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1553 posts categorized "Real estate news"

October 06, 2015

Rochester 'Who's Who' breaks ground for new bank

A "Who's Who" of Rochester used golden shovels to toss scoops of dirt Monday to officially launch the construction of a new $7 million bank complex.

While construction crews have already dug a huge hole for West Bank's new Rochester headquarters, the Iowa-based bank bought out its leadership team and its well-known local community board members for a groundbreaking ceremony.

05102015westbankgroundbreakingThe bank has operated a branch office in Rochester, since 2013. The new two-story, 15,000-square-foot complex is completed in late summer to early fall of 2016. It will stand on the hill overlooking West Circle Drive Northwest, next to Rooster's Bar & Grill and across from McDonald's. The bank expects to have a team of about 12 employees to staff the new location.

"This bank is different. We're not all things to all people. This is a community bank focused on business," West Bank CEO Dave Nelson.

Despite being a 122-year-old Iowa bank, West Bank has deep roots in Rochester. Nelson was the president of Wells-Fargo Rochester for many years, before he took the reins of West Bank in 2010. He has recruited many of his former co-workers to staff West Bank's Rochester location.

"We know Rochester. We have experienced bankers who know how to work with businesses," he said. "As a community bank, we make local decisions. We're what businesses are looking for - predictable, dependable and accessible."

In addition to the staff, Nelson has recruited what he calls "a Who's Who" list of Rochester's business leaders to serve on West Bank's local community board. The board includes Gus Chafoulias, Joe Powers, Pat Deutsch, Sandy Keith, Dave Pederson Jim McPeak Sr., Hal Henderson, Pete Schuller, Ed Stanley, Tim Weir, Greg Groves, Charlie Kuehn, Dick Kuehn and Norb Harrington.

"It really is an endorsement of West Bank to have them all on the board," said Nelson. 

It focus on business banking means the new building with not look like most bank branches. While it will have a drive-through, it will not have many teller lines for customers. The West Bank building will have a large roof-top plaza for events as well as a large conference center for meeting.

"It is unlike any other bank in Rochester," said local architect Hal Henderson of HGA. 

Builder Pete Schuller of AB Systems pointed out that the site allows for extensive landscaping.

"It will be like a new park here. It's a great addition to Rochester," he said.

Rochester has seen many new financial institutions - Bremer Bank, Alta Credit Union, Manufacturers Bank & Trust Co. and F&M Community Bank - come into the market in recent years. Driving much of that interest has been Mayo Clinic's Destination Medical Center initiative. However, Nelson says that's not the case with West Bank.

"DMC is not why we came to Rochester. We came because Rochester deserves a good community bank," he said.

October 05, 2015

More Goodwill for Rochester

The new Goodwill thrift store is going up quickly in northwest Rochester.

10042015goodwillThe framework of the new 28,000-square-foot stands at the corner of 19th Street Northwest and Scott Road Northwest. That's the 19th Street entrance to the Costco commercial area. The store is slated to sit opposite the Kwik Trip station across Scott Road.

It's being built by a Minneapolis developer, The Driessen Group. The nonprofit Goodwill organization has not commented much about the project, but the unofficial buzz is that this new store will serve as a second Rochester location.

In 2008, a Goodwill store with 15,000 square feet of retail space was built at 239 28th St. SE in the Broadway Commons commercial area. The nonprofit organization moved into it after leaving its old Rochester spot at 660 37th St. NW. 

October 01, 2015

A Mayo Clinic linked firm working with DMC planner to develop new Madison biosciences hub

A firm with deep ties to Mayo Clinic is making a move to anchor a downtown Madison, Wis., biosciences hub with help from the development manager of Rochester's Destination Medical Center initiative.

Exact Sciences Corp. licensed technology from Mayo Clinic in 2009 and 2012 for Cologuard, a stool-based DNA test for colorectal cancer. The test is based on research by Mayo Clinic's Dr. David A. Ahlquist and his laboratory.

LogoOriginally based in Boston, city officials at one point hoped Exact would move to Rochester. However, Madison gave the company $1 million to move its headquarters there in 2009.

Since then, the company has flourished, and now it's planning to build a new $200 million, 250,000-square-foot headquarters in downtown Madison with $46.7 million in financial aid from the city.The Madison City Council recently OKed the deal, which requires that Exact will have 400 employees in the building by 2019.

The developer of the project is JDS Development LLC, which is a joint venture between Hammes Co. and Majestic Realty. Hammes is the Wisconsin consultant that is in charge of DMC. It also is working directly with Mayo Clinic on the Discovery Square portion of the DMC project. Hammes also has been hired by the Rochester Convention and Visitors Bureau to do a feasibility study for the proposed hockey arena to house a possible US Hockey League team here.

Hammesco_blue_logoHammes' Exact development will include a 250 room hotel, a food court, health and wellness facility, conference and media centers and lots of room for retail and restaurants.

Exact CEO Kevin Conroy told the Madison City Council that, "We hope that by having a life science company headquarters in downtown Madison, it will spur economic development throughout the region and have a positive impact on downtown."

September 18, 2015

A southeast Asia flavor is cooking in northwest Rochester

A new flavor is simmering in northwest Rochester.

Sophan Thuo is getting ready to open Sonniya's Cambodian Cuisine at 4180 18th Ave. NW in front of the Cedarwood Plaza shopping center. 

11942152_1492082094419055_3725039047799146419_oRochester's growing diversity has brought the food of many cultures, such as Thai, Vietnamese, Korean, Japanese, Ethiopian, Mexican and others to the Med City. While Cambodian has been part of some recent Rochester menus, Thuo's is completely devoted to the food of the southeast Asian country.

"I have been a server for others for many years. I love the job working with food. I love to do what I do," said Thuo. "Now I want to introduce my type of food to Rochester."

Cambodian food is known for its sauces and curries. Like many Asian cuisines, it uses rice and noodles in many dishes, but with a different spin on them.

Thuo said one popular Cambodian dish that Sonniya's Cambodian Cuisine will spotlight is Lort Cha, which it uses rice noodles.

She has the sign up on her new place and hopes to open yet this month. Thuo expects to have about 10 on staff.

The 18th Avenue building has housed a variety of flavors in recent years. Sok Dee, a Thai eatery, closed in August. Before that, it housed Far East Fusion, John Hardy's Bar-B-Q and Roscoe's Root Beer & Ribs.

Andrew “AJ” Hawkins of the commercial real estate firm of Realty Growth Inc. handled the deal that brought Sonniya's Cambodian Cuisine into the site. 

September 15, 2015

High-profile 2nd Street property sold for residence

After years of being up for sale, a long-time Second Street Southwest business recently sold for $272,000.

On Sept. 1, Dick Saterdalen sold the 64-year-old house at 2120 Second St. S.W. where he lives and operates Dick's Auto Sales. He also previously ran the Liquidation Store at the site. He sold the property to Abdullah M. Aljaberi, according Olmsted County property records.
Saterdalen says he will continue to run Dick's Auto Sales at the site until Dec. 1, when he will move the operation to a small farm on Rochester's Viola Road.

Aljaberi is reportedly planning to renovate the house and use it as a residence, according to Saterdalen.

That Second Street house/storefront was in the news in 2013, when the City of Rochester began its $7 million re-construction of the area now dubbed as "Uptown." When a new median was built in front of the property, the 24-year-old business lost its direct left-turn access as well as on-street parking spaces.

Saterdalen complained that the Uptown project killed a deal he had with a bank that wanted to buy his property.  He also protested the assessment that the city charged him for the project.

Overall, Saterdalen blamed Mayo Clinic's Destination Medical Center Initiative for forcing his old-fashioned business/residence off of Second Street.

September 10, 2015

Want to 'sport' a new haircut?

While clipping might be a bad thing on the football field, it's to be expected at a new sports-themed business coming to south Rochester.

A male-focused barber shop franchise is bringing sports and haircuts together in south Rochester.

Owners Steve and Anne Ogren of the Twin Cities plan to open the first Med City location of Sport Clips, a new male-focused barbershop franchise that brings sports and hair cuts together. A banner for the new location recently went up in a storefront by Nupa Mediterranean Cuisine on Crossroads Drive.

"We're just waiting on Rochester building permits. We hope to be under construction any day now," said Steve Ogren. "We'd like to be open by late October."

He expects to hire 12 to 15 stylists.

09092016sportclipsTexas-based Sport Clips, one of the fastest growing franchises in the U.S., already has 39 locations in Minnesota. However, this will be the first in the southeastern area.

The concept follows the traditional barber shop walk-in model, with lots of large-screen TVs showing sports and stylists dressed in pro jerseys. They also feature basket court-style hardwood floors. A "MVP" treatment includes shampoo, haircut, hot towel and a neck and shoulder massage.

Ogren says when he was looking for business opportunities, he was impressed by the family-owned Sport Clips core philosophy based on a quote from legendary coach Lou Holtz. "Do Your Best. Do What's Right. Treat Others the Way They Want to Be Treated.”

"They offered the kind of culture I was looking for," said Ogren.

He added that he and his wife decided to open their Sport Clips in Rochester, because it seems to fit well with the city.

"It's a growing big city with a small town community feel," he said. 

September 08, 2015

Clements to build 2nd dealership for Subaru

Clements Chevrolet Cadillac Subaru is looking south to build an $8 million dealership just for Subaru, its fastest growing brand.

The 87-year-old, locally owned dealership has purchased a 9.5-acre site covered in grass and clover at the corner of 48th Street Southeast and St. Bridget Road Southeast. That's just east of Mills Fleet Farm.

Clements Managing Partner John Wade expects construction to begin next year and hopefully wrap up in the fourth quarter of 2016. Wade owns Clements with partners Jack Remick, Dave Remick and Dan Penz. 

09-04 Subaru enWade described the planned dealership as an "eco-friendly, state-of-the-art sales and service campus" that will face the 48th Street intersection at a northwest angle.

The owners say the explosive growth of its Subaru brand, with its sales doubling in the past year, is driving this plan to spin a second dealership site off the main dealership at the entrance of Rochester's Apache Mall.

"This expansion is what we need to keep up with the service and sales demands of our customers," explained Wade.

Nationally, Subaru sales are exploding in the United States. Subaru reported 45 consecutive months of year-over-year growth in August, when it sold 52,679 vehicles for the month. It was the 25th consecutive month where Subaru sold more than 10,000 Foresters and the 18th consecutive month where it sold more than 10,000 Outbacks

In 2011, Clements built a 4,200-square-foot showroom adjacent to its main dealership to spotlight Subaru, but the demand has outgrown its capacity to display 40 vehicles. Todd Penz, who will serve as the general sales manager of the Clements Subaru dealership, says the new lot will be able to house more than 370 vehicles.

Clements, which now has 115 employees, expects to add 20 new positions to staff the new site. Wade estimates that equals an additional of more than $1 million in payroll for Rochester.

He also expects the addition of the second site will bring Clements' annual property tax contribution to more than $500,000.

"This multimillion dollar commitment is a major investment as well as an expression of confidence in the Rochester area marketplace, which in the end expands the local tax and employment base," said Gary Smith, the president of Rochester Area Economic Development Inc.

The new dealership will join Rochester Toyota and Mercedes-Benz of Rochester in the growing Shoppes on Maine area off US 63, which is booming along with the rest of the city. A 360-unit apartment complex called Maine Heights has been proposed right behind the Clements Subaru property. A $35 million housing project called The Boulders, which will include 144 apartments and 80 townhouses, also is planned.

"There's great growth in the area with a strong economic base," said Wade. "We're a regional dealership with customers throughout southeastern Minnesota, Iowa and Wisconsin. This is a good crossroads for us to build this new dealership."

September 02, 2015

NW Rochester commercial building sells for $1.55 million

A 13-year-old northwest Rochester commercial building recently sold for $1.55 million.

Blum Properties Inc. sold its building at 2746 Superior Drive SW on Aug. 19. A group of local investors under the umbrella of 2746 Superior Dr. NW LLC purchased the complex.

A2b66e375c8e4631a09cfb0fa4951ec9Darci Fenske of Paramark Real Estate represented the sellers, while Scott Hoss and Mike Busch of Paramark represented the buyers. While the investors declined to be named, Hoss said they do not plan to make any big changes with the building.

Paramark Real Estate handles the property management duties for the building.

Built in 2002, the 6,661-square-foot complex houses a number of tenants. Those tenants include Comfort Home Health Care, Manpower, Stanley Jones & Associates, Dekok Insurance Group Inc., Agape Counseling Services and Experience Works

September 01, 2015

Celyad, Medisun collaborating on new China deal

Two international firms with deep Mayo Clinic and Rochester ties are joining forces for a new $22.4 million collaboration. 

Belgium-based Celyad, formerly called Cardio3, announced Monday it's entering into a new venture and distribution deal with its partner, Medisun International Limited, for its C-Cure cardiac treatment. C-Cure is based on stem-cell technology called cardiopoiesis licensed from Mayo Clinic.

CelyadBoth Celyad and the Hong Kong-based Medisun continue to collaborate with Mayo Clinic and both are in the process of creating facilities in Rochester.

This new 15-year agreement between Celyad and Medisun guarantees Celyad will "conduct all clinical development and undertake any regulatory steps necessary for market approval in China, Hong-Kong, Taiwan and Macau (collectively 'Greater China')," according to a news release about the venture.

Medisun will fund that push with a minimum of 20 million Euros, or $22.4 million. In addition to the funding cash, Celyad will collect royalties and profit sharing. The royalty rates, based on the total revenues from C-Cure, are expected to range from 10 percent to 30 percent. Profit-sharing amounts will be based on total revenues after royalties are taken out. The profit sharing is expected to range from 20 to 25 percent.

"We are pleased to have this new license agreement in place with our local partner Medisun, which give us full control over clinical developments in these territories, fully funded by our local partner. Pending receipt of necessary approvals, we look forward to giving access to this technology to patients in Greater China," stated Celyad CEO Christian Homsy in the release.

6a00d83451cc8269e201b8d0c98293970c-120wiCelyad is paying rent on the entire fifth floor, or 14,963 square feet, in the city of Rochester's Minnesota Biobusiness Center. The city signed a lease with Celyad earlier this year for it to develop a prototype manufacturing facility in the downtown building. Construction has been underway for months, but is not yet completed. The five-year lease calls for Celyad to pay a rent of $18 per square foot, or $22,444.50 per month. The city agreed in the lease to pay for $600,000 in equipment and improvements to the space.

Local officials hope to convince Celyad to build a 100,000-square-foot manufacturing facility with 350 employees in Rochester, according to officials at Rochester Area Economic Development Inc.  Celyad also has plans to build a U.S. headquarters in Boston.

The company recently reported a $17.04 million loss for the first half of 2015. It lost $18.1 million for the whole year in 2014, up from $15.9 million in losses in 2013. Dr. Homsy told Reuters last week the company has enough cash to make it through the end of 2017.

The company did an initial public stock offering in 2014, which yielded about $500,000 worth of shares for Mayo Clinic.

Medisun also is collaborating with Mayo Clinic on a project to bring more patients from China to Rochester for treatment. While Medisun began building a $1 million office in the H3 Plaza building in downtown Rochester earlier this year, it recently put an end to that project.

Mayo Clinic, however, has confirmed it still is working with Medisun. Mayo Clinic spokeswoman Duska Anastasijevic said she didn't believe "the scope and nature of the relationship has been impacted or altered, just the planned location of their offices has changed." 

She added that Mayo staff working with Medisun said the company will be using one of its Rochester homes as "a guest house" and headquarters for the project. Medisun CEO Danny Wong personally owns two houses in Rochester. He bought a house at 2515 Crest Lane SW for $1.4 million as well as one at 615 10th Ave. SW for $1.31 million. It is not known which property will serve as the guest house.

August 31, 2015

Baker's Square building sells for $2.49 million

The 25-year-old building at 819 Apache Lane SW, which houses Rochester's south Baker's Square restaurant, was purchased by Alice Montgomery of Los Altos, Calif. for $2.49 million.

646b9184dc9346a88cc1be3d4fcd9855The real estate listing by Mid America Real Estate Group shows that Bakers Square still has seven years left on its lease. The listing priced the building for $2.44 million.

Montgomery bought the 5,124-square-foot restaurant building from the Gloria J. Sobhani estate of Santa Barbara, Calif. on Aug. 25. The Sobhani family originally acquired the building in 2004 for $2 million.

Rochester's north Baker's Square restaurant building at 3539 22nd Ave. sold for $1.65 million in April 2014. Pie3539 LLC of Rochester purchased it from the Duane and Karyl Fiddyment family of Elk Grove, Calif. Baker's Square signed a 20-year lease from that property in 2001.