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2736 posts categorized "People tidbits"

August 24, 2016

Ex-Michaels restaurant sells for $5.5 million in downtown Rochester

More than a year and a half after one of Rochester's most beloved restaurants closed its massive doors, the prime downtown property has unexpectedly sold for $5.5 million.

The buildings which housed Michaels restaurant at the corner of South Broadway and Center Street for 64 years were purchased by Harbor Bay Real Estate Advisors of Illinois on Friday. The sale included four properties — 11, 13, 15 and 17 Broadway.

08242016michaelsOlmsted County estimated the total market value of the properties at $1.17 million, which means it sold for almost five times its estimated value.

Harbor Bay bought the buildings from 15 South Broadway LLC, which is described as a joint venture owned 50-50 by the Chafoulias and the Pappas families. That group bought the property on Jan. 6, 2015, from the Pappas family for $1.4 million, almost a fourth of what it sold for last week.

The high profile 2015 sale and emotional closure of Michaels was described as clearing the way for redeveloping the land and then connecting the new building to Gus Chafoulias' proposed Broadway at Center tower via a skyway across Broadway. Michael Pappas described the plan in late 2014 as involving closing the restaurant, demolishing the buildings and developing a new retail center that would connect with both the Shops at University Square and the planned Broadway at Center project, both Chafoulias properties.

Why change the plan and sell the buildings to an outside developer?

"There are many family members on each side and they felt it was a very fair price and preferred selling to developing the site," wrote Sheila Thoma, spokeswoman for the Chafoulias family's Titan Development and Investments company.

No member of the Pappas family was available for comment on the deal.

Thoma added that Gus Chafoulias still plans to connect whatever is built on the Michaels site to his long-delayed $145 million Broadway at Center on the southeast corner of Broadway Avenue and Center Street. Broadway at Center is the first high-profile project approved by the Destination Medical Center Corp. in 2015 to count toward Rochester's DMC commitment to the state.

"We have an agreement with the group that purchased and they want a skyway as well," she wrote.

Mark Bell and Tom Lund, the partners who run Harbor Bay, were not available for comment on Tuesday, so it is not known what their plans are for the Michaels property. However, the duo already have a housing development under construction in Rochester.

Harbor Bay is the company behind the 211-unit Preserve on Maine apartment complex at 4010 Maine Ave. SE. The developer describes Preserve on Main as "a place where luxurious residences and resort style living meet." Rents for the 17 styles of apartment range from $975 to $1,995 a month.

Chafoulias' Broadway at Center project has been stalled for months awaiting a financing deal to be finalized before starting demolition and construction. In July, Chafoulias announced that his team was terminating its relationship with Saudi Prince Turki Bin Abdullah Bin Abdul Aziz Al-Saud and Anas Abukhadra, of Minneapolis, because they had failed "to fulfill (their financial) obligations."

The project is still awaiting financing to clear the way for a needed $105 million loan to help finance the 23-story complex.
 
Could this latest deal with Harbor Bay be connected to financing Broadway at Center? Thoma says definitely not. She wrote that the Michaels sale has nothing to do with Broadway at Center other than the proposed skyway link.

August 23, 2016

Mayo's Noseworthy vs Cleveland Clinic's Consgrove

While Mayo Clinic and Cleveland Clinic vie for the top doctors and patients, their respective CEOs are also being compared.

Here's the breakdown of how Mayo Clinic's Dr. John Noseworthy and Cleveland's Dr. Toby Cosgrove have scored in Modern Healthcare's annual "Top 100 Influential People" list plus the salaries they were paid each year.


Rank in 2011
* Noseworthy - 71, earned $2 million
* Cosgrove - 56, earned $2.5 million

Rank in 2012
* Noseworthy - 17, earned $1.7 milion
* Cosgrove - 21, earned $3.1 million

Rank in 2013
* Noseworthy - 15, earned $1.9 million
* Cosgrove - 16, earned $3.2 million

Rank in 2014
* Noseworthy - 16, earned $2.3 million 
* Cosgrove - 72, earned $4.1 million

Rank in 2015
* Noseworthy - 8
* Cosgrove - 12

Rank in 2016
* Noseworthy - 30
* Cosgrove - 29

 

August 22, 2016

New coffee shop brewing on South Broadway

More caffeine is coming to Rochester's South Broadway.

Dennis and Lynn Wong have found a new place to open a third Rochester Dunn Bros. Coffee shop. The Wongs are leasing a 1,500-square-foot space in the 2550 South Broadway building in the Broadway Commons commercial area. That's the former home of Papa John's pizza, which closed at the start of June.

22082016newdunnbrosDennis Wong said the goal is to open the new coffee shop in October. It will have four full-time and eight part-time employees. The location will replace the downtown skyway Dunn Bros. shop, which closed earlier this month.

This shop will feature on-site coffee roasting, expresso beverages and a food menu, including fresh baked pastries, all-day breakfast sandwiches and box lunches with sandwiches and wraps. The Wongs also have Rochester Dunn Bros. shops at 120 Elton Hills Dr. NW and 1340 Salem Road SW.

Why this spot for a third location?

"It has good visibility, easy access off and on Broadway for dine-in or the new drive-thru window. It is convenient for south and southeast Rochester," he said.

Mike Haley, of Braasch Commercial Real Estate, handled the real estate deal.

This marks the return of coffee to the 14-year-old building. Soon after the building was completed, Doc's Coffee Co. opened on the end opposite Dunn Bros.' new space. It was followed in 2013 by the Sanus Bosnian Cafe and Grill, which served very strong Bosnian coffee.

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.

August 17, 2016

Miracle Mile project to be unveiled soon?

579781715a9e4.imageWhile there has been no official word about the proposed grocery/apartment complex project at Rochester's Miracle Mile Shopping Center, it looks like it is on the agenda of Thursday's meeting of the Committee on Urban Design and Environment.

CUDE is slated to hear about the "Miracle Market Mixed-Use Project," according to the agenda. No other details are listed. This project is expected to involve the mysterious, unnamed owner of the Miracle Mile shopping center and Nate Stencil of Stencil Homes, who has a number of apartment complex projects in Rochester.

No word yet on what grocery chain will occupy this possible building.

August 16, 2016

New biz incubator is up and running

08152016collider1The renovation of the 115-year-old Conley-Maass building at 14 Fourth St. SW by owners Traci and Hunter Downs is almost complete

The Bleu Duck Kitchen on the main level of the building is ready to open to the public next week.

0816collider2Meanwhile, upstairs, the Downs' new Collider business incubator is officially open for business under the management of Jamie Sundsbak. About one-third of the works spaces are contracted out so far, he said.

On Monday's opening day, Chris Lukenbill moved in his software development teams, which works for Bright Agrotech of Laramie, Wyo.

August 15, 2016

Bleu Duck Kitchen taking reservations for Aug. 26

It looks like the 08152016bleuduckBleu Duck Kitchen is ready to fly in downtown Rochester.

I hobbled over to the almost completely renovated 115-year-old Conley-Maass building at 14 Fourth St. SW. this morning for the open house for the Collider business incubator on the second floor. 

I'll put up more about the Collider soon. But first, I thought I'd share that Chefs Erik Kleven and Erik Paulsen say that they are accepting reservations for Aug. 26 for the public opening of their Bleu Duck Kitchen on the main level of the building.

08152016bleuduckcounterConstruction on the 60-seat "New American Bistro"-style restaurant is mostly complete, though some fine-tuning of the private event space is still underway  in the back.

 

Front of the house staff showed up at the new eatery today to meet for the first time. 

Pro tip - the chefs say the tables in the front window space are already the most popular spots. So if you want one of those high-profile tables, make your reservations earlier.

 

Eye clinic moving into Kahler space

The eyes have it.

Rochester's Dr. Ty Huber has signed a lease to open a second location for his Huber Eyecare clinic in the Kahler Grand Hotel lobby, in the corner space that overlooks the Peace Plaza and was last occupied by the Revelation/Les Wigs Renee shop.

08152016kahlercorner"I'm sure it will be very successful. I'm not concerned at all about taking on such an expensive space," he said. Huber estimated that this new downtown location will cost about double the per-square-foot cost of his main clinic at Sienna Square, 711 Commerce Drive NW.

"I have a lot of customers who work downtown. This will make it easier for them to access Huber Eyecare," he said.

08152016kahlerinsidespaceHuber, who opened his first local office in 2007, expects his contractor, Todd Severson of TLS Cos., to start work on the space later this month. He hopes to be able to open 1,360-square-foot space in early October. He's hiring a second optometrist and two other employees for the new clinic.

Leasing that high-profile corner of the Kahler to an eye clinic is a change to the previous strategy that Kahler Hospitality Group discussed during the high-profile lawsuit to evict Renee Carlson's Revelation/Les Wigs Renee/Merle Norman Cosmetics. While Carlson won the case, she eventually moved her businesses out of the Kahler at the end of 2015. In June, she opened a store in Decorah, Iowa.

During the 2013 case, Javon Bea, the Oronoco businessman who leads the investment partnership in charge of Kahler Hospitality Group, testified that "the new owners thought it (the hotel lobby) was very hodge-podge ... Some functions in the lobby were destinations, not impulse services, and they didn't think those were appropriate to be in the lobby of the Kahler Grand Hotel."

When asked for comment last week, Bea forwarded questions about how Huber Eye Care fits with that strategy to KHG's Chief Financial Officer Leslie Hohmann.

"I feel that Huber Optical is going to a good addition providing patient care support directly across from Mayo and the front of the Kahler Grand," Hohmann said in an email. "We expect that the optical business will be very neat and clean right next to the main entry to the Kahler Grand. While impulse businesses work well in many spots, they are often food-related and carry debris and smells that we did not feel were appropriate for the entry to the Kahler."

 

August 12, 2016

Movie theater building sold for $2.5 million

Local investors bought a Rochester movie theater for $2.5 million last week, but don't expect any change in the on-screen action.

The 15-year-old CineMagic Hollywood 12 theater at 14 2171 Superior Drive NW was purchased on Aug. 5 by Magic West Properties of Rochester. Magic West bought it from Phoenix, Ariz.-based Cole CN Rochester MN, LLC.

Cinemagic_bigCole SN acquired the theater for $7.4 million in June 2005 from CineMagic, when the Maple Grove movie theater firm reorganized because of a bankruptcy.

Three local investors, including Med City business leader Mike Adamson, bought the theater under the corporate name of Magic West as an investment. CineMagic has a long-term lease and recently invested in the building by adding a special new three-screen feature called Barco Escape.

Commercial Realtor Nick Pompeian, of Rochester's Realty Growth Inc., represented Magic West in the deal.

This is the latest milestone in CineMagic's dramatic run in Rochester. The firm, led by President Steve Tripp, built the Hollywood theater in 2001. It opened just months after local developer Gus Chafoulias' new Chateau Theatre 14 began showing movies in northeast Rochester.

The two theaters were fierce competitors until CineMagic bought the Chateau theater from Chafoulias at the end of 2006. CineMagic had all of Rochester's movie business locked up for almost a year until Wehrenberg Theatres built and opened Galaxy 14 Cine in November 2007 in the Shoppes on Maine area in the southeast quadrant.

The playing field changed again in 2005, when Midwest Theatres Corp., CineMagic's parent company, filed for Chapter 11 bankruptcy. While CineMagic sold the Hollywood 12 building, it kept its theater business rolling along there. Florida-based Paragon Theaters bought and re-launched the now-named Paragon Chateau 14 Theater.

Biz buzz

For the record, this CineMagic theater deal was the third real estate sale of more than $1 million in Rochester in the first week of August.

On Aug. 1, the Rochester School of Hair Design building 4229 U.S. 52 North sold for $1.3 million. Then the Meadow Lakes Senior Living community sold for $9.1 million on Aug. 3.

It'll be interesting to see what the final real estate tally is by the end of August. 

August 11, 2016

The end is near for Rochester's Nelson Cheese

After more than 30 years of selling sandwiches on Rochester's Broadway, Nelson Cheese Factory is planning to call it quits.

LsHowever, the exact closing date of the small deli at 210 North Broadway still is being determined.


"I'm not sure yet when it will close … maybe next week," owner Ed Greenheck on Wednesday. "I do know that soon there will no longer be a Nelson Cheese Factory in Rochester."


Greenheck is hoping to find a buyer to step in and re-open it as a di Nelsoncheeseclippingfferent eatery. The deli has two employees in the small spot in the Disons Cleaners building on North Broadway.

He cited several reasons for the closure, including the high
er costs of doing business in Rochester as well as Minnesota, competing with Mayo Clinic to hire employees and focusing more on the growth of their Wisconsin locations.


Rochester's Nelson Cheese is a satellite of the 158-year-old cheese factory in Nelson, Wis. The Greenheck family opened the Med City shop in the 1980s. It was located at 506 N. Broadway until an expansion of Marigold Foods, now Kemps, forced them to move.

The deli reopened at 210 N. Broadway in 1988, where it has served Mr. T and Old Fashioned sandwiches ever since.