MREJ_MArchApril_19

VOLUME 35, NUMBER 3/4

©2019 Real Estate Publishing Corporation

March/April 2019

Development Activity Along Interstate 394 Corridor Remains Strong

By Liz Wolf

T

here’s no shortage of development and redevelopment activity along the Interstate 394 corridor, which is an east-west freeway linking Minneapolis with the Twin Cities western suburbs.

Here’s a rundown of some recently completed projects as well as those that are under construction or about to break ground.

Minneapolis Minnetonka-based The Opus Group, which acquired the 310,000-square-foot former Target West Campus building on the western border of Minneapolis, has just landed a second major tenant.

Large hair salon chain Regis Corp. announced in late March that it will relocate its headquarters to the building in 2020. The building is located at 3701 Wayzata Blvd., in the highly sought-after office corridor along I-394.

Opus, which purchased the property last December, is in the process of renovating it into a multitenant office building. Planned upgrades include a new cafeteria with indoor/outdoor seating, a rooftop deck and a clubhouse with a bar.

Regis will occupy 65,000 square feet on the top four floors of the eight-story building.

Regis has owned its current headquarters at 7201 Metro Blvd. in Edina since 1992 and will be listing it 394 to page 54

Women on your CRE Team? We hope so!

By Ericka Miller, Sr VP, KimbleCo & 2019 MNCREW President

T

he first annual Minnesota Real Estate Journal’s Women in Commercial Real Estate Summit left me feeling quite inspired and I am looking forward to attending the 2nd annual event on May 9th. Last year the day began with women who started in this industry when not many women were involved. The overwhelming theme was simple; they didn’t think about it, didn’t necessarily consider they were the only ones or one of the few. They were and still are successful because they loved what they did. They often didn’t

notice some of the inequities until they were hooked on their careers and it was too late to turn around.

These inspiring women took the leap into commercial real estate before women were really truly welcome, experienced bias throughout their career but the focus of their discussion was not on this - it was on why they loved what they do and why women should continue to pursue careers in commercial real estate.

To expand on the positivity of these women pioneers, I’ve put together a short list of why it’s great to be a woman in commercial real estate and why you should have them on your team: Women are in the minority. I truly see this as an Women in Real Estate to page 52

INSIDE - Page 12: Finalists and Winners

March/April 2019

Featured Stories

Minnesota Real Estate Journal

MARCH 2019 • VOLUME 35, NUMBER 3/4

Page 3

Departments PEOPLE ON THE MOVE 4 BREAKING GROUND 58 CLOSINGS

1

DEVELOPMENT ACTIVITY ALONG INTERSTATE 394 CORRIDOR REMAINS STRONG WOMEN ON YOUR CRE TEAM? WE HOPE SO!

6

OPPORTUNITY ZONE REGULATIONS: SUMMARIZING THE KEY UPDATES

10

CSM’S GARY HOLMES RECEIVES MREJ’S 2019 LIFETIME ACHIEVEMENT AWARD

12

2019 MINNESOTA REAL ESTATE AWARDS

59

Minnesota Real Estate Journal (ISSN 08932255) Copyright © 2019 by the Minnesota Real Estate Journal is published monthly except combined in March & April for $85 a year by Jeff Johnson, 7767 Elm Creek Boulevard, Suite 210, Maple Grove, MN 55369.

Monthly Business and Editorial Offices: 7767 Elm Creek Boulevard, Suite 210, Maple Grove, MN 55369 Accounting and Circulation Offices: Jeff Johnson, 7767 Elm Creek Boulevard, Suite 210, Maple Grove, MN 55369. Call 952-885-0815 to subscribe. For more information call: 952-885-0815. Periodical postage paid at Maple Grove and additional mailing offices.

POSTMASTER: Send address changes to Minnesota Real Estate Journal, 7767 Elm Creek Boulevard, Suite 210, Maple Grove, MN 55369 ©2019 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher.

Page 4

Minnesota Real Estate Journal

7767 Elm Creek Boulevard, Suite 210 Maple Grove, MN 55369 For information call 952-885-0815

President | Publisher Jeff Johnson jeff.johnson@resummits.com Vice President | Publisher Jay Kodytek jay.kodytek@resummits.com Chief Financial Officer Todd Phillips todd.phillips@resummits.com Consulting Editor Dr. Tom Musil tamusil@stthomas.edu Conference Manager | Art Director | Graphic Designer | CE Specialist Alan Davis alan.davis@resummits.com

EDITORIAL ADVISORY BOARD JOHN ALLEN JEFF EATON MARK EVENSON PATRICIA GNETZ TOM GUMP CHAD JOHNSON BILL WARDWELL JEFFREY LAFAVRE WADE LAU

Dan Peterson Joins CBRE as Vice President in Minneapolis Dan Peterson has joined CBRE as vice president and data center advisor for the Upper Midwest region.

Peterson brings more than 20 years of commercial real estate and information technology experience to CBRE. His extensive history in the Peterson industry includes his most recent position as director of Colliers International Data Centers Group, where he led his team in providing data center solutions, workplace strategies and technology-based initiatives.

Peterson will provide similar services at CBRE, where he will combine his broad real estate and information technology experience with the CBRE Data Center Solutions team’s outstanding commitment to excellence, resulting in the best possible technology-based solutions and services to current and future clients.

“CBRE and the Data Center Solutions team has built a great reputation by the great people doing the work,” said Peterson. “I couldn’t be more excited to be a part of the team.”

Peterson is a graduate of the University of Minnesota, graduated from the School of Communications Arts and holds both the ITIL v3 and Data Center Certified Associate certifications.

JIM LOCKHART DUANE LUND CLINT MILLER DR. THOMAS MUSIL WHITNEY PEYTON MIKE SALMEN

7767 Elm Creek Boulevard, Suite 210 Maple Grove, MN 55369 For information call 952-885-0815

Merchants Capital, hires of two new vice presidents for Saint Paul Office Lisa Lundeen, who joins the team with over 12 years of experience in multifamily servicing and asset management, will be the vice president of government-sponsored enterprise (GSE) portfolio management. In this newly created role, Lundeen will be responsible for performing financial analyses, Lundeen completing inspections, monitoring

repairs and escrows, processing loan events and managing risks of the company’s Freddie Mac and Fannie Mae portfolios, as well as improving company procedures and implementing a new servicing and database management application.

Toni Gilbert will also be joining the team in a newly created role as the vice president of insurance compliance. Toni hails from a background in insurance compliance and multifamily escrow, with a vast knowledge of vender requirements and will be responsible Gilbert for reviewing insurance information to ensure compliance with Freddie Mac, Fannie Mae, the Department of Housing and Urban Development (HUD) and Merchants Bank standards This announcement follows on the heels of the recent promotion of Brian Sullivan to COO and executive vice president at the company’s headquarters in Carmel, Indiana.

John Boich Promoted to Associate Director in CBRE Minneapolis John Boich has been promoted to associate director within CBRE’s Property Management team in Minneapolis.

“I’m very honored to be recognized with this promotion,” said Boich. “I have been fortunate enough to be a part of the amazing Property Management team here at CBRE and I’m looking for- Boich ward to continuing to provide the best possible service that I can as a director.”

Since joining CBRE in 2009 as a senior real estate manager, Boich has been directly involved in providing local market insight, specialized commercial real estate expertise and exceptional property management outcomes to clients.

Over that time, Boich has been recognized with several awards, including the 2010 CBRE Minneapolis Cornerstone Award, the 2013 CBRE Minneapolis

March/April 2019

Integrated Services Award and the 2018 CBRE Minneapolis RISE Award.

“We are proud to have John in Minneapolis and we will continue to utilize his skill set to further enhance client outcomes,” said Jeff Jiovanazzo, managing director at CBRE Minneapolis. “John has been a critical part of our Property Management team over the years and this promotion reflects the hard work John puts in on a daily basis.”

JLL adds executive to Minneapolis Tenant Representation Team Jessica Mogilka joins JLL as an Executive Vice President to grow global portfolio JLL bolstered its tenant representation team with the addition of Jessica Mogilka as Executive Vice President.

She brings more than 14 years of global real estate experience to JLL, ranging from transaction management Mogilka to client representation. Mogilka will be responsible for sourcing and servicing large single location occupiers and global corporate portfolio business.

“We’re thrilled to strengthen our team and our Minneapolis office with Jessica’s expertise,” said Chris Rohrer, Managing Director – Market Lead of JLL Minneapolis. “Her experience and proven leadership ability will be a tremendous asset to our current and future clients.”

Mogilka comes to JLL from Cresa Minneapolis, where she supported tenants of all sizes and led a multi-disciplinary team and delivered a multitude of real estate solutions to optimize portfolio performance for a Fortune 100 company, which spanned across 500+ locations and 28 million square feet in 140 countries.

Mogilka has a bachelor’s degree from the University of Wisconsin at Madison.

She is a member of CoreNet and MNCar and a former board member of MNCREW.

Page 6

Minnesota Real Estate Journal

March/April 2019

Opportunity Zone Regulations: Summarizing the Key Updates

By Dannielle Lewis, Josh Graham, and Jim Lockhart of WIPFLI LLP

able as long as the distribution does not exceed the investor’s basis in the QOF.

I

Carried Interest — The proposed regulations clarified that an investment into a QOF may be made with cash or property, but an interest received in exchange for services would not qualify for the QOF tax benefits. A service provider’s interest will be able to be tracked between its interest in capital gains invested and the performance of services.

n a long-awaited act, the Treasury has released its second set of proposed opportunity zones regulations.

While opportunity zones have gotten a lot of attention for their exciting potential benefits, the lack of complete guidance has prevented many investors and developers from fully moving forward.

However, these proposed regulations answer many lingering questions and provide greater clarity. Below we summarize what you need to know about the key updates.

Because the facts and circumstances of every investor are different, the summary below should not be considered legal or tax advice and should not be solely relied upon in making decisions on opportunity zone properties, businesses and funds. Please seek out our assistance directly before moving forward with any opportunity zone investments.

Summary of the key updates to the Proposed Opportunity Zones Regulations Exit Strategy — A taxpayer that is the holder of a qualifying QOF partnership interest or S corporation stock may make an elect to exclude from gross income the capital gain from the disposition of qualified opportunity

zone property reported on Schedule K1 of such entity, provided the disposition occurs after the taxpayer’s 10-year holding period.

Debt-Financed Distributions — The proposed regulations include an example with a debt-financed distribution and indicates it should be allow-

§1231 Gains — Because the capital gain income from §1231 property is determinable only as of the last day of the taxable year, these proposed regulations stipulate that the 180-day period allowing you to invest such capital gain income from §1231 property in a QOF begins on the last day of the taxable year.

Leased Property — The lease must have been entered after December 31, and be a “market rate” lease to be considered qualified opportunity zone Regulations to page 8

SKILLED D LA AW WYER WY RS STR RATEGIC ADV VICE With more tth han 60 years of experien nce thr h oughout the country, we know how to efficient n ly close a broad range of deals, from industrial parks to office bu uildings, shopping centers to housing develop pments, mixed usse developm ments to renewab ble energy developmen nts.

Regardless of the type of pr project, we know how to get the de ea all done.

To learn why Fredrikson & Byron is the firm “where law and business s meet,” call: Chris Dolan 612.492.7069

fredlaw.com//realestate

MREJ040819

Brian McCool 612.492.7309

Page 8 Regulations from page 6

business property. There is no original use or substantial improvement requirement for leased property. When the lessor and lessee are related, there may be further restrictions. There is also further guidance on how to value a lease for asset test purposes and when there are prepayments.

Substantial Improvement Asset by Asset — The proposed regulations indicate substantial improvements must be made on an asset- by- asset basis in order to be Qualified Opportunity Zone Business Property (QOZBP).

Tangible Property & Original Use Definition — Real property, other than land, that is acquired by purchase had been placed in service in the qualified opportunity zone by a person other than the QOF or qualified opportunity zone business in a means that would allow the tangible property to be depreciated or amortized, then it needs to be substantially improved to be considered qualified opportunity zone business property.

Vacant Property — If a property has been unused or vacant for an uninterrupted period of at least five years, original use in the zone commences on the

Minnesota Real Estate Journal

date after that period when any person first uses or places the property in service in the QOZ. Triple Net Leases — Merely entering into a triple- net- lease with respect to real property owned by a taxpayer is not the active conduct of a trade or business by such taxpayer for QOZ purposes.

Property Adjacent to a QOZ — If the amount of real property based on square footage located within the QOZ is substantial as compared to the amount of real property based on square footage outside of the QOZ, and the real property outside of the QOZ is contiguous to part or all of the real property located inside the QOZ, then all of the property is deemed to be located within a QOZ. 50% Gross Income Test Clarified — The proposed regulations set forth three safe-harbors to meet the 50% percent of its total gross income in the Opportunity Zone requirement. The QOF must meet one of the three safeharbors.

Safe harbor #1: 50% of the services performed for the business by its employees and independent contractors

(and employees of independent contractors) are performed in the QOZ, based on amounts paid for the services performed.

Safe harbor #2: 50% of the services performed (based on hours) for such business by its employees and independent contractors (and employees of independent contractors) are performed within QOZ. Safe harbor #3: 50% of the gross income requirement is met if (1) the tangible property of the business that is in a QOZ and (2) the management or operational functions performed for the business in the QOZ are each necessary to generate 50% percent of the gross income of the trade or business.

Working Capital Safe Harbor — The working capital safe harbor for a written plan now includes the development of a trade or business in the QOZ as well as acquisition, construction, and/or substantial improvement of tangible property.

31-Month Working Capital Safe Harbor Exceptions — Exceeding the 31-month period does not violate the safe harbor if the delay is attributable to

March/April 2019

waiting for government action, the application for which is completed during the 31-month period.

Events Triggering Gain Inclusion — The IRS set out several different events that would require inclusion of gain, including gifts, donations, and transfers of interest. However, transfers due to death will not trigger gain if the interest is transferred appropriately.

Getting Started With this new, additional guidance, now is a great time to move forward.

The Treasury released these proposed regulations to help people pursue QOZ opportunities. While there is a 60-day commentary period and more changes may be coming, the foundation is finally settling.

Dannielle J Lewis, CPA, MBT Senior Tax Manager | Wipfli LLP | Office: 952.548.3334 dlewis@wipfli.com

Page 10

Minnesota Real Estate Journal

March/April 2019

CSM’s Gary Holmes Receives MREJ’s 2019 Lifetime Achievement Award CSM takes off By the mid-1980s, CSM was developing thousands of apartment units, mainly in the Twin Cities. Then Holmes launched into commercial real estate by developing Best Buy stores.

Some of these stores were part of bigger retail center developments.

In 1992, CSM entered the hotel industry, acquiring and renovating a former Howard Johnson hotel in Woodbury into a Country Inn by Carlson. Since then, CSM Lodging has acquired, built and managed hotels for well-respected brands like Marriott, Carlson, Hilton and Hyatt. CSM’s Lodging division is among the largest 50 hotel management companies in the U.S.

The Milwaukee Road Depot development

CSM Corp. started modestly when a young Holmes began selling light bulbs door to door and enlisted his Boy Scout troop to help him sell.

At age 14, he used his light bulb earnings to buy his first real estate asset. The rest is history.

By Liz Wolf

S

ince launching Minneapolis-based CSM Corp. in 1976, Gary Holmes, president and CEO of the company, has built a massive real estate empire in Minnesota and across 16 states. Over the years, Holmes has developed and acquired several hundred properties including apartments, townhouses, hotels, shopping centers, office buildings and industrial properties.

Holmes, 71, built the company from the ground up resulting in more than $13 billion in properties built, developed, acquired and owned.

For those who knew Holmes when he was growing up, they’re not surprised at all by his achievements.

Holmes’ entrepreneurial spirit started at a very young age. They say he has always had a knack for making money – even as a young boy.

“He made a success of himself when he came from virtually nothing,” says Whit Peyton, a real estate investor, who previously served as senior managing director at CBRE's Minneapolis office.

Peyton met Holmes when he was 12 and Holmes was 17. Peyton’s older brother was good friends with Holmes.

“Gary is an entrepreneur through and through,” says Brad Kittleson, CSM’s vice president of Commercial Properties. “I think it was in his blood from the day he was born. I’ve talked to some people who grew up in his neighborhood, and they have stories

from when he was a little child of how entrepreneurial he was way back then.

They knew something was special about this kid at the time, and he’s now grown in to a full-blown, very successful businessman and entrepreneur.”

At age 8, Holmes hosted backyard carnivals and go-kart rides. He’s always been mechanical and a tinkerer.

As a young boy, he worked with his sister’s boyfriend to build a batterypowered go-kart.

“He would have various types of inventions,” Kittleson says. “He was very curious. He’s inquisitive. No project was ever too big. No project was ever too complicated and that has carried through into his adult life. Quit is not in his vocabulary.”

At age 11, Holmes joined the Boy Scouts where he enlisted the help of his troop to go door to door selling longlasting light bulbs. He saw an ad in a magazine and bought the bulbs wholesale. The light bulb company also introduced a commercial line. Eventually, he had nearly 50 troops selling light bulbs. Holmes also recruited Boy Scouts to sell Dura-San Toilet Bowl Cleaner.

“My Boy Scout troop was raising money selling Dura-San and 10,000hour light bulbs, and we would go door to door,” Peyton recalls. “Don’t hold me to the numbers, but I think we would sell the stuff for two bucks and Gary bought them for 50 cents. He made a buck and paid 50 cents to the Boy Scout troop so we could go to

summer camp.”

Using his light bulb earnings – and at just 14 years old – Holmes had enough money to buy his first real estate asset - a six-unit apartment building in south Minneapolis -- and he officially entered the world of real estate.

“I’m very mechanically minded, construction-minded so I like buildings,” Holmes says. “I thought something in the real estate business would be good.”

Within a few years, he acquired several properties.

“I started to look in the want ads in the Sunday paper and circled all of the ads for apartment buildings that were within my price point that I could buy with a down payment,” Holmes says.

“I was trying to strike at something $2,500 to $3,500 down. That’s how I started. I knew the basics.”

He would write down facts about each building on a yellow pad and call the building owners to get more information.

“As I went through this process ad nauseam, the more I learned,” Holmes recalls. “I learned about cash flow, contracts for deed. I kind of self taught myself.”

After graduating from Southwest High School in Minneapolis, Holmes enrolled at the University of Minnesota to study business administration while continuing to accumulate more apartments.

After college, Holmes said he had his only “real Job” working for a mortgage-banking company.

“I wanted to learn how the big boys did it,” he says.

He stayed there for less than three years. Then he started developing apartments in states like Wyoming and South Dakota. He founded Colonial Services Management in 1976, which became CSM Corp.

Holmes renovated the historic Milwaukee Road Depot in Minneapolis, which he spent three years to redevelop and convert into an upscale hotel and event center, which opened in 2001. (It recently underwent a renovation and expansion).

The conversion of the abandoned Milwaukee Road Depot into a luxury hotel kick started development in the Riverfront-Mill District.

“We used to go to school that way, and I thought someday all along Washington Avenue would be a good property to own,” Holmes says He says several people in the past tried to buy and redevelop the Depot, but it ended up in foreclosure.

At the time, it was a tough area and on the edge of downtown. “There was nothing happening there,” Holmes says.

The Resolution Trust Corp., a nowdefunct temporary federal agency, ended up with the property and Holmes bid on it as did the city of Minneapolis.

The city won the bid but nothing came of the property for several years.

One day, then-Mayor Sharon Sayles Belton came to Holmes’ office unannounced and said she wanted Holmes to take the Depot and redevelop it.

“I said I wasn’t so sure,” Holmes says. “So she gave me the hard press.

She came back and back and back. She was very persistent.”

Holmes bought it and dug in deeper.

“The numbers they had for fixing up the train shed were not quite right – they were quite low – and they wanted two [indoor]skating rinks there,” he says. “We researched that and the skating rinks are usually owned by local municipalities, because they don’t make any money. So we could do one [rink].”

The Depot redevelopment included the skating rink, which Holmes himself used and enjoyed for years. The rink, however, was losing $600,000 a year, and Holmes says it would have needed Holmes to page 53

Page 12

2019 Minnesota Real Estate Awards

March/April 2019

On April 11, the Minnesota Real Estate Journal celebrated the achievements of the commercial real estate industry in 2018. Submission and Judging began in January and ended at the gala with 29 unique awards out of hundreds of stunning projects and deserving individuals. The Journal also gave the first-ever lifetime achievement to Gary Holmes, philanthropist and founder of CSM. Awards were given to three segments of the real estate industry: properties, people, and companies. Winners included Kraus Anderson, Ackerberg, Cushman & Wakefield, Lora Hotel, 365 Nicollet and many others. We humbly thank all of the participants and we are honored to present this special section of the Minnesota Real Estate Journal to highlight the many finalists and winners.

Redevelopment / Reuse / Historic - Education Kinderberry Hill Grand Avenue Looking to remodel their Grand Avenue location to boast a more high-end experience, this Kinderberry Hill expansion was one of the most complex projects we've taken on to date. The existing facility is comprised of three structures, each originally constructed at different times since the early 1900s, all of which needed to be modernized for this project. Not only did the architect work in really cool finishes like stucco and custom brickwork that give the facility a real Grand Avenue feel, there’s also intentionally a lot of natural light in all of the classrooms due to the vast number of windows that were added throughout the building. To bring the facility to its gorgeous end result, many of the lighting and soft goods were chosen to make the center feel more like a home than a daycare. It’s a unique facility that fits the area, and we are proud to have been able to bring our client’s vision to life."

WINNER: The Gardner School of Edina The Gardner School chose an under-utilized property in Edina with an aging industrial building that had been sparsely occupied for the last ten years as one of its first locations in the Twin Cities. Originally built in 1969, the building was used as a television production studio and a sound/recording studio. The building itself had a solid structure, with good bones and deep foundations. The renovation and conversion to a handsome, contemporary preschool / child care center revived the building and significantly improved its appearance in this office / industrial area of Edina. The Gardner School offers year-round educational programs and child care for children 6 weeks old through Pre-K. It provides a full suite of enrichment classes including instruction in foreign language, music, sports readiness, dance, gymnastics, and computer instruction in addition to a summer camp program. The School's stimulating, creative, and educationally engineered school features indoor and outdoor play spaces in a safe environment. Long waiting lists tell us there is an obvious demand for quality child care in our market. The Gardner School Edina helps fill that demand in a convenient location off of Hwy 100, 494 and France Avenue.

PROJECT TEAM The Gardner School/Viking Development, Owner NORR Architects, Architect Shingobee Builders, Contractor

Kimley-Horn, Engineer Dunaway Associates, Engineer Alkemeyer & Associates, Engineer

Hospitality Moxy Uptown In December 2017, Moxy by Marriott opened the doors to its Uptown Minneapolis hotel. This event signified the unveiling of the first hotel in Uptown Minneapolis. This project fills a long-overdue need for visitors to stay in the heart of Uptown, and creates a connection between the Uptown commercial corridor and the surrounding residential streets. Owned

by Graves Hospitality, Moxy Uptown combines elements of the Minneapolis dining and entertainment scene, while reinforcing the upscale neighborhood vibe, and additionally adds a signature building to the Uptown core. The overall project is 125 hotel keys in a six and five story massing totaling 48,372 sq.ft. The first floor contains reception and lobby areas with a Moxy twist; guests check in at the bar and sip their complimentary ÏGot Moxy cocktail while enjoying the vinyl listening lounge, stocked with records from local artists.

Continuing this playful twist on a traditional hotel, the interior architecture concepts are rooted in the rich music history and historic Punk stylings of the Uptown area. Moxy is influenced by the concept of European youth hostels, with bunk rooms and hammock lounges, but as a more luxurious version in which to land after a day of exploring local attractions. The Moxy is not only a place for visitors; it is also a place for locals. Garage door walls in the bar open onto Lake Street, inviting you in to the variety of soft seating, games, and music.

Courtyard by Marriott Minneapolis West The Courtyard Minneapolis West was completed in February 2018 and opened its 142 guest rooms just in time to accommodate guests for Super Bowl LII. Courtyards are tailored for modern business travelers and is a great asset to the area and surrounding corporations including General Mills Headquarters, Epicor, and Syngenta. Connected by an indoor breezeway to the existing Marriott Minneapolis West, the six-story hotel boasts modern guestrooms, innovative lobby space, meeting rooms, and Bistro caf̩ in the lobby. The variety of spaces and their uses required a talented team to make every aspect of the design and construction perfectly executed.

March/April 2019

2019 Minnesota Real Estate Awards

Hospitality WINNER: Lora Hotel Portland, Ore. based Provenance Hotels, a lifestyle hotel management company, opened Lora, a new boutique hotel, in Stillwater, Minnesota in June 2018. Developed by Elevage Development Group of Minneapolis, the hotel is a creative renovation and repurpose of the former Joseph Wolf Brewery block, built in 1886 on South Main Street, carved into stone cliffs and historic caves. From four dilapidated structures built at different times on seven levels, ESG Architecture & Design (ESG) innovatively designed a 40-room, threestory boutique hotelÓthe first new hotel in Stillwater in 23 yearsÓwhich also houses three distinct food and beverage destinations. The hotel's name, Lora, references Lorelei, a siren of German folklore, and spaces throughout the hotel are infused with Scandinavian and German design details that honor the past. Combining the four buildings was a major design challenge mainly due to severely deteriorating stone and brick walls. The designers reinforced the structure, gutted the buildings, and rebuilt airy, modern spaces, maintaining as much of the original character as possible. The lobby's original floors and stone walls have beauty in their imperfections and a modern reception desk sits in front of an arched stone gateway into the caves. Throughout the hotel, original art conveys the tales of the area's historic culture.

PROJECT TEAM Corey Burstad, Elevage Development Group, Developer Povenance Hotels - Operator, Other ESG Architecture & Design, Architect

Zeman Construction, Contractor Innovative Structural Solutions, Engineer

Elliot Park Hotel Elliot Park Hotel is a 115,000 square foot upscale hotel that is part of Marriot's Autograph Collection of boutique hotels. Each hotel in the collection is uniquely designed and personalized. Elliot Park Hotel features eight stories and 168 rooms, including a 971 square foot penthouse suite on the top floor. Tavola Italian Kitchen + Bar is a 120-seat restaurant attached to the hotel and open to the public, serving breakfast, lunch and dinner. Other amenities include a 3,200 square foot meeting space, fitness center, and a small shop featuring Minnesota-made products from local businesses. The hotel is personalized to compliment its Minnesota surroundings and designed for ultimate comfort. Unique wood d̩cor and soft lighting is featured throughout the building, creating a charming and cozy atmosphere that reflects the community it surrounds. The hotel completed the KA Block redevelopment project by Kraus-Anderson and shares a courtyard with the other buildings on the block, including Finnegans Brewery, HQ Apartments, and the KrausAnderson corporate headquarters. Elliot Park Hotel's partnership with Finnegans allows guests to get a taste of the brewery through its "Brew & Bite" program, just one of the unique experiences it provides to introduce guests to the local area.

Page 13

Page 14

2019 Minnesota Real Estate Awards

Industrial / Manufacturing / Science Daikin Applied Air - Faribault, MN The City of Faribault is excited to partner with Daikin Applied Air for the expansion of a 300,000 square foot state-of-the-art manufacturing facility. This project will convert an existing warehouse to advanced manufacturing. Not only does this manufacturing facility expand current operation in Faribault, this project allows the existing facility in Faribault to remain open and continue to manufacture HVAC technologies in a more efficient manner. In addition to allowing the company to accomplish its overall business goal of becoming the number one market shareholder in the competitive HVAC marketplace. This is a unique situation where the existing Daikin facility is not equipped to handle the type of expansion needed for the new product to be introduced at the project location. In order to best accommodate the needs of the company and product, a new manufacturing facility with built-in capacity for growth and applied technologies is curcial to the success and growth of Daikin in Southern Minnesota. Job creation and retention is of the utmost importance in Faribault. The opportunity for Daikin to expand their facilities in Faribault allows the community to retain approximately 500 employees at the existing Faribault facility, but also look to add over 300 jobs by 2025 at the newly expanded facility. This will help to support the economic viability for the City of Faribault and continue to grow the workforce and employment needs for the community for many years to come.

Fridley's Park of Commerce Fridley's Park of Commerce is a state-of-the-art industrial/high tech flex complex that clearly projects a headquarter presence. The graciously designed building is strategically located on a 27-acre campus at the northeast corner of I-694 and East River Road in Fridley, Minnesota. Industrial Equities held the property long-term and designed the two building, 406,000 square foot development to comply with the strict aesthetic upgrades required by the City of Fridley to accomplish the necessary rezoning. Both buildings feature impressive corporate campus finishes. These include: Kasota stone and brick, premium special-order manufactured sand buff, aggregate precast concrete panels designed to complement the Kasota stone entries and columns, two story glass lines, and a lush tree-lined parkway. Special building features include an internal gutter system, white painted interior walls and roof deck, LED lighting, ESFR Sprinkler systems, 7-inch sealed concrete floors, wide spread sanitary cleanouts and overhead water lines, 28'-32' clear heights, and 50'x60' column spacing. Every dock door at the building comes wired with electrical plate levelers, and each 12'x14' drive-in door features a trench drain with a flammable waste trap. Each building greatly exceeds the market standards and sets a new bar for quality and aesthetics in the build-to-suit and speculative industrial class-A market-place in Minnesota. As designed, these projects are outfitted to accommodate various users across a variety of industries. From production, research and development, bio-medical, and cleanrooms to office, retail, or high bay racking warehouse users. Any number of companies can find their new home at Fridley's Park of Commerce.

BD BaderDevelopm ment • Urban Multifamily Development • Suburban Multifamily Developmentt • Mixed-Use Development • Fee Development

BaderDevelopment.com

• Value-Add Acquisitions • Class A Suburban and Urban Acquissitions • Experienced Asset Management

BaderDiamondFunds.com

March/April 2019

Page 16

2019 Minnesota Real Estate Awards

Industrial / Manufacturing / Science WINNER: Uponor Hutchinson plant The project encompassed the purchase and renovation of an existing 220,000 square foot building on a 34 acre site in Hutchinson, Minn. Renovation was completed in the second quarter of 2018 and the manufacturing plant was brought on-line six months ahead of schedule. The project focused on the expansion of manufacturing space in the existing building. The scope included installation of manufacturing equipment, increasing infrastructure and the certification of an NSF quality lab.

PROJECT TEAM Bill Gray, Uponor, Other Jon Sillerud, Uponor, Other Alec Nord, Uponor, Project Manager Tekton Engineering, Architect PCL, Contractor

Caltex Electric, Contractor Legend Mechanical, Contractor CBRE, Inc., Broker City of Hutchinson, Equity Partner

North Star Sheets at Southeast Industrial Park North Star Sheets (NSS) is a 161,000-square-foot, build-to-suit manufacturing facility on 16 acres in Southeast Industrial Park in Cottage Grove, Minn., with 7,000 square feet of office space and 154,000 square feet of manufacturing and warehouse space. It features 32' clear height, 16 docks and parking for 60 cars and 64 trucks (paved and unpaved).

This is the first phase of development at Southeast Industrial Park. Utilities, circulation roads and stormwater ponding were constructed to support future development. Hillcrest Development LLLP was the owner of the site and collaborated with Opus on the development. Opus served as design-builder, architect and structural engineer. NSS is a subsidiary of Schwarz Partners LP, which was created for their expanded operations into Minnesota. Southeast Industrial Park was chosen because of its central location, highway access, site size, rail-served capabilities and shovel-ready certification to meet an aggressive schedule. NSS and the team agreed upon the basic terms of the deal in December 2017. NSS moved in their equipment in early August 2018. The facility was built for heavy industrial/manufacturing use, requiring the site and building substructure be designed for heavy and frequent loading. Site access was designed for coordinated inbound and outbound trucking and maintenance support for getting equipment in and out and bringing in the auxiliary process materials that do not arrive on standard trucks.

Interior Design - Office / Industrial / Corporate - Multi-tenant AT&T Tower Originally part of a design competition, NELSON was retained to provide architectural and interior design services for AT&T Tower located in Minneapolis. The client's primary focus was to reposition and update the building to retain current tenants and appeal to a newer, more mobile workforce through innovative design solutions and re-branding. In response, NELSON created an updated plan with various spaces for tenants and visitors to enjoy, including a lobby coffee shop, and communal work and gathering spaces for tenants on separate floors. The lobby atmosphere is made warmer and more inviting with a fireplace, choice of comfortable lounge seating, and exposure to ample daylight.

WINNER: MoZaic East MoZaic East is a Class A office development in Uptown, developed speculatively, which opened in 2018. It is an eight-floor structure with approximately 200,000 square feet, as well as underground executive parking and unique outdoor patio spaces on all floors. The first floor is largely hospitality style common areas, along with retail spaces. This interior common space was created to provide a second work space or lounge amenity, away from a tenant's primary work station. The MoZaic East common areas and interiors stand alone in the fact that though MoZaic East is an office building, it is not traditional in any sense. It does not have a traditional finish; it is not in a traditional market; and it does not cater to traditional tenants/occupants/users. The project team's ambitious goal was to create a space that is modern while still being warm, comfortable but edgy, and still maintains functionality. And, in true ACKERBERG form, art is celebrated throughout the common areas; we even have feature custom murals in the bathrooms. The first floor amenities also include a state of the art conference center, a beautiful fitness center with showers and lockers for tenants of the project, and a large bike room that includes bicycle storage, equipment lockers, a bike repair area, and direct access to the Midtown Greenway.

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Interior Design - Office / Industrial / Corporate - Multi-tenant The 15 Building Built in 1929, the 12-story brick, granite and limestone building connects the central business district to the warehouse. Yet even with its prime location, The 15 Building was virtually empty. Tenants left for buildings with modern amenities and hipper vibes. Even the five-story mural of Bob Dylan, painted on the western faĂŒÂ¤ade as a nod to the neighboring entertainment venues, wasn't enough to entice new tenants. A repositioning was needed to align the energy of the exterior with the interior. Knowing the Dylan mural is a popular landmark (and social media post), the design team used it as inspiration. But not just the mural's vibrant colors were used. The designers also translated Dylan's attitude and impact on American culture, theming their work on the concept of rebels. From an architecture standpoint, the rebel theme translated into exposing the original raw concrete and natural materials of the original building. Highlighting radiators and window sills in black, contrasting against white walls. Environmental graphic designers ran with the theme, identifying other Minnesota rebels who blazed new trails in literature, art and business. Their images artfully blend with vibrant interpretations of local landmarks. The graphics provide wayfinding and energy in key circulation areas including a once dark and dingy skyway. New amenities were programmed into the space, offering tenants dynamic collaboration space, conference rooms and a lounge.

The 428 The 428 is the redevelopment of the former Woolworths department store in downtown St. Paul. Built in 1955, the iconic department store was state of the art for its time with air conditioning, escalators and lunch counters where the community gathered. It consisted of 3 floors plus a lower level. Woolworths closed in 1994 and the building sat vacant until 2015 when HFS Properties acquired the site. They had a vision: to transform the historic retail building into office space and create a dynamic and integrative office environment that you won't find in any other building in the Twin Cities. HFS wanted to provide a space that tenants today are looking for, which is a space that supports both their work and home life. A focus on sustainability and the effects the built environment has on human health and wellness were the core inspirations for this project. Construction began June 1, 2017. The new footprint consists of 5 floors plus lower level for a total of 63,000 total square feet. Many of the historic elements were preserved and re-purposed throughout the building. Construction was completed in August of 2018. The 428's first tenant, Wellworth, opened on August 20. Wellworth is a membership-based coworking community that shares many of the same values and goals as The 428. They strive to find ways to decrease stress, improve health and wellness and increase productivity. Wellworth occupies the 5th floor which boasts floor to ceiling windows and a private rooftop patio with stunning views of downtown St. Paul.

Page 17

Page 18

2019 Minnesota Real Estate Awards

Property Management Company of the Year Colliers International Colliers manages one of the largest portfolios of commercial real estate in the Upper Midwest. Our professional, ethical and experienced staff consistently achieves award-winning results, positioning us as a market leader. 2018 was a record-breaking year, as we transitioned 65 NEW properties, comprising over 5.3 million square feet, to the Colliers property management team and platform. This success was achieved through our superior talent and expertise that continues to deliver tremendous results for our clients.

Core Living You may have never heard of Core Living (CL) but it has been quietly and rapidly growing since forming in 2013: 6 years and 5 states later, CL has nearly 3,000 units under management! 2018 was Core Living's biggest year yet. Not only did it open 4 new buildings and successfully lease them up by year-end (Flux, CORE, Mezzo and Soll), it also took over the management of 7 buildings across three states significantly growing the 3rd party property management side of the business. Revenue doubled from 2017 to 2018, and Core Living added 20 new employees . By nearly anyone's definition of what constitutes an efficient and successful property management company, the rapid rise and early success of Core Living should qualify it for the Property Management Firm of the Year. In 2018, Core Living (CL) greatly exceeded its goals and added key personnel and impressive numbers: 1) Properties under CL Management in 2018: 2,850 Units Goal: $1.7M Stretch Goal: $2.2M Actual: $3.32 M 2) CL Roles added or filled in 2018: 1 Director of Asset Management 2 Financial Analysts 2 Regional Director 1 Regional Manager 1 Marketing Coordinator 2 Property Accountants 1 Accounting Coordinator 10 on-site professionals leasing and property managers 3) Other Key CL Stats: Number of team members grew from 42 in 2017 to 62 in 2018 It's projected to have 75+ in 2019

WINNER: Cushman & Wakefield 2018 was a significant year for Cushman & Wakefield's Asset Services (Property Management) division in Minneapolis-St. Paul. Especially in an age where more owners are considering self-managing their owned portfolio, it became even more important for the company to provide substantial value to owners through its property management service. The Minneapolis-St. Paul office also underwent an acquisition by Cushman & Wakefield in 2018 and strove to provide an unchanging high level of service throughout that transition. The Minneapolis-St. Paul Asset Services team has done that precisely for the better part of two decades, and the industry has responded by making it the market leader. The Minneapolis-St. Paul Business Journal in 2018 ranked Cushman & Wakefield as the largest Property Manager for the 16th consecutive year, with a portfolio of more than 28 million square feet and a roster of more than 50 excellent property managers. The company's portfolio includes some of the most prominent properties in the Twin Cities, such as Normandale Lake Office Park, Centennial Lakes Office Park, Campbell Mithun Tower and Ford Center. The Minneapolis-St. Paul Asset Services team continued to assert itself as a major force in the world of sustainability in 2018, managing the process that led to 8200 Normandale Tower winning an international TOBY (Outstanding Building of the Year) as the best building in the Americas in the 250,000-499,999-square-foot category.

Frauenshuh, Inc As a testimony to our team and company leadership, our clients awarded Frauenshuh with new property and facilities assignments totaling approximately 1.7 million square feet in 2018. This growth in management services accounts for a portfolio increase of nearly 40% over the past twelve months of 2018. Properties ranged from facilities management, industrial, office and medical office buildings. Our portfolio today is approximately 4.5 million square feet and represents $750 million in valuation. Frauenshuh's approach of providing superior resources to our teams allows them to carry out our client's mission with depth and attention to detail. The bundle of services, including real estate management, leasing, accounting, engineering and construction management are here to meet the ever-changing needs of our clients.

JLL The JLL Minnesota Property Management team had outstanding growth in both square footage and revenues in 2018. Client relationships and business development pursuits over the past 5+ years contributed to the platforms success as they added multiple new Property Management clients to the MN portfolio in 2018. Additionally, the Property Management team was successful in expanding their property management relationships with several key clients, resulting in numerous new assignments totaling an additional 2.3M sf in 2018. The addition of these assignments increased the Property Management footprint in MN to over 6M sf in 6 short years. In 2018, JLL identified, recruited and hired fifteen (15) new property management professionals to service the new and expanding client portfolio. The added personnel in 2018 increased the Minnesota Property Management team to a total of 34 real estate and engineering professionals. Overall, Minnesota Property Management revenues increased 57% year over year between 2017 and 2018. JLL prides itself on a commitment to the employee and the community. We have established a culture of collaboration across business lines and have a client first attitude that continues to contribute to our positive growth.

Transwestern Transwestern currently manages more than 3 million square feet of institutionally owned office property in the Minneapolis suburban marketplace and over 2 million square feet in the Minneapolis CBD. We also manage 3 million square feet of suburban industrial properties. In 2018 we added two significant property management accounts - The Dayton's Project (1,049,052 SF) and RBC Plaza (671,566 SF) and retained management services at Grand Oak Business Park (550,000 SF) with an ownership change. The addition of RBC Plaza added 8 new team members. Transwestern Minneapolis rolled out a robust tenant services platform at each of our managed properties including enhanced property amenities and programmed tenant engagement initiatives.

March/April 2019

March/April 2019

Page 19

2019 Minnesota Real Estate Awards

Senior Housing - Greater Minnesota WINNER: Crystal Brook Senior Living Construction of the Crystal Brook Senior Living project, a 138,000 sq. ft. 88-unit facility in Park Rapids, Minnesota, was completed October 25, 2018. The facility was constructed

by KI Developers, a venture between non-profit Knute Nelson and Innovative Companies, Inc. of Alexandria. Pope Architects also worked on the project. Knute Nelson is an innovator in the senior living/healthcare industry, using the latest technology to develop its "age in place" model. This design allows residents to start in an independent living apartment, then add technology and services around them as the age, without needing to move to a new facility or new area of the facility. This demand for cutting edge technology and flexible living environments challenged the architects and developer to create high-tech living spaces without sacrificing the warmth and charm of a home environment.

PROJECT TEAM Tom Lambrecht, Great River Energy, Lender Randy Roers, Innovative Companies, Inc., Developer

Mark Anderson, Knute Nelson, Developer Roger Blank, Bremer Bank, Lender Christine Fox, Itasca-Mantrap Cooperative Electric, Lender

Guardian Angels Riverview Landing Guardian Angels Riverview Landing is a four-story, 168,000 square foot independent and assisted living facility in Otsego, Minnesota with 126 apartment units and 16 memory care units. Guardian Angels is a non-profit organization that provides healthcare, housing and supportive services to seniors and their families, and is committed to "aging in place." The property appeals to the northwest suburban residents by creating a modest, comfortable home with many elegant touches. The building is designed and situated to allow the best views and visibility of the Mississippi River. Outdoor common areas and walking trails help connect residents and the community to the lush scenic area. Life is better on the river! The river is the showpiece of the new community and each space was designed to connect to and pay homage to the surrounding scenery. Riverview Landing was designed to help seniors live more fully, with a variety of activities and amenities offered. A fully-equipped onsite wellness center offers a multi-purpose space that can be utilized as an indoor court pickle ball, basketball, and tennis, or for large gatherings. It also features a therapy pool, physical therapy, cardio and locker rooms. A dining space with chefprepared meals, coffee lounge, and plenty of common areas bathed in natural light encourage residents to socialize and stay active. Other amenities include heated garage parking, a beauty salon and an on-site chapel with pastoral care.

Praha Village Praha Village is a 91unit senior living community in New Prague consisting of 23 Independent living, 52 assisted living, and 16 memory care apartment homes of which 20% have a reduced rent option for residents with household income at 50% of area median incomes or less. Project amenities include unique spaces: a fitness room, a bistro, private dining, a library, maker's studio, creative arts room, community room, elevated outdoor veranda, salon, exam room for medical visits, theatre, family lounge, and a club room. As well, Praha Village has a dedicated van for outings.

Building a community of possible.

At U.S. Bank, we strive to make a positive impact in our community.

That’s why we support community events that bring us together for the greater good. We know that anything is possible when we work together. usbank.com/communitypossible U.S. Bank is proud to support the Commercial Real Estate Industry.

U.S. Bank Commercial Real Estate 800 Nicollet Mall Minneapolis Minnesota 55402

Š2018 U.S. Bank. Member FDIC. 171120c 5/18

Page 20

2019 Minnesota Real Estate Awards

Most Significant Lease Transaction in 2018 WINNER: Curtis 1000 Lease In one of the largest build-to-suit transactions of the year in Minneapolis, CBRE’s Charles Caturia represented Curtis 1000 in a longterm lease for a new 250,000 square foot build-to suit development in Fridley, Minn. This market-making lease would allow Curtis 1000, a commercial printer, to streamline its operations in a superior location, better positioning the firm to maximize efficiency and position itself for long-term growth. Curtis 1000 approached CBRE with a consolidation assignment for three of its Metropolitan area facilities. The firm had roughly 265,000 square feet spread across locations in Hugo, New Brighton and Bloomington, respectively. The firm desired one location to streamline operations, and improve cohesion among processes as part of a reorganization of the parent’s selected business lines. The firm’s objective was to modernize its facilities, and generate cost savings in its overall real estate and operations spend. After a search of existing facilities, Caturia and his client concluded that a build-to-suit would be the firm’s best option, as there were few facilities of the quality they sought in the right location. After evaluating several build-to-suit sites, they focused on the Riverside Commerce Center in Fridley controlled by Industrial Equities. This location was centralized to its existing facilities, minimized disruption to employees and brought all operations closer to a central point in the Twin Cities.

Tactile Medical in a 106,000 SF Tactile Medical’s relocation to 3701 Wayzata Boulevard highly impacted the overall metropolitan office market in 2018. Tactile’s anchor tenancy in the former Target West Operations Center was the catalyst for the Opus Group to purchase the asset. This acquisition and subsequent repositioning of the property will provide an additional 200,000 SF of economical office space within the well saturated West End micro market. Tactile’s lease agreement in the 3rd quarter of 2018, enabled Opus to deliver the building in a faster time frame than other current build to suit options in the West Metro Market. Tactile’s choice of 3701 Wayzata provided a strategic advantage to the company by delivering a location that allowed the company to continue their long-term growth strategies. They now will enjoy a best-in-class work environment and amenity package, all the while enhancing their ability to find and retain top talent. The significance of this partnership between owner and occupant cannot be understated. Through collaboration between landlord, tenant, and the architect, RSP Architects, efficiencies were created within the design and space utilization.

Top Golf Huge deal for the market to bring the TopGolf concept to the Twin Cities! With as many avid golfers as the market has, the concept has been desired here for several years.

Impactful transaction for the city of Brooklyn Center to land such a dynamic concept in the community, and the deal is a major draw to the NW metro and will pull residents from all corners of the market. Extreme difficulty in finding +/-13 acres on the interstate loop in the market, with proper zoning and/or city support. Transaction included the city’s involvement to engage in a land swap with TopGolf after purchase of an adjacent parcel in order to give TopGolf the acreage needed for the deal to come together.

WeWork @ MoZaic East As the development’s first tenant, and its anchor tenant WeWork and ACKERBERG executed a 46,000 SF lease for the 4th and 5th floors at MoZaic East. MoZaic East is the first Class A office development in Uptown since MoZaic West was completed in 2011 – it was developed speculatively. The WeWork transaction took nearly 18 months to negotiate and was the largest deal in ACKERBERG’s history. Being an international and cutting-edge operator, it was incredibly significant that WeWork took stake in the Uptown market/community/neighborhood – just as ACKERBERG had done back in the early 2000’s with its commitment to develop MoZaic. The initial transaction represents the single largest commercial office tenancy in Uptown. This is only trumped by the fact that WeWork more than doubled-down on its commitment to the building and community within months of executing the initial lease by expanding to the 3rd & 6th floors, resulting in over 103,000 SF of occupancy.

Redevelopment / Reuse / Historic - Mixed Use & Retail Case Building Redevelopment Located at 767 Eustis Street, the history-rich Case building, newly named Court & Case, is centrally located between Minneapolis and St. Paul near 280 and University in St. Paul's Midway. The Case building's location affords tenants the ability to commute by light rail, bike, bus or car. With plentiful parking and proximity to a variety of restaurants and local businesses, it is the perfect place for tenants to call home and for the community to enjoy. Originally built in the 1940's by the Case Corporation and used as a tractor parts distribution warehouse, the Case building stood underutilized for 10 years before Suntide Commercial Realty took on the redevelopment. Max Currie, Principal and Chief Engineer of Suntide, wanted to retain as much of the historic building as possible, rather than tear it down and replace it with a multi-story structure. Part of that effort included preserving its industrial feel, a preference among office tenants in the 21st century, and making it beneficial to the surrounding community. Highlights of the 174,000 squarefoot open-air warehouse include 15 to 18-foot ceilings, exposed beams, open riveted steel trusses, exposed spiral ductwork, original skylights and red fire sprinkler lines, and marred concrete flooring.

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Redevelopment / Reuse / Historic - Mixed Use & Retail WINNER: Lowry Morrison For years, the 1879 Lowry Morrison Building was notable for its shuttered windows and crumbling bricks, which stood in contrast to the vibrancy of the North Loop. Three years in the making, the historic renovation of the building, led by Element Commercial Real Estate, transformed the dilapidated warehouse into a vibrant asset to the neighborhood.

A historic warehouse for fish vendors and tobacco producers, this three-story building now houses 10,000 SF of office and 5,000+ SF of restaurant and retail. The existing shell of the building remains largely preserved, while the interior has been creatively reimagined to attract fantastic office and retail tenants. Anchored by the stunning new Edwards Dessert Kitchen and 100% occupied with three other retail and office tenants, the Lowry Morrison building is a beautiful example of adaptive reuse.

PROJECT TEAM Kevin Kuppe, Element, Inc., Developer JoAnna Hicks, Element, Inc., Developer John Rimarcik, Owner JuLee Rimarcik, Owner Pat Keenan, Emerald Builders, Contractor John Nordstrom, Emanuelson Podas, Engineer

Adam Eggert, Shea Design, Consultant Tanya Spaulding, Shea Design, Consultant Chris Zeeman, Zeeman, Contractor Jennifer Force, Terracon, Environmental John Reis, Mahoney Ulbrich Christiansen and Russ, Other

Quincy Brickyard The Quincy Brickyard in Northeast Minneapolis was an extensive revisioning of an old adhesives company to transform it into a thriving creative and business community. The original site was a compilation of seven structures. The design required selective editing to keep the character and the valuable space. Portions of the building were removed to create a parking courtyard with a remnant privacy wall perimeter. A full remodel of the exterior of the buildings was executed with new, contemporary looking forms and materials that complement the grit of the surrounding neighborhood. The development now boasts an award-winning, dual-concept restaurant, architecture firm, interior design studio, barbershop, and a short-term vacation rental. A small addition was added to the main building to accommodate restaurant coolers, the second story office entrance, and a รทbird's nest' conference room. The original 1900s-era 400 sf office structure has been converted to a multipurpose event space and vacation rental, and the first level of the main building was lightly renovated, while keeping the original รทgrit' for the restaurant concept.

Page 21

Page 22

2019 Minnesota Real Estate Awards

Redevelopment / Reuse / Historic - Mixed Use & Retail Woodbury Lakes 2018 brought some exciting changes to Woodbury Lakes. An extensive, multi-phase redevelopment of the 360,000 square foot lifestyle shopping center commenced with the addition of Minnesota's first Alamo Drafthouse Cinema and the relocation and expansion of fashion retailer H&M. The initial phase of the redevelopment also included a newly redesigned Main Street, featuring improved entertainment and dining offerings, enhanced streetscape, lighting, landscaping and other attractive amenities. Alamo Drafthouse encompasses 46,000 square feet, and includes nine screens, a full-service restaurant and bar, and an outdoor patio. H&M relocated and nearly doubled in size to 20,000 square feet along the main thoroughfare of the center. In addition to Alamo and H&M, other new retailers were added to the center, which are all part of the comprehensive long-term remerchandising plan for the center. Future phases of the redevelopment will include other retailers and place-making upgrades designed to further solidify Woodbury Lakes as the premier lifestyle destination of the east metro. The transformation of Woodbury Lakes is in part a response to the changes taking place in the bricks and mortar retail industry. Ă?We believe the retail center of the future will cater to value, variety, convenience and entertainment in a welcoming environment..

Medical Property - West WINNER: Crescent Cove Children with life-threatening or limiting conditions have very unique needs. Often times, hospitals are not designed to handle the emotional and sometimes even physical complexities associated with hospice care for kids. Crescent Cove Respite & Hospice Home for Kids opened in May 2018 in Brooklyn Center, MN. This home away from home is a place where families with children with life-threatening conditions can go for short breaks of rest, or an option beyond the hospital, adult hospice, or home environment for endof-life palliative care. Crescent Cove was designed to support living life to the fullest, to support families, and to create memories. The are spaces to share meals, play games and create art. There are spaces for relaxation, massage, music therapy, hydrotherapy, and playing outside by the lake. All spaces were designed to support families and kids through connection and play. Children and young adults stay in one of six sleeping rooms for overnight respite. The sleeping rooms all overlook the lake. A family suite is available allowing families to stay together. The end-of-life suite has space for parents to sleep right in the room with their child. The interior of the entire facility was designed to be open and inviting, a place for families to gather and spend time together. Because it is moments of love, happiness and sadness that stay in our memories forever, it was important that all moments of transition were treated with respect. Sounds, sights, temperatures, colors, textures, scents these are all elements that are reflected in the interior and exterior spaces that we encounter.

PROJECT TEAM RSP Architects, Architect Gardner Construction, Contractor Dunham and Associates, Engineer Cushman & Wakefield (donated time), Broker

Grove Circle Medical Building Designed to maximize a challenging site, the Grove Circle Medical Building's construction overcame challenges including space constraints, parking requirements and an existing hotel. The distinctively shaped building features a modern exterior with architectural metals and variated natural stone along with an eye-catching vision glass paneled front faĂŒÂ¤ade. The interior designs throughout the common areas convey warmth and texture, featuring artistic wood accents and glass throughout. The two-story building includes an enclosed parking garage, a medical clinic and an Ambulatory Surgery Center. In 2017, MSP Commercial purchased the parcel when they recognized that a combination of regional growth, increased demand, and nearby healthcare facilities created an ideal environment for a new medical development to thrive. Specialty care providers iSpine Pain Physicians and Minneapolis Clinic of Neurology expanded their already established practices in order to serve more patients, provide additional services, and add advanced healthcare technology and equipment.

Twin Cities Orthopedics - MN Drive Medical Building This 70,197sf medical building features an ambulatory surgery center built to specifications for eye-surgery, two-story 'field house' space for physical therapy activities including basketball, weights, dance, etc, two Golftec golf-simulator rooms for analysis and instruction, and medical-office space for prosthetics, orthotics, clinic and other users. There are approvals for an additional 180,000sf 10-story building and associated additional 3-levels of parking structure to be built if or when the market demands it adjacent to the new structure.

March/April 2019

March/April 2019

Page 23

2019 Minnesota Real Estate Awards

Interior Design - Housing / Hospitality / Restaurants & Retail WINNER: 365 Nicollet 365 Nicollet takes luxury living to a new level at the north end of Nicollet Mall in downtown Minneapolis. Located across from the Minneapolis Central Library, this 30-story highrise building includes 521,000 square feet of retail, parking and amenity space and 370 residential suites in another 359,000 square feet. This skyway connected building offers street level retail space, the main resident lobby and a coworking space, creating an activated street-frontage in the downtown core. The residential suites span from the podium and throughout a stepped tower floor plate above, allowing for increased corner units, vistas and daylighting opportunities. Residents of 365 Nicollet enjoy luxurious indoor and outdoor amenities, including a generous lobby and concierge area, multiple shared co-working spaces, a golf simulator, transit hub, private dining room, clubroom and chef's kitchen, a large outdoor pool and hot tub, fitness center, yoga room, relaxation room, sauna and a penthouse lounge and balcony. The suites range from alcoves to three-bedroom penthouses. A crisp, modern feel creates a lovely canvas for each resident to make the space their home. Suites feature condo-level finishes, floor-to-ceiling windows, quartz countertops, locally-manufactured cabinetry, stainless-steel appliances and spacious balconies. Certain suite collections offer upgraded features like 10-foot ceilings, kitchen islands, pantries, fireplaces and private balconies.

PROJECT TEAM Matt Rauenhorst, Opus Development Company, L.L.C., Developer Dean Newins, Opus AE Group, L.L.C., Architect

Doug Woolf, Opus AE Group, L.L.C., Engineer Beth Duyvejonck, Opus Design Build, L.L.C., Contractor Jennifer Koehler, Opus AE Group, L.L.C., Other

Finnegans After social entrepreneur Jacquie Berglund, founder of FINNEGANS Brew Co., had worked for several years in an old mansion alongside 10 other like-minded impact businesses, she decided to develop her own four-story building to house her brewery, its offices, a tap room, and a space in which the impact community could connect and grow. The 13,000square-foot buildingÓin which Berglund and the FINNEGANS team practice Ïbarstool philanthropy�Óhas modernized Bavarian beer hall-style, with plenty of warmth and Irish flair.

The first level tap room features large windows to the street and the stainless-steel beer tanks, as well as sliding glass doors to the dog-friendly patio. The industrial taproom with concrete floors gets its aesthetic warmth from wood tables, the long wood bar and stools, and bulb light fixtures. On the mezzanine is the Brewer's Den, a private social club where members can sample beer, hold meetings, participate in social entrepreneurship and more. Here leather chairs grouped around wood tables and a U-shaped wood bar with leather stools encourage community and conversation. The upper level Finnovation Lab is an open-plan space with a variety of work areas for Fellows to incubate their social impact startup.

www.a-p.com

Page 24

2019 Minnesota Real Estate Awards

Interior Design - Housing / Hospitality / Restaurants & Retail Sanctuary SalonSpa We were approached to help build out a new space for Sanctuary SalonSpa in Excelsior. The brand was taking over the main floor and basement of a historic building, converting a skinny, outdated structure into a luxurious place of relaxation. By combining old with new, this new space shines. We’re thrilled with the balance that was achieved with the bones of the building, combined with the modern finishes. It’s truly a gem of a completed space!

The Link Apartments The Link Apartments located near the University of Minnesota and Stadium Village are luxury residences that evoke a sense of refined community. This prime location allows for accessibility to Prospect Park Green line stop for easy connections to the city, entertainment and recreation. Mixed use retail including Fresh Thyme grocery maximize convenience to the Link residents. The Link redefines luxury in the Twin Cities with an eclectic sense of layering that begins the moment you arrive. Lobbies provide a curated approach to materials, furniture selections and artwork alike. The leasing experience is upscale and gives the resident a sense of elevated service delivery. Every experience is unique as the resident moves through a robust collection of amenity spaces. With both a low- and high-rise portion to the building, the property offers a wide range of social experiences.

Residents utilize an expansive business center, study rooms and co-working lounges. A golf simulator, screening room, music room and gaming area provide endless options for entertainment. Wellness spaces include an ample fitness center with climbing wall, yoga studio, sauna and tanning beds. Large group gatherings abound on the rooftop deck overlooking Prospect Park and spill into a grand clubroom complete with gourmet demonstration kitchen, custom fireplace, gaming and private dining.

Retail / Restaurant 3rd Act Craft Brewery 3rd Act Craft Brewery is a 5,750 square foot brewery, taproom and kitchen located in the Bielenberg Gardens development in Woodbury. Retired 3M worker Steve Long and his wife, Debbie Long, opened 3rd Act Craft Brewery on November 18, 2018. The Longs, who are longtime Woodbury residents, have been home brewing as a hobby since the 1980s, and were looking for something to do after retirement. ÏThe kitchen serves pizzas and pretzels�, Steve Long said. ÏThe beer will run the gamut, from Belgian to German to British and everything in between, including American styles.� 3rd Act is the final building in the Bielenberg Gardens planned unit development. This PUD has a higher architectural standard than other retail areas, including 70 percent Class I materials (such as brick, glass, and stone) for each fa̤ade of the building. 3rd Act Brewery exceeds this with 73 percent Class I materials, including 32 percent natural stone, which matches the stone on the anchor tenant, Jerry's Foods, providing design consistency for the entire center. The design of 3rd Act Craft Brewery creates a signature, contemporary building within Bielenberg Gardens, including garage doors on the south elevation to allow for a seamless merger from the taproom to the outdoor patio.

WINNER: Finnegans House FINNEGANS Brew Co. has been a major face in the Minneapolis craft beer scene for nearly 20 years, and the construction of the four-story FINNEGANS House finally provides a brewery and taproom space for the public and a number of opportunities for local social entrepreneurs, which has longtime been part of FINNEGANS' business model. Each floor is roughly 13,000 square feet and serves a designated purpose. The first floor holds its brewing operations and main taproom, with space for nearly 200 people. This marks the first time since 2003 that FINNEGANS will have its own production plant. The second floor houses the Brewer's Den, a members-only social club with its own bar, lounge and coworking spaces. The third floor is designated as an events space, and the fourth floor is home to the ÏFINNOVATION Lab,� a partnership through Impact Hub MSP that provides a space for entrepreneurs to work.

PROJECT TEAM Chad Rempe, Kraus-Anderson, Project Manager Rebecca Ueland, ESG Architects, Architect Mike Hille, Kraus-Anderson, Developer

Park Village - Granite City Repositioning This 1993-originally-developed site on an old landfill parcel consisted of a 7,250sf full-service restaurant operated by Granite City. Given the lack of financial viability for large fullservice restaurants in the area, an extensive analysis was undertaken to look at demolishing the improvements or how they could be repurposed given their very specific design elements. Relocating Chipotle into a right-sized 2,500sf space in the Granite City building and adding HealthPartners Dental into the remainder of that structure was a very out-ofthe-box idea that made this project an incredible success.

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Senior Housing - West Metro Cherrywood Pointe of Plymouth Cherrywood Pointe of Plymouth is a 94 unit, 130,000-square-foot senior living rental community. Construction started in November 2016 and was completed in January 2018. The building features 3 stories, wood construction, and sits on 4.2 acres of land. United Properties partnered with Ebenezer Management Services to provide Independent Senior Living, Assisted Living, Memory Care and Enhanced Care within this one building. The community features amenities like the Rockford CafĂŒÂŠ, a fireplace game room with a shuffleboard, fitness center, lounges, community rooms, chapel/movie theater and an arts and crafts room. The building also hosts an underground parking garage and storage units for residents. Decks and patios provide residents with outdoor space to enjoy, along with a walking path around the property.

WINNER: Havenwood of Richfield At a time when senior housing in the Twin Cities is booming due to an aging population demographic, consumers want the best and usually at the best price point with as many amenities and scalable healthcare options -- as possible. This is particularly true in Richfield where the population of 70+ year-olds there alone is growing faster than any other age group. As a first-tier suburb, the Richfield location was also ideal to attract Baby Boomers from south Minneapolis and Bloomington, also right next door. Located on 76th Street between Pillsbury and Pleasant Avenues, the new 115,000 sq. ft. senior residence features a continuum of care and associated services, including independent living, assisted living and memory care. Thus, Havenwood of Richfield proved to be the first of five senior residences that Roers Companies would plan to build under the new Havenwood brand between 2018 and 2020, followed by Minnetonka, Onalaska, WI., Burnsville and Buffalo. The Richfield response was overwhelming: Concerned family and caregivers, and area seniors especially many from Richfield who wanted to stay in the community quickly drove the lease up. By the time of its Grand Opening in August of last year, Havenwood of Richfield's, 88-unit residency was already over 88% leased in Assisted and Independent Living.

PROJECT TEAM Roers Companies and Mesaba Capital, Developer Brunton Architects & Engineers, Architect CBS Construction, Contractor Minnwest Bank, Lender

Henricksen Senior Living Group (Interior Designer), Consultant Brunton Architects & Engineers, Engineer

Page 25

Page 26

March/April 2019

2019 Minnesota Real Estate Awards

Senior Housing - West Metro Village Shores Senior Community E.J. Plesko & Associates recently re-introduced the Village Shores Senior Community located in the heart of Richfield, Minnesota. The Village Shores project was a comprehensive renovation to an existing 30 plus year old building, bringing new life to the area. The renovated development is a 216-unit, ten-story, mixed use building located at the bustling corner of 66th Street and Lyndale Avenue. Village Shores continued to function as a senior living community as well a retail shopping center before, during and after the extensive interior and exterior renovation.

Affordable Housing Downtown View & YouthLink Offices A complete renovation and addition to YouthLink's Drop In Center and office headquarters was undertaken in conjunction with a new construction housing wing for homeless and at-risk youth. Developed by a nonprofit partnership between YouthLink and Project for Pride in Living, Downtown View adds a apartments for 46 youth in the form of four-bedroom and studio units. Amenities for residents range from a fitness room, bike storage, to a social lounge with community kitchen. Project cost: $17 million overall, $11 went towards the new construction and $6 million for the office renovation.

Hawthorne EcoVillage Apartments Hawthorne EcoVillage is redefining a four-block area in North Minneapolis, creating an environmentally-friendly community with wide appeal while addressing crime, foreclosure, and property abandonment. This project was one phase of an overall masterplan for the neighborhood and is a mixed-use building that provides 71 affordable living apartments, 4 townhomes, community space for both residents and youth, and a shared courtyard. To be eligible to rent an apartment at Hawthorne EcoVillage, residents cannot make more than 50 percent of the area median income (AMI). The apartment units feature large windows and open floor plans. Building amenities include a playground, outdoor picnic area, courtyard with raingardens, underground heated parking garage, secure indoor bike storage, fitness center and a community room. The row of townhomes act as a transition into the neighborhood of mostly singlefamily houses. Project Location: 617 Lowry Avenue North; Minneapolis, MN 55411 Project Size: Total Gross Square Footage 109,980 SF; 7,636 of which is townhomes. Project Cost: $18 Million

WINNER: Press House Apartments Press House Apartments is the conversion of the former Pioneer Press Building into 144 affordable apartment units. The 8-story building was originally constructed in 1955 for the Minnesota Mutual Life Insurance headquarters and became home to the Pioneer Press Newspaper in the 1980's. In 2017, the building was listed on the National Registry of Historic Buildings and was purchased by Real Estate Equities. Now complete, the building offers 20 studios, 108 one bedrooms, 6 two bedrooms and 10 three bedrooms, all affordable to residents making 60% AMI or less. Unit finishes include vinyl plank flooring, stainless steel appliances, quartz countertops, 10-foot ceilings, full-size washer and dryer, walk-in closets and marble window ledges. In addition to high-end apartment features, the property boasts over 20,000 square feet of amenity space in what was the old printing rooms. Amenities include a large clubroom with gourmet kitchen, movie theater, business center, professional fitness center, yoga room with on-demand fitness classes, sport simulator and a game room with billiards, poker, ping pong, Foosball, Boccie Ball and shuffleboard. The additional Fleet Building, which was used to load the trucks with newspapers has been converted into an additional clubroom with gourmet kitchen, fireplace and garage doors that open to the outside.

PROJECT TEAM Real Estate Equities, Developer BKV Group, Architect Weis Builders, Contractor Bank of America, Equity Partner US Bank, Equity Partner Dougherty Mortgage, Lender

Dougherty & Company, Lender Bridgewater Bank, Lender Preservation Alliance of Minnesota, Lender City of St Paul, Government Agency Metropolitan Council, Lender Department of Housing and Urban Development, Gov Agency

Solution Blue, Engineer Braun Intertec, Environmental PVN, Consultant MacRostie Historic Advisors, Consultant

The Legends of Spring Lake Park The Legends of Spring Lake Park consists of 194 units of affordable, senior living. Dominium closed on the site acquisition in July of 2017 and completed construction in October of 2018. This development provides affordable housing for seniors who income-qualify, earning no more than 60% of the Area Median Income. Due to the use of tax-exempt bonds as a portion of the financing, rents are restricted at 60% AMI for 100% of the 194 apartment homes. The project consists of one, two and three bedroom floor plans. The building was constructed using quality and attractive materials that are aesthetically pleasing to the local community. It consists of four stories of residential living with multiple floor plans and underground parking. There are approximately 154 underground parking spaces and an additional 87 surface spaces. With the senior target population in mind, the building contains many amenities including a fitness center, movie theater, library, card and craft room, a balcony or bay window in every home, covered gazebo, clubroom with kitchen, and a beauty salon. The development plan also included sidewalk and lighting improvements in the adjacent city park.

March/April 2019

2019 Minnesota Real Estate Awards

Emerging Leader of the Year WINNER: Hudson Brothen, Cushman & Wakefield Hudson Brothen served as part of a six-person industrial team that completed a whopping 140 commercial lease and sale transactions totaling 3.54 million square feet. The team is among the most prominent in the Minneapolis-St. Paul industrial market, and Hudson has taken on increasing responsibility year after year, both in terms of identifying and pursuing business and fully executing transactions on behalf of clients. --Among his most notable projects, Hudson was intimately involved in the execution of several international transactions in China for a locally-based, publicly-traded company. The transactions included a 75,000 sf building sale in Shenzhen, China, and a 15,000 sf office lease in Shanghai. In order to effectively serve his client, Hudson had to learn a lot about the Chinese culture and gain a deeper understanding of how their approach to business differs. This assignment is expected to continue this year with several more transactions.

--In 2018, Hudson served as a member of the Board of Directors for the Minnesota Commercial Association of Real Estate (MNCAR). As a Board Member, Hudson helped guide the organization through the lawsuit between Xceligent and CoStar, serving as a member of the team that hired Catylist, a new software platform, which MNCAR used to replace Xceligent due to Xceligent's bankruptcy. Catylist started with zero local listed properties and today includes 45,000 properties, nearly 9,000 listings and more than 1,000 active brokers and has become the portal from which brokers get their information to perform their daily tasks. --2018 was Hudson's fifth year volunteering as a member of the MNCAR Expo Committee.

FINALISTS: Hudson Brothen, Cushman & Wakefield Grant Campbell, IRET Blake Hopkins, Aeon Rachel Robinson, NOAH Impact Fund

Grant Campbell, IRET Grant Campbell's dedication and leadership in 2018 was rewarded with a promotion to Senior Vice President of Investments for IRET, a multifamily REIT with over 14,000 apartments throughout the central U.S. Since joining IRET in late 2016, Grant has demonstrated his strong work ethic and integrity while establishing himself as an expert in multifamily investment. In 2018, Grant completed the redeployment of $417 million of commercial sale proceeds into multifamily projects in Minneapolis and Denver, Colorado. He has also led the reorganization of IRET's investment division which includes acquisitions, finance, investor relations, investment analysis and corporate modeling. Grant has been an active member of the St. Thomas Real Estate alumni group, holds his CCIM designation, is a frequent panelist at industry events and active member of NAIOP. Grant's leadership in the local and national real estate community has been instrumental in furthering the transformation of IRET from a diversified REIT to a focused multifamily company.

Page 27

Page 28

2019 Minnesota Real Estate Awards

Emerging Leader of the Year Blake Hopkins, Aeon Blake Hopkins joined Aeon in 2015 as a Senior Project Manager. He became Vice President of Housing Development in 2017, and in his first year in this role, helped Aeon close on our two biggest acquisitions to date. Blake is highly motivated to achieve, which is evident in his accomplishments here at Aeon. In 2018, Blake oversaw numerous projects, including: Greenway Terrace: Greenway Terrace provides 54 apartment homes for families of all sizes in Ramsey, Minnesota. This property includes six one-bedroom apartments, 21 two-bedrooms, 21 three-bedrooms and six four-bedroom apartments. All apartments are affordable below 50% Area Median Income (AMI) (the current median household income for a family of four in Ramsey is $92,984). Twenty-three are affordable at or below 30% AMI, helping us serve those who need housing the most. The Louis: Aeon started construction on The Louis in fall 2018. This affordable apartment complex located in the Prospect Park neighborhood will offer 70 homes and have a special focus on serving single mothers and their children coming out of homelessness. Opportunity Housing Partnership: This project included the renovation of three historic buildings that serve formerly homeless individuals at 30% AMI. Along with standard repairs and upgrades, two of the buildings were reconfigured to give every apartment a private bath and kitchen.

Rachel Robinson, NOAH Impact Fund Rachel Robinson is an emerging leader in Minnesota Real Estate. She is creative thinker who is a national thought expert in combining capital markets and impact capital to create and preserve affordable and workforce apartment housing in news ways. In 2018, Rachel managed the NOAH Impact Fund of Greater Minnesota Housing Fund (GMHF) through its first full year after building and capitalizing this innovative $25 million fund for unsubsidized housing acquisition. Rachel also crafted the equity partnership for the first project in the country to utilize the Freddie Mac NonLIHTC forward product, creating new units with out reliance on public subsidy resources. Rachel's leadership brings together real estate developers in both the non-profit and private sectors, financial institutions, mortgage lending, public agencies, and philanthropy around shared goals to see Minnesota's rental housing stock remain available to low-wage workers. Since 2017, she has led the acquisition of 430 units of workforce housing using the NOAH Impact Fund and established a partnership to create 165 new units of workforce housing for GMHF. Most importantly, the financial tools Rachel has designed and coordinated to finance these units are new products at the leading edge of innovation in the country. As she is now recognized as a thought leader in impact capital strategies for affordable and workforce housing, in 2018 Rachel was invited to speak at multiple national forums including the National Association of Affordable Housing Lenders and at Freddie Mac's annual conference.

Redevelopment / Reuse / Historic - Office Jr. Achievement of the Upper Midwest Junior Achievement of the Upper Midwest (JAUM) had spent 18 years in their Maplewood headquarters. Removed from the urban core, the organization sought a new location that would connect them to the community in a more meaningful, visible and relevant way. In 2014, they started the search for a new site, and what they envisioned would be a longterm location for their program. Finding the perfect property was the challenge. Together a solution was found in an unsuspecting 1916 brownstone building on University Ave. in St. Paul, located directly off the Green Line transit circulation. The building had stood through multiple rounds of tenants and renovations through the years, but offered promisingly large, open floorplates and immense amounts of daylight. Originally home to an old printing company, the building had its fair share of archived quirks and disjointed floorplates riddled with unsightly mushroom columns. But it's charm and good bones couldn't be denied. And so began the imaginative renovation process. The first floor includes office, training and board room space for their administration team, a 150-seat auditorium and a formal presentation stage with full AV capabilities.

NewStudio Architecture NewStudio Architecture relocated from White Bear Lake to Saint Paul's emerging Creative Enterprise Zone. The space, which occupies 8,780 square feet over two floors of an old furniture warehouse, provides the firm with expanded collaboration spaces, and access to a new prototyping lab and workshop. The original brick and timber structure, which dates to 1902, had last been renovated in the late 1980s as office space for a creative agency. As with many of the first generation of industrial space to office conversions, the spaces were divided into employee work space and executive or managerial offices. The NewStudio design team began to reveal the bones of the original Ïworking class� building, allowing the honesty of the materials and construction details to tell the story of the space. There were major ideas in the project: how to activate both levels of the space as ÷one'; and how to create an emotional connection with the world outside. To connect the two levels, the floor was removed in one whole structural bay in the center of the office for a steel and timber grand stair. Important functions of the office were spread across both levels in an effort to get people to move around, and to allow natural light down to the lower level.

WINNER: Osborn370 In summer 2017, a group of investors led by Schafer Richardson, PAK Properties and Grand Real Estate Advisors purchased the former Ecolab headquarters. Over the past year and a half, the team has invested $20 million to redevelop the 20-story tower into office space for startups and innovative businesses. The building was rebranded to Osborn370 as a nod to the street address and Ecolab founder Merritt J. Osborn. In just over a year, the building is 65% occupied with tenants including, but not limited to: Bridgewater Bank, Lighthouse Software, OppSource, Structural, Knight Foundation, KLJ Engineering, Beaningful Coffee, SmartCare, Bootstrappers, TechStars, Center for Economic Inclusion, American Public Media's Glen Nelson Center, and Lunar Startups. While Osborn370 became a new hub for businesses in St. Paul, it also retained its historic significance to 1960s skyscraper design and is now on the National Register of Historic Places.

PROJECT TEAM Brad Schafer, Schafer Richardson, Owner Rich Pakonen, PAK Properties, Owner Clint Blaiser, Halverson and Blaiser Group LTD, Owner Tanya Bell, Grand Real Estate Advisors, Owner Scott Burns, Chasing Growth LLC, Owner

Adam Jerstad, Greiner Construction, Contractor Joshua Bergeron, ESG Architecture & Design, Architect Nick Place, Bridgewater Bank, Lender John Bergstrom, RENA 370, LLC, Owner

March/April 2019

March/April 2019

Page 29

2019 Minnesota Real Estate Awards

Redevelopment / Reuse / Historic - Office The 15 Building: Bringing the Outside, In. Built in 1929, the 12-story brick, granite and limestone building connects the central business district to the warehouse. Yet even with its prime location, The 15 Building was virtually empty. Tenants left for buildings with modern amenities and hipper vibes. Even the five-story mural of Bob Dylan, painted on the western faĂŒÂ¤ade as a nod to the neighboring entertainment venues, wasn't enough to entice new tenants. A repositioning was needed to align the energy of the exterior with the interior. Knowing the Dylan mural is a popular landmark (and social media post), the design team used it as inspiration. But not just the mural's vibrant colors were used. The designers also translated Dylan's attitude and impact on American culture, theming their work on the concept of rebels. From an architecture standpoint, the rebel theme translated into exposing the original raw concrete and natural materials of the original building. Highlighting radiators and window sills in black, contrasting against white walls. Environmental graphic designers ran with the theme, identifying other Minnesota rebels who blazed new trails in literature, art and business.

The 428 The 428 is the redevelopment of the former Woolworths department store in downtown St. Paul. Built in 1955, the iconic department store was state of the art for its time with air conditioning, escalators and lunch counters where the community gathered. It consisted of 3 floors plus a lower level. Woolworths closed in 1994 and the building sat vacant until 2015 when HFS Properties acquired the site. They had a vision: to transform the historic retail building into office space and create a dynamic and integrative office environment that you won't find in any other building in the Twin Cities. HFS wanted to provide a space that tenants today are looking for, which is a space that supports both their work and home life. A focus on sustainability and the effects the built environment has on human health and wellness were the core inspirations for this project. Construction began June 1, 2017. The new footprint consists of 5 floors plus lower level for a total of 63,000 total square feet. Many of the historic elements were preserved and re-purposed throughout the building. Construction was completed in August of 2018. The 428's first tenant, Wellworth, opened on August 20.

&RQVWUXFWLRQ *URXQGHG L Q & R O O D E R U D WL R Q & R P P H U FL D O 5 H V L G HQ W L D O ' HY H O R S P H Q W

:HVW /DNH 6WUHHW

Page 30

2019 Minnesota Real Estate Awards

Suburban Multifamily Ascend at Woodbury Located off Bailey Road near HealthEast Sports Center, Ascend at Woodbury includes 305 units and offers studio, one-bedroom, one-bedroom with den, two-bedroom and threebedroom apartment homes. The project is owned by Commercial Investment Properties who is new to the Woodbury market. Construction began on Ascend at Woodbury in 2017, and three of the four buildings opened for occupancy in 2018. The first phase of the largest 4-story building is expected to open in the first quarter of 2019. Ascend at Woodbury describes itself as a lifestyle community designed to enhance everyday life. Each of the buildings has its own underground parking garage which includes a parking stall for each unit in the building. The development also boasts a generously-sized clubhouse and an outdoor pool and plaza area. Other amenities include yoga class, party room, and outdoor grills. The units include many high-end finishes such as large kitchens with islands and peninsulas, designer Grohe faucets, granite countertops, stainless steel appliances, hardwoodstyle floors and a washer and dryer in each apartment, and many other high-end finishes.

Ironwood Apartments Ironwood Apartments is a 4-story, 182 unit building located in New Hope, MN directly adjacent to the New Hope Community Golf Course - a beautiful 9 hole, par 3 course. Ironwood, which features unit types ranging from studios to 3 BRs, opened on January 2nd, 2019 for move-ins and is 25% leased. Ironwood includes ButterflyMX technology in lieu of a traditional callbox to allow residents to control guest entry from their phone; ButterflyMX package management to take the burden off site staff, ensure adequate space for receiving, and offer convenience to residents; Latch technology for keyless and secure unit entry; a 24 hour market with self-checkout and options ranging from fresh-made sandwiches to household necessities; exceptional fitness amenities including a Peloton bike and turf studio.

Mills Creek The essence of Mills Creek is 'Life + Style' - where you can have the amenities of apartment living but the privacy of living in your own home. Have a home without the cost of ownership. Put down the snow shovel. No mowing. All living. A driveway. A two-car garage. Stainless, quartz, soft close and four walls that are yours. A fiber optic community with smart home features as the standard. But you want more than just a home. Cozy up to the fireplace at our member clubroom, swim at the pool, lift at the gym, putt on the green, play on the game lawn, stride down the fitness trail, give Fido some room at the dog run and grow some veggies in your organic garden. Welcome Home.

Norhart Norhart is a 26-year-old small family business that builds and manages apartments. In 2014, the president, Edward Kaeding, suffered a stroke which led to his untimely death.

Overnight, Mike Kaeding became president. In many small family businesses this would be the beginning of the end, but for Norhart it wasn't. Instead, Norhart has since doubled the size of the company. Our passion lies in creating a better way for people to live. Not only are we providing people an apartment, but we are creating for them a lifestyle. We have recognized four key aspects that set our business apart from our competitors, they are: smart apartment technology, lifestyle living, building communities, and giving back.

We want to be positively recognized as an innovative and growing company committed to providing service and care to our residents, communities, and employees by being an example in the multi-family housing industry. While we wish Ed could have lived many more years, we are certain he would be proud of the legacy he has left that has been continued through Norhart's perseverance and readiness to tackle hard circumstances.

WINNER: The Reserve at Arbor Lakes The Reserve at Arbor Lakes is a gated, luxury apartment community set within the bustling Arbor Lakes area of Maple Grove. The community offers alcoves, one-, two- and threebedroom apartments as well as two-bedroom, two-story direct-entry townhomes. The first of what will be multiple residences within this gated community includes 243 apartments, 12 townhomes and two guest suites in a four-story building connected to the clubhouse via a covered breezeway and underground, heated walkway. Within the clubhouse, residents can enjoy a full game room, an indoor pool, spa and sauna, an 8,000 sf fitness center, two entertainment suites with full chef-grade kitchens, seated dining and lounge areas, a business center, full private movie theater, clubroom and concierge desk. Additionally, an underground heated parking garage includes 260 parking stalls as well as wall-mounted bike racks. The outdoor amenities are equally inviting. Two outdoor terraces include an outdoor pool, spa, grilling stations, lounge areas, boccee ball courts, a putting green and more.

PROJECT TEAM Kelly Doran, Doran Companies, Owner Tony Kuechle and Melissa Duce, Doran Companies, Developer Scott Stenman, Doran Construction, Contractor Pat McNabb, Doran Architecture, Architect

BDH & Young (Interior Design), Sub-Contractor BKBM & Sambatek, BKBM & Sambatek, Engineer Bremer, Sunrise Banks and Central Minnesota Credit Union, Bremer Bank/ Sunrise Banks / Central Minnesota Credit Union, Lender

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Most Significant Sale Transaction in 2018 Greenfield Partners' Sale Judd Welliver, Ryan Watts, Sonja Dusil, and Tom Holtz in CBRE’s Investment Properties Minneapolis office represented Greenfield Partners in the sales of 2,280,519 square feet of industrial product in 25 buildings throughout the Minneapolis metropolitan area for $171.9 million, or $75 per square foot. Eagle Ridge Partners in a joint venture with Artemis RE partners acquired 16 buildings totaling 1,289,640 square feet in March and November of 2018 for $113.9 million. The remaining 9 buildings totaling 990,879 square feet sold in June 2018 to Capital Partners in a joint venture with Investcorp for $58 million. The 25 buildings are in the South West, North West, East, North Central and South Central industrial submarkets and were 85% occupied at the time of sale. Included were Golden Hills Business Park I, II & III, Westside Business Park, Hudson Road Technology Center, Oakdale Interstate Center, Northwest Business Campus I, II & III, Meridian Business Center, Rowland Pond Center, Lake Smetana Tech Center, Highway 212 Corporate Center, Nathan Lane Technology Center, 169 Commerce Center, Westwood IV, Lyndale Distribution Center I, II & III, Mounds View Business Park A, F & G, New Brighton Corporate Center, and Launch Park I, II & III.

WINNER: Towers at West End Ryan Watts, Sonja Dusil, Judd Welliver and Tom Holtz in the CBRE’s Minneapolis Institutional Sales office team represented DRA Advisors in the sale of The Towers at West End. The Towers at West End represented a rare opportunity for investors to purchase a pair of trophy-quality Class A office towers totaling 497,234 square feet located in the vibrant urban West End neighborhood within the top performing Minneapolis I-394 submarket. The Towers were developed in 1987 and 2000, and were 84% occupied at the time of sale. Given the uniqueness of the offering and the $115.5 million deal size, a targeted marketing process that reached around the globe to attract the most aggressive capital available in the market place was required. Although the towers are technically located in the suburbs, the team focused on educating and selling investors on the dynamic West End market as a vibrant urban location for this valuable acquisition opportunity. The Towers at West End were sold to Accesso Partners, a commercial real estate investment manager, owner and operator, who also owns IDS Center and Crystal Court in the Minneapolis CBD.

Page 31

Page 32

2019 Minnesota Real Estate Awards

General Contractor of the Year Adolfson & Peterson Adolfson & Peterson Construction (AP) was founded in 1946 by George Adolfson and Gordon Peterson and continues to be a family owned organization. Over the past 73 years, AP has grown from its humble roots as a mason and home builder to a commercial general contractor with national capabilities. AP has continually been ranked in Engineering New Record (ENR) as a Top 100 General Contractor and has experienced significant growth and prosperity. The combination of a top to bottom sales culture, focused on exceeding customer expectations and living the values established by our founders has resulted in a strong foundation and continued growth. AP rebranded its Ă?Why? statement in 2018. Ă?WE BUILD. trust. communities. people. Building trust is key to creating a positive project and employee experience. In 2018, AP's sales culture and customer focus resulted in a $1.2 billion sales year, an increase of over 30% from previous years. Backlog at the end of 2018 has also achieved record levels. This attributed to a significant increase in the value of contracts currently being managed by AP, which exceed $3.0 billion. AP has been fortunate to build projects that have received numerous national, industry and safety awards, which reflects the trust we've built. AP gives back to the communities in which it builds.

Doran Companies 2018 ended up being Doran Companies' biggest year ever and our creativity and passion have made us leaders in our industry. The following Doran developments were designed

by Doran Architecture, built by Doran Construction and upon completion, will be managed by Doran Residential. These are all top quality design/build developments and we are extremely proud of our teams and the effort they put forth to provide great value to the communities. Completion of Doran's 610 West luxury apartment complex was completed.

Highlights include four buildings equaling 483 units, three swimming pools, a spa, two expansive courtyards with grilling stations, bocce ball courts and putting greens. The highly designed Expo, which includes two buildings, is now under construction. The 368-unit luxury apartment community will be delivered in two phase beginning in early 2020 and will incorporate underground parking with post tension concrete, townhomes, five stories of wood frame residences and a 25-story tower. After achieving success in leasing the first phase of The Reserve at Arbor Lakes in Maple Grove, comprised of 254 units of luxury apartments within a gated community, the second phase will deliver 124 additional units.

Like the first residence, this building will be connected by a heated underground corridor to the 25,000 square foot clubhouse with unrivaled amenities and an adjacent center terrace that incudes a pool, spa, bocce ball court, putting green and lounge areas.

WINNER: Kraus-Anderson 2018 was another tremendous year for Kraus-Anderson Construction Company. We had the honor to work with several hundred clients throughout the Upper Midwest on over 500 projects, both large and small. Jobsite safety has always been our top priority, and we are proud that our safety focus resulted in no lost time records in 2018. We had the honor to work on 70 K-12 projects in 25 school districts across Minnesota, Wisconsin and North Dakota. KA is quickly becoming a leader in the K-12 market, and we are proactively working with districts throughout the Midwest to meet their facility needs. It was also the first full year in our new corporate headquarters in downtown Minneapolis. The consolidation of three KA office locations under one roof in a high-tech, amenities-rich work environment named KA to the Star Tribune's Top 150 Workplaces in Minnesota, ranking #18 in midsize companies. Not only did the building win Xcel Energy's 2018 High Performance Building Award for its cost-effective sustainability, but the open workspaces provide a more collaborative environment to better suit our clients' needs.

SullivanDay Construction We don't like to brag, but 2018 was a record year for SullivanDay. We built projects for some of Minnesota's most iconic brands, including BlueCross Blue Shield, Sweet Martha's Cookies, and Warner's Stellian. We finished or started the four largest projects in our company's history, and had the largest revenue in company history a 46% increase over our second highest year, 2016. To accommodate this growth, we grew our staff by 25%, and purchased new office space in the historic CW Lofts building in Minneapolis. We even won two MSCA STARR awards for our work on the Sanctuary SalonSpa in Excelsior and The Village in Wayzata. We're also dedicated to giving back to our team, and to our community.

We've partnered with Beacon Interfaith Housing Collaborative in their fight against homelessness. We've invested in multiple staff continuing education opportunities, including the Procore Ground Break Conference in Austin, TX to support ongoing knowledge and assimilation to the cutting-edge project management tool we use.

Senior Housing - East Metro PHS Orchard Path Situated on Cobblestone Lake in Apple Valley, Orchard Path captures the congenial spirit of a traditional neighborhood with the bonus of lakeside activities and nearby urban conveniences. Wellness and life enrichment offerings and on-site amenities encourage a lifestyle of good health, vitality and social well-being. Presbyterian Homes and Services' brought this vital senior housing and services component to the Cobblestone Lake neighborhood in Apple Valley to meet the needs of a rapidly growing older adult population, create jobs and support the economy in the South Metro Area. The campus offers 115 senior apartments, 58 assisted living apartments and 20 memory care apartments, with underground heated parking. Housing choices include a variety of studio, one- and two-bedroom apartments. Many have sweeping views of the lake and surrounding community.

Orchard Path provides a high-quality living experience and a full continuum of care with a wide variety of amenities and community spaces across its 330,000 square feet.

March/April 2019

March/April 2019

Page 33

2019 Minnesota Real Estate Awards

Senior Housing - East Metro The Legends of Apple Valley The Legends of Apple Valley consists of 163 affordable senior apartment homes, located in Apple Valley, MN, south of Minneapolis in Dakota County. Dominium acquired the vacant land site in November of 2016 in conjunction with the closing of 4% tax credit financing. Construction was completed in April of 2018. This development provides affordable housing for tenants age 55 and older who income-qualify, earning no more than 60% of the Area Median Income. The unit mix consists of 62 one-bedroom units, 57 two-bedroom units, and 44 three-bedroom units. The building's construction utilized high quality and attractive materials that are aesthetically pleasing to the local community. It consists of four stories of residential living with multiple floor plans and underground parking. There are 143 underground parking spaces and an additional 42 surface spaces. With the target population in mind, the building contains many community amenities, including a fitness center, movie theater, paved walking paths, clubroom and a salon. Additionally, The Legends of Apple Valley is a pet-friendly community.

WINNER: The Legends of Columbia Heights The Legends of Columbia Heights consists of 191 units of affordable senior apartments, located in Columbia Heights, MN, just north of Minneapolis in Anoka County. Dominium acquired the vacant land site in October 2015 and worked over the course of the next year to close the 4% tax credit financing in September 2016. Construction was completed February 2018. The 4-story building features generously sized common spaces, a variety of unit types, and both underground and above ground parking. This new project fills a neighborhood need by creating more opportunities for seniors to be comfortable within their community. The building contains many amenities including a fitness facility, theater, library, club room, cards and crafts room, salon with nurse station, outdoor patio terrace with a fire pit, grilling stations and seating area, as well as full-time management staff.

The building features multiple floor plans and unit sizes; consisting of one, two and three bedroom units.

PROJECT TEAM Ron Mehl, Dominium, Developer Ahmed Abdelhameed, Dominium, Developer Jack Dritz, Dominium, Developer Michael J. Krych, BKV Group, Architect

Chad M. Weis, Eagle Building Company, Contractor James E. Stephan, Braun Intertec, Environmental Derek M. Schilling, Braun Intertec, Environmental Ana Gallardo, Alliant Asset Management, Co., LLC, Equity Partner

DISTINCTIVE DETAILS. DIFFERENTIATED RESULTS.

Š2019 The Opus Group | The Opus Group includes: Opus Development Company, L.L.C., Opus Design Build, L.L.C. and Opus AE Group, L.L.C.

DRIVEN TO DELIVER.™

Dave Menke 952.656.4565 dave.menke@opus-group.com Matt Rauenhorst 952.656.4681 matt.rauenhorst@opus-group.com

DEVELOP DESIGN BUILD

Page 34

2019 Minnesota Real Estate Awards

Medical Property - East and Greater Minnesota WINNER: Fraser Woodbury Fraser is Minnesota's largest and most experienced provider of autism services. Fraser Woodbury is a new state-of-the-art clinic designed and constructed as a leading-edge facility for the treatment of children with special needs. By utilizing best practices and current scientific research, the clinic offers a sensitive environment that is calm, gentle, low in stimuli and child-friendly. The 27,000 sq. ft. building is carefully organized to support a wide range of services, offering families a convenient location for comprehensive evaluations, diagnostic and treatment services, autism and mental health day treatment, applied behavioral analysis, and speech, occupational and physical therapies. Fraser's large variety of services allows clients to receive comprehensive treatment in one location, saving travel and medical costs for Minnesotans. From the approach and arrival at the entrance to transitions within interior spaces, the entire building was designed from the perspective of users who experience varying sensory anxieties. Evidence-based design informed strategies for daylighting, lighting, acoustics, thermal comfort and indoor air quality, enhancing treatment outcomes for children and their families. The design team approached the project with the goal of elevating the experiences of each building user. Though the primary users of this building are children coming for treatment, each child's caregiver, sibling, therapist and staff also significantly benefits from the sensitive environment.

PROJECT TEAM Brian Larson, Pope Architects, Architect Dale Raasch, Fraser, Owner Rob Gemelke, Kraus-Anderson Construction Company, Contractor Jon LaCasse, Pope Architects, Project Manager Rebecca Frenning, Pope Architects, Other Brady Busselman, Sambatek, Engineer

Josh McKinney, Sambatek, Other Steve Orfield, Orfield Labs, Consultant Michael Webert, Emanuelson-Podas, Inc., Engineer Kelly Artz, Emanuelson-Podas, Inc., Engineer Cory Casperson, Clark Engineering, Engineer Maix Xiong, Pope Architects, Other

Minnesota Eye Consultants, Woodbury The two-story, 40,000 square foot medical office and ambulatory surgery center was designed to suit the needs of the sole tenant, Minnesota Eye Consultants. A beautiful mix of natural stone, architectural metals, brick and glass create a contemporary and simple faĂŒÂ¤ade. Large two-story windows accent both ends of the building as well as the main entrance, adding an abundance of natural light to exam rooms and a spacious lobby. One of the largest ASCs for eye care in the state of Minnesota, this building's composition encompasses a variety of progressive concepts including advanced ophthalmology technology and equipment, a patient-focused workflow layout and a spa-like interior design to increase patient enjoyment during visits.

Sanford Joe Lueken Cancer Center The Sanford Joe Lueken Cancer Center is a 20,500 square foot addition to the Sanford Bemidji Medical Center. It includes 20 infusion suites, 15 exam rooms, and lab and integrative services, as well as patient-centered amenities like an on-site pharmacy, meditation room, infusion therapy lounge, boutique and bistro. The addition was named after Joe Lueken, a local businessman who built his grocery store business into a thriving staple in the Bemidji community. He was known for his giving spirit, establishing scholarship funds and countless other community causes. When he lost his life to cancer at 72 years old, The Lueken Family Foundation was established to continue his legacy, and it provided a large donation to make the Sanford Joe Lueken Cancer Center possible. The center has expanded and centralized cancer care in the Bemidji area and was designed to give patients a full range of services to guide them through treatment. This includes space for financial counseling, social services, genetic counseling and survivorship, in addition to the expansive medical space. The Joe Lueken Cancer Center will continue Lueken's legacy of philanthropy by providing top-of-the-line cancer care in an innovative and comforting space.

Architect / Engineer of the Year Kerry Bruggemann, Michaud Cooley Erickson In the diverse architecture and engineering industry, which primarily is male dominated, as a female, it's hard to find your place and create a wedge in the male fortress wall. Insert Kerry Cooley Bruggemann. Through fierce determination, tenacity, passion and dedication she has blazed the trail for herself, ranking among the best. Coming from a bloodline of engineers, her passion for problem solving and the technical sciences came at an early age, propelling her to enroll in Villanova University. In 2006, she received a Bachelor's of Science degree in Mechanical Engineering.

Upon graduation, Kerry joined Michaud Cooley Erickson (MCE), a firm her grandfather co-founded in 1946. Since beginning her career at MCE, Kerry has enjoyed designing systems for a variety of building types. Registered as a professional engineer, Kerry has managed the mechanical engineering for public, commercial, aviation, corporate, and retail building projects. Today many of Kerry's responsibilities are in the aviation market, and include strategic and technical consulting services to the Metropolitan Airports Commission, the organization responsible for capital improvement projects at the Minneapolis-St.Paul International Airport. These projects vary in complexity but include budgets as large as $100 million.

March/April 2019

March/April 2019

Page 35

2019 Minnesota Real Estate Awards

Architect / Engineer of the Year Erik Miller, Sambatek, Inc He was known for his client-centric focus and his dedication to exceeding expectations. After the recession, the Walmart store development program began to slow down so Erik retooled his team to serve a diverse client base across all commercial markets. Erik's qualifications to be the 2018 MREJ Engineer of the Year are exemplary based on the knowledge and expertise he brings to large mixed-use and multifamily projects. Some of Erik's notable projects in 2018 include Calhoun Towers in Minneapolis, Marsh Run in Minnetonka, The Village and The Reserve in Maple Grove, and the Triple Crown/Canterbury Commons projects in Shakopee. Erik brings tremendous value to his client's projects with creative site planning and proactive designs that create opportunities to improve the projects proforma and streamline the entitlement process. He is well respected by the communities he works in and uses his extensive land development knowledge to earn the trust with the project stakeholders. Not only is Erik an exceptional engineer and project lead, he also takes the time to train and mentor those around him. He can often be seen working in a collaborative environment at the table with surveyors, landscape architects, and planners identifying constraints and finding the best opportunities to exceed our client's expectations.

WINNER: David Serrano, RSP Architects The proverbial ball started rolling in 2016 when Mayo Clinic Square opened. Our extreme make-over of the ugliest, most dysfunctional building in downtown Minneapolis was heralded as a success.

The project established David Serrano, AIA, Principal at RSP, as a smart design partner for brokers and developers desiring dramatic, yet cost effective, change. Serrano is not only a talented architect, but he gets the business side of multi-tenant buildings. He knows how to balance the desires of tenants with the ROI of owners. The range of his work is impressive, as is his vision for each unique building. He's capable of seeing past dilapidated structure and dark, dated floor plates. With a flair for corporate renovation projects, Serrano has developed a successful, chaptered approach to solving these niche opportunities. When asked of the synergies that have been established across his experience on multiple renovation projects, he notes Ïone of the things that I have learned, working on projects like these, is there are three major stages on how you approach (a renovation). The biggest problem to start with is the organizational issue. How do you make the building legible? The next thing we talk about are amenities; we have to have these things to be a player in this market. And my third step then is materializations. How do you wrap those things into the vibe and the story (of the building)? The approach has proven successful.

From Historic to to Hig gh Tec ghe h, The Place e to Grow iss

Small To Town w Pride. Biig City Oppo ortunities.

20 019 City/Mu unicipality of th he Y Ye ear

2019 Greater MN P Project of the Y Ye e ear

City of Faribault aribault • Community & Economic Devellopment • ci.f ci faribault.mn.us arib bault mn us • 50 07.334.0 334 0100

Page 36

2019 Minnesota Real Estate Awards

March/April 2019

Redevelopment / Reuse / Historic - Housing & Hospitality WINNER: Lora Hotel Portland, Ore. based Provenance Hotels, a lifestyle hotel management company, opened Lora, a new boutique hotel, in Stillwater, Minnesota in June 2018. Developed by Elevage Development Group of Minneapolis, the hotel is a creative renovation and repurpose of the former Joseph Wolf Brewery block, built in 1886 on South Main Street, carved into stone cliffs and historic caves. From four dilapidated structures built at different times on seven levels, ESG Architecture & Design (ESG) innovatively designed a 40-room, threestory boutique hotelÓthe first new hotel in Stillwater in 23 yearsÓwhich also houses three distinct food and beverage destinations. The hotel's name, Lora, references Lorelei, a siren of German folklore, and spaces throughout the hotel are infused with Scandinavian and German design details that honor the past. Combining the four buildings was a major design challenge mainly due to severely deteriorating stone and brick walls. The designers reinforced the structure, gutted the buildings, and rebuilt airy, modern spaces, maintaining as much of the original character as possible. The lobby's original floors and stone walls have beauty in their imperfections and a modern reception desk sits in front of an arched stone gateway into the caves. Throughout the hotel, original art conveys the tales of the area's historic culture.

PROJECT TEAM Corey Burstad, Elevage Development Group, Owner Provenance Hotels - Operator, Other

ESG Architecture & Design, Architect Zeman Construction, Contractor Innovative Structural Solutions, Engineer

Opportunity Housing Partnership (OHP) The Opportunity Housing Partnership (OHP) provides formerly homeless adults earning at or below 30% area median income (AMI) with a quality living environment and support services to help them regain and maintain stability in their lives. The program offers permanent apartment homes with on-site support services in three historic buildings in downtown MinneapolisÓthe Lamoreaux, the Continental and the Coyle. This project preserved and rehabilitated supportive housing for individuals who may otherwise be without a permanent residence. We began renovation on these three properties in 2017 and celebrated a grand re-opening the following year. In total, 116 apartment homes were renovated.

The Continental Hotel previously had 70 apartments, and 12 of these apartments shared a bathroom with the adjacent apartment. We reduced the total amount of apartments to allow for every home to have its own private bathroom. After the renovation, the Continental Hotel had 66 total homes. This building is listed on the National Register of Historic Places. The Lamoreaux was first constructed in 1912, and like The Continental Hotel, previously offered shared bathrooms. The Lamoreaux also originally had a shared kitchen space. After construction, each apartment had its own private bathroom and kitchen.

DEVELOPMENT | INVESTMENT SERVICES | PROJEC T MANAGEMENT | CONSTRUC TION MANAGEMENT | LEED/BIM | ASSET MANAGEMENT Since 1991, Oppidan Investment Company has been providing development, construction and project management, asset management, and brokerage services to the retail, industrial, commercial, residential, senior housing and mixed-use markets. The firm has successfully developed more than 475 projects spanning a total of 21.8 million-square feet in 36 states and Canada with a total value of more than $3.5 billion.

Oppidan Investment Company | 400 Water Street | Suite 200 | Excelsior, MN 55331 | 952-294-0353 |Oppidan.com

March/April 2019

Page 37

2019 Minnesota Real Estate Awards

Redevelopment / Reuse / Historic - Housing & Hospitality Press House Apartments Press House Apartments is the conversion of the former Pioneer Press Building into 144 affordable apartment units. The 8-story building was originally constructed in 1955 for the Minnesota Mutual Life Insurance headquarters and became home to the Pioneer Press Newspaper in the 1980's. In 2017, the building was listed on the National Registry of Historic Buildings and was purchased by Real Estate Equities. Now complete, the building offers 20 studios, 108 one bedrooms, 6 two bedrooms and 10 three bedrooms, all affordable to residents making 60% AMI or less. Unit finishes include vinyl plank flooring, stainless steel appliances, quartz countertops, 10-foot ceilings, full-size washer and dryer, walk-in closets and marble window ledges. In addition to high-end apartment features, the property boasts over 20,000 square feet of amenity space in what was the old printing rooms.

Amenities include a large clubroom with gourmet kitchen, movie theater, business center, professional fitness center, yoga room with on-demand fitness classes, sport simulator and a game room with billiards, poker, ping pong, Foosball, Boccie Ball and shuffleboard. The additional Fleet Building, which was used to load the trucks with newspapers has been converted into an additional clubroom with gourmet kitchen, fireplace and garage doors that open to the outside. This building is also home to the YMCA Teen Tech Center.

The Depot Provide a description of the project, its components, tenants, or other contextual information. The original Milwaukee Road Depot was constructed in 1899 as a train hub in Minneapolis' Mill District. This train depot was once a busy hub for business and personal travel but soon after rail service was suspended in 1971, it fell into disrepair. In 1978, the Minnesota Historical Society assigned The Depot to the National Register of Historic Places and it is said The Depot is among one of the last long-span, truss-roofed sheds still standing in the nation. After CSM purchased The Depot they used it primarily for a parking area and indoor ice skating rink. The ice rink was eventually decommissioned in 2017.

Doran Special Projects was brought on as the general contractor for the final phase of the 24,000 square foot transformation of the Shed into a new venue space. This expansion is being used to meet the rapidly growing demand for event space in Minneapolis. The area is comprised of four unique breakout rooms, a Great Northern Ballroom with 40+ foot ceiling for events up to 600 people, The Conservatory and an outdoor covered space. Because of the historical nature of The Depot, it was essential to maintain key railway aesthetics throughout the space. The building incorporates original bricks and features the original rails spanning across the entire building.

The 15 Building

Drawing from the Past: Designing for the Future.

Jack Link’s | Mayo Clinic Square

RSP specializes in seamless design that blends the soul of a space into the rhythm of the city. We offer problem-solving solutions that extend beyond the tangible bones of a building. We understand the high demands placed on buildings; they must provide more than a place to work. Investing in top-tier amenities, vibrant details, and connected spaces is crucial. But so is preserving the origin story of a space. Revitalizing and repositioning existing spaces offers the chance to uncover history, personalize the story, and deliver it to a new audience. In honoring the past, we are securing a bright, innovative future for the city, these historic buildings and their occupants for years to come.

Baker Center

Page 38

2019 Minnesota Real Estate Awards

City / Municipality of the Year Apple Valley Launching the celebration of 50 golden years in 2019, having started as the City of Apple Valley in January 1969. Closing out 2017 with $202 million value created in commercial and residential building permits, double the amount ever previously realized in one year. Planning the initial developments of medical office, retail and housing in the 400-acre active mining area now known as ÏOrchard Place� led by Rockport LLC and Ryan Company. Menard, Inc. approved for 50 acres of industrial, office and retail within a planned development. Apple Valley Target Stores are both renovated to the latest Ïsuper� concept. Lunds/Byerly's announces they will locate at Orchard Place.

Blaine Major Accomplishments $206mil in development activity (new single family, c/I, multi-family; c/I additions, remodels, tenant finish) Announcement of the 3M Open coming to Blaine in 2019 Fastest growing MSP suburb since the 2010 census 457 total units permitted in Blaine, ranked 4th amongst MSP suburbs

WINNER: Faribault The City of Faribault has found a niche with advanced manufacturing, food production, and foreign direct investment. With a number of multi-million dollar industrial projects completed in 2018 and on the books for 2019 the City is fortunate to continue to expand upon and build the relationships with both our existing and new businesses and industries. With a growing need for available land and large scale industrial projects, the City of Faribault worked with a private property owner to annex nearly 250 acres of land for industrial development. This new available land, known as the Met-Con Business Park, will add to the portfolio of the existing industrial park which saw significant investment leading into 2018 with a $150 million project completed by Faribault Foods in 2017. The newly annexed land will be served by City sewer and water, delivering to both the available land for potential business prospects, as well as the new Daikin Applied Air manufacturing plant. In 2018, Faribault was announced as the location for Daikin Applied Air's new manufacturing facility. The location search included Mexico, Southern United States and Minnesota, ultimately Faribault was chosen due to the existing relationship with Daikin. Faribault is home to a current Daikin manufacturing plant which employs more than 500 high-skilled workers.

Fridley Completing highly visible projects such as Northern Stacks, Fridley new Civic Campus and Fridley Park of Commerce to significantly change the City's image and real property value.

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Interior Design - Office / Industrial / Corporate - Headquarters WINNER: Jr. Achievement of the Upper Midwest Junior Achievement of the Upper Midwest (JAUM) had spent 18 years in their Maplewood headquarters. Removed from the urban core, the organization sought a new location that would connect them to the community in a more meaningful, visible and relevant way. In 2014, they started the search for a new site, and what they envisioned would be a longterm location for their program. Finding the perfect property was the challenge. Together a solution was found in an unsuspecting 1916 brownstone building on University Ave. in St. Paul, located directly off the Green Line transit circulation. The building had stood through multiple rounds of tenants and renovations through the years, but offered promisingly large, open floorplates and immense amounts of daylight. Originally home to an old printing company, the building had its fair share of archived quirks and disjointed floorplates riddled with unsightly mushroom columns. But it's charm and good bones couldn't be denied. And so began the imaginative renovation process.

PROJECT TEAM RSP Architects, Architect Mortenson, Contractor Ericksen Roed & Associates, Engineer Emanuelson-Podas, Inc., Engineer Michelle McGuire Bridging Project Management, LLC, Other

NewStudio Architecture NewStudio Architecture relocated from White Bear Lake to Saint Paul's emerging Creative Enterprise Zone. The space, which occupies 8,780 square feet over two floors of an old furniture warehouse, provides the firm with expanded collaboration spaces, and access to a new prototyping lab and workshop. The original brick and timber structure, which dates to 1902, had last been renovated in the late 1980s as office space for a creative agency. As with many of the first generation of industrial space to office conversions, the spaces were divided into employee work space and executive or managerial offices. The NewStudio design team began to reveal the bones of the original Ïworking class� building, allowing the honesty of the materials and construction details to tell the story of the space. There were major ideas in the project: how to activate both levels of the space as ÷one'; and how to create an emotional connection with the world outside. To connect the two levels, the floor was removed in one whole structural bay in the center of the office for a steel and timber grand stair. Important functions of the office were spread across both levels in an effort to get people to move around, and to allow natural light down to the lower level.

Not only does the internal staircase aid in the functionality of the space, it also acts as a focal point seen from the building's main public circulation.

Page 39

Page 40

2019 Minnesota Real Estate Awards

March/April 2019

Interior Design - Office / Industrial / Corporate - Headquarters Sleep Number Corporate Headquarters Sleep Number strategically consolidated and relocated their suburban Corporate Headquarters to downtown Minneapolis. This transformed a data center the size of a full city block into a space that effectively supports new ways of working, promotes brand exposure, and attracts new talent. Organized as a small city, the plan radiates outward from a central Plaza of shared amenity spaces. Here everyone is drawn together around food, drink, and conversation. This sense of community extends outwards along the city Ïstreets� where people meander through departmental Ïneighborhoods� and spontaneously connect via pockets of meeting space. While the Plaza connects Sleep Number employees to each other, the Atrium introduces Sleep Number's brand to Minneapolis. The new design offers diverse work settings, acknowledging that everyone works differently and desires choice. Traditional ÏMe� space (private offices and workstations) are scaled down in favor of ÏWe� space. Lounge areas allow individuals to rest and restore; standing height tables encourage groups to engage and collaborate; game rooms provide a welcome break to gather and play. Sleep Number's tech-focused identity is softened by natural textures and unified by brand-inspired warm blues. The brand is further infused through circular architectural forms and subtle motifs inspired by their iconic logo. Rich woods and cognac accents spark interest and align with the intimate nature of Sleep Number's products.

Wagner SprayTech Wagner SprayTech is a global market leader in the advanced paint applicators and tools industry. The company's North American Headquarters is located on a 17-acre campus in Plymouth and was originally built in the 1970s. The building was becoming increasingly outdated and wasn't accurately reflecting the company's brand or products. The interior environment presented an obstacle to encouraging collaboration, recruiting new talent, and showcasing product innovations to customers. Starting in 2014, and through a multiyear, phased effort completed in October 2018, Wagner SprayTech's headquarters was transformed and rebuilt into a modern, motivating workplace that engages employees and supports client interactions. The campus supports 370 employees working as a team to design, manufacture, assemble, ship and service equipment globally. The space embraces collaboration in a more relaxed, clustered team environment. Open-concept offices and public spaces integrate technology for all corporate functions, including marketing, engineering, sales, accounting, finance, and customer service. The redesigned environment enhances Wagner SprayTech's team culture, offering opportunities for collaboration and interaction among employees, progressing innovation in product design, and creating value for each of Wagner's customers.

INVEST + PROTECT + GROW

WHY INVEST IN SR REALTY TRUST? Tax Advantaged Quarterly Dividends • Long -Term Capital Appreciation Solid Real Estate Portfolio • Local Professionals Who Answer the Phone

www.srrealtytrust.com • Minneapolis, MN • Call us today 612.359.5849 SR Realty Trust, Inc. is a private real estate investment trust, or REIT, formed for the purpose of investing in a diversified portfolio of commercial real estate properties.

March/April 2019

Page 41

2019 Minnesota Real Estate Awards

Greater Minnesota WINNER: Daikin Applied Air - Faribault, MN The City of Faribault is excited to partner with Daikin Applied Air for the expansion of a 300,000 square foot state-of-the-art manufacturing facility. This project will convert an existing warehouse to advanced manufacturing. Not only does this manufacturing facility expand current operation in Faribault, this project allows the existing facility in Faribault to remain open and continue to manufacture HVAC technologies in a more efficient manner. In addition to allowing the company to accomplish its overall business goal of becoming the number one market shareholder in the competitive HVAC marketplace. This is a unique situation where the existing Daikin facility is not equipped to handle the type of expansion needed for the new product to be introduced at the project location. In order to best accommodate the needs of the company and product, a new manufacturing facility with built-in capacity for growth and applied technologies is curcial to the success and growth of Daikin in Southern Minnesota. Job creation and retention is of the utmost importance in Faribault.

PROJECT TEAM Deanna Kuennen, City of Faribault, Government Agency Samantha Markman, City of Faribault, Government Agency Will Fort, Daikin Applied, Owner

Jim Glen, Daikin Applied, Owner Len Worms, Daikin Applied, Owner

Guardian Angels Riverview Landing Guardian Angels Riverview Landing is a four-story, 168,000 square foot independent and assisted living facility in Otsego, Minnesota with 126 apartment units and 16 memory care units. Guardian Angels is a non-profit organization that provides healthcare, housing and supportive services to seniors and their families, and is committed to "aging in place." The property appeals to the northwest suburban residents by creating a modest, comfortable home with many elegant touches. The building is designed and situated to allow the best views and visibility of the Mississippi River. Outdoor common areas and walking trails help connect residents and the community to the lush scenic area. Life is better on the river!

The river is the showpiece of the new community and each space was designed to connect to and pay homage to the surrounding scenery. Riverview Landing was designed to help seniors live more fully, with a variety of activities and amenities offered. A fully-equipped onsite wellness center offers a multi-purpose space that can be utilized as an indoor court pickle ball, basketball, and tennis, or for large gatherings. It also features a therapy pool, physical therapy, cardio and locker rooms. A dining space with chef-prepared meals, coffee lounge, and plenty of common areas bathed in natural light encourage residents to socialize and stay active. Other amenities include heated garage parking, a beauty salon and an on-site chapel with pastoral care.

AT THE AT CENTER OF

WHA AT T’S NEXT We are pleased to congratulate our Minneapolis-S -St. Paul Asset Services team for being named Property y Manager of the Y Ye ear and Hudson Brothen for being named Emerging Leader of the Y Ye ear at the 2019 Minnesota Real Estate Journal Aw wa ards

cushmanwakeďŹ eld.com

Page 42

2019 Minnesota Real Estate Awards

Greater Minnesota Sanford Joe Lueken Cancer Center The Sanford Joe Lueken Cancer Center is a 20,500 square foot addition to the Sanford Bemidji Medical Center. It includes 20 infusion suites, 15 exam rooms, and lab and integrative services, as well as patient-centered amenities like an on-site pharmacy, meditation room, infusion therapy lounge, boutique and bistro. The addition was named after Joe Lueken, a local businessman who built his grocery store business into a thriving staple in the Bemidji community. He was known for his giving spirit, establishing scholarship funds and countless other community causes. When he lost his life to cancer at 72 years old, The Lueken Family Foundation was established to continue his legacy, and it provided a large donation to make the Sanford Joe Lueken Cancer Center possible. The center has expanded and centralized cancer care in the Bemidji area and was designed to give patients a full range of services to guide them through treatment. This includes space for financial counseling, social services, genetic counseling and survivorship, in addition to the expansive medical space. The Joe Lueken Cancer Center will continue Lueken's legacy of philanthropy by providing top-of-the-line cancer care in an innovative and comforting space.

Real Estate Woman of the Year Kerry Bruggemann, Michaud Cooley Erickson In the diverse architecture and engineering industry, which primarily is male dominated, as a female, it's hard to find your place and create a wedge in the male fortress wall. Insert Kerry Cooley Bruggemann. Through fierce determination, tenacity, passion and dedication she has blazed the trail for herself, ranking among the best. Coming from a bloodline of engineers, her passion for problem solving and the technical sciences came at an early age, propelling her to enroll in Villanova University. In 2006, she received a Bachelor's of Science degree in Mechanical Engineering.

Upon graduation, Kerry joined Michaud Cooley Erickson (MCE), a firm her grandfather co-founded in 1946. Since beginning her career at MCE, Kerry has enjoyed designing systems for a variety of building types. Registered as a professional engineer, Kerry has managed the mechanical engineering for public, commercial, aviation, corporate, and retail building projects. Today many of Kerry's responsibilities are in the aviation market, and include strategic and technical consulting services to the Metropolitan Airports Commission, the organization responsible for capital improvement projects at the Minneapolis-St.Paul International Airport. These projects vary in complexity but include budgets as large as $100 million. A recent capital improvement projects Kerry is most proud of is the remodel of a skyway from the MSP Airport parking ramps to the terminal.

March/April 2019

March/April 2019

Page 43

2019 Minnesota Real Estate Awards

Real Estate Woman of the Year Kjersten Jaeb, Cushman & Wakefield Why should Kjersten be named Real Estate Woman of the Year? She took an unusual path to prominence in Cushman & Wakefield. She broke into the industry as an administrative assistant and proved quickly that she was willing to out-work and out-learn her peers. She earned her Bachelor's Degree while working full-time and discovered a major truth: not everyone is able to train for a career and then enter the workforce in that order. This has fueled her drive to help diverse, nontraditional workers get ahead and join the industry. Kjersten is happily married with three young children, successfully modeling a health work-life balance. Kjersten is a founding member of the Real Estate Diversity Collaborative; in 2018, she took over as one of the tri-leaders. Previously as chair of the collaborative's Membership Committee she fostered new relationships with educational organizations to increase the group's reach. As a tri-leader, Kjersten will continue to expand relationships with local schools. It was Kjersten's effort that created a relationship with Metropolitan State University, and by extension the greater MNSCU system. Kjersten is a longtime volunteer with BOMA, serving and chairing the Greater Minneapolis chapter's Membership Committee.

Jaclyn May, Cushman & Wakefield Jaclyn May is a leading woman in Cushman & Wakefield's Minneapolis-St. Paul office, consistently ranking among the office's top producers her 10-plus years with the company. --As such, Jaclyn was recognized in 2018 as part of Cushman & Wakefield's "Offshore Club," an elite group of brokers who produce the most over a given time period. She consistently attains a place in the Offshore Club. With her teammates, Paul Donovan and Jeremy Striffler, Jaclyn completed transactions totaling 1.1 million square feet (sf) over the calendar year. --In 2018, Jaclyn co-led one of the most significant tenant representation projects in recent Twin Cities memory. She, with Paul Donovan, oversaw the relocation process for Royal Bank of Canada for their RBC Wealth Management U.S. Headquarters. Working with her team, she conducted an exhaustive site search and selection process, resulting in an agreement to locate in a new office tower, The Gateway, to be developed in the Minneapolis Central Business District. RBC plans to lease 310,000 sf in the building, relocating from the RBC Plaza. --She was also a significant force in multiple major legal sector real estate transactions. She co-led the representation of Briggs and Morgan, a full-service legal firm in Minneapolis, in its site search and headquarters selection. The resulting 93,000 sf lease to remain at the iconic IDS Center will include a full renovation of the client's space.

A Better Approach to Healthcare Real Estate davishre.com

Page 44

March/April 2019

2019 Minnesota Real Estate Awards

Real Estate Woman of the Year WINNER: Anne Olson, IRET In July 2018, Anne Olson was tapped as Chief Operations Officer of IRET during a critical point in the organization. IRET was just coming out of 20 consecutive down quarters and consistent with the rest of her career, Anne's shift into the executive team was the catalyst to its turnaround and a positive result for the next 5 quarters. Her impressive experience as legal counsel at two of the top firms in Minneapolis as well as her previous role as Director of Investment Operations and Counsel for Welsh Companies gives Anne a global view and skill set rarely seen at this early stage of a career. Anne succeeds by focusing on team collaboration, inspiring each of her colleagues to be engaged and successful in both individual goals as well as the larger goals of her organization. From the origins of her career, Anne has been known for her selfless advocacy in launching and advancing the professional paths of her wide network of colleagues and friends. This rare and unique approach and keen sense of people and industry has resulted in both the rapid ascension in her career as well as success of those around her. This is evidenced early in her career when she was the inspiration for creating WON (Women Opportunity Network) as well as in her current role. Anne impacts everyone she touches and continues to be the first call whenever important decisions are considered. This includes colleagues, friends and family. Her willingness to put everyone's needs in front of her own interests remain an important hallmark of her personality.

Jill K. Rasmussen, Davis Jill is a veteran broker specializing in Healthcare Real Estate. In 2018 she completed the following number and volume of transactions; Building Sales #: 3 Total SF: 184,536 Value: $75,808,838 Medical Office Leases #: 18 Total SF: 73,659 Value: $26,287,344.15 She leads the firms leasing efforts for major clients, manages a team of junior brokers property managers in multiple markets across the country. She also performs due diligence for client acquisitions in market across the country.

Investments. opportunities.

Partnership.

ĞůĞďƌĂƟ ŶŐ KǀĞƌ Ϯϱ zĞĂƌƐ &ŽƵŶĚĞĚ ŝŶ ϭϵϵϮ͕ ǁĞ ƉƌŽŵŝƐĞ ƋƵĂůŝƚLJ͕ ŝŶƚĞŐƌŝƚLJ͕ ĂŶĚ ƐƵƉĞƌŝŽƌ ƐĞƌǀŝĐĞ ƚŽ Ăůů ƉĂƌƚŶĞƌƐ͕ ƌĞƐŝĚĞŶƚƐ͕ ĂŶĚ ƚĞĂŵ ŵĞŵďĞƌƐ͘ ϴϱϬϬ EŽƌŵĂŶĚĂůĞ >ĂŬĞ ůǀĚ͕ ^ƚĞ ϳϬϬ DŝŶŶĞĂƉŽůŝƐ͕ DE ϱϱϰϯϳ ͮ ϵϱϮ͘ϴϵϯ͘ϭϮϭϲ

dŝŵďĞƌůĂŶĚWĂƌƚŶĞƌƐ͘ĐŽŵ

ϳϬн ŽŵŵƵŶŝƟ ĞƐ ϭϱ͕ϬϬϬн hŶŝƚƐ ϭϱ ^ƚĂƚĞƐ ϰϬϬ dĞĂŵ DĞŵďĞƌƐ ϴϬ WĂƌƚŶĞƌƐŚŝƉƐ ϱϱϬ WĂƌƚŶĞƌƐ ͘​͘​͘ĂŶĚ 'ƌŽǁŝŶŐ͊

March/April 2019

2019 Minnesota Real Estate Awards

Urban Multifamily WINNER: 365 Nicollet Located on the north end of Nicollet Mall between the Minneapolis CBD and the vibrant North Loop neighborhood, 365 Nicollet takes luxury living to a new level in downtown Minneapolis. The 30-story, high-rise building includes 9,500 square feet of retail and 370 units, ranging from alcove units to three bedroom penthouse suites with condo-level finishes, floor-to-ceiling windows and quartz countertops. The architectural design showcases a dynamic form through a patterned elevation of layered repeating balcony profiles.

The precast and glass tower sits at the corner of Nicollet and 4th Avenue, intersecting a podium revealing linear strips of glass. Units begin on level three and continue through level 30. The stepped tower helps increase corner units, vistas and daylighting opportunities. The lobby entrance is identified with an illuminated glass column, creating a recessed entry for resident access and drop-off. Retail space, a skyway lobby, resident lobby and additional resident amenity space activates the street frontage in the downtown core.

PROJECT TEAM Matt Rauenhorst, Opus Development Company, Developer Dean Newins, Opus AE Group, L.L.C., Architect Doug Woolf, Opus AE Group, L.L.C., Engineer Beth Duyvejonck, Opus Design Build, L.L.C., Contractor

De La Pointe De La Pointe is a boutique mixed-use condominium in Uptown Minneapolis setting a new standard in luxury living. Redefining uptown elegance in a modern stone building, De La Pointe includes nine premiere residences. The small footprint provides the units with three sides of light and view. The small scale allows the building to fit deftly into the urban neighborhood. The lower level contains 5,000 SF of commercial space in an extended first floor which anchors the project and recalls the one- and two-story neighborhood context.

The first floor is occupied by an office and a wine bar that is under construction. The combination creates a truly unique mixed-use infill on a small scale.

Page 45

Page 46

March/April 2019

2019 Minnesota Real Estate Awards

Urban Multifamily East End Completed in early 2018, East End Apartments is part of Sherman Associates' complete overhaul of the entire city block formed by Washington Ave N., 3rd St., Park Ave., and Chicago Ave. The 7-story building is comprised of 180 residential units including studios, one-bedroom, one-bedroom + den, and two-bedroom options. The building features highly sought-after downtown skyline views and amenities such as an outdoor pool deck complete with cabanas and grilling stations, interior club room, dog run and wash, and outdoor projected movie theater. The project includes 20,000 SF commercial space, the majority of which has been leased to well-known grocer Trader Joe's. The anchor tenant gained popularity through their inexpensive organic and natural offerings as well as their private label goods. In addition, Jimmy Johns opened in Spring 2018, and two-story Starbucks will open in early 2019. Three levels of on-site parking, two of which are underground, are accessible to residents and commercial guests. To ensure East End remains cohesive with the existing fabric of historic buildings, special attention has been paid to its design. Areas of sensitivity include its neutral color palate, square geometric form, and the addition of a parapet to the roof-line.

HQ Apartments HQ is a luxury 17-story apartment building owned by Kraus-Anderson as part of its new comprehensive, mixed-use block development, which includes a central courtyard and twolevel underground parking. The contemporary complex combines urban sophistication with a touch of retro appeal for downtown professionals in Minneapolis East Town. Luxurious amenities are abundant for residents, starting with its spacious two-story lobby that includes a lounge and martini bar, abundant seating areas, and television and meeting spaces.

A gym-quality fitness center faces the courtyard, and the outdoor pool terrace is a home to a large social spa and several lounging areas, all with outstanding downtown views.

HQ delivers 306 units ranging from studio layouts to three-bedroom penthouses. The spacious apartments feature high ceilings and windows, quartz countertops, rustic columns, warm finishes, top-shelf appliances and exceptional hardware. HQ knows how to blend in and when to stand out. Its brick masonry base on levels 1-9 relates to the brick and stone context found throughout historic Elliott Park. Upper levels 10-17 are clad in a contemporary, high-quality aluminum composite metal panel, and the upper floors cant out at an angle to create a signature look.

More than a lifestyle.

Your liffe.

Luxury y apartment living by

Dow wntown Min nneapolis

Mill & Main MillandMain.com 612.843.5555

Dow wntown Hop pkins

The Moline TheMoline.com 952.698.9999

Edina

Aria - Edina AriaEdina.com 952.234.5599

Norrth Metro

610 West 610West.com 763.450.3600

Maple Grove

The Reserve at Arbor Lakes TheReserveAtArborLakes.com 763.453.7600

N

March/April 2019

2019 Minnesota Real Estate Awards

Urban Multifamily Mezzo Northeast Minneapolis is defined more by who lives there and why they live there more than any other factor. It's a hub and รทhood for artists and entrepreneurs, young and old, brewers and bikers, galleries and restaurants. That's why Mezzo/NE which means middle lies at the center of it all, in the middle of a well-defined neighborhood full of the character and color that make Northeast Northeast. It's also the first market-rate multifamily project to be developed in this neighborhood in over a decade! Located along Marshall Street NE, Mezzo is also a nexus where work and home can often be one and the same but with luxury amenities you'd expect in the North Loop without North Loop rents, including: a bike shop / craft room; pet wash and salon; vinyl plank flooring; quartz countertops, smart kitchen cabinetry; full-size washer/dryer sets and stainless steel appliance; plus co-working space, a fitness center, and the rooftop Skydeck offering splendid views of Downtown and the River. With 110 units total, its loft-like studios, one-and two-bedroom apartments lie two blocks away from Boom Island -- and less than 2 miles away from Stone Arch Bridge and downtown Minneapolis.

NordHaus Apartments After clearing the former Superior Plating site in Northeast Minneapolis of contaminated soil, Lennar asked ESG to design a modern, sculptural, Scandinavian-inspired mixed-use apartment project in this evolving arts district. One component, a wood-frame podium adjacent to a pedestrian-focused pocket park houses the lobby, retail, work-from-home offices and two-story walkup units. In the European-style, 18-story concrete tower, the apartments have balconies, exposed ceilings, wood floors, refined finishes and sleek Scandinavian styling. Nordhaus' lobby is a large, three-story volume with exposed aggregate concrete floors, steel doors and walls, warm white-oak wood, a dividing wall made of rope, and suspended chairs surrounding the large abstract sculpture of Yggdrasil (the world tree of Norse mythology). The wall along the monumental stairway is comprised of crinkled-metal screen lit from above to create a Northern Lights effect. At the top of the stairs, Nana Walls open to the large pool deck, which is an acre in size. Here residents enjoy fireplaces, lounge areas, bar and grill stations, lawn bowling, a patchwork of sidewalks interspersed with trees, and an outdoor hot tub with heated pavers leading from the fitness rooms. Dueling bars in the adjacent communal kitchen have two islands facing each other, one with a grill and hood for demonstrations or cooking events. The rope wall also repeats here, separating the kitchen from the lounge spaces.

Page 47

Page 48

March/April 2019

2019 Minnesota Real Estate Awards

Urban Multifamily The Julia Inspiration for The Julia comes from Julia Hardy Gunsbury, grandmother of developer Curt Gunsbury, and reflects the spirit of its namesake. Located on the site of a former asphalt surfacing company, The Julia welcomes visitors to Northeast Minneapolis with its unique, triangular shape and eclectic style. Located at the intersection of Broadway and Marshall Avenues, The Julia sits at the crossroads to several Northeast Minneapolis Neighborhoods as well as the City's Arts District which inspired the design of precast panels stamped with Ă?Nordeastďż˝ covering the exterior of the ground level. With it's the street-side resident patio running the length of the building along Broadway or its rooftop deck with amazing views of the Downtown Minneapolis skyline the building brings a contemporary twist to the mid-20th century Bohemian Nordeast neighborhood. Additional project building amenities include: Indoor/Outdoor fireplace between the resident patio and lobby, Roof-top deck with grilling station, fire pit and fire table, Roof-top cinema, Club room/pub, Resident workstation/meeting room, State of the art fitness room, Yoga studio, Dog wash station, Bike storage and lounge, Floor-to-ceiling windows, Quartz countertops, Grohe fixtures, Imported Italian range hoods, Polished concrete, tile and wood floors, and Artwork (sculpture and mural) from local neighborhood artisans.

Real Estate Executive of the Year Bob Fransen, Timberland Partners Bob founded Timberland Partners in 1992, when he convinced a couple of commercial real estate friends to join him in acquiring a 46-unit apartment property. For many years he was a leader in the Twin Cities apartment brokerage field, first at CB Richard Ellis (now known as CBRE) and eventually forming his own apartment brokerage, Fransen Appert Real Estate Group, Inc. Bob has been the vision behind the growth of Timberland Partners, leading it from a single partnership focused on personal investment returns, to a national organization that is focused on enriching the lives of hundreds of investment partners, hundreds of team members and thousands of residents. He grew up on a farm near Coleharbor, North Dakota, and holds a business degree from the University of North Dakota and was inducted into UND's Athletic Hall of Fame. He is a member of the National Multi Housing Council, the Minnesota Multi Housing Association, National Association of Industrial and Office Properties and holds the Certified Commercial Investment Member (CCIM) designation. In 2018, Timberland Partners continued on its quest to grow at an annual rate of 12% and to become an owner of 22,000 apartment units by 2022. This growth includes the acquisition of 1,442 units for a total consideration of $146 million and negotiating the purchase of an additional 1,224 units for $139 million which will close in the first quarter of 2019. In addition, Timberland Partners’ development group began construction on two transit-oriented apartment communities, the 222-unit Elevate at Southwest Station in Eden Prairie and the 243-unit Green on Fourth (“G4�) in the Prospect Park neighborhood of Minneapolis. Total development costs for G4 and Elevate are approximately $118 million.

Congratulations, Bill Katter!

From all of us at United Properties, kudos to United Properties Co-President and Chief Investment 2É?FHU %LOO .DWWHU RQ EHLQJ QDPHG Minnesota Real Estate Journalâ&#x20AC;&#x2122;s ([HFXWLYH RI WKH <HDU $ &5( PRYHU DQG VKDNHU ZLWK D SURČ´FLHQF\ IRU ZUHVWOLQJ GRZQ FRPSOH[ GHYHORSPHQW SURMHFWV %LOO KDV KHOSHG SRVLWLRQ 8QLWHG 3URSHUWLHV DV WKH LQGXVWU\ OHDGHU LW LV WRGD\ &RQJUDWXODWLRQV %LOO :HČ&#x2021;UH SURXG WR KDYH \RX DW WKH KHOP

UPROPERTIES.COM

MINNEAPOLIS

DENVER

March/April 2019

Page 49

2019 Minnesota Real Estate Awards

Real Estate Executive of the Year David Frauenshuh, Frauenshuh, Inc. David is a dedicated Christian and an unmatched business, non-profit and philanthropic leader. He lives out his faith through all facets of his life and has an incredible focus on Giving. To enable his generosity, he has achieved success in the business world through strong relationships, trust and treating others with the love of Christ. David's leadership in 2018 enabled unparalleled success for Frauenshuh, Inc. in 2018 including such projects as: - Development of the 70,300sf Minnesota Drive Medical Campus anchored by Twin Cities Orthopedics in Edina on a former swamp and landfill site including approximately $1M in DEED and TBRA cleanup grants. - Redevelopment of the Mann Theater building and the Granite City building in St. Louis Park to urology, plastic surgery, dental and food uses. This project was originally developed by Frauenshuh in 1993 and is now positioned for success for the coming decades with 100% occupancy. - Repositioning of the former Golf Galaxy space at Southdale Square into a Caf̩ Zupas, Barre3, and Tuesday Morning, enabling minimal downtime and 100% utilization of an otherwise functionally obsolete junior box space at above market rents. - Obtaining governmental approvals and environmental cleanup grant awards totaling approximately $1M for the first Drury Hotel in Minnesota to be located at France Avenue and 494. - Property Management: Our clients awarded Frauenshuh with new property and facilities assignments totaling approximately 1.7 million square feet in 2018. This growth in management services accounts for a portfolio increase of nearly 40% over the past twelve months of 2018. Properties ranged from facilities management, industrial, office and medical office buildings.

WINNER: Bill Katter, United Properties A commercial real estate mover and shaker with a proficiency for wrestling down complex development projects, Bill Katter has helped position United Properties as the powerhouse it is today. With his steady hand on the wheel, Bill is leading his team as it reshapes downtown Minneapolis, among other communities, with vibrant places for people to live, work and play. 2018 was certainly no exception. At the corner of 3rd and Nicollet, Bill is developing The Gateway, which, at 34-stories once complete, will be the tallest building to be erected in Minneapolis since the 1990s. His expertise and diligence have moved the project through significant negotiation and entitlement milestones, including securing lead office tenant RBC Wealth Management as well as bringing the first Four Seasons hotel to the Twin Cities. Bill's tenacity on The Gateway project also includes overcoming entitlement challenges and potential roadblocks that might have stopped other developers in their tracks. For example, when the City challenged the project's ability to include a porte cochere to allow vehicles to pull into the site to drop off guests, Bill and his team appealed and won on the importance of this and other features like skyway access and building signage. With United Properties' Creating Deep Roots brand statement as the backdrop, Bill continues to confidently navigate through the complexities of The Gateway project to make a difference in downtown Minneapolis.

Let us open doors for you so you can open doors for others.

Aeon is a nonprofit affordable housing developer and manager.

Our vision is that every person has a home and is interconnected with community.

612-341-3148 aeon.org/careers

Competitive salary & impressive benefits Acting boldly to create and preserve affordable homes Career development and advancement opportunities

Page 50

2019 Minnesota Real Estate Awards

Real Estate Executive of the Year Mike Ohmes, Cushman & Wakefield Mike Ohmes has been a leader in the Minneapolis-St. Paul office of Cushman & Wakefield for nearly 30 years, starting out as an office broker and working his way up to head of brokerage. 2018 was Mike's first full year as Managing Principal of the office, putting him in charge of nearly 500 employees in Minnesota, including 85 brokers and one of the largest Asset Services teams in Cushman & Wakefield's Americas division. --Mike was tasked in 2018 with leading a smooth transition to bring the office fully under the Cushman & Wakefield banner, with the company having completed an acquisition of what had been Cushman & Wakefield NorthMarq in late 2017. Mike was essential in helping to integrate policies, technology and other major changes while ensuring that clients didn't notice even the slightest dip in quality or value of the company's services. --Under Mike's leadership, the Cushman & Wakefield office in Minneapolis-St. Paul remained a market leader and exceeded its budgeted revenues for 2018. The company was involved in several of the largest transactions around the Twin Cities metro and continued to manage some of the largest properties in the area, such as Normandale Lake Office Park, Centennial Lakes Office Park and Campbell Mithun Tower.

Joe Ryan, Oppidan Investment Company Joe Ryan founded Oppidan Investment Company in 1991 with the personal philosophy of always Ă?delivering value. This philosophy has been the key to his success in transforming Oppidan into a national real estate development leader. Oppidan has made its mark in all facets of the commercial development industry, from development and construction to project management. Joe has kept the company laser-focused on key developments, such as senior housing, retail, mixed use and market rate apartments, working with national clients such as Duluth Trading Company, Northern Tool + Equipment, ABRA Auto and Cub Foods. Joe's leadership is apparent and last year was the most successful year yet for Oppidan. The company enjoyed a 105 percent increase in activity year-over-year, including transactions valued over $450M from 80 projects covering 4.9 million square feet in 29 states. Oppidan's build-to-suit activity was also strong in 2018 with 19 projects and 1.1 million SF in 14 states. This earned Oppidan a spot in the list of top developers. Notable projects in 2018 include: The Pillars of Prospect Park, an $83 million, 343,008 square foot senior housing community that includes intergenerational programming. Lowa46, a 240,436 square foot mixed-use development that includes market-rate apartments and penthouses, Cub Foods, small-shop retail and large public plaza.

Steve Wellington, Wellington Management, Inc WMI Started construction of phase one of our redevelopment of Bassett Creek development in Minneapolis. We broke ground in June on a 66,000 sf three level office building, currently 20% preleased. We expect to complete tis $14.5M project in June 2019. Market response to both this emerging near downtown redevelopment project and to our new Leef Office Building has been very positive. We also broke ground on a 75 acre mixed us subdivision in Blaine at 109th and Lexington. Our first phase development is a 200 unit senior housing project currently under construction.

This project is owned and developed by Dominium. The grading, and other land improvements are close to completion. We are at LOI stage with a convenience store, gas station, an 11,000 sf day care and a 12,000 sf retail center. We expect that the building out of this $70 M project will be completed by 2020. We finished the first phase of our redevelopment of the old Rainbow foods property at Lake street and Hiawatha in the Longfellow neighborhood of Minneapolis. This newly named Minnehaha Crossing development is a $25 million 92,000 s.f. project - currently 90% leased. We opened an new charter elementary school, Universal Academy, in the rear portion of the building in June of 2018. We followed with an opening of a new 23,000 s.f. Aldi Food Market in December of 2018. Our 3.9 million s.f. core portfolio of 102 buildings increased its occupancy from 87.97% occupancy in the first quarter of 2017 to 91.73% occupancy at the end of the fourth quarter of 2018.

Thank You Sponsors!

Gold Sponsors

Bronze Sponsors

March/April 2019

March/April 2019

2019 Minnesota Real Estate Awards

Developer of the Year WINNER: Ackerberg Group 2018 was an exciting year for ACKERBERG. We successfully launched our second investment fund, Ackerberg Investors Fund II, and purchased the first six assets of this new fund in markets such as Plymouth, Edina, Uptown, and St Paul. We continued to renovate and reposition many of our existing assets, continuing to focus on fresh feeling buildings, and artful spaces. One of our existing projects was honored in the Building Energy Challenge by the City of Minneapolis, another was selected as a Top Project by Finance & Commerce, and ACKERBERG itself was honored by the Lake Street Council as a Community Impact award winner. In addition to all of that, the most exciting part of 2018 was our ability to complete and open a project known as MoZaic East. MoZaic East is a Class A office development in Uptown, developed speculatively, which opened in 2018. It is an eight-floor structure containing approximately 200,000 SF, including underground executive parking and outdoor patios on all floors. The first floor is largely hospitality style common areas, along with retail spaces. This interior common space was created to provide third space areas and lounge amenity, away from a tenant's primary work environment. These spaces are modern, warm, comfortable, progressive and edgy.

Bader Development Bader Development The year 2018 has been one of the most exciting and meaningful in Bader Development's history. We are a company that prides itself on our versatility and commitment to improving the Twin Cities through thoughtful development and community involvement. In 2018, Bader Development entitled the largest apartment community that the City of Minneapolis has seen in decades. Calhoun Towers is an opportunity to transform the West Calhoun neighborhood and welcome hundreds of new residents to enjoy the lakes and parks the area has to offer. Upon completion, it will consist of 744 new apartments, in addition to its existing 113 units, and will create a thriving mixed-income community steps away from the new West Lake Street SWLRT station, the Midtown Greenway, and Bde Maka Ska. This transit-oriented development was a result of our team working closely with many stakeholders, including the City of Minneapolis, Hennepin County, Met Council, SWLRT Project office, Midtown Greenway Coalition, West Calhoun Neighborhood, and the existing residents of Calhoun Towers. The coordination and feedback from these organizations was an integral part of our role in planning a development that will improve the community as a whole. Calhoun Towers is expected to break ground in 2019.

Doran Companies 2018 was an exceptional year for Doran Companies. As a development-led company, we exceeded internal goals and continued our aggressive presence in the Twin Cities market.

Aria, a 184-unit luxury apartment community on the corner of 66th and York is nearing completion. Construction is moving along at the Expo in Minneapolis. The 368-unit luxury apartment community will be delivered in two phases, beginning in early 2020. Doran Companies broke ground this year after solidifying an operating agreement with Canterbury Holdings and a comprehensive plan with the City of Shakopee to build a 326-unit luxury apartment. After achieving success in leasing the first 254 units at The Reserve at Arbor Lakes, the second phase of 124 units is underway. In 2018, the final phase of the 610 West luxury apartment complex was completed for a combined total of 483 units. The development team gained approval on Marsh Run in Minnetonka for a proposed 175-unit luxury apartment complex just off 394 at Wayzata Boulevard and Fairfield Road.

Sherman Associates Sherman Associates - Minnesota Real Estate Journal - 2018 Developer of the Year In 2018, Sherman Associates completed over $273 Million in new development; bringing 530 units of housing to market, spanning Minnesota, Iowa, and Wisconsin. In Downtown Minneapolis, Sherman completed the urban-infill development of the East End block; composed of the 180-unit market-rate apartment building, East End; a much-needed grocery store for the neighborhood, Trader Joe's; the ever-popular sandwich shop, Jimmy John's; and the soon to be opened, Starbucks Coffee. In Downtown Duluth, Sherman opened the doors to the historically renovated NorShor Theatre and Arts Center. This has served as a major component in the revitalization of Duluth's arts district, including new visitor and employment opportunities, filling vacant retail spaces, enhancing public safety, and catalyzing other community and economic development opportunities. In Fall of 2018, Sherman turned on power to 2 solar gardens, spanning 55 acres, and collectively harnessing 6.75-megawatts of energy. These gardens currently power over 3000 rental homes in Minnesota, with a large majority affordable to households at or below 60% AMI.

Titan Development Titan Development & Investments focuses on the development of hospitality properties, market rate apartments, affordable housing, and Senior Living communities throughout the country. Our unique boutique company has a diverse portfolio with proven methods of successfully shifting to different asset classes as the market changes. Titan had an incredible 2018 with several closings taking place. Our development goals are aggressive, and we are growing at a rapid pace with projections of over $200M per year. One of the big reasons that we are able to be this aggressive and continually deliver superior results is that we have a dedicated team focusing on the entire process including financing, planning, and construction management. The Hilton hotel in downtown Rochester will open April 15, 2019. Unique to the market, the hotel pairs superior service with upscale amenities. Titan partnered with Harbor Bay Real Estate Advisors after recognizing the need for high end luxury hotel accommodations to satisfy the travelers from across the world coming to Rochester for medical, educational, or business reasons. Hilton's modern design and exceptional architectural distinction are the first of its kind within the city of Rochester.

Page 51

Page 52

Minnesota Real Estate Journal

Women in Real Estate From page 1

opportunity. Being in the minority can be a huge advantage! Thinking differently than most of our peers, asking questions from a new perspective, and finding alternative solutions based on not only unique life experiences but also based on how we view the world puts us in a great position to add true value to our teams and business overall. Having a woman on your team and in leadership roles can often provide a leg up on the competition as more and more buyers are finding great success and value in diverse teams.

Band of Sisters (and Brothers) Almost 20 years ago I joined Minnesota Commercial Real Estate Women (MNCREW) which is just one chapter of CREW Network (now a global organization consisting of over 11,000 respected, professional women and men). The CREW Network Foundation is the only organization dedicating its resources solely towards transforming the commercial real estate industry by advancing women globally. Outside of having met some of my best friends through these organizations, they provide me with a broad network of professionals in all disciplines of commercial

real estate. What other organization within commercial real estate offers this kind of network? Please note – not only can you be a member if you are a man – we encourage it!

Passion Passion for the business is what drives my work in commercial real estate – and my guess it is what drives my peers as well. Ok – passion for the business is not specific to women but if we don’t diversify, elevate diversity through the highest ranks in our business and continue to evolve does passion stick around? One of the factors human resource professionals use to measure the productivity of employees is engagement. Companies tend to show higher rates of employee engagement when those employees feel included and work on diverse teams. A Gallup blog entitled Using Employee Engagement to Build a Diverse Workforce cited a study that found gender diversity predicted the financial success of business units in two independent companies. The combination of employee engagement and gender diversity resulted in 46% to 58% higher financial performance -- comparable revenue and net profit, respectively -- for business units above the median on both engagement and gender diversity, compared with those below the median on both. Engage and Diversify – keep the passion flowing!

Strengthen your team Women are drivers, organizers, and leaders by nature. Throughout history we have been at the center of life, leading families, driving for change, organizing larger causes and taking charge whether it be at work or home or both.

Study after study show that women are much more likely to apply for a job only if they believe they meet all of the requirements – which means you can generally assume female applicants are likely to be even more prepared for the role in which you need to fill. As women, we are constantly being told to be bolder, lean in, take the reins yet when we do, we are often told to hold on, pull back, stop being so aggressive.

Teams and companies who can question themselves and think twice about how this is perceived when working with women in a professional setting will be much more successfully diverse and have stronger outcomes.

March/April 2019

daring to fail and being bold. We all hear a lot about the need for more diversity, for equal pay and the struggle for women to rise to the top in the commercial real estate world. All of these issues are incredibly important for many reasons, not the least of which is that companies do better (more profitable, innovative and productive) when diversity and inclusion are part of the fabric of the company rather than just part of the discussion.

Seeing the commercial real estate industry become more diverse and inclusive starts with each one of us. Be the woman who steps up to get that next promotion or offers to speak on the next panel, be the man who joins MNCREW/CREW Network, and be the leader in your company who hires or finds a smart woman within the company, specifically sponsors her and helps ensure her voice is being heard and elevated. You won’t regret it!

Be part of the Movement According to CREW Network’s 2017 white paper entitled Best Practices for Gender Equity and Inclusion in Commercial Real Estate, women make up 35% of professional workforce in commercial real estate in the US but only occupy 9% of C-Suite positions.

Women are working to change this by stepping up, out of their comfort zones,

IREM Minnesota thankss our 2019 Industry Partnerrs for their generous spon nsorship contributions.

PLATINUM PAR A TNERS

GOLD PAR A TNERS

SILVER V PARTNERS ur or Corpor

www w..irem emMN.or mMN.org

March/April 2019 Annex from page 10

a $2.5 million investment for a new refrigeration system. Holmes, therefore, closed the rink in 2017.

Now called the Renaissance Minneapolis Hotel, The Depot, the complex recently underwent a 24,000-squarefoot expansion of new event/banquet space on what was the ice rink and a surface parking lot. CSM says the expansion honors the history of the building, which is listed on the National Register of Historic Places.

Other big CSM projects include Central Park Commons in Eagan where CSM razed a former Lockheed Martin office building and developed a 434,000-square-foot retail center, and the Shops at Lyndale I and II in Richfield where the company build a 235,000-square-foot retail center.

But what does Holmes consider his greatest accomplishment?

In 2001, Holmes was one of a few select individuals appointed by thenAttorney General Mike Hatch to oversee the restructuring of Allina Hospitals and Clinics. The pro bono job required 70 hours a week.

Holmes says he and two friends took over Allina and it was the “most challenging thing ever.”

“At that time it was Allina and Medica and they had 40,000 employees between the two entities,” he says. “We had to spin off the insurance company right away… That was a killer.”

Holmes says they ran it like a business and turned it around, which was a big accomplishment. They ran it for four or five years.

“It cost a lot of money to do it and I had to add a couple more secretaries. It was a lot of work but satisfying,” he adds.

What makes Holmes so successful?

Colleagues, employees and others who’ve done business with Holmes say he’s creative and intuitive and never gives up.

“As an entrepreneur, Gary will never quit,” Kittleson says. “I don’t think quit is in his makeup at all.”

“He likes to see the big picture,” Kittleson continues. “He seeks opportunity,

Minnesota Real Estate Journal

but it’s got to be a good deal. There has to be a reason to it. Nothing is impossible but it’s gotta make sense. He’s always saying it’s gotta make sense.”

And Kittleson says Holmes has the ability to makes sense out of things that don’t make sense to other people. And he knows how to assess risk and mitigate it to do a transaction or project.

“He’s always assessing risk,” Kittleson says.

He goes to excruciating lengths to understand and make a project work. He asks questions and dives into the details.

“If you come up with 100 answers to questions that you think Gary will ask, he will always ask 100 more,” Kittleson says. “There’s always that 101st question that nobody thought of.”

Kittleson says Holmes is able to pull off complicated deals that others shy away from.

“The more difficult and complex the deal, the more creative he is and it’s probably the greater opportunity for CSM,” Kittleson says, pointing to projects like the Milwaukee Road Depot.

“There were many people who took a look at that over a number of years and nobody could figure out how to do it,” Kittleson says. “Not only could he figure out how to do it, he took it as a challenge and made it extraordinarily successful. He’s always looking at leaving it better than he found it.”

Kittleson also points to his work ethic.

“Everybody works, including him, every day,” he says. “He’s always working. He’s always thinking. He’s always challenging us. He’s focused. He’s very inquisitive. He likes a lot of analysis because some place the devil is in the details. By knowing where the pitfalls are that’s how we avoid them.”

Also, Holmes’s memory for details is extraordinary.

“He must have a photographic memory,” says John Johannson, senior vice president at Welsh Companies/Colliers International | Minneapolis-St. Paul.

“He remembers project details from decades ago as if it happened just yesterday.”

“And numerically, he’s like a freakin’ HP 12C,” Peyton adds.

“He also has a special ability to sense whether or not someone is being honest

and candid – within moments of their first discussion,” Johannson says. “If someone thinks they can make up an answer or twist a fact, they will soon find out that he already knows the real story or real facts.”

Holmes retains properties long term Something else that stands out is that Holmes has held onto assets for decades.

“He has held onto a lot of the stuff for a long, long time,” Peyton says. “He’s been very successful because he looks at the long term, and he’s a build-and-hold kind of a guy. He has a very good enterprise around him and that helps him perform what he does on a daily basis.”

“Few developers elect to hold their properties for as lengthy period of time,” Johannson adds. “Gary Holmes builds his projects with the intent to hold them indefinitely. Under this format, you don’t complete the project and walk away and move onto the next new project. You care for all your existing projects as you still move onto your next new project.

Over time, this results in an accumulation of a large portfolio – and it requires daily attention. In the longterm, it can be rewarding to those that tackle the workload.”

Holmes gives back Holmes has given money to the Uni-

Page 53

versity of Minnesota to found The Gary S. Holmes Center for Entrepreneurship and has served on dozens of nonprofit boards. He also helped the University of St. Thomas build a hospital in Uganda that performed about 30,000 some procedures last year, and he built the Gary S. Holmes Residences, an eight-unit apt building for visiting doctors.

“I’ve always believed in giving back,” Holmes says. “I guess because I can, if you boil it down to the big issue.

I can make a big difference in a lot of things. And it’s rewarding to be able to do that.”

He also founded CSM Cares for CSM employees to give back to the communities in which they do business.

“CSM Cares is successful because Gary Holmes cares. Not only is he philanthropic, he would like us to be philanthropic as individuals as much as we can,” Kittleson says.

For example, Kittleson says CSM is now the largest contributor in the Upper Midwest to the Ronald McDonald House Charities. Every year, the company sponsors Shop & Sip, CSM’s largest fundraiser for the Ronald McDonald House. In addition, Holmes and CSM are major contributors to Gillette Children’s Specialty, Children’s Cancer Research Fund, Minneapolis Heart Institute Foundation and other charities and organizations.

Page 54

Minnesota Real Estate Journal

March/April 2019

394 From page 1

for sale with Jim Vos and Steve Strom at Cresa Minneapolis. â&#x20AC;&#x153;We are pleased that our real estate team identified a location that will provide an outstanding environment for our employees and constituents including our growing portfolio of franchise partners,â&#x20AC;? said Eric Bakken, executive vice president and president of franchise for Regis, in a prepared statement.

Opus previously landed Tactile Medical, which is leasing about 100,000 square feet on the second and third floors of the rehabbed building and will move into the space this fall.

St. Louis Park Development continues in St. Louis Parkâ&#x20AC;&#x2122;s burgeoning West End area, which includes The Shops at West End, restaurants, entertainment venues and newly developed hotels and apartments. â&#x20AC;&#x153;Most of our growth has been in the West End area,â&#x20AC;? says Greg Hunt, economic development coordinator at the city of St. Louis Park.

For example, the Central Park West Apartments, which includes 199 luxury units, opened in early 2018. The

Talo Apartments in Golden Valley COURTESY THE FORUM REAL ESTATE GROUP

developer is Florida-based DLC Residential. The six-story complex is at 1511 Utica Ave. S., and amenities include a golf simulator, dog wash, yoga studio and rooftop deck. Nearby,

GREYSTONE IS PROUD TO SPONSOR THE 2019 MREJ MID-YEAR APARTMENT SUMMIT â&#x2013; â&#x2013; â&#x2013; â&#x2013; â&#x2013; â&#x2013;

Loan sizes $1MM and up 7R VQ .6 8 QP TGĆ&#x201A;PCPEGU CPF RWTEJCUGU Flexible step down prepayment option 5-, 7- and 10 -year loan terms options Par tial and full-term IO available 0QP TGEQWTUG CUUWOCDNG NQCPU

We p rov ide i n nova t i ve f i na nc i ng sol u t ions f o r a l l yo u r m u l t i f a m i l y l e n d i n g n e e d s .

NEED A QUOTE ON Y YO OU R NEXT PROPERT Y? For more information contac t: Kyle Jemtrud | k yle.jemtrud@greyco.com | 952.475.6333 Ky w w w.greyco.com/lending

Copyright py g Š2019 Greystone y & Co., Inc. All rights g Reserved.

Loans are offer f ed through Greystone Funding Company LLC, Greysto one Servicing Company LLC and/ Â&#x153;Ă&#x20AC; Â&#x153;Ă&#x152;Â&#x2026;iĂ&#x20AC; Ă&#x20AC;iĂ&#x17E;Ă&#x192;Ă&#x152;Â&#x153;Â&#x2DC;i >vwÂ?Â&#x2C6;>Ă&#x152;iĂ&#x192;° Â&#x153;Ă&#x20AC; Â&#x201C;Â&#x153;Ă&#x20AC;i Â&#x2C6;Â&#x2DC;vÂ&#x153;Ă&#x20AC;Â&#x201C;>Ă&#x152;Â&#x2C6;Â&#x153;Â&#x2DC; ÂŤÂ?i>Ă&#x192;i Ă&#x203A;Â&#x2C6;Ă&#x192;Â&#x2C6;Ă&#x152; Â&#x153;Ă&#x2022;Ă&#x20AC; Ă&#x153;iLĂ&#x192;Â&#x2C6;Ă&#x152;i Ă&#x153;Ă&#x153;Ă&#x153;°}Ă&#x20AC;iĂ&#x17E;VÂ&#x153;°VÂ&#x153;Â&#x201C; Â&#x153;Ă&#x20AC; VÂ&#x153;Â&#x2DC;Ă&#x152;>VĂ&#x152; information@greyco.com.

0419

the 126-room AC Hotel by Marriott West End, developed by Willmarbased TPI Hospitality, opened in spring 2018. The hotel includes a rooftop bar and lounge.

Hunt says two more apartment complexes have been approved for development including Elan West End, which is just north of Central Park West Apartments. The project will

March/April 2019

include 164 high-end units, and the developer is an affiliate of national multifamily housing developer Greystar.

Across the street, developer Luxe Residential -- which was created by one of the founders of DLC – anticipates breaking ground this fall on the six-story, 207-unit Luxe Apartments on what’s currently the Olive Garden site.

The restaurant will be demolished and construction of the apartment complex is expected to run through 2021. (The Olive Garden plans to relocate to the site where Avenida Mexican restaurant operated near I-394 and Hopkins Crossroad in Minnetonka. Avenida closed and the building will be razed to make way for the Olive Garden chain.

Hunt says with all of the nearby walkable amenities, the West End is a hot spot where companies want to locate their offices.

“Given the location and all of the amenities around it, it’s exactly what companies are calling,” he says. “It has got basically everything that their employees would want to have around them to be an attractive place for them to conduct business.”

In new office development, Minneapolis-based Ryan Cos. US Inc. is partnering with The Excelsior Group, based in Eden Prairie, to develop 10 West End, an 11-story, Class A office building. The city approved the development in 2016. The site is south of the Central Park West Apartments and the AC Marriott Hotel. the building will be located four miles west of downtown Minneapolis in the attractive I-394 office submarket.

Ryan and The Excelsior Group hired Transwestern to lease the approximately 335,000-square-foot building. Hunt says they’re actively looking for a tenant or tenants to kick off the project. It will be the first Class A office building built in the I-394 corridor in 17 years.

Key features will include a shared outdoor amenity space, ground-floor retail space, a fitness facility and indoor bike room.

Just south of this site, an entity owned by The Excelsior Group and Goldman Sachs & Co. purchased The Parkdales, a 560,000-square-foot, sixbuilding office complex.

“They totally renovated those office buildings and rebranded it West End Office Park,” Hunt says. “They spent over $13 million in upgrades. They took a struggling office park and thoroughly renovated it and leased up the majority of that. They’ve attracted some nice companies.”

New tenants include CoBank, Magnet 360 and nVent.

Moving a little further down to the northwest quadrant of I-394 and Highway 169, Excelsior-based Stoddard Cos. acquired the former Santorini restaurant property with plans for an apartment building and hotel dubbed Platia Place. The restaurant was razed and Stoddard’s plans were approved by the city. They call for a 149 units of apartments and a 100-room hotel.

Minnesota Real Estate Journal

Hunt says Stoddard is looking to break ground this year.

Lastly in the city, Life Time Inc. opened its first Twin Cities co-working location in 28,000 square feet at the 1600 Tower at West End.

Golden Valley While most of the West End is located in St. Louis Park, the easternmost 6 acres are in Golden Valley, so the two cities work closely together, says Jason Zimmerman, planning manager at the city of Golden Valley.

For example, one-third of the units at the Central Park West Apartments are in Golden Valley and two-thirds are in St. Louis Park, Zimmerman says. For the new AC Marriott, the hotel is in St.

Louis Park and the parking lot is in Golden Valley, and for the approved 10 West End office building development, the ramp will be built in Golden Valley.

In other activity in Golden Valley, the Talo Apartments opened last year at 5100 Wayzata Blvd. The 303-unit luxury complex was developed by Forum Real Estate Group in Denver. Amenities include a lazy river pool, sauna, indoor rock climbing, a yoga studio and a rooftop lounge.

Zimmerman says the second part of that development will be the Global Pointe Senior Community, which is being developed by Minneapolis-based Global One Commercial. The building is being built in the northwest corner of I-394 and Highway 100.

The 100-unit, senior-living facility will be a five-story building that includes 20 independent-living units,

50 assisted-living units and 30 memory-care units. It’s scheduled to open in fall. Amenities will include a sky lounge, art studio, move theater, fitness room, billiards room and large outdoor deck.

Global One Commercial officials say it’s designed to be a boutique senior-living building experience; however, it will have all of the amenities of the bigger competitors in the seniorliving sector.

Moving further the west, about a block north of I-394 off of Xenia Avenue and Golden Hills Drive, is a development called the Xenia Apartments. It’s 369 units and the developer is Omaha, Neb.-based The Slosberg Co. Zimmerman says the parking ramp

is up and most of the building is framed, and it’s slated to open in summer 2020.

Amenities will include an outdoor pool/indoor pool and pickle ball courts on top of the parking ramp. Zimmerman says the project is expected to have an urban feel. It will be built closer to the road, and the developer’s renderings show a Parisian streetscapestyle project.

Minnetonka Ridgedale Center has created some restaurant/entertainment pads in the northwest corner of the mall’s parking lot. One of the newest users to open is indoor skydiving venue iFLY. “The introduction of entertainment to the area is something new,” says Julie Wischnack, community development director at the city of Minneton-

Page 55

ka. “The city understands that entertainment has to be part of the new lifecycle of a mall to help keep things active.”

On another underutilized area of the mall’s parking lot, Dallas-based Trammell Crow is developing the Avidor Minnetonka, a six-story, 169-unit, luxury senior-living building for the 55plus demographic as well as a public park.

Across the street and to the south of Trammell Crow’s project, Minnetonka developer Rotenberg Cos. is developing The Luxe, a 77-unit, high-end apartment building where Redstone Grill previously was located before moving to Ridgedale Center. Wischnack says they just poured the footings for the project.

In other activity, Bloomington-based Doran Cos. plans to break ground later in April on Marsh Run, a 175-unit, luxury apartment building at Wayzata Boulevard and Fairfield Road near Hopkins Crossroad and I-394. The site is currently occupied by three small office buildings at 11650 and 11706 Wayzata Blvd.

The project will be the first Doran project led by Doran RE Partners LLC, a new independent development venture that pursues joint venture development deals relying on capital independent of founder/owner Kelly Doran, according to a prepared statement.

Leasing for the new apartments will begin in early 2020. Amenities will include a pool, spa, sauna, fitness center, clubroom, co-working spaces and outdoor lounge areas.

Twenty percent of the development’s units will be affordable, and the city approved $4.8 million in TIF to support that effort.

In other activity, The Opus Group is developing a 147-unit senior-living development called The Orchards of Minnetonka Senior Living near Hopkins Crossroad and I-394. The facility will include a full continuum of care including independent living, assisted living and memory care. Ebenezer Management Services will operate the community. An April opening is planned.

Page 56

Doran Breaking Ground on new luxury apartment community in Minnetonka Leasing of 175 highly-designed residences and accompanying amenities will begin in early 2020 Doran Companies today announced it will break ground later this month on a new luxury apartment community in Minnetonka at Wayzata Boulevard and Fairfield Road near Hopkins Crossroads and I-394. The multi-family Doran design-build project is the first Doran project led by Doran RE Partners LLC, a new independent development venture that pursues joint venture development deals relying on capital independent of Kelly Doran.

The 175-unit apartment community will be constructed on the site of what are currently three independent office buildings located at 11650 and 11706 Wayzata Boulevard. With direct access to Westridge Market and close-proximity to Ridgedale Center, the community is nestled within in a rich ecosystem of natural wetlands and tree-lined walking trails, with Oberlin Park to the north and Crane Lake to the south.

“We are excited to bring this project to life, marrying the tranquility of the natural environment within this Minnetonka neighborhood with the modern conveniences and amenity-rich lifestyles residents of Doran properties have come to expect,” said Doran Chief Operating Officer and Doran RE Partners President Anne Behrendt. “We know that the walkability and natural landscape of the immediate area, combined with easy access to downtown Minneapolis and the entire metro area make this an ideal location for our first investment in Minnetonka.”

With easy access to the I-394 corridor, this multi-family apartment community will be divided into two wings, with the north side of the building appearing as three stories in height and the south appearing as six stories. More than 20,000 square feet of amenity spaces will include a pool, spa, sauna, entertainment suite, clubroom, game area, fitness center with group fitness space, coworking spaces and outdoor grilling and lounge areas, fire pits and a bocce ball court. The majority of the

Minnesota Real Estate Journal

parking will be housed underground in a heated parking garage.

“After many months working closely with the community and with city planners, Doran is eager to break ground on this partnership,” said Behrendt. “I am so proud of our team for getting this project to this point, and of our Doran architects and construction professionals who have molded and shaped this project into an inspiring community that fits within the existing landscape.”

The community will also include 35 income-restricted apartments at 50 percent Area Median Income. The City of Minnetonka supported this effort with $4.8 million in TIF for the project.

“It has been a privilege working with the City of Minnetonka,” said Behrendt. “They are a strong example of a community committed to addressing the issue of affordable housing, all while demonstrating a deep understanding of market realities for getting new projects financed.”

Major St. Paul East Side redevelopment project, Phalen Village, set to break ground early April with leases signed for anchor tenants Entira Family Clinics and Aldi.

Colliers International | Minneapolis St. Paul Healthcare Brokerage Services Team in partnership with the development team at Paster Properities is pleased to announce anchor tenant, Entira Family Clinics, a Minnesotabased, independently owned and operated, primary healthcare group, to the redevelopment project at Phalen Village. Grocer, Aldi, will also anchor the redevelopment which sits on 2.5 acres located in an Opportunity Zone in the east metro of St. Paul at Phalen Boulveard and Clarence Street.

Entira Family Clinics has a strong presence in the east metro and maintaining this presence on St. Paul’s east side was crititcal to their culture and mission. Len Kaiser, CAO of Entira Family Clinics, is excited to anchor this new development, saying “The Phalen Village location will provide a modern

clinic with updated facilities to allow us to continue providing high quality services to the East Side community patients for the next generation.” Louis Suarez, Vice President with Colliers MSP has represented Entira Family Clinics for the past several years and together they have developed a strategic real estate plan, which the new development aligns to.

The project, which has taken over five years of planning and development, was a result of the efforts between the St. Paul Housing and Redevelopment Authority, Saint Paul Economic Development Project Managers, Dave Gontarek and Rick Howden, District Two Community Council member Chuck Repke and former St. Paul City Council Member, Dan Bostrom and Paster Properties.

Met Council funding was obtained for city utility relocation and for the creation of a Woonerf* along Rose Avenue. The Woonerf can be closed off to automobile traffic for events and will allow for food trucks and community gatherings as a public plaza throughout the year. Paster Properities will also develop a “community room” building on the site for District Two Community Council’s meeting place, which will be run by the Council and owned by Paster.

A groundbreaking ceremony will take place on April 11th at 2:30pm and will be attended by the Mayor of St. Paul, Melvin Carter, the new St. Paul City Council Member, Kassim Busuri and other interested parties. The groundbreaking will begin at the Realife Co-op at 1355 Phalen Blvd for speeches, snacks, etc. Contingent upon weather, the party will then head to the site for a photo op. The press is invited to join the celebration.

Constuction has commenced and tenants expected are to take full occupancy in late 2019.

Director of Real Estate Development, Mike Sturdivant led the project on the Paster Properities side and said that, “We are thrilled to be a part of this project in Saint Paul. It has been exiting to see this project come to fruition after several years of planning and we look forward to our tenants opening in

March/April 2019

2019.”

Dr. Bruce Corrie, City of Saint Paul Planning and Economic Development Director adds, “We are pleased that Saint Paul’s first Opportunity Zone project is Phalen Village, which will provide direct community benefits such as healthcare, groceries and multiple gathering spaces for all neighbors to enjoy.” The Colliers International | Minneapolis-St. Paul Healthcare Brokerage Services Team, led by Vice President Louis Suarez, represented Entira Family Clinics in this transaction. David Daly of CBRE represented Aldi in this transaction.

Elevate at Southwest Station Begins Leaseup Timberland Partners, a privatelyowned real estate investment, development and management firm, has announced leasing has begun at Elevate at Southwest Station, the muchanticipated new apartment building located in Eden Prairie. Elevate features 222 contemporary studio, one-, two-bedroom, and penthouse apartments, located just steps away from the existing SouthWest Station Metro Transit Center and the planned SouthWest Station LRT stop for the Green Line extension. The project will also include just over 13,000 square feet of retail space, offering a variety of restaurants, retailers and services.

“Elevate offers an urban lifestyle in a suburban setting and is a great example of well thought out transit-oriented development” said Ryan Sailer, Vice President of Development with Timberland Partners. “The services, amenities, transportation and neighborhood access that Elevate will provide to residents are unparalleled.”

Elevate residents will be treated to a rooftop courtyard overlooking Purgatory Creek Park with pool, outdoor kitchen and bocce court. Additional amenities include a community room, family game room, resident co-working space, package center, heated indoor parking with bike storage, playground, indoor/outdoor dog run, and pet spa. The building’s fitness offerings include a yoga studio and a fitness center with the latest cardio, strength, and

March/April 2019

Minnesota Real Estate Journal

Page 57

CrossFit equipment, in addition to a virtual fitness on-demand studio.

Elevate apartments are designed with diverse layouts, featuring modern, stylish fixtures and features in each unit. Kitchens are equipped with energy efficient stainless-steel appliances, large islands with quartz countertops

and two cabinet color options. Designer lighting, luxury wood plank flooring, walk-in closets, and full-size washers and dryers round out the modern amenities. Master bedrooms include walk-in closets and kitchens will come with built-in USB charging ports.

Sustainable features include a green roof, rainwater cistern and permeable pavers along with electric car charging stations. Residents also receive access to the services and amenities available in the Southwest Station area, including multiple restaurants, retail and access to bike paths, jogging trails and

park spaces.

The $63.7 million, 222-unit mixedincome and mixed-use project was designed by Kaas Wilson Architects and is being constructed by Frana Companies, both based in Minneapolis.

TWIN CITIES AMONG TOP TARGETS FOR COMMERCIAL REAL ESTATE INVESTMENT IN 2019, CBRE SURVEY FINDS

trend toward investment diversification from gateway cities,” said Sonja Dusil, first vice president at CBRE. “Investors have targeted secondary markets like Minneapolis in search of higher yields. We’ve brought many new and foreign capital sources to Minneapolis, and we see this trend continuing into 2019 and beyond. Multifamily, industrial and urban office assets garner the most interest along with value-add opportunities with a strong lease-up story.”

Overall, the survey shows that investors will remain active in commercial real estate markets this year, with 98% of respondents intending to make acquisitions. There has been a pronounced shift toward greater caution, with the share of investors planning to either maintain or increase spending in 2019 falling to 75% (from 88 percent in 2018).

“Continued strong real estate fundamentals, combined with historically deep debt and equity capital markets, provide good momentum for 2019.

Investors are reducing risk and protecting income streams through diversification. Pricing is at or near the previous peak for most asset types in prime locations, so investors are seeking yield in secondary markets and alternative asset types,” said Chris Ludeman, Global President, Capital Markets, CBRE.

in Rogers, Minnesota. Bob Pounds and Amy Senn, formerly of Colliers International, represented the seller in the sale of the building to Rogers Industrial ESP SM, LLC, an entity related to The Terrace Group. The 120,079square-foot, multi-use building was 78% occupied upon purchase.

The purchase was a well-timed opportunity for Terrace to add property in the northwest metro that compliments its current portfolio. The Terrace Group’s Partner Eric Dueholm commented, “With current construction costs, this small-bay product type of this quality would be very difficult to build today, and we don’t expect to see competing product built anytime soon.

We like how this property is positioned in the market.”

The property which is situated less than a mile north of Interstate 94 enjoys easy access and excellent visibility from Highway 101, the primary north / south artery through Rogers. It is also in close proximity to many of the area’s restaurants, shops and hotels.

“We continue to witness significant growth in the Rogers industrial market, as well as expansion demographically.

This growth has, in turn, increased demand for spaces that can accommodate smaller businesses that service the growing community. North 101 Business Park fills this niche perfectly,” noted Todd Geller, Partner with The Terrace Group.

The addition of this property brings The Terrace Group’s portfolio under ownership and management to more than 1,275,000 square feet throughout Minnesota, Wisconsin and North Dakota.

Mae loan for CHAF Portfolio

Minneapolis/St. Paul Continues to Gain Popularity Among Americas Metros, as Secondary Markets Become Increasingly Favored A recent survey of commercial real estate investors ranked the twin cities as the #10 target among Americas metros for commercial real estate investment. This marks the third year in a row that the twin cities moved up in CBRE’s 2019 Americas Investor Intentions Survey.

The survey, which covers all asset types, found that, in 2019, more investors are prioritizing secondary markets that can offer greater potential for both equity and income growth.

Investor interest in secondary assets increased for the fifth consecutive year (33%) to gain significant ground on value-add (37%) as the most preferred strategy.

The survey also examined how investors view each of the different asset types: • Industrial & Logistics is still the preferred property type, cited by 39 percent of investors as the most attractive for investment in 2019.

• Multifamily closely followed in second place, with 37 percent of investors naming it as the next most attractive property type—up from 20% in 2018.

• Office was cited by 10 percent of investors as the most attractive for purchase in 2019.

• Retail’s share of investors (9 percent) has held essentially steady over the past three years, despite competition from e-commerce.

“As evidenced by this report, in recent years there has been a growing

The Terrace Group Acquires North 101 Business Park in Rogers This acquisition adds to The Terrace Group’s portfolio of small bay office / warehouse properties in the Twin Cities and surrounding suburbs.

The Terrace Group is pleased to announce the acquisition of North 101 Business Park, located at 14140-14198 Northdale Boulevard

Dougherty Mortgage LLC closes $13.9 million Fannie

Dougherty Mortgage recently closed a $13.9 million Fannie Mae loan for the refinancing for CHAF Portfolio, a collection of ten affordable multifamily housing properties located in St. Petersburg, Florida. The 30-year term, 30-year amortization loan was arranged for borrower CHAF Properties, LLC.

CBRE Negotiates Sale of 96-Unit Multifamily Property in Brooklyn Park CBRE announced today that Monarch Investment and Management Group has closed on the purchase of The Fountains in the Park, a 96-unit, 84,776 square foot multifamily property at 5700 73rd Avenue N in Brooklyn Park.

Keith Collins, Ted Abramson and Abe Appert of CBRE Minneapolis Multifamily represented the Seller, The Fountains in The Park LLC, in the sale.

“Investor demand for Twin Cities workforce housing continues to be very strong,” said Abramson, senior vice president with CBRE. The Fountains in the Park consists of one and two-bedroom apartments, with a variety of amenities including a washer and dryer in each unit, balconies and patios, an outdoor pool, detached garages, controlled entry and easy access to downtown Minneapolis via I-94 and I-694.

Minneapolis Office Asking Rates Increase to $15.30, 15.9% Above the 10-Year Average Leasing activity continues to grow with 31% increase from Q4; Net absorption slightly negative as tenants optimize space The Minneapolis office market saw

Page 58

asking ratesbincrease to $15.30, which is 15.9% above the 10-year average as demand remains high,baccording to a new report by CBRE. Leasing activity remains strong in Minneapolis, with a 31.3 percent increase in leasing activity during Q1 of 2019. However, the market experienced 279,015 square feet in negative net absorption and the overall vacancy rate increased slightly to 18.3 percent.

A number of large tenants contracting their real estate was the major factor in the increased vacancy and negative absorption, but increasing leasing demand indicates the rest of 2019 should have positive net absorption.

“Class A vacancy rates were lower than the other classes at 14 percent and the asking rates are 15.9 percent above the 10-year average, signifying the high demand,” said Jim Freytag, senior vice president with CBRE. “While vacancy rates did increase overall, leasing demand continues to surge, especially for Class A space.” Continuing the trend from recent quarters, the majority of leases were new rather than renewals, with the Minneapolis CBD accounting for 32 percent of overall leasing activity, followed by the submarkets of I-394 at 20 percent and I494 at 17 percent. Class A demand also continues to rise, as tenants continue to seek higher quality properties and amenities.

The two largest sales were recorded in Minneapolis CBD, with Japan-based Sumitomo Corporation purchasing the 650,000 square foot SPS Tower and DRA Advisors purchasing the 622,173 square foot Oracle and International Centre. The remaining sales activity occurred in suburban submarkets.

CBRE Negotiates Sale of 108-Unit Multifamily Property in Eagan CBRE announced today that Chicago-based The Habitat Company has closed on the purchase of Cedarvale Highlands, a 108-unit multifamily property at 3908 Cedar Grove Parkway in Eagan. The property was previously owned by Steven Scott Management.

Keith Collins, Ted Abramson, and Abe Appert of CBRE Minneapolis Multifamily represented Steven Scott

Minnesota Real Estate Journal

Management in the sale.

“Eagan continues to be a top performing multifamily market with yearover-year rent growth of five percent,” said Abramson, senior vice president with CBRE. “Proximity to a strong employment base, surrounding retail and rapid bus transit make Cedarvale a well-positioned asset in the market.”

Cedarvale Highlands contains studio and 1-bedroom apartments, with more than 60,000-square-feet and features best-in-class amenities including onsite laundry rooms, storage lockers, an outdoor pool, detached garages, views of the Minneapolis skyline and direct access to a variety of retail outlets.

Shingobee Receives National Excellence in Construction and Greener Tomorrow Awards from Associated Builders and Contractors Shingobee Builders’ work on the Four Winds Alternative & Career Technology Education High School in Fort Totten, North Dakota, has earned a National Excellence in Construction® Eagle Award from Associated Builders and Contractors (ABC). The project also received a special recognition, a Greener Tomorrow Award, for its utilization of sustainability best practices.

Shingobee Vice President Tony Godlewski and Superintendent Eric George received the top honor March 27 during ABC’s 29th annual Excellence in Construction® Awards gala at ABC Convention 2019 in Long Beach, California.

Shingobee completed the Four Winds Alternative / CTE School in August 2017 for the Fort Totten School District, a public-school district located on the Spirit Lake Reservation in Fort Totten, North Dakota. Shingobee’s team worked closely with the project’s designers to deliver the 12,500 square foot educational facility within a stringent budget, funded by an emergency construction grant from the U.S. Department of Education’s Impact Aid Discretionary Program. The school’s Alternative / CTE program expands the educational experience for Four Winds students by offering alternative pro-

grams in science, math, English, and social studies along with career technology programs. The building includes classrooms, lab space, offices, and support areas.

The building was designed and built to be net-zero energy, the first school of its kind on tribal land. The features of the building that contribute to its energy efficiency include specially insulated, high R-value walls and roof; triplepane, Low-E glass windows; an 80 Kw array of photovoltaic (solar) panels; geothermal heating and cooling system with high-efficiency water-to-air heat pumps, variable-speed fans and pumps, and energy recovery system; occupancy sensors for lighting; and solar tubes for day-lighting. A net-zero facility is an energy-efficient building that produces more energy than it consumes each year. The building has been registered for Zero Energy Certification with the International Living Future Institute (ILFI). ABC’s Greener Tomorrow Award recognizes Shingobee’s involvement in obtaining a netzero energy building by researching and evaluating different building components that contributed to energy reduction.

Key project partners included Fort Totten Public School District, the Spirit Lake Tribe, DSGW Architects, Obermiller Nelson Engineering, Bergstrom Electric, Concrete Inc., and Klemetsrud Plumbing.

“We are proud to honor Shingobee Builders with a National Excellence in Construction® Eagle Award,” said 2019 ABC National Chair Tony Rader, telecom vice president of National Roofing Partners, Coppell, Texas. “The Four Winds Alternative / CTE School shows not only the exceptional talent in our industry, but the overall commitment to building safely, on time and on budget. Shingobee Builders’ breadth of skills and craftmanship greatly benefits the merit shop construction industry.”

The Excellence in Construction awards program is the industry’s leading competition that honors both general and specialty contractors for innovative and high-quality merit shop construction projects. The award honors all construction team members, including the contractor, owner, architect and

March/April 2019

engineer. The winning projects, selected from entries submitted from across the nation, were judged on complexity, attractiveness, unique challenges, completion time, workmanship, innovation, safety and cost.

A panel of industry experts served as the competition’s judges. This year's panel included representatives from the Building Owners and Managers Association International, the Smithsonian Facilities Construction Division, the Construction Management Association of America, Engineering NewsRecord, Design-Build Institute of America, and various constructionrelated firms nationwide.

Mid-America Real Estate – MN, LLC Arranges Sale of Lexington Shoppes in Saint Paul, Minn.

Mid-America Real Estate – Minnesota recently brokered the sale of the Lexington Shoppes in Saint Paul, Minnesota. The 34,000 square-foot retail center was purchased by a local investment group for $3.1 million.

Lexington Shoppes is conveniently located at the irreplaceable intersection of University Avenue and Lexington Parkway, just blocks away from the new Allianz Field in Saint Paul’s Midway neighborhood.

Ideally situated directly outside the green line with easy access between Minneapolis and Saint Paul, the ninetenant urban strip center offers a mix of franchise and local tenants primed for long term growth and redevelopment Mid-America Real Estate – Minnesota Principal Mark Robinson, CCIM was the exclusive listing broker representing the seller, a local investment group in the transaction. The buyer was represented by Virginia Ng of Coldwell Banker.