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37 posts categorized "Housing development news"

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.

May 07, 2015

Renters Warehouse expanding in Rochester

A property management firm spun off from a well-known Rochester company now is under new ownership.

Jon Ortner, of Renters Warehouse-Rochester, acquired RGI Residential Management from Jeff Thisus on May 1. Ortner says this deal expands the number of Rochester properties he manages to 253.

Ortner, jon"I decided to relax a little bit. This is really a good fit," said Thisus, who will return to Realty Growth Inc. as a commercial real estate broker after helping with the transition.

Thisus originally bought the property management division of Realty Growth in 2014 from RGI's founders, Ed Pompeian and Bill Kolb. Realty Growth continues to operate as a commercial real estate firm and developer, now under the ownership of Nick Pompeian and Robert (Bucky) Beeman. Ed Pompeian still serves as the president of Realty Growth.

Starting in June, Ortner will move Renters Warehouse in the Realty Growth offices in Suite 350 at 975 34th Ave. NW as "a strategic partnership."

For Ortner, this deal gives a big boost to his Rochester business, which he began here more than two years ago.

"When I wanted to do something different, I chose Rochester even before DMC (Destination Medical Center) broke out. Rochester had the best demographics of all the places I looked," he said.

Ortner was one of the original employees of Renters Warehouse in the Twin Cities. Ortner, with his brother, Kevin Ortner, now own four Renters Warehouse franchises in Phoenix and Tucson, Ariz., Denver, Colo., and Rochester. They manage about 9,000 properties under the four locations.

Renters Warehouse focuses on managing single-family homes, condos, townhomes and apartment complexes of 20 units or less.

"We built the business on working with what we call 'unintentional landlords,'" said Ortner. "We keep it simple with a flat fee and we warranty tenants we recommend."

March 06, 2015

10 years of blogging Rochester

On March 4, 2005, I wrote my first blog post. Kiger's Notebook blogo 2x

It was my sixth year at the Post-Bulletin. I created the "Heard on the Street" column about three years before the blog began. 

More  than 6,200 posts, stacks of columns, mountains of tweets and many gray hairs later, I'm still here writing about business and things vaguely related to businesPhoto on 2015-03-03 at 18.11s in southeastern Minnesota.

It'syou, the readers, who make this career such a fulfilling and entertaining one. Thank you everyone for your feedback, criticism and support over these past 10 years. 

10 years of blogging Rochester

On March 4, 2005, I wrote my first blog post.Kiger's Notebook blogo 2x

It was my siPhoto on 2015-03-03 at 18.11xth year at the Post-Bulletin. I created the "Heard on the Street" column about three years before the blog began. 

More than 6,200 posts, stacks of columns, mountains of tweets and many gray hairs later, I'm still here writing about business and things vaguely related to business in southeastern Minnesota.

It's you, the readers, who make this career such a fulfilling and entertaining one. Thank you everyone for your feedback, criticism and support over these past 10 years.  

December 23, 2014

Re/Max Results building sells for $1.1 million

As a real-estate firm builds a new home in Rochester, its current location was recently sold.

The Rochester office building at 4600 18th Avenue N.W., where Re/Max Results has its local headquarters, was purchased for $1.1 million on Nov. 24. Local developer John Klopp's High Springs Inc. bought the 24-year-old building from Northwest Executive Properties of Rochester.

Remax exteriorRe/Max Results, an Eden Prairie, Minn.-based business with about 68 Rochester Realtors, recently started construction of a new office building on West Circle Drive Northwest.

The planned two-story, 18,000-square-foot office complex, at 4123 26th St. N.W., is expected to be completed in August or September. Re/Max Results will remain in its current office until the new building is ready.

"We're doing extraordinarily well in Rochester," said Lynn Foulke, CEO of Re/Max Results.

Re/Max has occupied the the 18th Avenue office since 1990. It was Re/Max of Rochester for most of the time, but Re/Max Results purchased the business, along with Re/Max Realty Source of Austin, from Duane Sauke in February 2012.

Sauke had been the sole owner of the Rochester RE/MAX since 2006, when he bought out five other partners: Frank Armstrong, Jim Conway, Lee Taplin, Paul Norrie and Bill King. He owned the Austin operation for about two and a half years.

Re/Max Results, owned by John Collopy, operates in Minnesota and Wisconsin with more than 800 Realtors. The firm describes itself as the16th largest brokerage in the United States.

November 04, 2014

Developer to build $15 million apartment complex near Roch. city hall

A South Dakota developer plans to build a $15 million, 110-unit apartment complex near downtown Rochester, plus 179 more apartments on the far northwest side.

Stencil Homes of Sioux Falls, S.D., has purchased three buildings — Buckeye Liquor, the empty Flowers By Jerry shop and the 3rd Avenue Pet Hospital — on Third Avenue Southeast and Fourth Street, across from the Olmsted County Government Center and Rochester City Hall.

11042014stencilaptsDeveloper and builder Nate Stencil and his partner, Sean A. Kaufhold, plan to build a six-story apartment complex with 3,100-square-feet of retail space on the main level and underground parking for residents.

"We're really excited about this project," Stencil said on Monday. He expects construction to begin in early spring 2015 and the complex to be completed in spring 2016.

To clear the way for the project, his company purchased the former flower shop at 410 Third Ave. S.E. for $450,000 on Oct. 15 and followed up with a $600,000 buy on Oct. 22 of the Buckeye Liquor building and nearby parking lots. Stencil bought those properties from Kevin Patton, the owner of Flowers By Jerry.

"I just think it is going to be nice to put something there to revitalize the neighborhood," Patton said.

Diane and Robert Satterwhite, who operate Buckeye Liquor and now lease from Stencil, said they will move their liquor store and continue to serve Rochester. However, no timeline for that has been determined.

The developers also recently purchased the 3rd Avenue Pet Hospital at 414 Third Ave. S.E. Dr. Caroline Baihly, who has owned 3rd Avenue since 1998, is essentially merging her clinic with the Quarry Hill Animal Hospital. After Nov. 24, Dr. Baihly and the other doctors at Quarry Hill will serve her client list.

"At this point, I looking forward to the change," she said.

With the surge of Destination Medical Center-driven development, this was something Baihly expected to happen eventually.

"I looked at the practicality of the whole thing," she said. "It seems when I look at the DMC map that this whole area is included. I think DMC has a lot to do with it."

Stencil said DMC did have something to do with the Third Avenue project, though it cropped up after they already had decided to invest in Rochester. He began working with Rochester Realtor Merl Groteboer about three years ago.

"When we started, DMC wasn't even on our radar. We were well into planning before we even heard about it," he said. "Though the project in downtown was probably influenced by it."

Second project

Stencil and his partner also have lined up property near the 65th Street Northwest interchange across U.S. 52 from the new North Menards store. Construction of the 83-unit Woodland Park apartments began there a few weeks ago. Stencil said he expects Woodland, which architecturally will be similar to the Metropolitan Marketplace complex, to be completed by late spring to early summer.

Work on Stencil's third complex, Kascade Place, is expected to begin nearby soon after Thanksgiving. It will have 96 apartments.

Those apartments, along with the proposed downtown ones, will be priced comparably to other market rate units in Rochester, he said. That means rents ranging from $900 to $1,000 a month.

"We feel very good about the market apart from DMC," said Stencil. "We believe the need for housing is coming as part of Rochester's natural growth."

August 25, 2014

Re/Max Results realty zeros in on new Rochester 'home'


After months and months of "house" hunting, a large real estate office seems to have found a new home in Rochester.

Remax_exterior-2Re/Max Results, an Eden Prairie, Minn.-based business with more than 60 Realtors based in Rochester, has been shopping for either a building or a spot to build one here to replace its office complex at 4600 18th Ave. N.W. for quite a while. Various deals, including one for a commercial complex, were rumored at various times to be close to happening.

While the organization has not confirmed its plans yet, an application for a building permit last week seems to signal that the long-anticipated project now is moving forward.

Plans for a two-story, 18,000-square-foot office complex to be built overlooking West Circle Drive Northwest by 26th Street Northwest were submitted to the city planners on Aug. 21 under the title of "Re/Max building and parking lot."

Brian Schoeppner, of Rochester, filed the application. The owner is listed as the 14-year-old West Circle Drive LLC, which has an address of Suite 101 at 4115 26th St. N.W.

Re/Max Results, described as the largest locally owned and operated realty company in the Midwest, entered this market in February 2012, when it purchased Re/Max of Rochester along with Re/Max Realty Source of Austin from Duane Sauke.

Owned by John Collopy and Marshall Saunders, Re/Max Results operates in Minnesota and Wisconsin with more than 800 Realtors. The firm describes itself as the16th largest brokerage in the United States.

The plans for the new real estate office listed G-Cubed, of Chatfield, as the engineering firm for the project and Rochester's The Urban Studio as the architect for the project.

Since the application for the new Re/Max Results offices were just submitted last week, it's unclear how long it will take for the project to be approved by the city or for construction to begin.

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.