MREJ September 2021

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©2021 Real Estate Publishing Corporation September 2021 • VOL. 37 NO. 4

A sign of hope? Crystal Court renovations evidence that corporations still believe in downtown Minneapolis

By Dan Rafter, Editor

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or nearly five decades, the Crystal Court in the IDS Center has provided an oasis of trees in the middle of downtown Minneapolis. In November of last year, the Crystal Court was closed for a $5 million renovation, with the urban park inside the 57story tower reopening in late July.

And less than two months after the court’s reopening?

Those who worked on the project have already seen a difference in how people are interacting with the space.

“Since we’ve taken down the barriers, I’ve been watching how people are using the space,” said Deb Kolar, general manager at Accesso Partners, owner of the IDS Center.

“It is so great to see people having a quick cup of coffee, sitting on a Zoom call or having a meeting and using the space the way we had envisioned it. I think the renovation has made Crystal Court more welcoming for everyone.”

CRYSTAL COURT (continued on page 31)

Still chasing the problem: Twin Cities still short of affordable multifamily developments

By Dan Rafter, Editor

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he multifamily market has remained strong throughout the pandemic, even during the worst days of COVID-19. But that doesn’t mean that this sector doesn’t face challenges.

Most notably, cities across the country – including Minneapolis and St. Paul – still face major shortfalls in the amount of affordable multifamily units available to renters with lower incomes. Most of the new product that is hitting the market today? It’s higher end, with rents that are too high for many renters.

How to fix this problem? How to add more affordable units to the Twin Cities market? We recently spoke with Thomas O’Neil, vice president of market development with the Minneapolis office of Colliers Mortgage, about the demand for affordable multifamily housing in the Twin Cities and the steps that developers and government bodies can do to bring more lower-cost units to the area.

How much of a demand is there for affordable apartment units in the Twin Cities market? And how much of a shortage are there of these lower-cost units?

Thomas O’Neil: There is a very significant demand for affordable housing, and we are producing nowhere near enough affordable units each year to meet this demand.

We do a lot of research at Colliers on this topic. We look HOUSING (continued on page 21

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SEPTEMBER 2021

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MINNESOTA REAL ESTATE JOURNAL

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CRYSTAL COURT AND THE ENDURING POWER OF DOWNTOWN MINNEAPOLIS: For nearly five decades, the Crystal Court in the IDS Center has provided an oasis of trees in the middle of downtown Minneapolis. In November of last year, the court was closed for a $5 million renovation. Now after it’s reopening? Those who worked on the project have already seen a difference in how people are interacting with the space.

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STILL CHASING THE AFFORDABLE-HOUSING PROBLEM: The multifamily market has remained strong throughout the pandemic, even during the worst days of COVID-19. But that doesn’t mean that this sector doesn’t face challenges. Most notably, cities across the country – including Minneapolis and St. Paul – still face major shortfalls in the amount of affordable multifamily units available to renters with lower incomes.

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A FLOOD OF NEW PRODUCT SHOWS JUST HOW STRONG THE TWIN CITIES MULTIFAMILY MARKET REMAINS: Before COVID-19 hit, the Minneapolis/St. Paul multifamily market was thriving. And today? It’s doing the same. Developers are building new multifamily properties, investors are sinking their dollars into apartments and renters are buying up units at newly built buildings.

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SEPTEMBER 2021

SCHAFER RICHARDSON’S TIMBER AND TIE MORE EVIDENCE OF SKY-HIGH DEMAND FOR AFFORDABLE HOUSING: Schafer Richardson recently completed its newest affordable housing project, Timber and Tie in Minneapolis’ Northeast Arts District. Strong leasing here shows just how much demand remains for affordable multifamily.

YOUR 2021 MINNESOTA REAL ESTATE JOURNAL AWARDS WINNERS: No one can deny that 2020 was a difficult year in the commercial real estate industry. But not even the COVID-19 pandemic could keep CRE pros from closing real estate deals and developing new buildings. And on July 29, Minnesota Real Estate Journal honored the men and women who overcame the odds and thrived during even the worst days of the pandemic.

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MINNESOTA’S SUN50 DEDICATED TO PROTECTING CONSTRUCTION WORKERS FROM THE SUN’S RAYS: Construction workers face plenty of dangers on job sites. Injury is just a misstep or equipment failure away. But there’s another danger that these workers often ignore: skin cancer from the long hours they spend in the sun each day.

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WHERE ARE THE WOMEN IN CRE? The gender gap in CRE still exists. What steps can companies take to close it?

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A CLOSER FOCUS ON TITLE COMMITMENTS AND TITLE POLICIES: As with other policies of insurance, a title policy is a complex contract that includes pages of specific risks covered under the policy, along with exclusions from coverage and conditions of the policy.

2021 MINNESOTA WOMEN IN COMMERCIAL REAL ESTATE: Special Section CYBERCRIMINALS AND THE CONSTRUCTION COMPANY SCAM: The FBI’s cyber division has released an important alert to businesses across the United States warning that cybercriminals are impersonating construction companies and using business email compromise to defraud businesses that have pre-existing relationships with those construction companies.

Minnesota Real Estate Journal (ISSN 08932255) Copyright © 2021 by the Minnesota Real Estate Journal is published bi-monthly 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 ©2021 Real Estate Publishing Corporation. No part of this publication may be reproduced without the written permission of the publisher.

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LOCATION ADVANTAGES

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

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

For more information, visit www.EastMetroMSP.org

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

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SEPTEMBER 2021

President | Publisher Jeff Johnson jeff.johnson@rejournals.com Managing Editor Dan Rafter drafter@rejournals.com Vice President | Publisher Jay Kodytek jay.kodytek@rejournals.com Chief Financial Officer Todd Phillips todd.phillips@rejournals.com Art Director | Graphic Designer Alan Davis alan.davis@rejournals.com Managing Director National Events & Marketing Alyssa Gawlinski agawlinski@rejournals.com 7767 Elm Creek Boulevard, Suite 210 Maple Grove, MN 55369 For information call 952-885-0815

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New apartments in the Twin Cities, such as The Julia, continue to offer more common-area amenities such as rooftop living space

A flood of new product? The Minneapolis/St. Paul multifamily market still sizzling

By Dan Rafter, Editor

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efore COVID-19 hit, the Minneapolis/St. Paul multifamily market was thriving. And today? It’s doing the same. Even as the Twin Cities and the rest of the country continue battling the pandemic, developers are building new multifamily properties, investors are sinking their dollars into apartments and renters are buying up units at newly built buildings.

What’s behind the strength of the Minneapolis/St. Paul multifamily market? We recently spoke with Matthew Mullins, vice president at Maxfield Research & Consulting in Roseville, Minnesota. He said that he expects the multifamily hot streak here to continue. And he sees a strong rest of the year and early 2022 for this sector.

MARK EVENSON

How strong is the multifamily market in the Twin Cities area today?

PATRICIA GNETZ

Matthew Mullins: The market has changed quite a bit in the past six months. I put together an annual and bi-annual update on what has happened in the marketplace, looking at rents, vacancies and absorption.

Back in December and January, when we were putting our year-end efforts together, it was quite a different market from where we are now. Vaccinations weren’t rolled out yet. A lot of stimulus money was still being distributed. Things were still closed.

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Then spring kicked in. Some of the restrictions eased. Vaccinations rolled out.

The market started to pick up month to month. By the time we hit May and our governor lifted most of the restrictions, that lit the market on fire as the economy ramped up. Demand for multifamily increased substantially. The sector has been really hot since.

Have you seen signs that the multifamily market’s hot streak will continue?

Mullins: If you just look at concessions, you can see it. Back in the winter months, most of the new projects were offering concessions. They might offer one or two

months of free rent, especially in the downtown core product. Once we got into the spring months, those concessions started to wane. Renters were getting phenomenal deals six months ago. Today, it’s a different market. There are still concessions in certain markets, mostly downtown core markets. But the suburban markets have backed off on concessions. It’s interesting to see how fast the market turned. It’s been fascinating.

How about rent growth? Are building owners charging higher rents today?

Mullins: Rent growth has been pretty nominal. We’ve had pretty nominal rent growth compared to a lot of metro areas across the country. All those booming markets in the south, Texas, Phoenix and Florida, are seeing massive, massive rent growth. We are still hovering at the rate of inflation here in the Twin Cities. Compared to other markets across the country, our rent growth is low. We are a low-rentgrowth market.

are seeing things coming back, slowly.

It’s taking a lot longer for product in the urban core to fill up than it is for the suburban product. People moved out to the burbs and exurbs to get more space during COVID. That hurt the core.

At the same time, a lot of the multifamily product built in Minneapolis has been studios. When the pandemic hit, though, no one wanted to live in a studio apartment. Studio apartments now have the highest vacancy rate across the board. The amenities in these buildings were closed.

The gyms and activity rooms were closed.

So why would people want to live in a studio apartment in downtown during the height of the pandemic?

This was a big flip-flop from prior to the pandemic. Before the pandemic, two- to three-bedroom units were tougher to lease. They were considered too expensive.

Then the pandemic hits, and everyone wants two bedrooms. Two-bedroom units are now a hot commodity.

How much new apartment construction are you seeing in the Twin Cities area?

What other trends are you seeing with new apartment development?

Mullins: We had record new supply in 2020. We hit the highest peak we have ever seen with just more than 10,000 units delivered last year. And that’s a pretty big peak. In prior years, we peaked in the 7,000-unit range. We had a 30 percent increase in new deliveries in 2020 during the pandemic. That’s impressive. We also had a huge year for deliveries in Minneapolis.

I have Minneapolis proper at 4,400 new apartments units in 2020. Compare that to the whole metro area, and roughly 44 percent of all new apartment unit deliveries were in Minneapolis.

Mullins: There has been a shift to bigger units. And if a building is offering smaller units, they’re still offering more flex space in those units. They might have a niche for a home office or a space for a workout area. You are seeing architects draw up new plans that are more creative as people spend more time at home. These spaces are more versatile and serve more purposes. The work-from-home model, the hybrid model, we think is going to stick around. We think we’re going to see more people going into the office two or three days a week and working from home the other days. It’s important, then, that these buildings offer the amenities and common-area amenities that allow people to work from home.

With COVID-19, has there been any slowdown in the number of people who want to rent in downtown Minneapolis and its surrounding neighborhoods?

Mullins: The center of Minneapolis got hit hard during the pandemic. But we

MULTIFAMILY (continued on page 10)

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SEPTEMBER 2021

Schafer Richardson’s Timber and Tie development: Filling the affordable-housing hole in the Twin Cities

By Dan Rafter, Editor

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chafer Richardson’s Timber and Tie multifamily development fulfills a major need in downtown Minneapolis: The project, which offers 175 studio through four-bedroom units in the city’s Northeast Arts District, is not only an example of much-needed affordable housing, it’s geared toward families.

Timber and Tie’s larger apartments – those two- through four-bedroom units – give families with lower incomes the opportunity to rent in downtown Minneapolis.

That’s a rarity: Most affordable multifamily developments in the Twin Cities, and most rental buildings in general, are filled with studio and one-bedroom apartments.

Katie Anthony, director of development with Schafer Richardson, said that the reaction from renters to these larger units has been positive, evidence that there’s a strong market here for affordable, family-focused multifamily housing.

“Most of the market-rate apartment buildings here are skewed toward small studios, micro units and one-bedroom units,” Anthony said. “It’s not easy to find larger units. But we have seen strong demand for three- and four-bedroom units.”

“There is a big need for affordable

How strong has demand been for Timber and Tie? Anthony said that the project is already 70 percent leased. That’s impressive considering that Schafer Richardson only obtained Timber and Tie’s certificate of occupancy two weeks ago.

a big need for quality affordable

Schafer Richardson had also scheduled plenty of showings for the building’s remaining units. Anthony said that the company’s goal is to reach 100 percent occupancy by the end of this year.

Another reason for the demand for units here? Timber and Tie looks and feels like a higher-end building. In addition to its residential units, the property includes an art gallery and a stand-alone marketplace.

It also includes a fitness center, outdoor playground, pet park, community room, kids’ playroom and onsite management.

housing in this market. And there’s

housing.”

Timber and Tie is restricted to renters whose incomes are 60 percent of the Area Median Income, with 25 of the units designated for Project Based Housing Vouchers through a partnership with the Minneapolis Public Housing Authority.

These are the type of amenities most renters expect in higher-priced developments, not in affordable housing.

Timber and Tie is Schafer Richardson’s third affordable housing project in the Twin Cities market. But it won’t be the last.

Schafer Richardson was scheduled to open its fourth local affordable housing development at the end of August. That development, Nova SP, will bring 99 affordable rental units to St. Paul.

“If you went into the building, you wouldn’t be able to tell that this was an affordable development,” Anthony said. “The only difference? We have those bigger units to serve families, and you don’t see those often in most market-rate or higher-end properties. Our goal was to design our spaces to focus on the wide range of ages we will have in this building.”

Schafer Richardson also plans to close on another site in Minneapolis that will become home to a multifamily development offering 163 more affordable units. The company, too, is eying another site in St. Paul that it hopes to close on next year.

The development planned for that site will bring an additional 170 to 175 affordable multifamily units to the Twin Cities.

“There is a big need for affordable housing in this market,” Anthony said. “And there’s a big need for quality affordable housing.

We pride ourselves on being a good landlord. We take care of our properties. We want to provide quality, durable, safe living environments. There is a significant lack of new quality affordable housing in the Twin Cities. And it’s not just that we lack affordable housing for families. We lack it all the way up and down the spectrum of renter types.”

Why is there such a lack of affordable multifamily housing here? Anthony points to the challenge of finding financing sources for affordable projects. There is a limited amount of tax-exempt bonds and the tax credits that go with them. This makes it difficult for developers to find the financing they need for these projects.

“It’s not always, do the numbers work? It’s often, will the financing be here to do this?”

Anthony said. “Is the waiting list for funding sources three or four or five years?”

Anthony said that making financing easier to get would boost the number of affordable developments in the Twin Cities. The good news? Awareness has been building.

There are efforts now underway to increase the amount of federal funding for affordable housing.

Amcon Construction designed and built Timber and Tie. BDH selected the building’s interiors, while Steven Scott Management will manage the property. Financing for the project was provided by Bremer Bank, the Greater Minnesota Housing Fund, Colliers, Metropolitan Council, Hennepin County, the City of Minneapolis, the Minneapolis Public Housing Authority, WNC and Peter Brodd.

In addition to the normal challenges associated with building affordable housing, Schafer Richardson also faced the hurdles thrown up by the COVID-19 pandemic.

Construction on Timber and Tie began in March of 2020, when the pandemic first took hold of the United States.

“We were all trying to figure the lay of the land,” Anthony said. “At the time the pandemic first hit, we were doing site work. We weren’t in enclosed spaces and we had very few subcontractors on the site. We didn’t have any shutdowns, delays or COVID cases early on in the project.”

As construction proceeded, Schafer Richardson launched a contract-tracing program that allowed the company to quickly isolate any COVID-19 cases. Thanks to this, Timber and Tie never saw any delays in construction. In fact, the project delivered seven weeks early.

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SEPTEMBER 2021

Here are the best of the best: Your 2021 Minnesota Real Estate Journal Awards winners

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By Dan Rafter, Editor

REDEVELOPMENT — MULTIFAMILY HOUSING

o one can deny that 2020 was a difficult year in the commercial real estate industry. But not even the COVID-19 pandemic could keep CRE pros from closing real estate deals and developing new buildings.

And on July 29, Minnesota Real Estate Journal honored the men and women who overcame the odds and thrived during even the worst days of the pandemic. The magazine held its 2021 Minnesota Real Estate Journal Awards celebration at The Depot in Minneapolis. Hundreds of the biggest names in commercial real estate filled this venue to honor the industry’s top performers.

This year’s ceremony featured 41 awards for everything from broker of the year and property manager of the year to most significant lease transaction and top urban multifamily project of the year.

Here is the complete of the 2021 Minnesota Real Estate Journal Award winners.

Board of Trade Lofts Carlton Lofts Cove Apartments Emerson Union (Winner)

SUBURBAN SENIORS HOUSING Founders Ridge (Winner) Friendship Village of Bloomington Zvago Lake Superior

GREATER MINNESOTA AFFORDABLE HOUSING

Lake Street Dwelling Landings of Lexington Millberry Apartments & The Legends at Barry Mino-bimaadiziwin Apartments (Winner) The Redwell

HOTEL/HOSPITALITY

Omni Viking Lakes Hotel (Winner)

INDUSTRIAL/MANUFACTURING/ SCIENCE Arbor Lakes Corporate Center Digi-Key Electronics (Winner) RDO Equipment Second Harvest Heartland

INFRASTRUCTURE

Panoway on Wayzata Bay (Winner)

INTERIOR DESIGN — RETAIL/ RESTAURANT/HOSPITALITY

Birke (Winner) The Lynhall No. 3945

MEDICAL – EAST

CityPlace III Regions Hospital Birthing Center (Winner) Rosemount Professional Building

MEDICAL – WEST

Gillette Children’s Specialty Healthcare – Maple Grove (Winner) Hennepin County Behavorial Health and Wellness Clinic Shakopee VA Clinic

RETAIL/RESTAURANT – COVID/ RETROFIT

HOM Furniture, Gabberts & Dock86 People’s Organic at MSP Airport (Winner) The Cocktail Room at 18th and Central (MSP Airport)

URBAN SENIOR HOUSING

Lexington Landing The Pillars of Prospect Park (Winner) The Winslow West St. Paul Redevelopment/Reuse/Historic — Overall Lloyd’s Construction Services Headquarters (Winner)

REDEVELOPMENT — MIXED-USE/ OFFICE — ST. PAUL 550 Vandalia (Winner) Schmidt’s Rathskeller

Army National Guard Readiness Center (Winner) Bridge Plaza Child and Adolescent Behavioral Health Services Hospital Gustavus Adolphus College – Nobel Hall Expansion and Renovation Zvago Lake Superior

INTERIOR DESIGN — URBAN OFFICE/HQ Butler Square (Winner) Ceridian Colliers Minneapolis Taft

INTERIOR DESIGN — SUBURBAN OFFICE/HQ

Heraeus Medical Components Office Relocation (Winner) Nerdery PA Manufacturing Renovation of the Litho Building

URBAN MULTIFAMILY — MINNEAPOLIS CORE

Marquee Apartments Second + Second Sora Apartments Vesi North Loop Apartments (Winner)

URBAN MULTIFAMILY — MINNEAPOLIS NEIGHBORHOOD Everlake (FKA “Midtown Corner”) (Winner) Kolo MN46 Odie Apartments The Asher Apartments

URBAN MULTIFAMILY — ST. PAUL Five90 The Donegan Apartments (Winner)

GREATER MINNESOTA MULTIFAMILY Board of Trade Lofts Carlton Lofts The Berkman (Winner) the HUE

SEPTEMBER 2021

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

SUBURBAN MULTIFAMILY Beacon Ridge (Winner) Birke Elmwood Apartments

Doran Companies Ironmark Building Company (Winner) Knutson Construction M.A. Mortenson Company

Tim Jackson, Colliers International Jackie Knight, Ackerberg

REDEVELOPMENT — MIXEDUSE/OFFICE — MINNEAPOLIS

MOST SIGNIFICANT LEASE TRANSACTION IN 2020

Phil Colton, Winthrop & Weinstine (Winner) Jason Thomas, Frauenshuh

117 Washington Butler Square Foundry 19 The Bakken Museum Remodel The Dayton’s Project (Winner) Two22

10 West End RBC Plaza (Winner) Vivacity Tech

City of Fridley (Winner) City of Watkins

DEVELOPER OF THE YEAR

BEST COVID PLAN

Ackerberg Reuter Walton Development Schafer Richardson (Winner)

Ackerberg (Winner) Crawford Merz

MOST SIGNIFICANT INVESTMENT SALE TRANSACTION IN 2020 CSM Portfolio Sale (Winner) Davis Medical Office Buildings Fund Holly Center Live Active Apartments West End Office Park

GENERAL CONTRACTOR OF THE YEAR

Stephanie Balynas, Colliers International Lynette Muhuch, JLL Jen Nergard, Shafer Richardson (Winner) Angela Richter, Ackerberg Heather Shultz, Cushman & Wakefield Amy Wimmer, Hines

REAL ESTATE LAWYER OF THE YEAR

Dean Dovolis, DJR Architecture (Winner) Patrick Giordana, Synergy Architecture

Colliers Real Estate Management Services Cushman & Wakefield Davis Property Management Ebenezer Managment Services Transwestern Zeller (Winner)

CITY OF THE YEAR

PROPERTY MANAGER OF THE YEAR — FEMALE

ARCHITECT OF THE YEAR

PROPERTY MANAGEMENT FIRM OF THE YEAR

COMPANY/CITY AWARDS

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EXECUTIVE OF THE YEAR

Mark L. Evenson, Avison Young Steve Herron, Zeller (Winner) Jackie Knight, Ackerberg Jean Kane, Colliers International Jon Lundberg, Ebenezer Kelly Lindquist, Artspace Peter Mork, Capital Partners

Beth Duyvejonck, The Opus Group (Winner) Meghan Huber, Welsh Construction Jackie Knight, Ackerberg Lynnette Muhich, JLL

WOMAN OF THE YEAR — BROKERAGE

Michael Gelfman, Colliers International (Winner)

Mark Kolsrud, Colliers International (Winner) Keith Sturm, Upland Josh Talberg, JLL

EMERGING LEADER OF THE YEAR

BROKER OF THE YEAR — LEASING

Genevieve Galligan, Cushman & Wakefield Connor McCarthy, United Properties (Winner)

Kevin Connolly, Zeller Jim Durda, Ryan Companies (Winner) Mel Schultz, Clarity Commercial

WOMAN OF THE YEAR — INDUSTRY EXECUTIVE

BROKER OF THE YEAR — INVESTMENT SALES

PEOPLE AWARDS BROKER PIVOT OF THE YEAR

PROPERTY MANAGER OF THE YEAR — MALE

Lisa Christianson, Christianson & Company (Winner) Tom DeSautel, Cushman & Wakefield Brent Erickson, Newmark

Sonja Dusil, CBRE (Winner) Ra’eesa Motala, Rokos Advisors Jill K. Rasmussen, Davis 2021 Minnesota Real Estate Journal Gary S. Holmes Lifetime Achievement Recipient Sid Bader, Chief Executive Officer/Shareholder Bader Development

2020 SUPERSTAR

Amcon Construction Crawford Merz

Lauren Dahlke, Zeller (Winner)

from good TO GREAT

Office building with convenient location between West End and Ridgedale Center BUILDING WIDE RENOVATIONS COMPLETE

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Convenient front door, visitor and covered deck parking with an above market 4.2 per 1,000 parking ratio

WEST RIDGE LUXURY VINYL TILE TARKETT TRANSEND - "SURESET"

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Building conference center

VIEW FROM THE ENTRY

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HOSPITALITY WILKUS ARCHITECTS

RENDERINGS + SELECTIONS

SD-V3 2019-10-11 A1.1

Foodsby food delivery service

REMARKABLE

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for leasing information:

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SEPTEMBER 2021

MULTIFAMILY (continued on page 4)

The common areas in these buildings have more flex and working spaces built into them, too. We are seeing more dollars being spent on spaces that allow people to bring in their laptops or have a space where they can work outside their units. More of that is happening today.

How has the rise of the Delta variant changed the multifamily market? Is there fear that new mask mandates might slow growth in the Twin Cities apartment market?

Mullins: There is a lot of uncertainty right now. Masks are coming back. School districts are waiting to see what they should do. Parents are on the fence about in-person schooling right now. There is a lot of apprehension out there. Because of Delta, a lot of major corporations are pushing back their return-to-work dates, especially in the downtown core. Target announced that they are not bringing their employees back to the office until 2022. Some of the banks are now looking at October or November.

There are so many unknowns. This will affect the CBD the most when it comes to multifamily. Will it affect the suburban areas? I think the suburban areas will be fine. We’ll be seeing most of the impact in the urban core.

What does the future hold, then, for multifamily in the Twin Cities?

The Viridium in Minneapolis offers an amenity filled fitness area.

Mullins: We have seen a lot of construction delays, projects that did not deliver as quickly as anticipated because of materials shortages. Because of this, we are showing 2021 as being another blockbuster year for new construction. We think it will surpass 2020. I am still tinkering with the num-

bers. I’m verifying a few more buildings.

But through Aug. 1, we have delivered about 4,500 apartment units in the market.

However, the back end of the year is where the boom in construction will take place.

Typically, apartment projects want to open in the spring or summer. But because of

delays back in the fall months, there is now a ton of product opening in the fall and the rest of the year. As of right now, we are showing another 7,000 units that will be delivered in 2021, through the next threeand-a-half months. That is a lot of supply coming up.

CONGRATULATIONS 2021 MREJ NOMINEES! We’d like to recognize our team on their individual nominations for the Elmwood in St. Louis Park and Odie Apartments in Uptown.

And of course, congratulations to Dean Dovolis on his nomination for Architect of the Year.

Cheers to everyone on an amazing year!

ARCHITECTURE | INTERIORS | URBAN DESIGN www.djrarch.com

CONGRATULATIONS SID BADER on receiving the Minnesota Real Estate Journal Lifetime Achievement Award.

Thank you for your wisdom & leadership!

Steven Scott Management Bader Development Bader Diamond Funds

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

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SEPTEMBER 2021

Minnesota’s Sun50: Dedicated to protecting construction workers from the sun’s rays

By Dan Rafter, Editor

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onstruction workers face plenty of dangers on job sites. Injury is just a misstep or equipment failure away.

But there’s another danger that these workers often ignore: skin cancer from the long hours they spend in the sun each day.

And that’s just the problem that one Minneapolis-area business is tackling.

Sun50, based in Eagan, Minnesota, provides ultraviolet protection factor, or UPF, clothing such as beach coverups, swimwear and sun hats. But the company also provides men’s sportswear that provides protection against the sun’s rays, too.

These shirts could protect construction workers from the dangers of being exposed to too much sun during the say, said Christie Covarrubias, co-founder and chief executive officer of Sun50.

“We know that men are especially bad at putting sunscreen on,” Covarrubias said.

“And construction workers don’t want to use sunscreen. It’s too slippery. But if you can give them a long-sleeve undershirt

Minnesota’s Sun50 sells a variety of UPF clothing designed to protect people from the often-harmful rays of the sun.

that is lightweight and cooling, that’s a different story.”

The dangers of skin cancer are real. The Skin Cancer Foundation says that skin cancer is the most common form of cancer in the United States, with one in five Americans developing it by the time they turn 70.

The foundation says that more than two people die of skin cancer in the United States every hour. And people who have five or more sunburns during their lives double their risk of melanoma.

varrubias said. The American Academy of Dermatology recommends sunscreen with a sun protection value, or SPF, of at least 30 to reduce skin aging and the risk of skin cancer.

Covarrubias said that all Sun50 clothing exceeds this 30 SPF recommendation, providing protection even to construction workers logging long hours outdoors on the job site.

“Men are the ones who really need

this, who are most likely to get skin

cancer. They don’t think they can get

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The danger is especially real for construction workers. They work at construction sites all day in the sun, exposing their skin to UV rays.

burnt and if they do get burnt, they don’t care.”

But by wearing the clothing provided by Sun50, these workers can significantly reduce their risk of contracting skin cancer, Co-

Covarrubias said that Sun50 can work closely with construction companies to create custom orders, providing as many or as few longsleeve undershirts as they need.

“Men are the ones who really need this, who are most likely to get skin cancer,” Covarrubias said.

“They don’t think they can get burnt and if they do get burnt, they don’t care.”

Men are the most likely, too, to spend long hours in the sun without sunscreen

SEPTEMBER 2021 or without wearing protective clothing.

As Covarrubias says, the average shirt comes with an SPF of 5. If the wearer sweats or the shirt gets wet, that SPF drops even further, down to 1 or 3.

“That’s nothing,” Covarrubias said.

But Sun50’s UV-protection shirts remain effective even if they do get drenched in sweat.

“We are committed to this,” Covarrubias said. “We founded our company with the mission of eliminating skin cancer and elevating skin cancer awareness.”

Covarrubias takes this mission seriously.

She grew up in California during a time when wearing sunscreen wasn’t common. Sunburns, though, were.

Covarrubias spent her summers on the beaches of Lake Tahoe with her cousin, Renee, the pair often found sunning themselves on floating rafts.

“Frying your skin was a rite of passage back then,” Covarrubias said.

In her early 30s, though, Renee lost her life to melanoma. As Covarrubias says, she could have easily contracted melanoma, too.

Covarrubias, then, founded Sun50 as a way to honor the memory of her cousin

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

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“Then it just becomes the undershirt they wear.

Construction workers don’t have to think about it. They just put the shirt on. Construction workers tend to wear jeans or heavy pants on the job site, for safety reasons.

This is the same reason why we developed the shirts we did, for safety reasons.” and fight back against skin cancer. Sun50 today provides UPF clothing to both men and women, in a variety of styles, including the undershirts that can protect construction workers or any other people who spend long hours in the sun.

But can Sun50 convince construction workers to wear its UPF undershirts?

Covarrubias thinks it can. The key, she said, is making the wearing of these protective shirts part of construction workers’ routine.

Sun50 manufactures 100 percent of its clothing in the United States, with 95 percent of it made in Minnesota. This is important to Covarrubias, too. She said the fabrics Sun50 buys are eco-friendly.

Covarrubias said she is already having preliminary discussions with construction companies about providing these shirts to workers. The hope is that companies will treat the undershirts as part

of the regular construction-site outfit that workers generally wear.

“Then it just becomes the undershirt they wear,” Covarrubias said. “Construction workers don’t have to think about it.

They just put the shirt on. Construction workers tend to wear jeans or heavy pants on the job site, for safety reasons. This is the same reason why we developed the shirts we did, for safety reasons.”

Build it. Buy it. Sell it. Refinance it.

WE’LL HANDLE IT. First American Title National Commercial Services offers expert handling of commercial real estate transactions by providing advanced technology solutions, creative underwriting and unparalleled service.

Marissa J. Ulstad VP, Minnesota Area Manager & Underwriting Counsel 612.305.2008 | mulstad@firstam.com

First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions.

First American, the eagle logo, First American Title, andfirstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2021 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

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SEPTEMBER 2021

Women are underrepresented in CRE -Here’s how we change it

By Lauren Martin, Head of Product, AnthemIQ

“Make no mistake, there are some powerful women in the world of CRE that I look up to and admire for making an impact, shattering stereotypes, and inspiring positive evolution within the field. That being said, we still have a lot of work to do to balance the scales.”

I

t may be 2021, but the gender gap is still alive and well, and Commercial Real Estate is no exception. While 64 percent of all residential realtors are women, this glass ceiling-shattering statistic isn’t reflective of CRE, where only 36.7 percent of

workers are female. This begs the question: What can be done to attract more women into CRE and keep them there?

But, before we can answer that question, let’s consider a few reasons why female

talent has struggled to break into the CRE industry. Then we can talk about some creative ways firms can evolve to attract and retain more women:

WHERE ARE THE WOMEN IN CRE?

Make no mistake, there are some powerful women in the world of CRE that I look up to and admire for making an impact, shattering stereotypes, and inspiring positive evolution within the field. That being said, we still have a lot of work to do to balance

HOME SWEET HOME. When our Affordable Housing attorneys work on a project,the end result is more than a building: it’s safe, stable housing for communities that need it most. Whether you are working on a 30-unit senior affordable living facility, or a 300-unit multi-family development, our attorneys have the experience, creativity, skills and industry connections to help you reach your goals.

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the scales. Let’s examine some of the primary driving forces behind the gender gap that still exists:

“ The industry, by and large, has a

1. Like father, like son. The systemic nepotism entrenched within the CRE industry is clear as day and understandable: In a relationship-driven business, it’s not what you know but who you know. But when the CEO hires his COO’s nephew as an intern because of a favor owed, it perpetuates the problem. While there is nothing fundamentally wrong with working in the family business or returning a favor, issues arise when that’s the primary funnel for sourcing new talent. The result is a narrow, one-dimensional organization that has historically left highly qualified female candidates overlooked or encouraged to pursue more gender-traditional career paths.

brand problem: a good ol’ boys’ club

2. Lack of leadership opportunities.

Unconscious bias, the lack of well-defined promotional rubrics and outdated management styles can fuel gender imbalances across the highest levels within a firm.

Women hold only just 9 percent of C-suite positions in the CRE industry, making a path to executive leadership seemingly vague and unattainable for the remaining female workforce in addition to their interests not being well represented. By building clear, merit-based paths for growth and career advancement in lock-step with competitive compensation, firms can begin to move towards a more balanced C-Suite

image.” which studies have shown to positively boost the bottom line.

3. Resistance to change. A notable inflection point was reached during COVID-19 when baby boomers who had previously resisted technology out of fear of disintermediation were quickly forced to embrace digital tools to manage their entire workflows, many for the first time in their careers. This resistance to change also permeated through the CRE industry’s culture for decades resulting in a staunch, oldschool workplace which made attracting a wider pool of qualified, tech-savvy new hires hungry to leverage technology and work in a diverse place an uphill battle.

HERE’S HOW TO CHANGE IT

1. Cast a Wider Net and Invest in Outlier Talent Early. CRE firms can partner with local universities and clubs to expose more female students to the myriad of lucrative opportunities within CRE. Lifting the veil on a historically opaque industry could en-

courage more students to consider a wider set of career options that may suit their unique personalities and skill sets. Firms could set a goal to bring an equal number of qualified female candidates into their programs early and invest in providing access to training, mentorship, and certifications for top female talent.

2. Seats in the C-Suite. If your C-Suite is absent of any female or diverse representation, how can you expect the rest of your company to look any different? By diversifying your leadership, you’ll be sending an encouraging message that growth is attainable and good work is rewarded.

Before looking to make an external hire to balance the scales, look at your pool of internal candidates to reverse some of the promotional favoritism that’s transpired.

3. Reimagine The Culture. The industry, by and large, has a brand problem: a good ol’ boys’ club image that firms will need to address as the Boomers retire. Maybe the

15 problem takes care of itself with that turnover, but the process of addressing a culture must be genuine and thoughtful. The new generation of workers are smart, connected, and can instantly sniff out something inauthentic– your company’s culture is no exception. Unfortunately, a new logo, TikTok account, and a fresh mission statement won’t cut it. Start by revamping your recruiting process, addressing equal compensation, and building an inclusive culture that rewards great work. But then again, maybe learning a TikTok dance or two wouldn’t be half bad.

In 2021, there’s never been a better time in history for women to enter and advance in any industry they want to pursue. But to my fellow females, it’s our responsibility to show up, ask for the raise, be vocal about what we need and be willing to help work collaboratively to inspire positive changes desperately needed within the industry.

If CRE leaders are willing to honestly address the historical challenges that have previously prevented more women from entering and remaining in the CRE industry–the future begins to look a lot more bright and balanced.

About Lauren Martin Lauren Martin is the Head of Product at AnthemIQ, a CREtech company. She’s also a licensed Tenant Rep Specialist at Elevate Growth Partners in Austin, Texas.

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SEPTEMBER 2021

In Close Focus: Title commitments and title policies

By Linda Cross and Vickie Loher-Johnson

A

Specific Encumbrances/Recorded Documents

s with other policies of insurance, a title policy is a complex contract that includes pages of specific risks covered under the policy, along with exclusions from coverage and conditions of the policy. If you lack the counsel of a seasoned professional adept at analyzing and reviewing the title commitment and title policy, the following can help you gain a basic understanding of title insurance issues and customary title coverages.

The “Standard Exceptions”

Exceptions in the title commitment or title policy identify specific documents recorded against the real property which is the subject of the commitment or policy.

The Standard Exceptions to title coverage concern: 1. The “gap” (the “gap” is the period of time between the date a particular county has made records available to the public and the date the (new) deed is placed of record); 2. Rights and claims of parties in possession; 3. Mechanics liens and tax liens not filed of record with the county recorder; 4. Easements or claims of easements not shown by the public records; and 5. Items which would be revealed by a current and accurate survey and inspection of the property (the “Survey Exception”).

Deletion of the “Standard Exceptions” A Seller Affidavit containing representations, statements and information about the seller, the property, property occupants, recent work done on the site, and unrecorded agreements pertaining to the property, in form acceptable to the title company, is the usual required closing document necessary to delete what have been identified above as Standard Exceptions 1 through 4.

The Survey Exception can be deleted once a new survey is certified to the title company. An old survey may be acceptable if paired with an Affidavit of No Survey Change from the current owner. The latter may not be an option if there have been alterations on the real property (or on adjacent parcels) or the prior survey is outdated (a survey older than 10 years may be considered outdated). If a prior survey is not acceptable or no prior survey is available, the buyer has a choice to either obtain a policy with the Survey Exception intact (i.e., there will be no coverages for losses of a type which would have been discovered had a survey of the land been completed) or obtain a new survey of the property.

Helpful Hint: If the buyer does not intend to order a new survey but requests deletion of the Survey Exception in the owner’s policy, the buyer should first determine if a prior survey is in fact available and then discuss early on with the title company

Linda Cross

Vickie Loher-Johnson

“The last thing a buyer wants is to be stuck with post-closing unpaid debt of the prior property owner or be responsible to remedy the default under the terms of the ECR, CCR, or other document.” whether the prior survey will be acceptable to delete the Survey Exception. Further, a discussion must be had with the seller (as to whether the seller will or can sign an Affidavit of No Survey Change, if required).

It is important to have these discussions early in the due diligence process, allowing for time to obtain a new survey in the event these avenues are not available.

Endorsements Keep in mind that all insurance policies are policies of indemnity, meaning these policies cover an insured for loss or damage should a covered event occur. For example, a homeowner’s policy does not ensure that a fire will not occur – but instead provides coverage for loss should a fire occur. In short, insurance provides recovery for a loss, not an assurance that loss will not happen. In terms of title insurance, the policies and endorsements do not, for example, guarantee the named owner in the policy is the owner of a particular piece of real property. Instead, title insurance provides recovery/funds for covered losses should it be determined that the named owner is not the legal property owner.

In addition to a standard policy of title insurance, title endorsements are also

available for various risks. Think of an endorsement as a “rider” to a title insurance policy. The small print of the title policy may not provide coverage for a particular type of loss, but an endorsement may be available to encompass additional risks associated with the real property.

For example, the standard ALTA (American Land Title Association) policy insures that a parcel is not “landlocked”. The Access Endorsement describes the specific physical access point and, in the event the identified access point is not available or there is no legal right to use it, a claim can be made under the policy for losses associated with the loss of that particular access point.

There are approximately 50 types of endorsements to title policies that have been approved by ALTA. Helpful Hint: For each transaction it is helpful to pull up a list of the available ALTA endorsements and use the list as a checklist of endorsements that may apply to the specific characteristics and needs of the real property associated with that transaction.

For example, documents such as an Easement with Covenants and Restrictions (ECR) or Covenants, Conditions and Restrictions (CCR) may be recorded against the real property. Review these documents completely because they run with the land, and the text of the documents can impact what an owner can (and cannot) do on a parcel, may address cost sharing across a development for common area maintenance expenses, and may contain restrictions on building design, materials, and heights. Reviewing the documents prior to acquisition and requesting additional information can prevent future surprises.

Helpful Hint: Look for estoppel language in the ECR, CCR or similar document and be sure to request an Estoppel Certificate in a timely manner so that it is delivered before the closing. An Estoppel Certificate is a certification from all of the parties to the ECR, CCR or other document, confirming there is not a current default (or identifying any default), confirming no amounts are due from the selling party (or identifying any outstanding amounts), and confirming that the recorded document is in full force and effect. The last thing a buyer wants is to be stuck with post-closing unpaid debt of the prior property owner or be responsible to remedy the default under the terms of the ECR, CCR, or other document. Better to be forewarned and require the payment of outstanding amounts at closing, paid by and charged to the responsible party on the settlement statement.

Knowing some of the basic title coverages requested in commercial transactions, including requests for deletion of the Standard Exceptions, issuance of Endorsements, and identification and review of restrictions and easements running with the property, is of great help in real estate transactions. Armed with some general knowledge of the basic structure of title insurance coverage, real estate professionals will be better able to assist clients in navigating and understanding the complex world of title commitment review, title policy coverages and endorsements, and related title issues.

Linda Cross and Vickie Johnson-Loher are attorneys at the Minneapolis law firm of Monroe Moxness Berg. You can contact them at lcross@mmblawfirm.com and vjohnson@ mmblawfirm.com. For more information, please visit mmblawfirm.com.

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2021 MINNESOTA REAL ESTATE JOURNAL GARY S. HOLMES LIFETIME ACHIEVEMENT RECIPIENT SID BADER later, she is still the love of his life. Determined to provide for his family, Sid went on to obtain both his real estate license and an accounting degree—all while raising his three young children.

Sid Bader worked three jobs

to

make

ends

meet until 1963 when he and his brother-inlaw founded Z&S, now known as Steven-Scott Management.

Today,

their small real estate company

has

grown

from 3 to over 500 employees.

Through

Sid’s leadership, two additional

companies

were born: Bader Development and Bader

From humble beginnings, Sid Bader grew up on the North side of Minneapolis as the son of tailor. He married his high school sweetheart at 19-years-old, and 70 years

Diamond Fund. Collectively, they currently manage, own and operate over 11,500 units in the Twin Cities and Dallas areas.

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E S T A T E

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1834 E 38th St | Mpls, MN 55407

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The suburbs should be producing about 3,500 affordable rental units each year.

During the last decade, they have only produced just under 600 a year. Stepping up production in the suburbs would be key to addressing the affordable housing situation in the Twin Cities. That would give households more choices in what neighborhoods they could live in.

HOUSING (continued on page 1)

at the seven-county metro area when we study the multifamily market in the Twin Cities. Each year, we should be building 4,000 to 4,500 new affordable rental units in this seven-county area. These are units priced at 60 percent of the Area Median Income or below. Unfortunately, in any given year we are actually producing 2,500 to 3,000 affordable units. We are coming up short every year.

How important are financial incentives in encouraging developers to take on affordable projects?

How big is the shortfall, then, in affordable units?

O’Neil: In 2020, we produced just about 2,200 affordable units in the seven counties. And that’s for all types of population, general occupancy, families, age-restricted, seniors. All told, we are definitely underproducing each year. That causes a problem. The problem rolls forward each year. It just compounds itself.

The Mino-Bimaadiziwin Apartments, a phrase that means “Living the good life” in Ojibwe, provides much-needed affordable rental units for the Red Lake Ojibwe Band members in the Minneapolis Native American Cultural Corridor.

What challenges do families face when trying to find affordable apartment units?

O’Neil: Families are struggling to find affordable housing. They end up having to live somewhere, maybe in units in which they are spending too much of their incomes on rent. Some are spending as much as 50 percent of their income on rent. Some are spending even more.

Or they live in substandard units or a unit that is not suitable to their family’s needs. It might be an overcrowded living arrangement. Or they might have to live in an area of town that doesn’t work for them in terms of where schools are located or where jobs are located. They often are forced to live where they’d rather not be. Those are the downsides of having this problem continually roll forward.

What are some of the hurdles to boosting the supply of affordable apartment units in the Minneapolis/St. Paul area?

O’Neil: Tax increment financing is a tool that can be used. Cities can also offer developers reduced fees for developing affordable housing. Density bonuses can be helpful. Those are some of the tools that cities are employing that will hopefully encourage affordable development.

You mentioned earlier how the quality of affordable housing developments has risen. Can you expand on that a bit?

O’Neil: The quality has certainly risen.

Affordable housing comes with more amenities today. You might have bike storage and bike repair facilities in the buildings. They might offer playgrounds for kids. They’ll have well-appointed community spaces. Many of the affordable buildings are indistinguishable from a market-rate alternative. You won’t find golf simulators or rooftop bars. But they are very nice, comfortable buildings with a nice array of amenities.

Keeping in mind the challenges you’ve pointed out, are you seeing any upswing in the amount of new affordable rental units being added to the Twin Cities market?

The Redwell Apartments are bringing affordable rental opportunities to the North Loop neighborhood of downtown Minneapolis. today. It is attractive. It is often indistinguishable from market-rate developments. Government officials need to understand that affordable housing is an investment in the community. It brings new high-quality housing to a community. That is never a bad thing.

O’Neil: Funding is a big one. Building new housing is expensive. You need government sources of funds to make affordable housing work. There simply isn’t enough funding. We have gotten some relief in this legislative session in Minnesota. We’ve seen some good outcomes when it comes to affordable housing.

We did get $100 million in housing infrastructure bonds approved. But it isn’t enough. We still need more funding both federally and locally. We need financial incentives to make affordable housing work for developers. That is the biggest challenge to producing more units.

There’s also NIMBYism. The ‘Not in my backyard’ opposition to affordable housing is always a big challenge. NIMBYism might not kill a project outright, but it might be successful in reducing a project’s size or unit count. And if an affordable project is reduced in size, it renders it more costly on a per-unit basis and erodes the economies of scale of a project. It becomes an inefficient use of public funds.

21

If something isn’t done to address the issue now, the problem will only be compounded. The problem is not going away on its own.

Are there any areas that are especially lacking in affordable multifamily housing?

Tom O’Neil

Governments also need to be careful to not buy into the common stereotypes of affordable housing, the stereotypes that it erodes property values, increases crime or destroys the character of neighborhoods. If they understood what affordable housing looks like today, they wouldn’t believe those stereotypes.

Affordable housing is very high-quality

O’Neil: Affordable housing has historically been built more in the central core of Minneapolis and St. Paul. The cities have done a good job of accommodating new affordable housing. They do their fair share. What we need is more production in the suburbs. You have about three-quarters of the population in the seven-county metro area living in the suburbs. But the supply of affordable housing has typically been much lower in these areas.

O’Neil: There definitely has been an upswing in production in recent years. We are now adding more than 2,000 affordable units a year in the seven counties.

This year’s legislative session was a great one for affordable housing funding. The $100 million in housing infrastructure bonds was an important piece of that.

The affordable housing tax credit program here was funded for the first time.

That allows people to invest in affordable housing in Minnesota and claim a credit for those contributions on their taxes.

There are definitely positive things happening in affordable housing. There is more recognition that a lack of affordable housing is a widespread economic problem, one that impacts the entire country. There has been increased funding put forward. We are also seeing more development in the suburbs. There is still a shortfall, but an increasing percentage of affordable units are being built in the suburbs.

But we still have a long way to go to get in front of this problem. We are still chasing it. The end to this problem is still a far way off.

WHEN THE WORLD TURNS UPSIDE DOWN,

IT’S TIME TO REDRAW THE MAP

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

Visit us at: MMBLawFirm.com

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SEPTEMBER 2021

R

esiliency. That’s a trait that the women working in commercial real estate have long displayed. After all, they succeed year after year in an industry still largely dominated by men.

And last year? It was an even more challenging year for everyone involved in the industry. COVID-19, of course, is the reason. The pandemic, and fears over whether cases are rising and government officials might reenact restrictions on businesses, continue to foster uncertainty in the commercial real estate business. And while certain sectors are thriving -- multifamily and industrial, most notably -- others continue to struggle as the country continues to fight against the pandemic.

But despite the challenges, there is also hope this year. Vaccines continue to roll out, and they’re a weapon we lacked in 2020. We’re all optimistic that the last months of 2021 will be strong and that next year will see a further return to normalcy.

Last year -- not to mention the beginning of 2021 -- truly showcased the amazing talent of those women who have risen to the top of the CRE business. After all, if you could succeed during the pandemic, you should be able to thrive in any other year. We hope that the profiles of these top professionals will inspire you, too, to boost your own business in 2021.

Welcome, then, to the 2021 edition of Minnesota Women in Commercial Real Estate, a special section highlighting the success stories of the women CRE pros thriving throughout the state.

I’d like to thank Minnesota CREW for all the work they do in advancing the careers of women in real estate. Their continued outreach efforts, networking programs and scholarships have helped countless women reach their CRE goals.

Again, here’s to a post-pandemic future and to even more success for the women in commercial real estate.

Sincerely, Susan Mickey

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Senior Vice President, Commercial Real Estate Banker

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

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

Do you have a favorite quote or saying?

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

Name a charity or cause that you are passionate about:

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

Kelly Manke

5500 Wayzata Blvd.

Minneapolis, MN 55416 P: 952.905.5033 kmanke@bell.bank bell.bank With more than 18 years of banking experience, I enjoy working with developers, investors and entrepreneurs, finding financing solutions for their projects. I hold a bachelor’s degree from the University of Wisconsin – Madison with dual majors in finance and real estate as well as an MBA from the University of Minnesota.

Bell Bank, one of the nation’s largest independently-owned banks, has more than $9 billion in assets. Our unique Pay It Forward program has been changing lives since 2008.

Do you have a favorite quote or saying?

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

Name a charity or cause that you are passionate about:

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

Bell Bank

Bridgewater Bank

Senior Vice President, Commercial Real Estate Banker

Senior Vice President Business Services

Ann Olson

5500 Wayzata Blvd.

Minneapolis, MN 55416 P: 952.905.5024 acolson@bell.bank bell.bank I have more than 13 years of banking experience working on transactions for all types of properties. This experience helps me develop loan solutions and serve clients. I graduated from the University of Wisconsin with a degree in finance and real estate and earned an MBA from the University of Minnesota.

Bell Bank, one of the nation’s largest independently-owned banks, has more than $9 billion in assets. Our unique Pay It Forward program has been changing lives since 2008.

Do you have a favorite quote or saying?

Katie Klug

4450 Excelsior Blvd., Suite 100 St. Louis Park, MN 55416 P: 952.893.6868 Direct: 651.605.2676 katie.klug@bwbmn.com www.bwbmn.com As Senior Vice President, Business Services, Katie Klug meets the needs of Bridgewater’s business clients by providing them with simple banking solutions. Her relationship-focused approach to banking means she develops lasting relationships and knows what tools her clients need to operate efficiently in today’s marketplace. With over 20 years’ experience, Katie is the Twin Cities’ go-to entrepreneurial banking expert.

Recognized as a premier, full-service Twin Cities bank, Bridgewater Bank is dedicated to serving the diverse needs of commercial real estate investors, entrepreneurs and high-net-worth individuals. By pairing a range of deposit, lending and business services solutions with a responsive service model, Bridgewater has grown into one of the largest locally led banks in the State of Minnesota.

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

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

Name a charity or cause that you are passionate about:

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

“I would tell myself to attend the networking events, take the coffee meetings and get out there as much as you can! You never know what opportunities await and what doors are waiting to be opened.”

“I had a sister that passed away from SIDS when I was little, it’s now a cause my family contributes to regularly. Another fantastic organization is CommonBond Communities, where they focus on affordable housing throughout the Upper Midwest. I’m on their Gala Planning Committee and continuously humbled by the work they’re doing.” (sids.org) & (commonbond.org)

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SEPTEMBER 2021

Crawford Merz

Culligan Legal & Business Counsel, PLLC

Project Manager

Owner/Attorney

Lauren Post

33 South 6th St., #4510 Minneapolis, MN 55402 P: 612.545.5819 | F: 612.874.9015 laurenp@crawfordmerz.com www.crawfordmerz.com As Project Manager, Lauren facilitates the planning and implementation of tenant improvement projects. Lauren is a skilled estimator and has strong communication skills that lend to the success of each project she works on.

She works closely with architects, subcontractors, and superintendents on each project to ensure it runs smoothly.

At Crawford Merz, we excel at providing clients quality construction services for their tenant improvement and groundup projects. Our skilled team approaches each project with efficiency, energy and responsiveness.

Do you have a favorite quote or saying?

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

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

Michelle Culligan

1805 Eagle Ridge Drive #8 Mendota Heights, MN 55118 P: 612.308.0874 | F: 816.895.4801 michelle@culligancounsel.com With over 30 years experience as a lawyer in private practice, general counsel for a commercial RE company, business owner of a union commercial contractor, and entrepreneur launching and growing a startup business, I understand the demands of your business and provide experienced legal advice based on sound business judgment.

Culligan Legal & Business Counsel provides experienced legal and business advisory services, specializing in commercial real estate, construction, small businesses, general corporate law, and offering outside general counsel services.

What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about:

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

EFH Realty Advisors, Inc.

EFH Realty Advisors, Inc.

Associate Broker

President

Jodi Walfoort

Susan Whalen

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

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

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

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

For the past 35 years, EFH Realty Advisors, Inc. has been a trusted partner across Minnesota and beyond because of its commitment to placing its clients’ needs above everything else and proven expertise in all aspects of commercial real estate.

From industrial and office spaces, to healthcare, retail, entertainment and more, EFH offers a full range of brokerage, property management, construction and development services.

Do you have a favorite quote or saying?

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

Do you have a favorite quote or saying?

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

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

Name a charity or cause that you are passionate about:

Name a charity or cause that you are passionate about:

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

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

Diehl & Partners, LLC

The Excelsior Group

Principal

Vice President

Lisa Diehl, CCIM, CPM

Misty Bowe, CCIM

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

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

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

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

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

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

What advice would you give to your younger self?

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

Name a charity or cause that you are passionate about:

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

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

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

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

SEPTEMBER 2021

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The Excelsior Group

Greiner Construction

Vice President

Director of Business Development

Katie Trevena

Heather Weerheim

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

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

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

Heather Weerheim, director of business development, brings her relationships and tenacity to the commercial real estate community.

Positioning Greiner’s strategic growth initiatives, Heather’s experience in property and project management allows her to navigate the industry optimizing success for our partners.

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

What advice would you give to your younger self?

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

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

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

What advice would you give to your younger self?

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

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

Hope Law PLLC

Michel Commercial Real Estate

Attorney

Broker

Roseanne Hope

Heidi Addo

4999 France Avenue South #245 Minneapolis, MN 55410 P: 612.669.7017 roseanne@hopelawoffice.com www.hopelawoffice.com Roseanne Hope has decades of commercial real estate legal experience advising landlords, tenants, small businesses, developers and investors on real estate and business matters. Her transactions include sales and acquisitions, leasing, financing, development, workouts, land use and general business advice. She is a small business owner of Hope Law (2015-2021) and Compendium Business Strategies (2009-2013) and previously practiced commercial real estate law with large national law firms. She is also a licensed broker.

Roseanne is the founder of Hope Law, a real estate and business law firm located at 50th and France in Southwest Minneapolis/Edina.

We undertake a strategic and confidential approach tailored to your real estate and business objectives. With vast experience in complex transactions, we provide you with expert advice at a tremendous value. You will receive the competence and professionalism expected of a large law firm with the personal and responsive approach of a boutique firm. We work closely with you and your team to achieve timely, cost effective and successful results.

Do you have a favorite quote or saying?

“Do something that scares you every day” Eleanor Roosevelt

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

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

Do you have a favorite quote or saying?

“Persistence Guarantees Success” -Ghanian Proverb

Name a charity or cause that you are passionate about:

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

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

MSP Commercial

NTH, Inc.

Vice President, Property Management

Principal

Kristen Hedin, CPM, RPA

Anna K. Coskran

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

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

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

Anna is a real estate professional who provides organizations with informed and innovative solutions. Her knack for diplomacy serves clients well during negotiations.

Outside of client work, Anna serves on the Minneapolis Downtown Council Board and Executive Committee and is a member of the Minneapolis City of Lakes Rotary Club.

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

What advice would you give to your younger self?

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

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

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions.

NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

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

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

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NTH, Inc.

NTH, Inc.

President & Principal

Associate

Bettina L. Hoye

SEPTEMBER 2021

Justine Beran Logelin

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

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

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

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

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions.

NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

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

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

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions.

NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about:

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

Old Republic National Title Insurance Company

NTH, Inc.

Danielle L. Warren

Barbara Chirinos

Associate

Vice President, National Business Account Executive

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

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

Dani brings enthusiasm and dedication to real estate, design and construction projects. Dani’s recent client work includes project management for The Family Partnership, Minneapolis Regional Chamber, and The Minneapolis Foundation.

Dani participated in CoreNet’s Diversity & Inclusion Certificate Program and serves on the Saint Paul Area Chamber’s YPro Committee.

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

Founded in 1993, NTH is a real estate and project management firm helping clients make smart real estate and construction decisions.

NTH is a WBENC – Certified Women’s Business Enterprise.

What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about:

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

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

What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about: Gilda’s Club Twin Cities www.Gildasclubtwincities.org No matter how cancer has entered your life, no matter where you are in the journey, you’ll find the support you need at Gilda’s Club.

For free. Because the last thing someone dealing with cancer needs is another expense.

Oppidan Investment Company

Oppidan Investment Company

Vice President of Investment Relations

Senior Housing Associate

Jamie Korzan

Michelle Riedel

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

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

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

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

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

What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about:

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

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

What advice would you give to your younger self?

Follow your passion and trust your gut.

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

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Oppidan Investment Company

Opus Design Build, L.L.C.

Corporate Counsel

Regional Vice President of Construction

Kathleen Ritter

Beth Duyvejonck

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

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

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

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

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

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What advice would you give to your younger self?

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

Name a charity or cause that you are passionate about:

What advice would you give to your younger self?

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

Mission Haiti missionhaitiinc.org

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

Name a charity or cause that you are passionate about:

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

Opus AE Group, L.L.C.

Paramount Real Estate Corp.

Vice President of Interior Design

Vice President

Jennifer Koehler, CID

Nancy Powell

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

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

As VP at Opus AE Group, Jennifer oversees interior design for all Opus offices across the country. Her approach is built on forming successful collaborations with each client, from concept meetings to project delivery.

Jennifer has over 30 years of experience providing design expertise in multiple sectors of real estate.

Representing property owners and tenants, Nancy Powell specializes in

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

Do you have a favorite quote or saying?

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

Name a charity or cause that you are passionate about:

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

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

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

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

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

What advice would you give to your younger self?

Don’t be afraid of failure. Trust yourself and go for it.

RMA Real Estate Services, LLC

Ryan Companies

President

Director of Real Estate Development

Emily Becker

Ann Duginske Cibulka, MBA

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

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

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

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

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

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

What advice would you give to your younger self?

What advice would you give to your younger self?

Name a charity or cause that you are passionate about:

Name a charity or cause that you are passionate about:

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

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

Our work in real estate can be complicated and I’ve learned to be successful, you need deep focus and daily momentum to make things happen. A quote I admire that keeps me working hard everyday is: “Start by doing what’s necessary, then do what’s possible, and suddenly you are doing the impossible.”

In my off time, I volunteer as a Small Business Mentor for WomenVenture, a nonprofit that empowers entrepreneurial women with tools, capital, and support to lead businesses that create living wage jobs. I am inspired by what women can accomplish and motivated to help women working to attain economic selfsufficiency. www.womenventure.org

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SEPTEMBER 2021

Stewart Title, Minneapolis Commercial Division

Taft Stettinius & Hollister LLP

Vice President Business Development

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

Julie A. Drewes

Kathleen Geherin

Partner

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

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

With over 20 years of industry experience, I am honored to be a part of the Stewart Title team. I am passionate about being a trusted business partner to our customers.

Developing strong relationships built around the highest level of service, integrity and commitment to excellence is the foundation of my success.

A National Title Insurance Underwriter, Stewart Title believes in building strong relationships, which are the cornerstone of every closing, every transaction and every deal. Since 1893, our loyal associates work hard to enable and protect real estate ownership for our customers.

Do you have a favorite quote or saying?

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

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

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

Do you have a favorite quote or saying?

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

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

TCF Bank

Wipfli, LLP

Senior Vice President

Senior Manager, Tax

Molly Rutzick

Colleen Block, CPA

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

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

Commercial real estate lender and relationship manager providing financing products and solutions for developers of affordable housing.

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

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

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

Do you have a favorite quote or saying?

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

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

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

Do you have a favorite quote or saying?

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

Name a charity or cause that you are passionate about:

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

Wipfli, LLP

Wipfli, LLP

Senior Manager

Tax Manager

Dannielle Lewis

Aja Steinfeldt, CPA

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

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

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

Aja serves as a tax manager in Wipfli’s construction and real estate practice.

In addition to providing tax return compliance, Aja consults with entities and their owners on a variety of matters including current business challenges, ever-changing tax laws and opportunities for tax deferrals and credits.

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

Do you have a favorite quote or saying?

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

- Marcus Aurelius

Name a charity or cause that you are passionate about:

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

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

Do you have a favorite quote or saying?

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

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

SEPTEMBER 2021

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

31 confidence are more important than ever,” Cramer said, in his statement.

CRYSTAL COURT (continued from page 1)

Architects Perkins & Will and New History worked together on Crystal Court’s renovation plan. The reopened court features collaborative seating areas with modular furniture, enhanced lighting and a reflection pool.

Even before the challenges of 2020, though, the Crystal Court served as an important oasis in downtown.

“It’s important to understand how precious this space is to Minnesota residents,” Hendee Brown said. “It is also nationally and internationally famous. This space is owned by a private company. But it is used by the public. One of the great things about the IDS Center is that the Crystal Court has always felt welcoming as a public space.

People don’t even notice that it is a private space.”

The trees that provide so much life to the Crystal Court have also seen a big, if subtle, change: Instead of rising from heavy planters, the trees now sprout directly from the Crystal Court’s floor.

The changes were designed to make it easier for everyone visiting the Crystal Court, whether it’s a businessperson rushing through the court on the way to an appointment at the IDS Center or a family stopping in during the middle of a vacation.

“It was a high-wire act,” said Peter Hendee Brown, acting principal with New History.

“The changes that we made have been subtle. The challenge was to take something that was so well done, be careful with it and remake it for the 21st Century.”

Hendee Brown pointed to the changes to the Crystal Court’s trees as the most important part of the project. Eliminating the granite planter boxes makes traveling through the court easier and more relaxing, Hendee Brown said. Before, visitors had to weave their way around the boxes.

“Now they are walking through a glade of trees,” Hendee Brown said. “It’s a different experience.”

A key project The Crystal Court renovation project was a big one for downtown Minneapolis. That’s partly because the IDS Center is an iconic building in the heart of the city. The center contains nearly 2 million square feet of mixed-use space, a two-story retail center, the 19-story Marquette Hotel and, of course, its enclosed urban park.

But the Crystal Court project is also about better times for downtown Minneapolis.

Accesso’s investment in the court could be seen as a sign of hope for downtown, which has suffered during the COVID-19 pandemic and as a result of the murder of George Floyd and the protests that sprang from this tragedy.

In a written statement, Steve Cramer, president and chief executive officer of the Minneapolis Downtown Council, said that the commitment of companies such as Accesso to the city’s downtown are a sign that the future will be brighter here.

“It’s a great sign of confidence in downtown, which comes at a time when all signs of

Kolar has worked with the IDS Center for the better part of her 28-year career. She said that the Crystal Court has served as a gathering space for the city during this time, whether during the years in which the city hosted the Super Bowl or college basketball’s Final Four or the Minnesota Orchestra celebrating a milestone anniversary.

“The Crystal Court has hosted many celebrations for the city,” Kolar said. “It’s always been one of those places where people gather. We get daily activity here and we celebrate big events. I am very proud of the fact that when Accesso Partners came in here eight years ago, it recognized the court’s importance and made a commitment to improve upon it.”

CRYSTAL COURT (continued on page 33)

UPCOMING EVENTS August 12 East Metro Development Summit August 20 Building Efficiency & Energy Summit September 1 Mid Year Apartment Summit

October 8 8th Annual Downtown Development Summit

November 12 Indusrtrial and Economic Development Summit

October 15 Condomunium Summit

November 18 Retail and Restaurant Summit

October 22 St. Paul Development Summit

December 3 Office Summit

September 9 North Metro Development Summit

October 28 15th Annual Senior Housing Summit

December 8 Net Lease Summit

September 15 Land Development Summit

November 10 Destination Medical Center Summit in Rochester

December 10 Affordable Housing

September 24 Multifamily Finance Summit

612.819.0385

Jay Kodytek Senior Vice President 612.940.3713 jay.kodytek@rejournals.com

December 15 Redevelopment Summit - Morning December 15 MREJ Holiday Party - Afternoon

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

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SEPTEMBER 2021

FBI warns that cybercriminals are impersonating construction companies

by David Friedman, Wipfli

T

he FBI’s cyber division has released an important alert to businesses across the United States warning that cybercriminals are impersonating construction companies and using business email compromise (BEC) to defraud businesses that have pre-existing relationships with those construction companies.

“Businesses have also made it easier for cybercriminals to commit fraud.

During the COVID-19 pandemic, many

How the BEC fraud works

businesses have been so focused on

First, cybercriminals use online services to collect information on construction companies and their clients, including project costs and contact information.

Then, they register a domain that closely resembles the construction company’s domain (e.g., changing ABCD Corp. to ABCD Group or ABCD Inc.) and create email accounts attached to the new domain.

Finally, the cybercriminals send fraudulent emails to the construction company’s clients instructing them to update their automated clearing house (ACH)

simply surviving that they’ve taken on a lot more risk.”

or direct deposit information — thereby redirecting the client’s payments from the legitimate construction company to the cybercriminals.

How to mitigate your risk It can be difficult for victims to identify fraudulent requests. The cybercriminals tailor the email content using the infor-

mation they’ve gathered. They use the legitimate construction company’s logo and signature line. And sometimes they even send initial emails to learn more about the

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SEPTEMBER 2021

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

victim’s ACH process to make it even easier to get the ACH information updated.

Businesses have also made it easier for cybercriminals to commit fraud. During the COVID-19 pandemic, many businesses have been so focused on simply surviving that they’ve taken on a lot more risk. For example, laying off back-office employees can reduce or even eliminate segregation of duties.

But it is possible to mitigate your business’s risk of falling for BEC fraud, and here are five common ways: Segregate duties: Analyze your segregation of duties to make sure one employee cannot make ACH/direct deposit changes or run a transaction through the company without a secondary approval.

Use bill pay software: Bill pay software is valuable for a number of reasons, but we’re highlighting it here because it enables you to perform remote approvals, making it much easier to ensure there is always a secondary approval.

Enable positive pay: Positive pay — an automated fraud detection system used by financial institutions — is one of the best methods of stopping counterfeit checks. Just make sure you use four-factor authentication, not two-factor.

Train employees: Educate employees on common fraud schemes, how to recognize the signs and what steps to take.

Have a fraud prevention checkup performed: What risks is your business unknowingly taking? What can you do to reduce the risk of fraud and cybercrime?

A fraud prevention checkup will identify risks and how to mitigate them.

Wipfli can help Many businesses are short-staffed and don’t have the time or personnel to implement the above tips. That’s where Wipfli can help. We not only perform fraud prevention checkups and identify your risks but also have the capabilities to help you close those gaps.

According to the Association of Certified Fraud Examiners, 51 percent of organizations have uncovered more fraud than usual since the beginning of the COVID19 pandemic. During the pandemic, the FBI saw daily complaints of cybercrime rise by 300 percent. This makes right now the best time to reduce the risks your business is taking. Click here to get started with Wipfli’s fraud prevention checkup.

David Friedman is a partner in the valuation, forensics and litigation services practice of Wipfli. He is based out of the company’s Lincolnshire, Illinois, office.

CRYSTAL COURT (continued from page 31)

Working through the pandemic The renovations to the Crystal Court took place throughout the COVID-19 pandemic. But both Kolar and Hendee Brown said that this didn’t slow work.

33 Hendee Brown said that viewing the Crystal Court at nice provided an affirmation of the work that went into the renovation. The lighting of the court was revamped. Now, the lights illuminate the white trusswork at the top of the court, creating an entirely new way to experience the space.

The only change? “We didn’t meet in person,” Kolar said. “I did not meet Peter in person until the project was done. We had worked together a year-and-a-half and didn’t meet in person.”

“Now you can perceive the court in a way that you haven’t before,” Hendee Brown said. “The rearrangement of the trees and the up-lighting of the structures make it better. All of this is subtle. It takes a lot of work to make something look easy.”

That is a big change from how the project started. During the earliest discussions of the renovations, about two years ago, Accesso officials met with architects from New History and Perkins & Will in a conference room, collaborating in person.

Kolar points to her own special moment.

During a tour with ownership, a mother and her young boy were riding down the escalator into the court. The boy saw the reflecting pool and ran to it immediately.

Kolar asked the child what he thought.

And the response? It made her day.

That changed quickly.

“He just said, ‘This is so cool!’” Kolar said. “The young ones are the people who will grow up and work in the IDS Center one day. If they think it is cool today, we want them to think it is cool 10 years from now. I think we achieved that.”

“We had to pivot like everyone else,” Kolar said. “We were able to accomplish a successful project largely over Zoom.

We met weekly through Zoom and we got through it. There is a lot to be said for rethinking how we do business. With the pandemic, nothing changed except that we didn’t meet in person. Maybe that provides some lessons for how we operate after the pandemic.”

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CREATING DEEP ROOTS SINCE 1916 Headquartered in Minneapolis, with regional offices in Denver and Austin, United Properties is a leading developer, investor and owner of all major product types, steadily creating tailored experiences and building high-performing, sustainable environments for all.

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