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44 posts categorized "Housing development news"

August 19, 2016

Chatfield townhomes sell for $930,000

8-20070614-083540 Telerik.Web.UI.WebResourceIt's not only Rochester property that is selling these days.


A collection of 24 townhomes in Chatfield was recently purchased for $930,000 by Premier Real Estate Management LLC of Brookfield, Wis.

Under the corporate name of Premier Chatfield LLC, Premier bought the 17-year-old townhomes on Chatfield's Mill Pond Drive from Essence Property Management of St, Cloud. on Aug. 4.

May 25, 2016

Hold the applause - New Buckeye name is not set yet

I was a bit premature Tuesday when I wrote that South Dakota developer Stencil Homes had re-named its Buckeye Apartments project in downtown Rochester.

F89c28e7467b81cdb720c0c067eca5d3_f252I spotted the project on Stencil's website labeled as Ovation on Monday. I wasn't able to reach CEO Nate Stencil for confirmation, so I reported that it appeared that the new name for the project will be Ovation.

On Tuesday, Stencil sent me a note that said I was partially right.

"On 'The Buckeye' name change, we are still not 100 percent set on the new name but I can tell you we will be changing it. We are currently polling different names and will soon have one nailed down," he wrote.

The name of a 92-unit apartment complex being built on the corner of Fourth Street and Third Avenue Southeast in downtown Rochester has been a sensitive issue for some of the neighbors. Stencil originally tagged it as Buckeye as a nod to the Buckeye Liquor store landmark that was demolished to make way for the project. Some in the neighborhood didn't think that was an appropriate name.

 

May 24, 2016

Bye Buckeye, hello Ovation?

The name of a 92-unit apartment complex being built on the corner of Fourth Street and Third Avenue Southeast in downtown Rochester has been a sensitive issue for some of the neighbors. 
F89c28e7467b81cdb720c0c067eca5d3_f252
South Dakota developer Stencil Homes labeled it Buckeye Apartments as a nod to the Buckeye Liquor store that was demolished to make way for the project. Some in the neighborhood didn't think that was an appropriate name. Now it looks like the developer has decided to try something different.

Stencil Homes' website shows a 92-unit apartment building as a Rochester project, but it's not called Buckeye anymore. The new name under the old rendering of the complex is Ovation.

This must have been a recent change. The Answer Man wrote about this on April 27 and Buckeye still was the moniker at that point. CEO Nate Stencil was not available Monday to answer questions about the Ovation name, but it looks like concerned neighbors should give themselves a round applause for the spurring a name change.

 

November 02, 2015

$56 million deal in 'one of our largest markets'

A North Dakota real-estate firm purchased Rochester's Grandeville at Cascade Lake for $56 million today.

Investors Real Estate Trust said this morning that it officially wrapped up the purchase of the 276-unit multifamily community. It announced in August that a purchase agreement for the 8-year-old property had been signed with LeCesse Development Corp. of Florida.

Nav-mobile-website-cascade-lake-rochester-mn-apartments-rent-apt-best_r1_c1Grandville is now IRET's 10th housing property in Rochester.

"We are excited to add GrandeVille to IRET's Rochester portfolio. Its convenient location and substantial amenities enhance the choices we offer to tenants and solidify our presence in Rochester," stated IRET's Vice President of Investments Matt Volpano in a press release this morning.

IRET long has been an active investor in Rochester. It now owns more than 1,300 housing units in 10 properties, including Quarry Ridge, Olympik Village and Sunset Trail.

"Rochester is one of our largest markets," said Volpano previously. "From our standpoint, it continues our strategy. DMC just improves upon an already strong market."

6a00d83451cc8269e201b8d1642d62970c-800wiIRET even is looking into building its own development in Rochester, on land it owns near 41st Street Northwest and West Circle Drive.

Volpano says plans have been drawn up for a potential project. The company is investigating whether it makes financial sense to move forward with it.

Today's deal is the largest real estate sale in Rochester for 2015. It tops the previous largest sale of the year, which also involved IRET.

IRET sold Maplewood Square shopping center in northwest Rochester for $15 million. The center, anchored by Best Buy, Fareway Foods and Ashley Furniture, was purchased by SGO MN Maplewood LLC, of San Mateo, Calif. The sale was part of a larger deal that included 15 IRET commercial properties, which sold for a total of $79 million.

The North Dakota firm previously announced that it is getting out of shopping centers to focus solely on housing properties.

October 16, 2015

Rochester's ProBuild to pack up on Monday

A large building supplier in Rochester announced this week it is closing its doors on Monday.

The manager of ProBuild sent out letters to customers on Thursday saying the large construction operation along U.S. 14 West at 2953 Wilder Road N.W. is closing "effective Oct. 19."

No one at ProBuild or at its corporate office would confirm the closing on Thursday. The operation has an estimated 8 to 10 employees.

6a00d83451cc8269e2010535cefa84970b-320wiThe letter was sent by Dave Mills, ProBuild's area manager based in the Twin Cities.

Mills wrote that ProBuild made the decision to close "After careful review of the market conditions and our operational footprint in Rochester …"

The letter said ProBuild's sites in Mankato, Lakeville and Waseca will take over coverage of the Rochester market. ProBuild has about 30 locations in Minnesota.

The move comes just two months after Colorado-based ProBuild was acquired by rival Builders FirstSource for $1.6 billion. Builders FirstSource, headquartered in Dallas, said the combined company is expected to have annual revenues of about $6.1 billion.

Before it became part of a billion dollar deal, the Rochester construction supplier was a United Building Center. UBC was started in 1855 in Winona by three brothers,  William, Matthew and John Laird.

ProBuild acquired all of the UBC locations in 2006, and the ProBuild name went up on the Rochester site in 2008.

In July 2014, ProBuild closed its Austin lumber yard. It had eight on staff when it closed.

 

October 07, 2015

Rochester shopping center sells for $15 million

Rochester's largest real-estate sale of the year closed on Sept. 29, when a 25-year-old shopping center sold for $15 million.

Maplewood Square, anchored by Best Buy, Fareway Foods and Ashley Furniture, was purchased by SGO MN Maplewood LLC, of San Mateo, Calif. The sale was part of a larger deal that included 15 commercial properties. North Dakota-based Investors Real Estate Trust sold the properties for a total of $79 million.

IretwordpressheaderMaplewood Square was its sole retail property in Rochester. IRET previously announced its plans to divest itself of all of its retail centers to expand its housing portfolio, including a $56 million Rochester deal to acquire Grandeville at Cascade Lake on Second Street Southwest, a 276-unit multifamily community now owned by LeCesse Development Corp. of Florida.

IRET announced in August that it had signed a purchase agreement to acquire Grandeville. Cindy Bradehoft, IRET's director of investor relations, said on Monday the company expects that deal to close soon, possibly within two weeks.

Once IRET takes over ownership of Grandeville, its tally of Rochester units will exceed 1,300. It currently owns more than 1,100 Rochester housing units in nine properties, including Quarry Ridge, Olympik Village and Sunset Trail.

IRET Vice President of Investments Matt Volpano previously said Grandeville, built in 2007, is a good property and could become "a core plus stable asset" for IRET. 

"Rochester is one of our largest markets," Volpano said.

If Grandeville sale does close for $56 million as anticipated, the sale will dwarf the Maplewood Square deal and easily take the title of largest Rochester real-estate sale of 2015.

 

September 15, 2015

High-profile 2nd Street property sold for residence

After years of being up for sale, a long-time Second Street Southwest business recently sold for $272,000.

On Sept. 1, Dick Saterdalen sold the 64-year-old house at 2120 Second St. S.W. where he lives and operates Dick's Auto Sales. He also previously ran the Liquidation Store at the site. He sold the property to Abdullah M. Aljaberi, according Olmsted County property records.
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Saterdalen says he will continue to run Dick's Auto Sales at the site until Dec. 1, when he will move the operation to a small farm on Rochester's Viola Road.

Aljaberi is reportedly planning to renovate the house and use it as a residence, according to Saterdalen.

That Second Street house/storefront was in the news in 2013, when the City of Rochester began its $7 million re-construction of the area now dubbed as "Uptown." When a new median was built in front of the property, the 24-year-old business lost its direct left-turn access as well as on-street parking spaces.

Saterdalen complained that the Uptown project killed a deal he had with a bank that wanted to buy his property.  He also protested the assessment that the city charged him for the project.

Overall, Saterdalen blamed Mayo Clinic's Destination Medical Center Initiative for forcing his old-fashioned business/residence off of Second Street.

August 14, 2015

South Dakota firm begins work on 192 apartments

Lots of dirt moving in northwest Rochester is a sign that work has started on a new, more than $20 million apartment complex.

South Dakota-based Stencil Homes is developing a two-building, 192-unit project called The Pines at Badger Hills. It's tucked away on Badger Hills Drive Northwest between the second and third roundabouts. That puts it just off of West Circle Drive and near the new Hy-Vee grocery store. A new roadway will connect The Pines with the new commercial development.

08132015thepinesonbadgerDeveloper and builder Nate Stencil describes The Pines as "a mix of market rate with one- and two-bedroom apartments." His goal is to have it open by summer 2016.

"This one is not a luxury project. It is a middle to upper, price-point-driven project," he said.

While Stencil only has been active in Rochester for a few years, he has a lot of projects in the works here.

"We've been pretty aggressive in the market. We've been able to make some good relationships there," he said. Stencil works closely with well-known Rochester Realtor Merl Groteboer.

The firm has two other Rochester apartment complexes — Nue52 and Kascade Place — under construction at Rochester's 65th Street Northwest interchange, across U.S. Highway 52 from the north Menards store.

Stencil expects Nue52, which has 83 units, to be ready to open within 60 days or so. Kascade Place, which will have 96 units, is expected to open in February or March.

Stencil Homes also has announced plans to build a $15 million, 110-unit apartment complex on the corner of Third Avenue Southeast and Fourth Street in downtown Rochester. That's across from the city-county Government Center. That project still is in the early planning stages.

More than 480 apartments might seem like a lot to have in the pipeline for Rochester, which has many other similar projects already in the works. However, Stencil isn't worried.

"There's a lot of pent-up demand there," he said. "I think everyone will be surprised how well the market there will handle adding a couple thousand units."

However, Stencil predicts The Pines will be the firm's last "suburban" or outlying Rochester development for a while.

"We feel strongly that there is more opportunity in the downtown area now. We have one other project we'll be doing in the urban core (in addition to the Fourth Street one)," he said.

Meanwhile, he's also moving quickly on another Minnesota project — revamping the former Pioneer Press building in downtown St. Paul. He recently purchased it and plans to convert it into 175 market-rate apartments.

July 09, 2015

Development exploding in Rochester's Shoppes on Maine area

Downtown Rochester is not the only area being eyed by developers. 

It appears that Shoppes on Maine in south Rochester is exploding with development these days.

I wrote about a 211 apartment complex proposed for the area on Wednesday plus there's already a massive housing project called The Boulders already under construction, which will have 144 apartments and eight buildings with 10 townhouses in each.

FireShot Capture - Google Maps - https___www.google.com_maps_@43.9547185,-92.4647416,15zMeanwhile, yet another group of developers met with residents of the Maine Avenue neighborhood on Tuesday to discuss their plans for a 359 unit apartment complex slated the empty land across from Mills Fleet Farm store.

I don't know much about the Fleet Farm apartment complex yet, but should have more on it soon.

Beside more than 700 apartments, the buzz in the Shoppes on Maine is that a new car dealership could be revving up for the land around 48th Street and St. Bridget's Road. 

There is a lot of interest in real estate in that area right now, so it's possible that a new name might be on the road to join Rochester Toyota Scion and Mercedes Benz of Rochester in Shoppes on Maine.

July 08, 2015

More apartments proposed by Rochester's Shoppes on Maine

Preparing to build an apartment complex, developers have purchased more than eight acres of land in south Rochester for  $1.8 million.

Harbor Bay Real Estate Advisors bought open, grass-covered land next to the Shoppes on Maine commercial area in preparation to build a proposed 211-apartment complex, according to Harbor Bay co-founder Tom Lund. HarborbayaptsHarbor Bay is based in Minneapolis and Chicago.

The land was purchased by Bascom Capital LLC, a firm set up by Harbor Bay. The acquisition was done in two transactions of $590,000 on June 26 and $1.22 million on July 1. The apartment complex is slated to be located by Maine Avenue Southeast near the two hotels.

While some design details still are being worked out, Lund described the unnamed complex as featuring Class A, high-end apartments.

"It (the complex) will be a higher end product," he said. "We'll have a clubhouse and lots of amenities."

A Site Development Plan for the project was filed the Rochester Building Safety Department on Monday. He hopes to have the plan before the Rochester City Council for approval this month.

Lund said the goal is to start construction in September and hopefully have it completed by late next summer.

Harbor Bay has projects in Minneapolis and Duluth, but this will be its first here.

"Rochester is an amazing community that's growing. The demographics for apartments are very strong and the supply right now is relatively limited," he said.

The location near Shoppes on Maine was attractive because of the easy access to shopping as well as one of Rochester's Park and Ride mass transit lots.

In fact, another developer agrees that area is prime for more housing. Big Rock, Ill.-based Executive Affiliates has its own $35 million housing project called The Boulders already under construction near Harbor Bay's site. The Boulders will include a three-story building with 144 apartments and eight buildings with 10 townhouses in each.

"I think we'll complement each other," said Lund of The Boulders.