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1375 posts categorized "Speculation"

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 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.

July 26, 2016

Golden Corral has not tied up a Med City spot

Don't expect a return of the Golden (Corral) age in the Med City.

An announcement about the Golden Corral all-you-can-eat restaurant chain taking over ex-Old Country Buffet spaces in the Twin Cities had local buffet buffs celebrating last week. Rochester was mentioned as a candidate because it has its own empty ex-OCB spot.

Old-country-buffet-2While it looks as though the restaurant going into the open spot at 1300 Salem Road SW will be a buffet, the word is it won't be a Golden Corral.

Darci Fenske, of Paramark Real Estate, says she has brokered a lease deal for the restaurant space in the TJ Maxx & More Plaza. It sounds as if Golden Corral might have put in one of the nine bids for OCB space. If so, it didn't win.

4fc28fb6f45f1467382372-golden-corralThe Twin Cities restaurateur who has locked up the spot still is working out his plan for the future restaurant, so he is keeping his plans under wraps for the moment.

The unconfirmed buzz is that he may be working on some version of an American/Chinese buffet.

Old Country abruptly shuttered its Rochester eatery in Chamberb 044early March, along with a number of ones in the Twin Cities area, as part of its bankruptcy. The large restaurant at 1300 Salem Road SW has stood empty since then.

That left a hole in Rochester's food lineup similar to what happened when the beloved Golden Corral closed its restaurant at 2775 43rd St. NW in 2007.

The popular buffet chain had operated there for six years, until the owners revamped it into Gorilla's Sports Bar and Grill. After some attempts to change and find more customers, Gorilla's closed in 2010.

July 12, 2016

Civic Inn = The Parker

07122016theparker 6a00d83451cc8269e2011570b90dd1970b-800wiThe new sign is up across from the Post-Bulletin for The Parker, the transformed Civic Inn.

The 96-year-old building at 101 East Center St. has been transformed and upgraded in the past few months.

A grand opening for the "dorm-style" complex with 62 units is slated for Friday.

June 27, 2016

Mayo Clinic announces Transplant Genomics deal

It looks like Mayo Clinic is joining forces with a Pleasanton, Calif.-based (previously of Massachusetts) firm to bolster its genetic testing to predict the success of organ transplants.

Logo-2-ret1Here's the vague description of the deal announced in a general press release this morning:

 

Transplant Genomics Inc. is collaborating with the Mayo Clinic Center for Individualized Medicine to develop, validate and commercialize diagnostic tests enabling personalized immunosuppression for solid organ transplant recipients. This multiyear collaboration includes an assessment of TGI's TruGraf test for renal transplant monitoring, a Mayo Clinic investment in TGI, and the co-development of new tests and technologies for additional targets, including exploratory studies in heart and liver transplantation.

This seems like this could be an interesting project. I wonder how long Mayo Clinic has been working with Transplant Genomics. 

It also would be fascinating to know how much Mayo Clinic is investing in TGI as well as how long this "multiyear" deal is slated to last.

 

 

 

June 10, 2016

More Dunkin' Donuts coming southern Minnesota

Two years after making a flashy return to Minnesota with a Rochester shop, Dunkin' Donuts has signed a franchise agreement to bring three more locations to the region.

The Massachusetts doughnut maker announced Thursday that it has signed a deal with new franchisees Oliver Schugel and David Schooff to open three new restaurants in Mankato. The first one is slated to open in 2017.

06232014dunkindonutsMankato is leaping ahead of Rochester, which was expected to have about five locations by now. 

Rochester Retail Services, a division of the Kahler Hospitality Group, opened a shop here in June 2014 at 15 First Ave. SW in its Kahler Grand Hotel complex in the heart of downtown. It was the first one in Minnesota since 2005. Dunkin' said then that Rochester Retail Services would be opening five more shops in the next few years.

That changed last fall, according to Dunkin' Donuts Senior Director of Franchising Patrick Cunningham.

"Rochester Retail Services, the franchisee of record, will continue to own and operate the existing restaurant in the Kahler. However, they will not develop more Dunkin' stores as we previously reported," he said in October.

When announcing the coming Mankato shops, Dunkin' said franchise opportunities remain available in Rochester. Plus, "to help fuel additional growth in the market, special development incentives are available."

In Mankato, the new franchisees have more than 45 years of combined experience in business and real estate development.

“We have a passion and loyalty for the Dunkin' Donuts brand and look forward to opening our restaurants in the years to come," stated Schooff. 

June 07, 2016

Broadway at Center development still awaiting financing

A long-anticipated downtown Rochester development, the first Destination Medical Center project, is still waiting for financing before can can begin.

Broadwayatcenter3City officials were notified recently by Hinshaw & Culbertson, a Minneapolis law firm, that a $102.5 million loan to finance the bulk of developer Gus Chafoulias' 23-story Broadway at Center tower was scheduled to close on May 31. A $2.3 million tax-increment financing loan was expected to close at the same time.

However, that didn't happen.

When asked Tuesday about the status of the financing and the timeline for the Broadway at Center project, Titan Development Marketing and Communications Manager Sheila Thoma made a statement via email. Titan is a Chafoulias family company.

"It has not closed. As soon as it does, I will let you know," she wrote

The loans are being made by Minneapolis-based Dougherty Financial Group, which includes seven financial companies that manage more than $42 billion in assets. The firm's founder and board chair, Michael E. Dougherty, is very familiar with Rochester and Mayo Clinic's Destination Medical Center initiative.
Dougherty joined the the Mayo Clinic Board of Trustees in 2012. He then became a DMC Corp. board member in April.

While the loans and $6.5 million in assistance from the city of Rochester will finance the majority of the $140 million project, people close to the project say an additional $35 million is coming from Middle Eastern investors.

Chafoulias, with limited assistance from his son Andy Chafoulias and Titan, has been working on different versions of this project since 2007.

Broadway at Center will house a 264-room Hilton Hotel, 33 apartment units and space for office, retail and restaurant use. More than $14 million — including the city's $6.5 million assistance to the developer and the remainder of infrastructure costs — is planned to be reported as DMC local contributions and credited toward the city's $128 million commitment.

There has been a lot of interest about when demolition of the empty CJ's Midtown Lounge and other buildings on that corner would begin. Once the financing for the project is locked in, that should clear the way for work to start.

For $300,000 upfront fee, Mayo Clinic licences cancer vaccine technology

May 25, 2016

Hold the applause - New Buckeye name is not set yet

I was a bit premature Tuesday when I wrote that South Dakota developer Stencil Homes had re-named its Buckeye Apartments project in downtown Rochester.

F89c28e7467b81cdb720c0c067eca5d3_f252I spotted the project on Stencil's website labeled as Ovation on Monday. I wasn't able to reach CEO Nate Stencil for confirmation, so I reported that it appeared that the new name for the project will be Ovation.

On Tuesday, Stencil sent me a note that said I was partially right.

"On 'The Buckeye' name change, we are still not 100 percent set on the new name but I can tell you we will be changing it. We are currently polling different names and will soon have one nailed down," he wrote.

The name of a 92-unit apartment complex being built on the corner of Fourth Street and Third Avenue Southeast in downtown Rochester has been a sensitive issue for some of the neighbors. Stencil originally tagged it as Buckeye as a nod to the Buckeye Liquor store landmark that was demolished to make way for the project. Some in the neighborhood didn't think that was an appropriate name.