BLOOMINGTON, MINN. — Burns & McDonnell, an engineering, construction and architecture firm, has signed a 67,000-square-foot office lease at Norman Pointe II in Bloomington. Michael Gelfman and Nate Karrick of Colliers represented ownership. The lease marks one of the largest office leases in the Minneapolis market this year, according to Colliers. Burns & McDonnell previously occupied 45,000 square feet at 8201 Norman Center Drive in Bloomington. Built in 2007, Norman Pointe II is located at 5600 American Blvd. at the I-494 and Highway 100 interchange. The 10-story building totals 331,447 square feet and offers amenities such as a café, 100-person conference center, fitness center, daycare and covered parking. Doug Fulton and Rob Youngquist of Avison Young represented Burns & McDonnell, which secured building signage. Norman Pointe II is now 95 percent leased.
Minnesota
DULUTH, MINN. — Standard Communities led a public-private partnership in acquiring Lenox Place Apartments in Duluth, an eastern Minnesota city along Lake Superior. The transaction is capitalized at $37.1 million. Built in 1980 and located at 701 W. Superior St., the affordable housing property features 152 units. There are 143 one-bedroom units and nine two-bedroom residences for seniors and individuals with disabilities. Standard will extend the affordability of Lenox Place Apartments for 30 years, with resident income restricted to 60 percent of the area median income. Funding for the acquisition included Low-Income Housing Tax Credits secured through the Minnesota Housing Finance Agency, and the Housing Redevelopment Authority of Duluth issued tax-exempt bonds. Huntington Bank provided the tax credit equity. Standard will significantly renovate the 14-story property at a cost of approximately $12 million. Residents will not be relocated during the renovations.
MINNEAPOLIS — Colliers Mortgage has provided two Fannie Mae loans for the refinancing of three multifamily properties at West Lake Quarter in Minneapolis. The assets include The Mezz, The Gateway and The Original. The 98-unit Mezz and 151-unit Gateway were built between 2022 and 2023, while the 113-unit Original was built in 1962 and renovated in 2022. All three properties feature amenities such as outdoor TV lounges, poolside cabanas, bocce courts, outdoor grill stations, business centers and fitness centers. Both loans carry 10-year terms. Fritz Waldvogel, Murray Kornberg and Mox Gunderson originated the loans on behalf of the borrower, Bader.
LAKEVILLE, MINN. — Davis has broken ground on a 14,000-square-foot medical office building for Midwest Ear, Nose and Throat Specialists (Midwest ENT) in the Minneapolis suburb of Lakeville. The single-tenant facility at 11020 161st St. W will complement Midwest ENT’s other locations in metro Twin Cities, including specialty centers in Eagan, Woodbury, Vadnais Heights and Hudson. The Lakeville property is slated for completion in the first quarter of 2025. The project team includes Synergy Architecture Studio, Timco Construction Inc., structural engineer KOMA and civil engineer and landscape architect Loucks.
MINNEAPOLIS — The Social Lights, a marketing agency, has signed an 11,000-square-foot office lease at Steelman Exchange in the North Loop of Minneapolis. Tom Tracy, Katie Tufford and Harrison Rust of Cushman & Wakefield represented ownership, while CBRE’s John Lorence represented the tenant. Studio BV is the designer for the tenant’s new workspace. Located at 241 N. Fifth Ave., Steelman Exchange is a newly constructed creative office property that totals 220,000 square feet and features a tenant lounge with rooftop space, fitness center and podium parking garage. The Social Lights joins other tenants Grant Thornton, Calabrio and a global financial institution at the building, which has 75,000 square feet available for lease.
Trident Development Nears Completion of 244-Unit Luxury Multifamily Property in Suburban Twin Cities
INVER GROVE HEIGHTS, MINN. — Trident Development is nearing completion of Avalon Apartment & Townhomes, a 244-unit luxury multifamily property in the Twin Cities suburb of Inver Grove Heights. The development will feature 54 townhomes and 190 apartments. The two- and three-bedroom townhomes will span across 10 buildings with attached two-car garages. The first townhomes will be move-in ready by fall 2024. The apartment units will be housed in one four-story building. Layouts include studio, one-, two-, three- and four-bedroom options. Residents will have access to underground parking with 166 stalls. The apartments are slated for occupancy by early 2025. Amenities will include a fitness center, speakeasy lounge, golf simulator, pickleball court, rooftop patio, dog run, playground and resort-style pool. Trident is developing the project in partnership with Vincent Cos. Lyon Contracting is the general contractor, and Village Green will serve as property manager.
MINNEAPOLIS — Marcus & Millichap has arranged the sale of Soleil Apartments in Minneapolis for $3 million. Located at 1425 LaSalle Ave. in the city’s Loring Park neighborhood, the property was built in 1914. Soleil Apartments features 41 apartment units and one retail unit that is leased until 2029. Michael Jacobs and Abe Roberts of Marcus & Millichap represented the seller, Soleil Properties LLC. Jon Ruzicka, broker of record in Minnesota, assisted on the transaction. The undisclosed buyer offered to purchase the property on a contract for deed.
Syndicated Equities Group Acquires 45,306 SF Winnebago Industries Innovation Center Near Minneapolis
SAVAGE, MINN. — Syndicated Equities has acquired the Winnebago Industries Innovation Center in Savage, about 20 miles south of Minneapolis. The property consists of a 45,306-square-foot, single-story industrial building that is fully net leased to Winnebago Industries. Originally constructed in 2017, the building underwent a renovation to Winnebago’s specifications in 2023 and now serves as the company’s primary research, development and testing facility. Winnebago utilizes the property for the creation of new prototypes, technology enhancements for its vehicles, data and connectivity upgrades, advanced materials construction and self-driving autonomy development. Syndicated also owns Winnebago’s corporate headquarters, which are located three miles northwest of the asset. Syndicated acquired the latest property in a Delaware Statutory Trust ownership structure to accommodate investors completing 1031 exchanges along with accredited individual investors.
MINNEAPOLIS — Gray Fox Coffee has opened at The Dayton’s Project, a 1.2 million-square-foot office and retail property located at 700 Nicollet Mall in Minneapolis. Owned by 601W Cos., The Dayton’s Project was originally built as the Dayton’s department store. The building now features amenities such as a gym, private lounges and rooftop terrace. Gray Fox Coffee occupies the building’s skyway level after six years of vacancy. The coffee shop, which marks the fourth location for the company, is open to tenants and the public, and features coffee, breakfast items and smoothies.
ROCHESTER, MINN. — Marcus & Millichap has arranged the sale of a Target-shadowed retail strip center in Rochester for $4.2 million. Located at 3801 Marketplace Drive NW just off Highway 52, the 8,780-square-foot property is fully occupied by Spectrum, Potbelly Sandwich Shop, Leann Chin and Infinity Nails. Jared Shapiro, Craig Fuller, Erin Patton and Scott Wiles of Marcus & Millichap represented the undisclosed buyer and seller.