MINNEAPOLIS — A partnership between Ryan Cos. US Inc. and Weidner Apartment Homes is developing an apartment project in the Uptown neighborhood of Minneapolis. Sons of Norway, a financial services and international cultural organization, has sold its 60,000-square-foot headquarters building and land parcel to make way for the redevelopment project. Plans call for 15,000 square feet of first-floor office space that Sons of Norway will occupy at the apartment property. Keith Collins, Abe Appert, Ted Abramson and Brian Pankratz of CBRE represented Sons of Norway in the sale. John Lorence and Neil Kolatkar of CBRE represented Sons of Norway in its new lease at the project. The properties in the sale include 1455 W. Lake St., 3001 Humboldt Ave., 3015 Humboldt Ave., 3025 Humboldt Ave. and 3016 Holmes Ave.
The retail sector in metro Minneapolis continues to adapt to changing consumer preferences, fast-moving economic opportunities and new state laws. Over the course of 2017, the retail real estate market showed positive growth in every category. Absorption of 1.4 million square feet surpassed the 1.3 million square feet of deliveries, according to CoStar Group. The rising cost of construction, low vacancy rate (3.1 percent) and increasing rental rates are creating new barriers to entry for retail businesses. The aforementioned factors, along with a newfound confidence in the rising economy, are causing landlords of all magnitude to become more selective with the quality of tenants they accept. Landlords will continue to become more reserved with regard to the tenant allowances they provide for new tenants. We have seen retail giants such as Walmart and Target add new services that emphasize both value and convenience and bring shoppers back for quick fill-in trips. Minneapolis-based Target Corp. announced the public rollout of its Target Restock program, a next-day delivery service for household essentials that is designed to compete with Amazon’s Prime Pantry. After being beta-tested by its employees, the program is currently only available in about nine markets, but plans are to slowly …
ROCHESTER, MINN. — Bloom International Realty of United Arab Emirates plans to develop a pair of mixed-use towers along the Zumbro River in Rochester. Total project costs for the 1 million-square-foot development will be $180 million. The Rochester City Council gave the planned use for the property unanimous approval on Monday, March 19. Before the development can move forward, the council still needs to approve a land sale to Bloom and a $20 million tax increment financing package, according to the Minneapolis/St. Paul Business Journal. At full build-out, the development will include a 180-room hotel with 130 branded condominiums, a 215-unit seniors housing community and 37,000 square feet of ground-floor retail and restaurant space. The first tower will span 22 stories and the second will span 26, according to local media reports. In addition, the project will include an indoor winter garden, a public plaza on 3rd Street, a rooftop terrace park and a boardwalk that will provide access to the Zumbro Riverfront. Pittsburgh-based architecture firm AE7 is designing the project. A construction timeline for the development was not disclosed. — Camren Skelton
ST. PAUL, MINN. — Marcus & Millichap has arranged the $2.8 million sale of Hoyt Avenue Apartments in St. Paul. The 36-unit apartment property spans two buildings with a mix of one- and two-bedroom units. Apartments range in size from 700 to 850 square feet. Recent upgrades include new balconies, sliding doors and improvements to a majority of the units. Evan Miller, Mox Gunderson, Dan Linnell and Josh Talberg of Marcus & Millichap marketed the property on behalf of the seller, a partnership, and procured the buyer, a private investor.
MINNEAPOLIS — CBRE Multifamily has arranged the sale of Minneapolis Grand, a 112-unit apartment community in Minneapolis. The sales price was not disclosed. The property is located at 2401 Chicago Ave. near Abbott Northwestern Hospital. Built in 2005, the community features a mix of studio, one- and two-bedroom units with an average size of 833 square feet. Amenities include a newly renovated clubroom, fitness center, tenant lounge and underground parking. Keith Collins, Abe Appert, Ted Abramson and Ike Hoffman of CBRE represented the seller, CAP/SP Minneapolis Grand Apartments LLC, an entity related to CAPREIT. Trillium Grand Owner LLC, an entity related to Trillium Investments, purchased the asset. Cathy Bronkema of Cohen Financial, a division of SunTrust Bank, arranged a $15.3 million bridge loan for the acquisition. A private real estate investment fund based in New York provided the loan.
MINNEAPOLIS — Minnesota-based Cub Foods Inc. will be opening a 46,000-square-foot grocery store in the Longfellow neighborhood of Minneapolis. The store will anchor a five-story, 148-unit apartment development slated to open in spring 2019. The new Cub will feature a large deli area with made-to-order meals, a popcorn shop, produce section, floral gift space and pharmacy. An outdoor seating area will include bicycle parking and a walk-up window serving coffee, ice cream and cookie sandwiches. Oppidan Investment Co. is developing the apartment.
COTTAGE GROVE, MINN. — Cushman & Wakefield has negotiated a 38,000-square-foot lease for a new T.J. Maxx and HomeGoods store at Grove Plaza in Cottage Grove, 10 miles south of St. Paul. The new store is part of an ongoing repositioning of Grove Plaza, which was formerly home to a Home Depot and Rainbow Foods. T.J. Maxx and HomeGoods will sit just east of a 95,700-square-foot Hy-Vee grocery store that opened last year. Completion is slated for this fall. Deb Carlson of Cushman & Wakefield represented the landlord, EBL-S, in the lease transaction.
ST. LOUIS PARK, MINN. —Mesirow Financial, an investment firm based in Chicago, has acquired Ellipse and e2, a pair of apartment properties totaling 190 units in St. Louis Park. The purchase price was not disclosed. The 132-unit Ellipse, built in 2010, is located at 3920 Excelsior Blvd. Immediately adjacent is e2, a 58-unit apartment building that was completed in 2014. Both properties offer five stories of apartments over a heated underground parking garage. The Ellipse also includes 15,762 square feet of retail space currently occupied by Mill Valley Kitchen, Honey Nails, Partners in Pediatrics/Children’s MN and Viverant Physical Therapy. Combined community amenities include rooftop decks, fitness centers, outdoor living areas, group fitness area, a clubroom and a resident package system. Keith Collins, Abe Appert, Ted Abramson and Ike Hoffman of CBRE represented the seller, Bader Development.
OAK PARK HEIGHTS, MINN. — Dougherty Mortgage LLC has provided a $7.3 million loan for the refinancing of Green Twig Villas in Oak Park Heights, about 25 miles east of Minneapolis. The affordable housing property consists of 62 units. Dougherty’s Minneapolis office originated the 15-year loan, which features a 35-year amortization schedule. The refinancing also included low-income housing tax credits. The borrower was not disclosed.
ROCHESTER, MINN. — Alatus LLC is developing a 350-unit apartment property in Rochester. The $125 million development will be situated at 217 14th Ave. S.W., adjacent to the Mayo Clinic Saint Mary’s hospital in southern Minnesota. The project will include 24,100 square feet of commercial and office space, as well as 543 climate-controlled parking stalls. In addition to apartment units, the 14-story property will also feature walk-up townhomes. Amenities will include an entertainment suite, outdoor amenity terrace and group fitness rooms. Leasing is slated to begin in summer 2019. Additional project partners include the City of Rochester, the Destination Medical Center Economic Development Authority, Wells Fargo, Kayne Anderson Real Estate, Weis Builders and ESG Architects.