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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.

August 13, 2014

Consignment boutique teeing up move to new Broadway store

Danielle David's Rochester consignment business has outgrown its shop and its name once again.

What started out as Danielle's E-Shoes in a small spot back in 2009 quickly moved into a space double the original space with "& More" tacked on to the business name.  An expansion soon followed and the "E" was dropped.

Now she is teeing up to move Danielle's Shoes & Consignment Boutique to yet another larger store at 1920 South Broadway, next to Golf Headquarters. She plans to move from her current spot at 1310 Seventh St. N.W. in the Northgate Shopping Center at the start of September.

"It's very exciting," said David. "I'll have much better visibility there."

To555814_336424926406363_33872887_n make room for her boutique, Golf Headquarters owner Ed Martens is slicing about 2,000 square feet off of his well-known golf shop. The change won't affect Martens' other tenants, Broadway Veterinary Care and an Edward D. Jones financial services office.

With the changes in retail driven by the Internet, Martens says he will condense his store into a 5,200-square-foot space.

"We'll specialize more, focusing on the brands that are most popular in Rochester," he said.

Martens says his staff will continue to work with shoppers to custom-fit each and every club in their bag instead of the more common practice of adjusting the fit based on one or two swings of one club.

"To battle the Internet, we've got to go out and give that extra special service," he said.

Of course, the Internet is the foundation that David built her business on by starting out by selling on eBay. While she still does that, the name-brand consignment of clothes, purses, jewelry and, of course, shoes, has grown.

With the additional space in the new location, she'll be able to stock more clothes in every size category as well display more clothes for many age groups.

The expansion on her offerings with a continued focus on upscale items drove her to make the latest addition to the business name.

"We want to let people to know what this is. We're a boutique," said David.

August 12, 2014

Bank breaks ground for new northwest Rochester branch

Green Bay, Wis.-based Associated Bank broke will break ground on Wednesday for its new 3,000-square-foot branch in northwest Rochester.

10581397_745970035444536_1595413071_nThe new building will replace the branch in the Hy-Vee North grocery on 37th Street Northwest, which closed on July 24. Associated's new site will be located at 1985 Commerce Drive N.W., which is in the Costco's commercial development at 19th Street and West Circle Drive. It will be near the 19th Street entrance to Costco.Associated Bank first filed plans for the branch in February.

EDITOR'S NOTE - Thanks once again to Josh Banks Photography for the pic.

If construction goes as planned, look for the new Associated branch to open in January. The Wisconsin bank has three other branches in Rochester.

The addition of this new branch re-confirms the growing commercial interest in that part of Rochester. Iowa-based West Bank is planning to build its own facility along West Circle Drive in 2015. Two Rochester-based banks, Home Federal Saving Bank and Think Mutual Bank, also have large branches in that area.

Associated's announcement about the new location stated that it will offer "an enhanced banking experience in a revitalized and spacious layout." That will include a full lobby with tellers, a drive-through window and staff to handle mortgages and investment services.

Associated Bank entered the Rochester area in 2004, when it acquired First Federal Capital Bank. First Federal was short-lived here. It picked up the holdings of the long-time Marquette Bank in 2002.

“We take pride in the relationships we have built in this community and we are thrilled to continue these relationships at our new location,” stated Tim Lau, Associated's head of community markets and executive vice president.

Re-locating the northwest branch is not the only Rochester move coming up for the bank.

New owners have acquired Associated Bank's downtown building at 206 South Broadway and the bank needs to move out by spring 2015. Executive Vice President David Stein previously stated that Associated is looking for "opportunities for a new downtown bank location."

Associated has more than 200 locations in Wisconsin, Minnesota and Illinois.

Sale results in a double shot of juice for downtown Rochester

The result of a recent deal is a double shot of fresh juice plus new food offerings in downtown Rochester.

On Aug. 6, Ann Chafoulias sold her Essential Juice in the First Avenue Food Court to David Hewitt. He also owns Mama Meg's Parlour and co-owns Johnny Mango's Pita Cafe in the same food court.

12082014juicetonictooChafoulias originally opened Essential in December with the goal of introducing downtown to healthy, fresh cold-pressed juice. She says the new business quickly earned many loyal regular customers and it was building a strong foundation. She developed a staff of about five employees.

"It's a beautiful product," she said. "It's the perfect spot for it. I believe in Rochester and in downtown."

Then during the last brutal winter, Chafoulias was offered a very appealing opportunity in Phoenix, Ariz., where she had attended college.

That drove her to find a buyer for Essential with the hope that the new owner would continue what she had built. Hewitt bit on the juicy offer and he brought in Nikki Sylvester, who opened a cold-pressed juice bar and organic food eatery called Tonic in southwest Rochester last fall.

On Monday, Hewitt and Sylvester unveiled a "co-branded" place under the name of Essential Cold-press Juices and Tonic Too.

In addition to Essential's bottles of freshly pressed juice, the new blended business now also serves luncheon options from Tonic's menu and smoothies.

Look for the Tonic/Essential mix to be serving at the popular Thursdays on First and Third street market from Sylvester's distinctive orange-shaped cart. Mama Meg's and Johnny Mango's Pita Cafe also are food vendors at the weekly events.

For her part, Chafoulias is glad that her juice business is still adding a fresh flavor to downtown.

"I'm excited to see what happens next," she said.

August 06, 2014

New northwest Rochester McDonald's to open next week

Courtesy Corp., which owns the six McDonald's restaurants in Rochester, plans to open its new northwest location on Aug. 14.

05082014newmcdonaldscostcoThe still under-construction McDonald's stands in front of the Costco warehouse store, facing West Circle Drive Northwest.

It will replace Courtesy Corp.'s long-time restaurant on the U.S. 52 North frontage road near 19th Street Northwest. That location closed earlier this week in preparation for the opening on the new restaurant.

When plans for the new restaurant were announced last year, Courtesy Corp. President Rick Lommen said the old McDonald's had about 65 employees on staff. He anticipated that number could grow to 80 or 90, when the new one opens.

The company spent $1.32 million to buy the land in the 108 acre commercial development, which is owned  the real estate development arm of the Kwik Trip convenience store chain.

Lommen explained that McDonald's thought the restauran05082014closingmcdonaldst would do much better in the rapidly growing area at the corner of West Circle Drive and 19th Street Northwest.

"I just believe that long-term that is going to be an outstanding development, and it will show significant growth for years to come," he said.

Conversely, the longtime location on the U.S. 52 Frontage Road lost much of its visibility and customer traffic when the highway was updated a few years ago.

Courtesy Corp. is not the only company that's banking on the growth in that northwest development that's exploding around Costco and a Kwik Trip station.

A 77-room Comfort Inn and Suites and a 109-room Staybridge Suites are both under construction near the new McDonald's. Discount grocer Aldi also recently announced its own plans to build a second Rochester store in the same area.

A St. Paul-based developer,TJL Development is working on plans for a 2,500-square-foot building to be occupied by a co-branded coffee and food business as well as a 4,000-square-foot store for a national retailer.

August 05, 2014

European publisher closes Rochester office

An European publisher of auto repair manuals told local employees this week that its Rochester office is closing following the company's decision to back out of the U.S. market.

Maidenhead, England-based Autodata originally moved its U.S. headquarters to Rochester in 2005. The company, which focuses on providing technical information for mechanics, had 15 people working at its 4,000-square-foot office at 6301 Bandel Road N.W. until last summer. That's when it cut its staff in half.

Autodata online coverThere were six people working for Autodata in Rochester until the firm let four employees go this week. Two staffers will remain on Autodata's payroll to continue to support some large contracts from home, though the office is expected to be completely closed by mid-August.

"We've had to take the rather drastic decision to close office in Rochester. It's no reflection on the efforts of the staff, who did great job for us," said Autodata CEO Rod Williams, who flew to Rochester from England to deliver the news in person.

Autodata_logoAutodata takes a different approach than similar U.S. publishers. Instead of focusing on specific models, it creates manuals based on a subject like airbags or transmissions, and then includes information for all vehicle models, including those no longer being made. The information is constantly updated. It provides up-to-date technical information for about 17,000 vehicles made by more than 80 companies, though the bulk of the manufacturers are based in England, France and Germany.

Williams says the company, which remains successful in Europe and Australia, struggled to win over the U.S. market. It had some ups during its run here, he said. This office grew from four employees in 2005 to 16 by 2007.  In the end, it just wasn't enough to make the Rochester office sustainable.

While Autodata's long-time owners did sell the company to two investment firms in May, Williams says the change only hastened the closing of Rochester.

"Sooner or later, it was going to come, unfortunately," he said.

The rapidly changing world of publishing added more challenges to Autodata's push into the U.S. The first year that Autodata made more from electronic products over printed manuals was in 2007. Since then, the industry's move to away from print has rapidly picked up speed. Print manuals shifted into CDs, then DVDs and eventually online.

"The world has moved on from books," said Williams. "By the end of the year, we'll be wholly online in Europe. We've already been completely online in Australia for many years."

Remodel, new building on way for Eastwood Plaza

A major makeover plus a new retail building are on the way for a shopping center on a prominent southeast Rochester corner. 

EastwoodplazaAri Kolas is planning to build a 5,000-square-foot building next to the existing Eastwood Plaza shopping center at 1513 12 St. S.E. It will stand on the far southeast corner of the Eastwood lot near the Big Lots store.

If everything goes according to plan, HartCo Construction should start work on the project yet this month.

"I expect to have two to three tenants in there. One is signed and another one is really close. It'll be mostly retail," said Kolas, who is an owner of Eastwood Plaza under the name of Athena 2004 LLC. He is also an owner of Rochester-based Apollo Wine & Spirits, which has one of its six Rochester stores based in Eastwood Plaza. It also has a franchised store in the Shoppes on Maine development in the southwest quadrant and a store in Austin.

This Eastwood project is one that Kolas has been thinking about for a long time.

I always wanted to do something on the outlot. I was just waiting for the proper opportunity to do it. The climate is good for it now with the growth of Rochester," he said. "It's been in the back of my head forever. It's got awesome visibility."

In addition to adding the new building, Kolas plans to do a complete remodel and upgrade of the existing 44-year-old center, which houses tenants including El Carambas, China Star and Subway. Both projects represent a total investment of more than $500,000, he says.

Kolas is enthusiastic about the intersection of 12th Street Southeast and Marion Road, which Athena 2004 bought for $1.6 million in 2004.

"It's a great corner that people forget about. It really is a great neighborhood," he said.

August 04, 2014

CrossFit Credence on move to larger space

A Rochester fitness studio has outgrown its current spot, so it's on the move to a larger space.

CrossFit Credence, owned by Dave and Alison Timm, has bulked up to almost 300 members in the three years the boot camp-style workout center has been open. That means its original location at 101 16th St. N.E. is not as roomy as it once was.

04082014crossfitcredence"We're just about out of space," said Dave Timm.

To fix that, the Timms have lined up 9,000 square feet of space in two buildings at 3020 N. Broadway. That's the former home of RSC Equipment Rental on the corner of North Broadway and East Circle Drive.

If everything goes according to plan, CrossFit Credence should make the mile and a half move to the new space by the end of August or in early September.

When the Timms and their team of 10 instructors make the shift, the gym will freshen up its offerings by adding a shower/locker room and new equipment.

Dave Timm believes Rochester's focus on family and faith are strong reasons why CrossFit has become so popular here. Four CrossFit gyms — Crendence, Unshackled, Progression and Epitome â€” are very active in the Med City.

"This community is pretty family-based and faith-based. I think that helps people to get to the gym and get results," he said.

July 30, 2014

Developer working on new projects in N.W. Roch.

A St. Paul-based developer is looking to follow up its first Med City project with a couple more in the increasingly active northwest quadrant.


TJL Development recently built a new 4,000-square-foot paint store for Sherwin-Williams in south Rochester, in front of the south ShopKo and Menards stores.

Now the firm is working on projects by the Costco complex in northwest Rochester.

"We're hopeful to soon finalize transactions for two free-standing buildings," said Jim Lavalle, principal of TJL Development.

If the deals work out as he hopes, TJL will construct a 2,500-square-foot building to be occupied by a co-branded coffee and food business as well as a 4,000-square-foot store for a national retailer. The developer would own the buildings and lease them to the tenants.

"Rochester is a great place to do business, is what we've found, and we'd like to do more business down there," said Lavalle of why his firm is working in the Med City.

These plans would just add to the flurry of construction already underway in front of Costco and Kwik Trip.

A new McDonald's restaurant is being built there to replace the older one on the U.S. 52 North Frontage Road. Construction also is buzzing along for a 77-room Comfort Inn and Suites and a 109-room Staybridge Suites in the same area.

Discount grocer, Aldi, also recently announced plans to build a 17,000-square-foot store within the same development, at the corner of 22nd Street Northwest and Commerce Drive.

The whole 108-acre area on the northeast corner of West Circle Drive and 19th Street Northwest is being developed by Northwest Investments, the real estate arm of Kwik Trip Inc. For years, Hans Zietlow of the La Crosse, Wis.-based Kwik Trip has said that spot is the "key property" on Rochester's west side.

With all of the dirt moving and walls going up, it looks like a lot of people agree with him.