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1451 posts categorized "Real estate news"

October 13, 2014

New biotech office launches in Rochester

This one seems to have a lot of local momentum behind it.

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The health care technology arm of a Sri Lanka-based company is officially launching its Rochester office on Tuesday morning.

Brandix i310132014brandixoffice is hosting a grand opening in the morning of its 2,000-square-foot office on the skyway level of Minnesota BioBusiness Center at 221 First Ave. S.W.

The software development firm has been working out of a spot in the Mayo Clinic Business Accelerator, since early summer. The business accelerator is located on the same floor of the Biobusiness Center as Brandix's new office.

Aaron Epps, Brandix's associate vice president of health care, said earlier this year that office would launch with six employees, though he expects it to grow to 12 by the end of the year

"We want to be part of the Destination Medical Center project," he said. "We're looking to expand quickly. We're a start-up, but we're a start-up with the backing of a large 10132014brandixskywaysigncompany."

Brandix's focus is to work with its local partner, Rochester-based Ambient Clinical Analytics. Ambient makes "real-time decision support tools" for doctors and nurses working in the ICU, operating room or emergency departments.

Mayo Clinic launched Ambient in 2013, and it named Al Berning as CEO. Berning is known in Rochester as a former IBMer, a co-founder of Pemstar and former CEO of Hardcore Computers/LiquidCool Solutions. Ambient's management team includes other local business leaders, like former long-time IBM executives Drew Flaada and Deb Sutherland.

Brandix has a three-year lease with the City of Rochester. It pays $20 per rentable foot
is In addition to the leasing the 2,000-square-feet, Brandix's lease promises "first right of refusal" for the other 2,000 square feet of adjacent vacant space to the west.

The city gave Brandix "a one-time fit-up allowance" of $10 per square foot, or $20,000, to build out its offices.

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.

September 23, 2014

Paint store, coffee/bagel shop may be coming to N.W. Rochester

If a few final details can be hammered out, a Sherwin-Williams paint store and combination Dunn Bros Coffee/Bruegger's Bagels shop could be coming for northwest Rochester.

TJL Development of St. Paul is planning to build a 4,000-square-foot building for Sherwin-Williams and a 2,500-square-foot building for the co-branded Dunn Bros/Bruegger's. They are slated for a parcel near Kwik Trip and Costco in the 108-acre commercial development at 19th Street and West Circle Drive. The development plans include other businesses, such as McDonald's, two hotels, an Aldi's grocery store and an Associated Bank branch.

This is not TJL's first foray into Rochester. It built a 4,000-square-foot paint store in 2013 for Sherwin-Williams in south Rochester, in front of the south ShopKo and Menards stores. That store replaced Sherwin-Williams' former south store, which was located in the defunct Rochester Market Square, which later became Rochester Public School's Alternative Learning Center.

If the northwest project moves ahead as planned, it is expected to replace Sherwin-Williams' current location at 19 Seventh St. N.E.

While TJL Principal Jim Lavalle says there are some aspects of the project that still need to be finalized, the company is moving ahead and has filed building plans with the City of Rochester.

"We're hopeful to start construction yet this fall," he said.

September 19, 2014

Rochester airport office complex sold for $1.6 million

The Affiliated Group has a new landlord following the $1.6 million sale of their leased office complex by the Rochester International Airport.

D5f521eaa63f4c98a62ea4f7564db20fWest Quad Capital LLC  bought the 12,000-square-foot building at 7381 Airport View Dr. S.W. from LNI Airport LLC on Aug. 29. Merl Groteboer of Re/Max Results handled the deal.

West Capital is owned by a Minneapolis family, who purchased the Rochester building as an investment. LNI Airport is one of the companies that long-time real estate investor Les Nelson of Clear Lake, Iowa uses to acquire properties.

The Affiliated Group, which moved its 100 employees into the office complex in July, has a long-term lease on the building. Affiliated is co-owned by Mark Neeb and Paul Skovbroten.

The 91-year-old debt collection company moved from the six-story building at 3055 41st St. N.W. that is part of what many call "The IBM White Buildings," though IBM no longer has any personnel in them.

The Rochester company moved to the 3055 building in 2006, when it sold its former downtown office at 316 First Ave. S.W. That downtown location was later demolished to make way for the 318 Commons student housing and University of Minnesota Rochester educational complex.

September 18, 2014

H3 Plaza's 1st tenant to move in during Dec.

The first tenant is expected to move into downtown Rochester's latest office building development in December, though the entire seven-story complex is not expected to be completed until the spring.

Titan Development and Investments, of Rochester, is building the $17 million building now called H3 Plaza at 300 S. Broadway. Construction began in March, when Titan demolished the former C.O. Brown building that previously stood on the site. H3 is a reference to Rochester's Historic Third Street, which is directly across Broadway from the building.

541ae78d4ef07.imageTitan will be the building's first tenant, with plans to fill the sixth floor with its offices in December. Titan, led by Andy and Gus Chafoulias, has about 25 employees working out of the Minnesota Biobusiness Center on First Avenue Southwest.

"We'll have it ready by then," said Joe Fort, project supervisor for Weis Builders, last week, as he stood inside the bare beams on the sixth floor and a crew of about 45 of his workers and local subcontractors worked around him. Fort expects to have the building enclosed and weather-tight before the full force of winter hits. That will allow them to work through the colder months to complete the first through fifth floors.

All but 6,000 square feet of the 43,000-square-foot building is already leased to local tenants, said Titan marketing and communications manager Shelia Thoma. That available space is divided between the second and third floors of the H3 Plaza.

The Nova Restaurant Group, which is led by Scott Foster and Pat Woodring, will fill the street level with an authentic Italian eatery as well as a rooftop patio bar and grill on the seventh floor. The rooftop patio will tower over Rochester's two nearby roof bars, Kathy's Pub and The Tap House.

Foster and Woodring have worked with Gus Chafoulias in the past, when they opened Chester's Kitchen & Bar in his Shops at University Square building in 2008 and Pescara in his DoubleTree by Hilton Hotel in 2009. They haven't named the H3 restaurants yet, though they do hope to open the Italian place in the spring.

Sept.2014H3rooftopSide-by side elevators will take people to the rooftop patio, even when the businesses in the building are closed. H3 Plaza will be connected to the adjacent City Centre complex and the Holiday Inn skyway.

Med City Dental and Dunlap & Seeger law firm, two businesses being displaced from the Associated Bank Building at 206 S. Broadway, have leased space in the H3 Plaza. The dental office, owned by Dr. Fred Carlson, will be located on the second floor, and the law firm, Rochester's largest, will occupy half of the third floor and all of the fourth and fifth floors.

Developer Bloom International Realty of Abu Dhabi plans to demolish the Associated Bank building in 2015 and possibly build a high-end hotel.

Andy Chafoulias originally envisioned developing the H3 Plaza site as a three-story restaurant and entertainment venue in 2013. That plan evolved as information about Mayo Clinic's Destination Medical Center initiative came out, along with the re-development plans for the Associated Bank building.

The Rochester City Council approved a special redevelopment tax-increment-financing district to raise $300,000 for Titan to cover the asbestos removal and demolition of the former C.O. Brown building. The council also prematurely labeled the H3 development as a DMC project.
 
Assistant City Administrator Gary Neumann said that since the DMC Corp. board of directors needs to approve any project before the start of construction, the H3 development doesn't qualify. However, the council's order states that any leftover money from the tax increment financing for the project could rollover to any nearby approved DMC projects, such as the anticipated update of Historic Third Street.

The pay-as-you-go TIF essentially reimburses the annual taxes the developers will pay, once the project is complete. The earliest Titan could see a payment was estimated at 2016.

Another, much larger, Titan development planned for the corner of South Broadway and East Center Street could possibly qualify as a DMC project. Spearheaded by Gus Chafoulias, the preliminary plan presented to the City Planning and Zoning Commission in March showed a 24-story, mixed-used complex featuring retail and restaurants, a 184-unit Embassy Suites Hotel on 11 floors, 84 apartments on six floors and underground parking. It was called Broadway at Center at that point.

Thoma said that project, which now is called The Legacy, is undergoing changes.

"A redesign with the hotel plans is the reason we are still in the design phase," she said.

September 11, 2014

Nu On U to close its doors to pursue new opportunities

After a four year run on North Broadway, a women's clothing resale store called Nu On U is preparing to close up shop as its owner takes on new projects.

48006_153372731356200_2669327_n"We're going to be sorry to say good-bye to Rochester. Business has gone well. It has been a terrific location," said Donna Gates, who has helped her daughter Kisa Bisek run the 1,600-square-foot storefront in the Dison Cleaners Center at 200 N. Broadway.

For Med City old timers, that's the spot that previously housed Wireless Toyz and Hobbit Travel back before that.

They have launched a "going out of business" sale. Gates says they plan on selling everything, including many of the store fixtures and mannequins.

Unlike when many stores close, this closure is not about slow sales. The resale shop was Bisek's brainchild and now she's ready for something new.

"My daughter is being offered other business opportunities, so it's time to shut this down," Gates said.

Nu On U was at the forefront of the surge in resale and consignment stores in Rochester, when it opened in August 2010. It purchases gently used girl's and women's clothing, shoes and accessories with the intent to resell them. By listening to its customers over the years, the store earned a loyal following.

When announcing the closing, Nu On U encouraged its regulars to patronize other similar Rochester shops like Kismet, Refashion, Danielle's Consignment Boutique and Size It Up.

September 09, 2014

114-year-old family farm sells for $1.85 million in NW Roch

Since the city of Rochester surrounded his family's 114-year-old farm, developers and real estate agents have regularly talked to Jim Till about selling his island of prime real estate on 19th Street Northwest.

After years of turning down offers, Till sold the remaining 28 acres of his family farm to Jack Remick for $1.85 million last week. Remick also owns Rochester Athletic Club across the road from the farm.

540f1b17a71bf.image"You look back, you hate to leave, but you've got to go sometime," said Till of selling the farm that he has lived on for all of his 61 years. "It's just time to hang it up."

Remick calls the purchase an investment at this point.

"It's a nice piece of property. I don't really have any specific plan for it," he said. "Some of it is across from the club, and some is across from Lourdes (the high school built on land he donated). I would be very interested in what goes in out there."

Till has six months before he needs to move out. He plans to move to his other farm, outside of Byron. He'll continue to farm more than 300 acres with his brother, Charles Till.

Till bought the farm from his mother, Leone Till, in 2006. The house on the farm, which has been expanded and remodeled several times over the years, was originally built in 1900. Till's grandparents lived there. The family has photos of his father, who was born in 1910, as a baby in front of the house. Jim Till grew up on the farm with his eight sisters and his brother.

The family milked cows and raised fields of corn and alfalfa on their farm and on nearby leased fields. In the 1980s, the brothers each bought farms near Byron.

While the Till farm was originally outside of the city, development slowly encircled it.

West Circle Drive started bringing a lot more activity to the area. Manufacturers such as Crenlo and Pemstar/Benchmark built there. Mayo Clinic expanded into that part of the city. The leased fields on the corner of 19th Street and West Circle Drive, where the Tills grew alfalfa for their cattle, was shaped into a commercial development by Kwik Trip for Costco and other businesses.

"For a long time, there wasn't a lot of traffic. Now, it's just traffic all of the time," said Till.

After Costco went in, he moved the dairy cattle to his Byron farm, which means he has been spending a lot of time on the road going between the two farms.

"The only ones profiting were the gas companies and tire companies. It has been a lot of hassle," he said.

The surge in activity in the area also brought crime. Till has been burglarized a number of times in recent years, which prompted him to install gates and move many things to the Byron farm. He then had a stroke about four years ago, which slowed him down.

"I always said I'd sell when the offer was enough to laugh all the way to the bank," he said. "Well, it was just time to sell, though I'm not laughing too hard."

September 04, 2014

Pending real estate deal spurs flower shop move

Flowers By Jerry will soon move its Third Avenue shop because a pending real estate deal could change scenery on the high-profile Rochester corner.

04092014flowersbyjerrybuckeyeOwner Kevin Patton says the sale of his building at 410 Third Ave. S.E. is in the works along with the adjacent Buckeye Liquor building, which he also owns. Robert and Diane Satterwhite own Buckeye and lease the building from Patton.

Patton is shifting his business offices and the floral design from the Third Street shop to Flowers By Jerry's other location by Silver Lake. That change could happen by the end of this month.

"We're consolidating that part of the business, but we're also branching out," said Patton said.

Patton is opening another store, Flowers By Jerry Lux Floral Boutique, in the TJ Maxx Plaza in southwest Rochester to replace the Third Street location. As the different name would suggest, this new location will be a new take of the standard flower shop.

Patton describes it as mix of a floral store with a women's clothing boutique with clothing, jewelery and home decor.

The floral boutique will be located just outside the entrance of TJ Maxx. Flowers By Jerry will move into the 2,500-square-foot space left open by Fox Nails' recent move to a new spot on the other side of the atrium.

If everything goes as planned, it's expected to be ready to open by the start of November, if not sooner. With all of the changes, Patton anticipates he may eventually need to add a new part-time position or two to his current staff of about 20.

While all of these plans are moving forward, details about what will happen on the corner of Third Avenue and Fourth Street are scarce at this point. The sale of the Flowers By Jerry and Buckeye Liquors buildings could close by the end of this month. However, Patton isn't discussing the buyer or any other details until it officially wraps up.

Given that corner's proximity to downtown and the Olmsted County Government/Rochester City Hall, some are speculating that the purchase of those two buildings is a sign that a developer wants to build a new commercial center, restaurant or hotel.

New Scheels store shaping up

Lots of activity at the new Scheels All Sports mega-store site at Rochester's Apache Mall this balmy "fall" morning.

04092014scheelsConstruction and partial demolition of the former Sears store site has been rolling along all through the summer on this new sprawling addition to the Med City's sporting goods offering.

Fargo, N.D.-based Scheels estimates that it will be ready to open in early April 2015. The planned 140,000-square foot store will be larger than the 120,000-square-foot Scheels in Mankato.

It is expected to add between 120 to 180 new jobs toScheelsmap2 Rochester.

In addition to sporting goods, its features will include a fudge and coffee bar and a mini bowling alley.

The development for the expanded store also includes Apache Mall adding 9,000-square-foot restaurant site on the east side of the city water tower. 

There's no word yet on what restaurant might be planned for that site.