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25 posts categorized "architect news"

July 17, 2015

Third Avenue real estate sale was largest in June

A large Rochester engineering and design office on Third Avenue Southeast was recently purchased by a local company for $6.27 million.

The SEH-Yaggy complex at 717 Third Ave. S.E. sold on June 30 to 717 Third LLC. The sale was made with two transactions.YCA Building Rochester LLC sold its portion for $3.76 million and RY Building LLC sold its part for $2.51 million, according to the sale records.

FireShot Capture - 293 6 1_2 St SE - Google Maps_ - https___www.google.com_maps_@44.0162The combined deal was the largest local real estate sale in June. The next largest transaction for the month took place on June 5, when Wisconsin-based developer Continental 326 Fund LLC purchased land in southeast Rochester for $2.6 million to build the city's first gated housing community.

No individual names were listed on the Olmsted County documents. However, 717 Third LLC receives its tax bills at 123 Carlton St. SW, which is also the headquarters of Elcor Construction. Elcor is owned by Rochester developer, business owner and real estate investor Dan Penz.

DLP LLC, which has the same address of 123 Carlton St. SW, also purchased a warehouse facility in the same area at 1945 Third Ave. SE for $695,000.00 on June 16.

SEH-Yaggy was formerly known as Yaggy Colby Associates until the long-time Rochester firm merged with St. Paul-based Short Elliott Hendrickson Inc. in June 2014. 

CRW Architecture-Design Group, formerly part of Yaggy Colby, moved out of the complex last fall to take up residence its new offices at 211 11th Ave NW.

When the merger occurred the 717 Third complex remained under the ownership of some of the Yaggy principals.

January 27, 2015

Options abound for one of Rochester's oldest storefronts

While many are speculating about the future of a 129-year-old building in the heart of Rochester's downtown, the owners say they haven't locked down a plan yet.

549b9e10ed075.imageThe long-empty former Paine Furniture store at 313 S. Broadway was purchased by local developers Hal Henderson and Grant Michelitz in November. The deal also included the attached 309 S. Broadway building now occupied by Big Brad's bar on Broadway.

Some renovation work and installation of new windows is being done on the second floor, said Henderson. They also hope to build a skyway across the alley to connect the Paine building to the 318 Commons building, also owned by Henderson and Michelitz.

The University of Minnesota Rochester leases space in the 318 Commons building for student housing, office space and classrooms. A connecting skyway could make the second floor of Paine building attractive to UMR.

"We do foresee space crunches in our growth plan prior to the development of the future campus," said Jay Hesley, assistant vice chancellor for institutional advancement. While no decisions have been made, Hesley acknowledged the university had looked at the second floor of the Paine building.

"We've certainly explored all of the different opportunities that are available, and that was certainly one of them on the list," he said.

Henderson said there have been preliminary talks with UMR officials about the Paine building. He also said an option is to demolish the Paine complex and put up a building that would be a sibling to 318 Commons.

"I do have more real estate on that block," he said. "In the future, we may have a plan that we may try to unveil or look at pretty seriously." Henderson owns the adjacent Cafe Steam at 315 S. Broadway and the Canvas & Chardonnay building at 317 S. Broadway. "It all depends on what transpires in the next three to six months" with Destination Medical Center and the university's plans, he said. "I think right now, everyone is still leaving their options open."

January 23, 2015

WSN buying empty Home Design Studio on W. Circle Drive

After being empty for years, new life is on the way for a former home construction showroom in northwest Rochester. 

Widseth Smith Nolting, a Crookston-based engineering and architecture firm, announced this week it has signed a purchase agreement to buy the former Home Design Studio from Rochester's Event Studio LLC. The 32,000-square-foot complex is located at 3777 40th Ave. NW, along West Circle Drive.

HomeDesignDusk2-10x8_editedThe sale is expected to close in March with a build-out beginning in April, according to WSN. The plan is for WSN to move its increasingly crowded Rochester office into 11,000 square feet of the building by August.

"We are absolutely shoe-horned in here," said Brian Carlson, WSN's director of business development, of their current 4,500-square-foot office at 6301 Bandel Road NW. "We need to provide the space and resources for our team members to do what they do best."

WSN opened its Med City office in 2009, when it merged with QED Engineering. In 2014, it merged with Rochester's Kane and Johnson Architects. WSN now has 20 employees based here. WSN has a total of seven offices and 200 employees in Minnesota and North Dakota

The firm plans to lease the rest of the building to other tenants, probably to other professional offices. This is a very different fate than was expected for the Home Design Studio building. It opened for the first time in 2006 at the height of the construction boom, which imploded soon after.

It was designed by Kane and Johnson Architects as a home builders' showroom with model kitchens, bathrooms and other room layouts. Lead by local contractor Jerome Bigelow, a group of 13 owners optimistically launched the operation with a grand party attended by hundreds of Rochester business leaders. It had 59 people on staff working for a variety of construction-related businesses. The last occupants moved out in April 2012.

Event Studio LLC, of Rochester, then bought the unique complex from Partnership 10, of Byron, in 2013 for $1.3 million. Event Studio lists Rochester developer Dan Penz as manager on its incorporation documents.

Then in 2014, WSN began the search for a larger space in Rochester.

"We looked at lot of different buildings all around the city. We really like this building," Carlson said. "We liked the exposure. We liked the location and the ability to have our whole team in one spot."

December 03, 2014

Paine Furniture building sold for $1.7 million

New local owners hope to breathe new life into a 129-year-old building in downtown Rochester.

Get_photoOn Nov. 20, local developers Grant Michelitz and Hal Henderson purchased the long-empty former Paine Furniture store site at 313 S. Broadway as well as the 309 S. Broadway building now occupied by Big Brad's on Broadway. The pair acquired the property from Cedric Paine under a Contract for Deed deal for $1.7 million. Michelitz said negotiations for the sale have been ongoing since the Paine Furniture store closed in 2006.

While they plan to upgrade and restore the property, Michelitz says no deals for new tenants have been signed yet.

"The word leaked out pretty quick. We have got several meetings with prospective tenants coming up here in the next week or so," he said. "We're already invested in that block. We like the direction that it is going in."

The business partners also own the nine-story 318 Commons complex used by the University of Minnesota for student housing and classes. It's behind the Paine site facing First Avenue. Henderson, the principal in the Rochester office of HGA Architects and Engineers, also owns the adjacent Press Coffee & Tea Lounge at 315 S. Broadway and the Canvas & Chardonnay building at 317 S. Broadway.

Michelitz owns the 220 and 222 buildings across Broadway from the Paine site. They both have been renovated in a classic style similar to what is expected to happen at the Paine building.

If the weather allows yet this year, they hope to soon replace the second-story windows with double hung ones that better match the original design of the building, said Michelitz. They also expect to add an elevator and stairway tower on the alley side of the building to make the second story accessible.

Built in 1885, the 313 building housed the Paine Furniture Co. for 104 years from 1902 to 2006. In 1927, the Paines expanded into the 309 building, which had been home to the Klee grocery store and the Stedman bakery prior to that.

This sale is the latest in a long string of business changes and real-estate sales in Rochester's downtown.

Michaels restaurant, Barnes & Noble bookstore and Sontes all have announced they will close at the end of this month, and Hanny's Men's Wear is closing its street-level store.

Michelitz declined to speculate on the future of the area, but seemed optimistic.

"It is really fluid right now. I think we all hope for smart growth," he said.

October 10, 2014

Kane and Johnson Architects merges with WSN

Kane and Johnson Architects, a small firm with a 63-year history in Rochester and Austin, is joining forces with a larger Minnesota company.

The five-person office merged Oct. 1 with Crookston-based Widseth Smith Nolting, an engineering and planning company. The Kane and Johnson team has joined WSN's Rochester office at 6301 Bandel Road N.W.

"I selected the firm I most respect and feel will best serve my clients," said David Kane about the "evolution" of the business that his father Warren Kane founded in 1951 in Austin. "They have a very similar culture, which makes this a comfortable change."FrmReadMail_Attachment-1

WSN has been in discussions with Kane and Johnson about merging, since March.

The two firms have competed for as well as worked together on many Minnesota and Iowa projects over the years. Recently, they've been working on what they describe as "their signature collaboration," the seven-story Bridge Plaza in Mankato. Work is expected to start on that mixed-use complex in 2015.

WSN has seven offices and 195 employees in Minnesota and North Dakota. It has always specialized in working in the smaller, non-metro communities since it was founded in 1975, said Joe Breiter, WSN's director of business developmenFrmReadMail_Attachment-3t. It has long working relationships with companies like Brainerd-based Mills Fleet Farm and Bremer Bank.

“WSN recognizes Rochester as a market that continues to experience significant growth. Bringing in KJA adds dimension to our experience and deepens our capacity to serve both firms’ existing and prospective clients,” stated WSN president Kevin Donnay in the announcement of the merger.

The Crookston firm has been interested in Rochester for some time. It merged with QED Engineering, a 20-year-old Rochester firm, in 2009. Since then, its Med City office has grown steadily to a staff of about 20 with the addition of Kane and Johnson.

FrmReadMail_Attachment-2"Rochester is the largest community where we have an office. We're seeing a lot growth here," said Brian Carlson, who joined WSN's local office earlier this year. He added that WSN has many "significant" projects in the pipeline for the area.

Kane, who will remain on with WSN, said this deal made excellent sense as the next step for his evolving business that has adapted many times over the years.

He has led the firm since he was 24. Kane started working there in 1974 and then was forced to lead the business a year later when his father suddenly died. He expanded the practice into Rochester in 1988 by acquiring Pieper Richmond Architects. In 1993, Kane sold the Austin practice in 1993 to his partner.

Over the years, Kane's small firm has lead the way in many areas. It was one of the first firms to begin offering asbestos removal in Minnesota and handled many large abatement projects throughout the Midwest. It was also an early innovator in the area of handicapped accessibility dating back to 1976, well before the Americans with Disabilities Act.

The firm has worked on such high profile projects, such as Olmsted National Banks' headquarters at 975 34th Ave. N.W., Timothy Chapel at Rochester's Autumn Ridge Church, the Steele County History Center and renovation of the Winona County Courthouse.

"Now with the additional resources of WSN, we'll be able to do even more," said Kane. "The financial reality is that it's tough to compete as a small, private practice."

October 07, 2014

OMC expanding its administration offices on Third Avenue

Olmsted Medical Center is expanding its footprint in a Third Avenue office building to house much of its administration staff.

Since 2013, OMC has been leasing 4,200 square feet of office space in the SEH-Yaggy building at 717 Third Ave. S.E., which is near its Southeast Clinic. About 20 senior administrators are based there, said Jeremy Salucka, OMC's communications coordinator.

SEH YaggyNow OMC has launched a construction project to expand its presence within that complex to about 15,000 square feet of office space.

"We're more than tripling the space we have there," said Salucka.

The plan is to eventually move administration staffers currently working in other leased offices into the Third Avenue building to consolidate many of OMC's non-clinical departments, he said. It will  also create much needed conference room space.

"This will help us reduce overhead and bring teams together under one roof," he said.

The exact number of workers that will join the 20 already in the building has not been determined yet. It could possibly double up to 40 people, according to rough ballpark estimate by Salucka.

The project is expected to be completed sometime in January.

CRW Architecture-Design Group moved its team of 10 people out of the building at the end of September. The firm had been based in there, since it spun off from what was previously known as Yaggy-Colby Associates in 2010.

CRW has a new office building plus four apartments under construction at 11th Avenue and Second St. N.W. It is hoped to be completed yet this fall.

August 20, 2014

Rochester architecture firm to move soon

A Rochester architecture firm soon will move out of its long-time digs.

CRW Architecture-Design Group, formerly part of Yaggy Colby Associates, will move out of its offices at 717 Third Ave. S.E. at the end of September, said CRW Principal Chris Colby. The firm has been based in the SEH-Yaggy complex, since it spun off from Yaggy-Colby in 2010.
08202014crwoffices
CRW is led by Colby, Jose Rivas and Jason Woodhouse. All three previously worked for what used to be Yaggy Colby.

SEH-Yaggy has committed that office space to another tenant, according to Colby. SEH-Yaggy is the result of a merger earlier this year between Yaggy-Colby and St. Paul-based Short Elliott Hendrickson Inc.

CRW OfficeWhile the firm eventually will move into its own building, construction of its 4,200-square-foot offices plus four apartments isn't expected to be completed until late October or early November.

That means the 10 employees at CRW will need to temporarily find work space for the 45 to 60 days until its new offices are finished, said Colby.

CRW's new complex is being built at 11th Avenue and Second St. N.W. The office and apartments are being developed by Jose Rivas.

June 30, 2014

Consultants hired to create DMC blueprint w/ FULL CONTRACTS

Here's some of the lead-in to my package from the weekend about the $4.1 million  contracts for the consultants to create the Destination Medical Center plan to re-make Rochester.

There's a lot more detail in the rest of the package. So if you are interested in this topic, I'd suggest reading the full piece.

And for the document wonks out there like me, here's the 251 page PDF that includes all of the contracts with Nelson / Nygaard Consulting Associates of San Francisco; Kimley-Horn and Associates of Cary, N.C.; AECOM Technical Services of Los Angeles; and EE&K of New York.

Download Combined Consulting Agreements EDA(1)

 

---------------

Planning for a complex initiative like Mayo Clinic's Destination Medical Center doesn't come cheaply.

The surge of DMC hype already has national and international businesses fluttering around Rochester's sudden glow. The sale of commercial real estate is booming, particularly in the downtown core. New housing developments are being mapped out for the tens of thousands of people expected to move to Rochester for the forecasted 35,000 to 45,000 new jobs.

51687d3f5e0c6-image However, there's no blueprint yet for the $6 billion upgrade of the city's infrastructure, transportation systems, private development and more that's at the heart of DMC's vision of a Rochester better suited to accommodate more patients for Mayo Clinic.

Hiring a team to create a detailed plan for the massive undertaking to change the face of the city was a top priority for the public Destination Medical Center Corp. board of directors.

Public-private projects on this scale are rare in U.S., so there are not many examples to follow. National experts say sports developments, like the $975 million Vikings stadium and the new $622 million Atlanta Braves stadium, are about the only comparable projects to what is being proposed in Rochester.

The DMCC contracted with the DMC private Economic Development Agency, led by Mayo Clinic's Lisa Clarke, to handle hiring consultants to create the overall DMC "development plan." In December, the EDA board posted requests for proposal for six roles in the planning process.

800px-Gonda_building,_closer_upWith so much money on the table, proposals came in from 19 leading firms across the country and even overseas. Five of the teams vying for the contracts are based in Minnesota with three of them having offices in Rochester.

In April, the EDA wrapped up that six-month hiring process by contracting with four national consulting firms. Two were chosen to fill dual roles.

All of the consultants have had experience in major public-private projects, from stadiums to transit systems to airports.

Those four, plus another company hired in February, will be paid a total of $4.1 million this year to create the DMC's grand plan by February. That $4.1 million accounts for almost half of the DMC's total city-funded budget of $8.2 million for 2014.

In the end, all of the Minnesota hopefuls were passed over for the DMC planning jobs.

"The main factors that influenced our decisions was experience, knowledge of the market and the team they put forward. Those were the basic components we needed to consider as we moved forward," said Clarke. "I'm very confident that we have hired the best."

June 27, 2014

Mayo Clinic still mum on SE Rochester building

There's no question that an unmarked 22,000-square-foot commercial center is being built in south Rochester's Shoppes on Maine area.

The question is what will it be used for when completed?

The half-completed gray and blue building at 4544 Canal Place S.E. stands at the corner of Canal Place and Maine Avenue Southeast.

06262014mayoclinicsoutheastIt's described as "Future Mayo Clinic Southeast" in city building permits dating back to April. However, Mayo Clinic isn't acknowledging any involvement.

"We don’t have anything to share at this time. When we do — I’ll certainly let you know" is how Rebecca F. Eisenman of Mayo Clinic Communications responded to questions on June 18.

In April, Eisenman did acknowledge that Mayo Clinic is interested in the area.

"We are exploring options to improve our ability to improve access to community care for our employees and those who depend on us for these services," she wrote. "Future options may include expansion of facilities and services in southeast Minnesota, but no specific details are available at this time."

The owner of the project is Canal Place Pointe Inc., which is based nearby at Suite 200 of 4325 Maine Avenue. That's also the address of the office of Maine Street Development Co. Tom Hexum, who manages the Maine Street Development projects with partner Ron Schultz from that office, filed the original land development application for the building. He says it's owned by a group of local investors, though he is not part of that group.

Hexum describes the building as a Mayo Clinic project.

Building permits show that just the structural shell of the Canal Place Pointe complex is valued at $1.4 million. There is a half-circle drive under an 880-square-foot canopy in front that would be handy for a medical facility. The parking lot features 109 parking spaces.

The whole facility, being built by Benike Construction, is on two acres of land. The local design firm SEH-Yaggy, formerly known as Yaggy Colby Associates, planned the project.

March 03, 2014

Mayo Clinic to expand Superior Drive Support Center

Mayo Clinic is planning to expand its Superior Drive Support Center, which houses Mayo Medical Laboratories.

The clinic submitted plans on Feb. 14 to build a proposed 66,000-square-foot, two-story addition on the south side of the complex at 3050 Superior Drive N.W. 

03032014mayomedlabsMML conducts a wide variety of medical tests for hospitals worldwide. According to its website,
it performs nearly 20 million tests for more than 4,000 hospitals annually. The testing division overall has more than 3,200 employees, including more than 160 physicians and scientists. It has 58 laboratories that perform testing with support from Mayo Clinic physicians.

03032014SDSCplansWhile Mayo Clinic spokesperson confirmed the existence of site development application, officials there say it's too early to discuss specifics such as the timeline for the project or estimated cost. However, the plans designed by Flad Architects offer general details.

The expansion will more than double the lab space in the complex. It currently has 30,854 square feet of labs. The plans show that 34,000 square feet of laboratory area in the proposed addition to bring the total lab space to a total of 65,000 square feet.

Office space in the SDSC is slated to grow by 5,472 square feet, for a total of 137,000 square feet of space, following the expansion.

The remainder of the 26,000 square feet in the proposed expansion is described only as "Other." The first floor of the addition will have 28,533 square feet, and the second level will have 27,842.

Mayo Clinic moved into the 13-year-old complex in 2004. By 2011, approximately 800 employees worked at the facility. It was originally built by electronics manufacturer Celestica Inc. in 2001. When that company closed its Rochester operation, the building was left empty.

While Mayo Clinic leased the property for eight years, it purchased it for $18.5 million in August of 2012. Prior to that it was owned by 17 national investors through Triple Net Properties of Santa Ana, Calif. until they defaulted on the mortgage in 2012.  The investors bought the property for $36.8 million in 2006

When the mortgage defaulted, HSBC Bank USA took over the property. HSCB then sold it to Mayo Clinic.

While it was was originally under construction, New York City-based W. P. Carey & Co. LLC bought the complex from Celestica, which leased it back. W.P. Carey later sold it for about 70 percent more than the $21.6 million it paid for it.