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1541 posts categorized "Real estate news"

August 26, 2015

O&B Shoes to stroll to new home this weekend

Downtown Rochester will see a major migration of Mary Janes, moccasins, mukluks and more this weekend as a crew of between 20 to 30 people march a mountain of shoes to a new storefront.

O&B Shoes will hit the sidewalk this weekend as staff, family and friends move more than $61,000 in shoes, boots and sandals less than a block to the store's new downtown home.

08262015newobshoes"It's going to be a total team effort," said owner Don "Sole Man" Hadley. "We're excited about it. It's going to be a new adventure for me, my staff and my customers."

If everything goes as planned, O&B should re-open on Monday or possibly Tuesday.

O&B Shoes, which has been a downtown feature for 82 years, is moving north from its long-time spot on the corner of 100 First Ave. SW to a new space at 19 First Ave. SW. That's the street-level spot in the Kahler Hotel building where Hanny's Men's Wear operated for decades until that store closed last year. Hanny's still has stores in the Kahler subway.

A crew of between 20 to 30 people is slated to walk the boxes and boxes of footwear to move the 6,000-square-foot storefront. The store will be accessible from the subway, as Hanny's was, although that access won't go through Hanny's store under the space, he said.

O&B shoesO&B, which was founded by Leo Olson and Herbert Bergerson in 1933, has been in its present location since 1976. Its previous downtown spot at 217 Broadway Ave. S. was damaged in a fire.

The prominent spot on the Peace Plaza in the heart of downtown has made O&B a well-known landmark and regular stop for returning Mayo Clinic patients.
08202015cloud9spa
No new tenant for the 100 First Ave. SW storefront has been announced by the building's owner, George Psomas, though signage has gone up for Cloud 9 Spa in the adjacent one. O&B operates its O&B Athletic and O&E (Odds & Ends) Bargain Room in that space on First Avenue. 

August 19, 2015

Mayo Clinic officially opens Mayo Medical Labs expansion

About a year after breaking ground on the project, Mayo Clinic officially opened a 60,000-square-foot expansion of its Superior Drive Support Center on Tuesday.

The Superior Drive Support Center, which houses Mayo Medical Laboratories, is located at 3050 Superior Drive NW. The three-story addition built on the south side of the complex. Mayo Clinic is moving its the toxicology, endocrinology and proteomic core labs to the new space from downtown. They expect to be fully moved in by April.

Moving those three labs out of the Hilton Building will open up 24,000-square-feet of space. While this expansion will not bring new jobs, it will mean moving 150 to 170 people out of downtown to join the more than 1,000 Mayo Medical Labs employees at the Superior Drive complex.

"That's essential to allow other Mayo labs to decompress," said Dr. Matt Binnicker, the chair of the Department of Laboratory Medicine and Pathology's Facilities and Space Committee, in 2014. "Having those labs here makes a lot of sense."


Mayo Medical Labs, which generates revenue for Mayo Clinic, performs about 20 million tests for more than 4,000 hospitals annually.

Binnicker explained that while the three labs handle tests for both Mayo Clinic's patients and Mayo Medical Labs clinical customers, about 90 to 95 percent of their work is for MML.

Mayo Clinic moved into the 13-year-old complex in 2004. By 2011, about 800 employees worked at the facility. It originally was built by electronics manufacturer Celestica Inc. in 2001. When that company closed its Rochester operation, the building was left empty.

Mayo Clinic leased the property for eight years, until it paid $18.5 million in August 2012 to buy it. Before that, it was owned by 17 national investors through Triple Net Properties of Santa Ana, Calif., until they defaulted on the mortgage in 2012. The investors bought the property for $36.8 million in 2006.

When the mortgage defaulted, HSBC Bank USA took over the property. HSCB then sold it to Mayo Clinic.

While it originally was under construction, New York City-based W. P. Carey & Co. LLC bought the complex from Celestica, which leased it back. W.P. Carey later sold it for about 70 percent more than the $21.6 million it paid.

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.

August 11, 2015

New SW grocery store to open in September

The latest entry in Rochester's grocery scene plans to open its doors in mid-September.

Natural Grocers by Vitamin Cottage has been working on a 14,000-square-foot store at 1507 Greenview Drive SW by Kwik Trip and TJ Maxx Plaza for the past few months.

08112015naturalgrocersThe Golden, Colo.-based specialty grocery chain is planning to open on Sept. 15. Expect a large grand opening event with a couple preview days before for local VIPs.

Natural Grocers built its new store at the corner of Greenview Drive and Salem Road Southwest on a site once slated for a Think Mutual Bank branch. Think changed its strategy and opted to renovate its nearby branch.

This will be Natural Grocers' first store in Minnesota, though the 59-year-old public company operates 84 stores in 14 states, with 10 more stores expected to open soon.

Natural Grocers features organic foods as well as an extensive selection of vitamins and dietary supplements. The chain's website says its stores devote about 30 percent of their shelf space to vitamins, which in turn generates about 30 percent of its revenue.

The new store is the latest player in the increasingly competitive grocery scene in Rochester. Discount grocer Aldi recently opened a second store near Costco in northwest Rochester. Hy-Vee is working on its fourth location, which is slated to open later this year, and it will have a grand reopening of the remodeled 37th Street Northwest store on Aug. 20.

 

August 04, 2015

Thai eatery closes, hopes to hit road as food truck

A northwest Rochester restaurateur has closed the doors of his eatery, but he hopes to eventually take his menu on the road.

Over the weekend, Pativath "Vot" Louprasong closed Sok Dee at 4180 18th Ave. NW in front of the Cedarwood Plaza shopping center. He said expenses had just gotten too high keep it open there.

That's the building which previously has housed Far East FusionJohn Hardy's Bar-B-Q and Roscoe's Root Beer & Ribs.

08042015sokdeeclosedLouprasong opened the Thai restaurant in 2013. In the past two years, his family's Thai food earned him a small but loyal group of fans in Rochester. He said he wants to thank those customers for their business. That's part of what is driving his plan to follow the hot national trend and start up a Sok Dee food truck.

"I have a good following of people. I'd like to start a food truck by early next spring," he said. "This won't be the last time they hear from me."

In 2013, Louprasong, the youngest of 10 siblings, said opening a restaurant was something he's wanted to do, "since my family came to the U.S. in 1979."

He thinks he'll have good luck with a truck — and Sok Dee means, basically, "good luck" in both the Thai and Laotian languages.

Why start a truck instead of looking for a new restaurant location?

"The freedom," said Louprasong. "But eventually, I would like have another sit-down restaurant."

 

July 30, 2015

Posh Boutique opening shop in Rochester

A Sioux Falls, S.D., women's fashion shop is opening a new location in Rochester soon.

Posh Boutique, a clothing store that carries "premium denim and unique fashion lines," plans to open on Saturday in Suite 200 at 123 16th Ave. SW. That's the space between Cherry Berry yogurt and the Rocco Altobelli Salon that last housed the About Face beauty boutique.

Posh BoutiquePosh, which is not connected with Rochester's Posh Facial Esthetics Med Spa, is owned by Sioux Falls natives Jenny Kaiser and Becky Carmody. The new Rochester store will be managed by Suzanne Ledeboer.

On their website, the owners wrote about why they decided to open their second store in Rochester.

"We are very excited about Rochester, because we feel it has many qualities that are similar to Sioux Falls. It has a vibrant downtown and draws people from many surrounding communities. We love that Rochester has all the amenities of a city, but still has a small town feel," they wrote.

In an announcement about the Rochester store, Kaiser explained what shoppers will find in Posh.

"Our clothing lines are unique and many times, exclusive to our store. We really value the relationship we build with our customers, and plan to take the time to get to know the needs and wants of each of them," she wrote. 

July 29, 2015

More on Mayo Clinic + US Postal facility

 So the Post-Bulletin is not the only Minnesota media to take note of Mayo Clinic's recent $2.11 million purchase of the unused U.S. Postal Service center at 3939 Valleyhigh Drive.

PostalcenterOn July 17, Mayo closed the $29.13 a square foot deal on the northwest Rochester property, which the US Post Office closed in January. I wrote an article about it on July 21.

The Twin Cities business newspaper, Finance & Commerce, spotlighted the deal in it's "Minnesota Snapshot" real estate feature in its July 23 issue.

While Mayo Clinic still hasn't worked out what it will do the building that it purchased, the Finance & Commerce piece by Anne Bretts does provide some new insight into how the deal played out.

Chris Gliedman, of the Minneapolis-St. Paul office of CBRE Group, which has a national contract to represent the USPS.

Gleidman and colleague Mike Marinovich most recently marketed several properties that became available after the Postal Service consolidated many of its operations in Eagan, where the USPS expanded an existing facility to create a 950,000-square-foot regional processing center.

The move affected facilities throughout Minnesota and into Wisconsin.

------------

The Rochester property went on the market in January 2014.

“We had pretty good interest,” Gleidman said.

In fact, he was in discussions within months and had it under contract by fall. The buyer withdrew, however, leaving Gleidman and Marinovich to start over. Before they could put the building back on the market, Mayo made an offer. It was lower than the original offer, but the deal carried no risk, Gleidman said.

“We felt very comfortable that Mayo Clinic was going to deliver,” Gleidman said.

July 28, 2015

New pizza place cooking for NW Rochester

Pizza is returning to Rochester's Northgate Plaza neighborhood.


A new carryout franchise called $5 Pizza is gearing up to open in the former Pizza Hut space at 1105 Seventh St. NW, says co-owner Doug Howe. Construction is underway, and he hopes to have the new eatery open by late August.

They expect to have a team of five to 10 employees on staff.

Darci Fenske of Paramark Real Estate brokered the deal to bring $5 Pizza into that spot.

UnnamedHowe and his partner, Rod Bailey, believe the pizza chain, which has 13 Minnesota locations, is a good fit for Rochester and that neighborhood in particular.

"We tried it up in the Cities. We loved the product and we loved the concept. We bake it and you carry it out," he said. "With this economy, it's always not always easy to feed a family."

The $5 Pizza approach is to keep costs down by not offering restaurant seating or delivery. Customers pick up pizzas. All one-topping pizzas cost just $5.

It offers a full menu, which includes specialty pizzas such as Cheeseburger and Inferno Chicken. It also serves breadsticks and a variety of chicken wings.

That spot puts $5 Pizza in the heart of a busy northwest Rochester neighborhood.

"We liked the fact it's a block away from John Marshall High School. And there's a lot of housing right behind us," said Howe. "Geographically, it's a great location for us."

July 24, 2015

A new burger chain plans to 'smash' into Rochester

Could the flames of Rochester's always simmering burger wars soon flare up from the heat of competition?

Possibly. Another national gourmet burger chain is planning to smash into the Rochester market.

Smashburger, a trendy burger juggernaut, is expanding rapidly its footprint across the U.S. and now Rochester is on its radar. The chain is known for "smashing" its fresh hamburger patties to sear in flavor.

Bigburger_situational_960x394_home_page-cactusSmashburger Marketing Manager Christine Ferris said they hope to be cooking in Rochester by late March 2016.

"To answer your question, we do have a site picked out according to our real estate sheet and it’s going to be a corporate restaurant, not franchise. It looks like the projected opening date is for late March of 2016," she wrote in answer to an inquiry about their plans.

This could bring a competitor into a city already dominated by hometown favorite and local burger champion Newt's.

In 2009, Five Guys Burgers arrived and threw down the burger battle gauntlet. Newt's has kept its title as the top burger power, but plenty of skirmishes continue between Five Guys, Culvers and the usual lineup of fast-food suspects.

SmashBurger_logoReaders have been clamoring for burger specialists White Castle, Red Robin and/or Sonic Drive-in for many years, but none of those players have ever gotten serious about cooking in the Med City.

The Denver, Colo.-based company already has 13 restaurants in Minnesota and is ready to start construction on a new one in Shakopee, according to an article in the Minneapolis-St. Paul Business Journal this week.

If Smashburger does open in Rochester in March, it will be the first new big national name to jump into the local fray, since Five Guys arrived six years ago. 

July 22, 2015

Dirt is moving for NW Rochester development

Dirt is moving in northwest Rochester for a new commercial development area. 

Edina-based New Era Development is starting to prepare its Creekside Development on the southwest corner of the intersection of 19th Street Northwest and West Circle Drive. 

XAerial_-Creekside-2011.8.3-005-e1432657863387-750x410.jpg.pagespeed.ic.F6OkG5ifGbNo businesses have yet been announced for the build-to-suit development. Plans show an entrance from 19th Street Northwest and streets within the Creekside area.

The marketing brochure for Creekside lists the build-to-suit opportunities as including retail, office and flex office space. Available lot sizes range from 1.13 acre to 4.22 acres.

New Era first proposed Creekside in the fall of 2007, just before the economic recession. Earlier this year, the firm updated its plans and began marketing the project.

Plans show a development that could grow into something very similar to the 100-acre commercial area anchored by Costco, Associated Bank, Aldi and Kwik Trip on the northeast corner of the same intersection.

The Radichel family, of Mankato, which is behind Venstar LLC and its affiliate, New Era, has owned the land for about 30 years.

In 2007, former Venstar President Nino Pedrelli told the Rochester City Planning and Zoning Commission that, “We are long-term holders, and right now the project is a go for us."

Venstar and New Era also own the Valley High Business Center buildings, Phase I and Phase II, at 3535 40th Ave. NW, and the Cascade Park commercial center on Ninth Street Northwest, behind Kwik Trip. — Jeff Kiger