate tech is somewhat of a Wild West, with new companies, new ideas and new tools popping up seemingly daily, I expect that dynamic to evolve going forward. While the pace of innovation will remain high, we will likely see some consolidation within the industry as
Minnesota Real Estate Journal
successful tech companies merge and some competitors fall away. I also think we will see the commercial real estate industry’s relatively newfound enthusiasm for tech continue to grow, as well. Commercial real estate professionals have experienced firsthand how much of a difference the right tech tools can make. In a competitive industry, there is little reason to doubt that the difference-making power of technology will be embraced wholeheartedly. At the same time, I think we are really only just scratching the surface when it comes to introducing tech to the world of real estate. More transformative commercial real estate solutions are on the horizon, and real estate professionals who want to leverage those tools in exciting new ways would be wise to keep their finger on the tech pulse. Andy Gutman is president of Southfield, Michigan-based Farbman Group.
People from Page 4
placing equity for investments in new and existing apartment communities throughout the United States. Previously, Hudson was a staff associate for Dominium, where he was responsible for assisting project partners in analyzing new project opportunities, negotiating with lenders, investors and third party vendors as well as assisting with construction management and design processes. Prior to that, Hudson was a development intern at Dominium. Hudson has a Bachelor of Science and Business Administration in Real Estate and Finance from Marquette University. He currently resides in Saint Paul, Minn.
StuartCo Hires Luke M. Perry as Portfolio Director StuartCo, one of Minnesota’s largest apartment management firms, announced that it has hired Luke M. Perry to oversee a portfolio of properties totaling nearly 1,000 units across the
February 2017
Twin Cities. Mr. Perry’s multi-family management experience spans over 10 years with positions held at Pinnacle, The Goodman Group, and Village Green Companies, most recently overseeing a complete renovation project totaling over $7 million for Bolero Flats - a 259 unit high-rise in Minneapolis. Mr. Perry is a member of the Minnesota Multihousing Association and participates as a volunteer for the Housing Hotline. He earned numerous company awards for performance and achievement. He was nominated for the industry MADACS award for community manager in 2015, and received the MADACS Award in 2016 for Partial Project Unit Remodel. He is a certified Residential Manager (CRM) and earned Bachelor of Science degree in Business Administration, minor in Property Management at University of Wisconsin Stout. Mr. Perry resides with his family in Woodbury, MN.
February 2017
Alatus, LLC Welcomes New Chief Financial Officer Alatus, LLC is pleased to announce Vishal Dutt has joined the firm’s executive leadership team as Chief Financial Officer. Dutt comes to Alatus with more than 15 years of experience in both commercial development and real estate. “We are so pleased to welcome Vishal to Alatus at such a significant time of growth for our company. He is a seasoned financial executive with a reputation as a relatable, strong, ‘hands on’ organizational leader and agent of continuous excellence. We believe he is uniquely qualified to manage first-class financial operations for our firm while also stewarding our shared principles of trust, persistence, integrity, and professionalism,” said Bob Lux, the owner and founder of Alatus, LLC. “As we look forward, we are thrilled for the opportunities ahead of us and know that Vishal will add tremendous value to our team.” Dutt brings both financial and operational expertise to Alatus having held positions at Carlson Real Estate Company, Steiner Development, Hempel, and
Minnesota Real Estate Journal
most recently Meyer Real Estate Group where he was a senior finance manager. At Alatus he will be responsible for all financial aspects of the company, including capital and operating budgets and financial reporting and analysis. “This is an exciting time at Alatus with many exceptional projects going on. I am very grateful for the opportunity to work with Bob, who is a brilliant real estate developer in this market, and I am eager to learn from and contribute my skills and experiences to this already talented team,” stated Dutt
Founders Properties, LLC’s Kim Hofstede Named NAIOP Minnesota President Founders Properties, L.L.C. and NAIOP, the Commercial Real Estate Development Association, announced today that Kim Hofstede has begun her term as the Minnesota chapter’s 2017 president. Hofstede leads the Board of Directors on strategic initiatives including work on public policy and education, as well as in representing Minnesota’s commercial real estate development
industry. “I am honored to lead the NAIOP Minnesota team after years of watching the organization grow,” said Hofstede. “NAIOP has given me the opportunity to be an advocate for a leading real estate organization, both in the Twin Cities and nationally. I look forward to working closely with our members and continuing to build relationships in the Minnesota real estate community.” Kim has served in a number of prior roles with NAIOP Minnesota, including vice president, treasurer/secretary and chair of the Developing Leaders Committee and University Challenge Committee. She has been a board member since 2013 and plans to focus on engaging current members and increasing membership, onboarding a new community enhancement partner and working with other commercial real estate organizations to promote policies that encourage businesses to stay, invest and expand in Minnesota. Outside of her role with NAIOP Minnesota, Hofstede is vice president at
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Founders Properties, LLC, where she is responsible for transactional activities focusing on the disposition of assets and the creation and financing of development ventures. Hofstede holds a bachelor’s of business administration in accounting and finance, investments and banking from the University of Wisconsin-Madison. Hofstede is also a licensed real estate broker in Minnesota and Wisconsin and is a Certified Commercial Investment Member (CCIM).
Rochon Corporation Names Reynolds as Partner Rochon Corporation has added its first partner in over a decade, selecting company vice president Nick Reynolds. Reynolds joins Rochon partners Jerry Braton, CEO, Jeff Wellman, president and Scott Larkin, senior vice president as owners of the commercial general contracting and design build company “Nick has been incredibly dedicated to our company and our clients since he People to Page 18
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started at Rochon more than 10 years ago,” said Jerry Braton, CEO and Partner, Rochon Corporation. “He is fully committed to our success and embodies the leadership and business acumen we need leading this company for the next generation.” Reynolds is actively involved in business development working with clients during the preconstruction and negotiation phases. Nick is a member of NAIOP, MSCA and the Minnesota Construction Association where he serves on the board as the past president. With annual sales of approximately $60 million, Rochon has a focus on educational, retail, office, industrial, multifamily, and religious building markets. The company continues to grow each year by emphasizing client relationships, precise cost estimating and honest, straightforward communication.
Minnesota Real Estate Journal
Cresa Minneapolis hires Anne Bergstrom as Senior Advisor, Business Development Cresa Minneapolis, Inc. is pleased to announce the recent hiring of Anne Bergstrom as a Senior Advisor, Business Development. Anne’s experience as a leader, and her expertise in strategic planning, negotiations and deal structures, mergers and acquisitions, forecasting, business planning, capital finance, and budgeting will help our clients implement the best real estate solutions in support of their strategic business goals. “Anne’s dedication to service excellence and focus on strategic real estate solutions for downtown businesses make her a great addition to our Cresa Minneapolis team” said Steve Dorgan, Managing Principal. Anne is a member of the Minnesota and Minneapolis Regional Chambers of Commerce, a Committee Chairperson with Share Our Strength, and a Committee Member of the Basilica Block Party
Dominium Hires Mary Ann Dodge as Financial Reporting Accountant Dominium, a leading apartment development and management company, today announced that it has hired Mary Ann Dodge as Financial Reporting Accountant at its Plymouth, Minn. headquarters. Dodge’s new role is primarily project focused. In addition, she is responsible for recording adjusted journal entries, surplus cash projects and wire transfers. She also creates and tracks ownership approval for new and updated organizational charts. Prior to joining Dominium, Dodge was the Senior Accountant with Centra Homes and has worked as a Senior Management Analyst and a Revenue Tax Specialist Intermediate Leadworker at Minnesota Department of Revenue. Dodge holds a Bachelor’s of Accounting degree from the University of Minnesota- Duluth.
Dominium Hires Amy Shaner as Property Accountant Dominium, a leading apartment
February 2017
development and management company, today announced that it has hired Amy Shaner as Property Accountant at its Plymouth, Minn. headquarters. In her new role, Shaner is responsible for completing annual audits, monthly reporting and bank reconciliations. Previously, Shaner was a Real Estate Accountant at CBRE where she completed full monthly reporting packages for several commercial properties across the country. Shaner holds a Bachelor of Arts from the University of Wisconsin- Eau Claire.
Dominium Hires Andrew Koenen as Property Accountant Dominium, a leading apartment development and management company, today announced that it has hired Andrew Koenen as Property Accountant at its Plymouth, Minn. headquarters. In his new role, Koenen is responsible for assisting property management staff with accounting processes, keeping ledgers up to date and reconciling accounts. Prior to joining Dominium, Koenen served as Quality Auditor at
February 2017
Prime Therapeutics and drove the Zamboni at Mariucci Arena. Koenen holds a Bachelor of Science in Accounting and Supply Chain Management from the University of Minnesota- Carlson School of Management.
Dominium Hires Tim Libertini as Portfolio Analyst Dominium, a leading apartment development and management company, today announced that it has hired Tim Libertini as Portfolio Analyst at its Plymouth, Minn. headquarters. In his new role, Libertini is responsible for auditing monthly financials and managing budget sheets. He also provides support to the sales and refinance of properties and assists project partners in reviewing statements of cash flow. Prior to joining Dominium, Libertini was a Financial Analyst Intern at the Venetian Capital Partners where he assisted in the underwriting of EB-5 backed mezzanine debt for real estate developments. Libertini received a Bachelor of Arts
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in Finance and Real Estate from the University of Miami, Fl.
Dominium Hires Carolyn Sem as Administrative Assistant Dominium, a leading apartment development and management company, today announced that it has hired Carolyn Sem as Administrative Assistant at its Plymouth, Minn. headquarters. In her new role, Sem will serve as an assistant to Brendt Rusten and will be responsible for booking travel for associates, coding credit cards, and working with Laserfiche Administrator 2. Previously, Sem was a marketing intern and office assistant at State Farm and has also served as a Patient Service Representative at Northwest Family Clinics. Sem holds a Bachelor of Science in Business Administration from Bemidji State University.
Dominium Promotes Owen Metz to Vice President and Project Partner Dominium, a leading apartment development and management company, today announced that it has promoted Owen Metz to Vice President and Project Partner at its Plymouth, Minn. headquarters. Metz will be responsible for originating and overseeing new project development, financing and acquisitions. Previously, Metz was a Developer at Dominium where he was responsible for performing similar roles in addition to determining project feasibility, overseeing design and construction, partnership restructuring, and negotiations with lenders, investors and third party vendors. Metz is a graduate from the University of Wisconsin – School of Business with a BBA in both Real Estate and Finance. He is professionally affiliated with the Urban Land Institute and the UW Real Estate Alumni Association
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Dominium Promotes Ron Mehl to Vice President and Project Partner Dominium, a leading apartment development and management company, today announced that it has promoted Ron Mehl to Vice President and Project Partner at its Plymouth, Minn. headquarters. Mehl will be responsible for originating and overseeing new project development, financing and acquisitions. Previously, Mehl was a Senior Developer where he was responsible for performing similar roles in addition to determining project feasibility, overseeing design and construction, partnership restructuring, and negotiations with lenders, investors and third party vendors. Mehl is a graduate of Point Loma Nazarene University with a Bachelor’s degree in Business Administration and a minor in Accounting
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Minnesota Real Estate Journal News from page 10
locations and allow for future growth. “Consolidating our offices will provide long-term operational efficiencies that will provide financial savings for our company and our clients, while meeting current business needs and future business strategy,” said Prime’s President and CEO Jim DuCharme. “Eagan has been and continues to be a perfect fit for Prime as the majority of our Minnesota-based employees are already in Eagan. This new facility will minimize team disruption and enhance collaboration. I look forward to continuing our strong working relationship with city leadership as we evolve Prime’s presence in Eagan.” “It’s tremendously gratifying when a major employer like Prime Therapeutics determines Eagan has what it takes for their continued success,” said Eagan Mayor Mike Maguire. “Prime’s strategic decision to unite operations here on a single corporate campus,” he added, “not only builds on our more than decade long relationship, but it keeps and concentrates several thou-
sand highly skilled jobs in Eagan. We are both proud of the continued momentum this brings to maintaining the exceptional quality of life Eagan is known for.” “United Properties is excited to be moving down the development path with Prime for its new facility in Eagan, and we’re very pleased to have found just the right site for their planned consolidation,” said Gordy Stofer, vice president of office development. The lease is contingent upon modifying and transforming existing grants Prime received from Minnesota Department of Employment and Economic Development (MN DEED) related to its Mendota Heights and Eagan facilities. Construction could begin in midsummer 2017, pending city approval of the plan, and is expected to be complete by 2019.
COMMERCIAL REAL ESTATE VETERANS LAUNCH NEW FIRM A group of four local Minneapolis commercial real estate veterans today announced the formation of a new partnership called 45 North Group. Mike Tobin, Jeff Wenngatz, Matt Tobin, and William Roozenboom are the founding partners of the new organization. The new partnership will focus on sustainable commercial real estate development and consulting. “We’re very focused on our mission, which is about creating value through sustainable development and consulting while focusing on the triple bottom line of planet, people, and proft, said Jeff Wenngatz, partner. “This is something the four of us have wanted to do for quite a while now, and we’re excited to share our talents and vision with our stakeholders in the market,” Wenngatz added. Collectively the group of four partners have more than 50 years of commercial real estate experience and all
February 2017
previously worked at Cresa, a global tenant representation company.
THE EXCELSIOR GROUP AND RYAN COMPANIES TAP TRANSWESTERN TO LEASE NEW I-394 DEVELOPMENT 10 West End is First Class A Office Building Constructed in 17 Years in I394 Corridor Transwestern today announces it has been retained by The Excelsior Group and Ryan Companies US Inc. to provide leasing services for 10 West End, a 315,280-square-foot office building. The 11-story building is 4 miles west of downtown Minneapolis in the highly coveted Interstate 394 submarket. Transwestern Vice President Erin Wendorf, Managing Principal Mike Salmen and Principal Mike Honsa will provide leasing services. ”We look forward to partnering with Transwestern to attract companies that are seeking the most inspiring, efficient, and cost-effective environment
February 2017
for their employees,” said Tom Tracy, senior vice president at The Excelsior Group. “10 West End will be unique in the marketplace because it offers suburban convenience along with all of the benefits of an urban neighborhood.” 10 West End will be the first Class A office building to be constructed in over 17 years on the I-394 corridor. The West End neighborhood features numerous restaurants, upscale shopping, entertainment venues and newly developed hotels and apartments. The property, at I-394 and Highway 100, is designed for today’s workforce with walkable amenities, abundant outdoor spaces, proximity to downtown, strong parking ratios, modern efficiencies and on-site amenities. “We could not be more excited to work with The Excelsior Group and Ryan Companies to bring this project to life,” said Wendorf. “Our innovative leasing strategies have seen tremendous success both in downtown and suburban Minneapolis. Our team has developed a strategy that will capitalize on market fundamentals to achieve this
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asset’s incredible potential.”
CBRE Multifamily Assists Invesco in Sale of Eden Prairie Apartment Community CBRE Multifamily has arranged the sale of Eden Place, a 508-unit apartment community in Eden Prairie, Minnesota to Fowler Property Acquisitions. Keith Collins, Abe Appert and Laura Hanneman in CBRE’s Minneapolis office represented the seller, a separate account client of Invesco Real Estate. Eden Place, located near the Eden Prairie Center Mall at 13000 Garden Lane, is comprised of eight three-story apartment buildings and a clubhouse with shared amenities on 31.2 acres. The sale closed February 6. The apartment buildings were originally constructed in 1986 and the seller has remodeled 22 of the units. The clubhouse was built in 2007 and features a fitness center, community room, outdoor veranda for grilling and a busi-
ness center. Other property features include two outdoor pools, two tennis courts, underground parking, a playground, dog park and walking/biking paths.
Dougherty Mortgage LLC closes $26.6 million Fannie Mae loan for Coppertree Apartments Dougherty Mortgage LLC, a full service national mortgage banking firm, recently closed a $26.6 million Fannie Mae loan for the acquisition financing of Coppertree Apartments, a 772-unit market rate multifamily apartment property located in Indianapolis, Indiana. The Fannie Mae 7-year term, 30-year amortization loan was arranged through a partnership with Old Capital Lending and Dougherty’s Vienna, Virginia office for borrower Tanglewood Apartments, LLC.
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Dougherty Mortgage LLC closes $7.1 million HUD loan for Victory Crossing Apartments Dougherty Mortgage LLC, a full service national mortgage banking firm, recently closed a $7.1 million HUD 223(a)(7) loan for the refinance of Victory Crossing Apartments, a 172unit multifamily apartment property located in Columbus, Georgia. The HUD 38.4-year term loan was arranged through Dougherty’s Minneapolis office for an affiliate of Dominium Development & Acquisitions. The affiliate acquired the property through a Transfer of Physical Assets immediately prior to the closing of the 223(a)(7) refinance. This transaction reduced the interest rate and MIP and will allow the borrower to make improvements and upgrades to the property.
News to page 22
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Minnesota Real Estate Journal News from page 21
Highland Management invests in Celtic Crossing multi-family development Colliers International long-standing client plans to complete unfinished units at Osseo site Highland Management Group, a local property management firm based in the Twin Cities has purchased 30 units in Celtic Crossing, a 32-unit, Class A, multi-family community located at 110-150 Regan Lane in Osseo. The Multi-family Investment Sales team at Colliers International | Minneapolis-St. Paul was hired to sell Celtic Crossing by former owner, Mears Construction in August of 2016. Celtic Crossing’s current configuration includes two existing buildings totaling over 88,000 SF made up of 32 condo units. The entire community sits on a 3.3 acre parcel. Along with the two existing buildings, the sale included three contiguous vacant land parcels that are pad ready for construction or future development. Attracted to Osseo’s walkable community and its unique downtown, Highland felt the purchase was a smart investment opportunity. Highland plans to develop three unfinished penthouse units, each measuring 3,500 SF, and will market them for occupancy. Highland has no immediate plans to develop the additional three parcels at this time. The property, constructed in 2003 as for-sale condos, was converted to rentals after two units were sold to private buyers. The property offers expansive, well-appointed units that contain large common spaces, over-sized storage lockers and climate-controlled parking stalls. The community currently operates as a 55+ age-restricted
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community. Ted Bickel, Vice President at Colliers International | MSP, Kevin Doyle, Vice President at Colliers International | MSP, Julie Lux, Senior Associate at Colliers International | MSP and Brady Devore, Associate at Colliers International | MSP assisted in the sale of Celtic Crossing. Andy Heieie, Senior Associate at Colliers International | MSP worked with the Investment Services team on the land acquisition.
Dominium Acquires Victory Crossing Minnesota developer plans renovation to Georgia affordable housing community Dominium, a Minneapolis-based leading apartment development and management company, announced today that it has acquired Victory Crossing, an affordable housing community consisting of 172 units, in Columbus, Ga. “This acquisition is a nice addition to our growing Georgia portfolio,” said Devon Quist, Dominium development associate. “The improvements planned for this property will provide a muchneeded affordable housing option in the Columbus-area for years to come.” Dominium is planning a substantial renovation of the property. Common area upgrades include a new fitness center, upgrades to the clubhouse including new fixtures, equipment, furniture, artwork and accessories. The pool will also receive much-needed updates and repairs to restore it for resident use. New security equipment and cameras will be installed in the clubhouse and pool areas. Dominium will be doing light unit upgrades including the addition of new in-unit washers and dryers. In addi-
tion, some units will receive new paint, flooring, appliances and fixtures on an as-needed basis. Victory Crossing was built in 2004. Dominium plans to complete renovations by the end of April 2017.
Suburban Framing purchases Coon Rapids Industrial building for expansion Carpentry Company relocating from Blaine. Suburban Framing, a Northwest Twin Cities local framing company, has purchased 9250 Holly St. NW and 420 93rd Ave NW in Coon Rapids, a 12,100 Sq. Ft. industrial warehouse and office property. Suburban Framing has tripled in size since they opened in 2002 and was looking for a larger building to accommodate their growing needs Suburban Framing was interested in the property due to its easy access to Highways 610 and 47 and the close proximity to many retail shops and restaurants. The property features 19’ clear height and comes with an additional 1,050 Sq. Ft. of on-site garage storage. Suburban Framing has plans to make minor upgrades to the warehouse in order to accommodate their business. Dan Friedner, Vice President from Colliers International | Minneapolis-St. Paul and Jay Chmieleski, Vice President from Colliers International | Minneapolis-St. Paul represented landlord Dave Gonyea of the Gonyea Company with the sale of the property. “Working with Dan and Jay to sell this property has been a seamless one. Their extensive market knowledge has benefited both myself as the seller and the buyer in this process,” says Dave Gonyea of Gonyea Company.
MARCUS & MILLICHAP ARRANGES THE SALE OF PETERS PLACE; A 14-UNIT APARTMENT BUILDING
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Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of Peters Place Apartments, a 14-unit apartment property located in Columbia Heights, Minnesota, according to Craig Patterson, regional manager of the firm’s Minneapolis office. The asset sold for
February 2017
$1,000,000. Dan Linnell, Mox Gunderson and Josh Talberg, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a private investor, was also secured and represented by Linnell, Gunderson and Talberg. Speaking with Mr. Linnell, “Peter’s Place ultimately sold to the same buyer as Columbia Park Apartments in Minneapolis. They acquired the property as part-two of a portfolio sale; 52-unit Columbia Park Apartments and 14-unit Peter’s Place Apartments.” Peters Place Apartments is located at 3940 Peters Place in Columbia Heights, Minnesota. Peters Place was built in 1960, the exterior was renovated with all new windows roof and siding in 2002. It featured four one-bedroom units and 10 two-bedroom units.
CBRE Completes Sales of Development Sites Totaling 35 Acres in Pleasant Prairie, WI The Chicago office of CBRE recently assisted in the sales of two Lakeview Corporate Park development sites in Pleasant Prairie, Wisconsin – two miles north of the Wisconsin and Illinois border. A 22.85-acre site in the Lakeview Corporate Park at the corner of 108th Avenue and Green Bay Road sold to Zilber Property Group. Zach Graham, Ryan Bain and Tom Harmon represented the seller, Nitto Americas, Inc. Graham, Bain and Harmon also represented MMM Real Estate, LLC in its acquisition of 12.22 acres on 88th Avenue in Pleasant Prairie, also in the Lakeview Corporate Park. Sam Badger and Whit Heitman represented the seller, CenterPoint Properties. The Lakeview Corporate Park is a 2,400-acre business park located between Milwaukee and Chicago accessible to Interstate 94 with a mix of retail, office and industrial uses.
Great Upcoming Opportunities Looking for Real Estate CE Credits? Minnesota Real Estate Journal 2017 CONFERENCE SCHEDULE for more information or to register www.resummits.com March
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