Newmark and MV Eagan Ventures have officially launched a new website – www.explorevikinglakes.com – for the Viking Lakes development project in Eagan, MN. The site is a visually compelling look into the detailed plans for the areas around the new Vikings practice facility, including anticipated square footage for retail, housing and corporate office spaces. New components that have not previously been discussed in the media include a fitness center, child care services and free parking.
The launch of this site comes on the heels of the City of Eagan’s approval of the final planned development agreement for a 57,000-square-foot STEM facility. Construction of the space is expected to commence soon with an anticipated completion date of December 2018. The space will be leased to multiple users that will foster collaboration and innovation. Also approved by the City of Eagan was an adjacent 434-space parking structure that will serve the STEM building, as well as the TCO Medical Office Building and Sports Medicine Center. The STEM building is now the fourth component to move forward in the overall 200-acre, live-work-play site.
The Minnesota Vikings new training facility and headquarters – the Twin Cities Orthopedics Performance Center – will open on March 5, followed by Twin Cities Orthopedics medical office building and sports medicine center in April.
We recently featured the East-Suburban development in the Minnesota Real Estate Journal, which can be read below:
By Liz Wolf
While construction of the Minnesota Vikings’ new team headquarters and practice facility in Eagan is well underway, the Vikings also announced the marketing launch of Viking Lakes, a high-profile, 3.25 million-square-foot, master-planned development that will be built around the team’s new facilities.
MV Eagan Ventures –a company controlled by Vikings owners Zygi, Mark and Leonard Wilf – purchased 200 acres of land on the site of the former Northwest Airlines headquarters near the intersection of I-494 and Dodd Road. The Wilfs are seeking to develop the planned 200-acre Viking Lakes community with corporate office, retail, hospitality, multifamily residential, a medical office building and sports medicine center.
MV Eagan Ventures hired New York-based Newmark Knight Frank to handle the global marketing. The firm has set up a Minneapolis office. John McCarthy, who joined NKF as senior managing director, is taking the lead on Viking Lakes.
The Wilfs are envisioning up to 1 million square feet of high-end office and medical office space, approximately 950 units multifamily housing, a conference center/hotel, retail, entertainment and restaurants. The project will also include open and public spaces with trails, wetland preserves and other amenities—and it will all be anchored by the Vikings’ new 40-acre team headquarters and practice facility called the Twin Cities Orthopedics Performance Center.
The new facilities are on track to open in March 2018, in which time the Vikings will relocate from their current home at Winter Park in Eden Prairie where they’ve been since 1981.
The indoor practice facility will be 92,000 square feet and 100-feet high to accommodate kickers and punters. The complex will also feature cardiovascular and specialized speed rooms, a hydrotherapy room and post-workout recovery rooms, a team auditorium and player position meeting rooms.
In addition, the new campus will include four outdoor practice facilities; a 6,000-seat outdoor stadium dubbed TCO Stadium, which will also host local high school football teams and other community events; and a 184,000-square-foot headquarters for administrative and staff offices, which will allow the team to consolidate operations under one roof. Combined, 3,700 tons of steel are being used for the headquarters and practice facility structures, says Mark Miller, senior project manager at Minneapolis-based Kraus-Anderson Construction Co., the general contractor for the project.
Moving training camp to Eagan starting in 2018
The Vikings announced that after holding their training camp at the Minnesota State University Mankato campus for the past 52 years, the 2017 camp will be its last in Mankato. The 2018 camp will be at the team’s new Twin Cities Orthopedics Performance Center.
In other development at the site, Twin Cities Orthopedics is currently building a 78,000-square-foot medical office building and a 55,000-square-foot, mixed-use building to house its Sports Medicine Center and the Vikings team store. These buildings are also scheduled for completion next March and are being constructed by Kraus-Anderson.
Phased development for the remaining 160 acres
The remaining development will unfold in phases, which could occur over 10 or 15 years.
“We’ve begun to turn the corner on design and construction of the practice facility and team headquarters and are really moving forward now full steam on the broader 200 acres of mixed-use development,” says Lester Bagley, executive vice president of public affairs for the Vikings. “As beautiful and incredible as U.S. Bank stadium is, we think our new facility in Eagan is going to be just as well-received and important to the Vikings and the community as the stadium.”
Bagley says the vision for the Eagan practice/headquarters campus is for it to be very community-focused with youth sports and community programming. “And the broader development – the live/work/play Vikings destination — is really special,” he says, adding that there’s a unique opportunity to create a Vikings destination that’s fan-friendly and family-friendly.
“There will be a Hall of Fame and Vikings’ tradition and history will be celebrated there,” he says. “We’re also working on adding a sports technology incubator or tech accelerator. We’re looking at a potential STEM program with an education component and a hotel concept that we’re studying hard right now.”
Bagley says Viking Lakes has been very well-received and there’s strong interest on the real estate and corporate development side.
“The Vikings are the anchor tenant of the broader destination,” he says. “We’re in early stages and it will be phased in. Some of it will be market-driven, of course, in terms of what happens and when. The timing will need to respond to the market, but so far, the market and the interest have been strong, so here we go.”
Plans call for it to become a major destination
The vision is for Viking Lakes is to attract regional, national and international corporate users, tenants, residents and business partners.
“What’s so unique about this site is for how large it is, how it was available,” McCarthy says. “It’s dead center between Minneapolis and St. Paul, close to the Mall of America, close to the Minneapolis-St. Paul International Airport, and it offers a lot of amenities. It’s such a beautiful site.”
With an anchor like the Vikings and its strong brand, McCarthy believes the development will garner global attraction. He says the site will appeal to corporations and serve as a magnet for headquarter relocations.
“This is going to be a development that changes the landscape of the southern [Twin Cities] suburban office market,” he says. “And because the Vikings are going to be out there, they’re going to set this apart beyond any other opportunity for corporations. They want to get it right. They’re fortunate because they’re a strong brand and strong financially, yet they’re looking at attracting companies to be partners and share resources out there and best practices. They want companies to grow with them and consider leveraging the Vikings’ brand. The companies that are going to appreciate it are the ones that want their tenants to truly have a live/work/play environment… The Vikings want this to be a sustainable, healthy, physical, exciting kind of environment, so some of our marching orders are to find appropriate tenants that line up with that.”
Kraus-Anderson’s Miller says he and McCarthy meet often to discuss the development.
“We want to help him do his marketing piece of the rest of the land,” Miller says. “We can help him by having access and showing him viewpoints and keeping him up to date with what’s going on with the buildings, so he can relay that to future customers. Let people know, ‘Hey, it’s going to open in March, so if you want to be in the game, you need to get moving now.’”
Big boon for city of Eagan; bringing major development to underutilized site
“Viking Lakes brings vitality and vibrancy to a quiet corner of the city, and we expect the redevelopment to attract additional investment in northeast Eagan,” says Jill Hutmacher, director of community development for the city of Eagan. “Already, the city is very pleased to see construction beginning for the new 409,000-square-foot Prime Therapeutics headquarters, just southeast of Viking Lakes.”
Currently, Hutmacher says the Vikings are focused on completing the headquarters, practice facilities, and Twin Cities Orthopedics buildings. The Vikings recently submitted plans for the plaza area south of the stadium, which will provide public gathering space with a “higher level of design and amenities than probably anything that we have seen previously in Eagan,” she says. “The Vikings are setting a new bar for the quality of public-private open spaces. We’re looking forward to seeing plans for subsequent phases.”
Hutmacher adds that only 32 cities can boast to being home of an NFL franchise.
“The Vikings have a strong fan base not just in Minnesota, but throughout the Upper Midwest and the nation,” she says. “Viking Lakes is being planned and designed to host a variety of events including Friday Night Lights, soccer or lacrosse tournaments, concerts, and of course, team events as well. Many of these events will have a regional or national draw and Eagan looks forward to welcoming out-of-towners.”
The Minneapolis office of Dougherty Funding LLC has closed a $32,620,000 construction loan for a to-be-built frozen/cold storage warehouse that will be located on a 54 acre site in Foundation Park in Sioux Falls, South Dakota and will contain approximately 200,000 SF of building area. The 54 acre site will allow expansion of the building to over 800,000 SF. The financing was arranged for Win Build, LLC and Win Chill, LLC. Dougherty Funding serves as lead lender and servicer for the loan.
Stinson Leonard Street LLP is proud to announce that Christine Eid has been elected partner, effective January 1, 2018. Christine is a member of the firm’s Real Estate and Public Finance Division and practices in the area of commercial real estate transactions. She represents property owners, developers, tenants, lenders and investors in acquiring, financing, developing, leasing, and selling commercial real estate. Christine counsels real estate developers in structuring the transaction, the entitlement process, and in negotiating joint venture agreements and construction contracts. In addition, a large part of Christine’s practice involves representing landlords and tenants in office, industrial and retail leases. She has been recognized as an “Up & Coming Attorney” by Minnesota Lawyer and as a Minnesota Rising Star by Super Lawyers. She also performs pro bono work through the Volunteers Lawyers Network and Habitat for Humanity. Christine earned her J.D., cum laude, from the William Mitchell College of Law (now known as the Mitchell Hamline School of Law.)
Colliers International | Minneapolis-St. Paul is pleased to announce that Senior Vice President’s Kevin O’Neill and Michael Gelfman took home the award for Top Office Transaction for their representation of landlord Colony NorthStar in the U.S. Bank lease at Excelsior Crossings and Brian Netz, Senior Vice President, was awarded Top Industrial Transaction, for his role as tenant representative for My Pillow in an industrial build-to-suit lease with Duke Realty, at MNCAR’s 2017 Top Broker event on February 15th, 2018. For more details on the Excelsior Crossings transaction, a full case study for can be found here. For more details on the My Pillow transaction, a full case study for can be found here.
Bridgewater Bancshares, Inc. (“Bridgewater”) announced today that it has filed a registration statement with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering of shares of its common stock. A portion of the shares will be issued and sold by Bridgewater and a portion will be sold by certain shareholders of Bridgewater. The number of shares to be offered and the price range for the proposed offering have not yet been determined. Bridgewater has applied to list its common stock on the Nasdaq Capital Market under the ticker symbol “BWB.”
Sandler O’Neill + Partners, L.P. and D.A. Davidson & Co. are acting as joint book-running managers for the proposed offering. The proposed offering will be made only by means of a prospectus. Copies of the prospectus, when available, may be obtained from: Sandler O’Neill + Partners, L.P., Attention: Syndicate, 1251 Avenue of the Americas, 6th Floor, New York, New York 10020, by emailing email@example.com or by calling (866) 805-4128, or D.A. Davidson & Co., Attention: Syndicate, 8 Third Street North, Great Falls, Montana 59401, by calling 1-800-332-5915 or by emailing firstname.lastname@example.org.
A registration statement relating to these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold, nor may offers to buy these securities be accepted, prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
By David Arbit on Friday, February 16th, 2018
The big story of 2017 was threefold: the median sales price reached an all-time high; closed sales reached a 12-year high; and inventory levels reached a 15-year low. Sales nearly broke their all-time record, but fell just 12 units short of their all-time 2004 high. In January 2018, new listings posted a year-over-year decline for a third consecutive month. Because of the supply shortage, closed sales were lower compared to the year prior for a second consecutive month. For-sale housing supply (inventory) was about a quarter lower than January 2017. This shortage has created a competitive environment where multiple offers have become commonplace. Sellers are receiving strong offers close to their original list price in record time, which can sometimes frustrate home buyers. New construction pending sales rose nearly 14.0 percent compared to last January. Although single-family homes made up about 76.0 percent of all sales, townhomes were the only segment to show an increase in pending sales. Similarly, previously-owned homes made up about 91.0 percent of sales but new construction showed a much stronger increase in pending purchase activity.
January 2018 by the Numbers
• Sellers listed 4,041 properties on the market, a 7.8 percent decrease from January 2017
• Buyers closed on 2,758 homes, a 4.4 percent decrease from 2017
• Inventory levels for January fell 26.3 percent compared to 2017 to 6,875 units, near a 15-year low
• Months Supply of Inventory was down 27.8 percent to 1.3 months, a 15-year low
• The Median Sales Price rose 9.6 percent to $243,750, a record high for January
• Cumulative Days on Market declined 13.8 percent to 69 days, on average (median of 45)—a 12-year low
• Changes in sales activity varied by market segment
o Single-family sales fell 1.3 percent; condo sales fell 15.1 percent; townhome sales fell 8.5 percent
o Traditional sales fell 1.7 percent; foreclosure sales fell 21.8 percent; short sales fell 42.4 percent
o Previously-owned sales fell 3.8 percent; new construction sales fell 0.4 percent
Main Street Cos. now owns Courtwood Village 2, a two-story apartment complex in Prior Lake, MN which was finished just over two months ago.
An entity tied to St. Louis Park-based multifamily investor Main Street paid nearly $8.06 million in cash for the 54-unit apartment building at 17088 Adelmann St. SE in Prior Lake. The new building’s name references a housing complex immediately to its south, Courtwood Village Condominiums, which was built in 2006.
“[Courtwood Village 2] is a very nice property,” Kasbohm said on Thursday. “We like Prior Lake and already have 37 units there, so we thought this would be a good way to get some size there. It was a fair price too.”
The seller is Courtwood Holdings LLC of Plymouth, which is tied to Brummer Properties.
The deal closed on Feb. 6, according to the certificate of real estate value. The price works out to about $149,000 per unit.
Kasbohm said the two did not use brokers, but represented themselves during the negotiations.
Brummer gave only a brief statement confirming the details of the transaction when contacted on Thursday. He said that no other properties were included in the sale.
Main Street has been actively buying, selling and developing properties over the last year. In December, Main Street sold Granite Woods apartments, a 213-unit complex on the 3900 block of Lancaster Ln. N. in Plymouth, to Bellevue, WA-based Curtis Capital Group for $24.5 million.
During that same time, Main Street paid Eagan businessman Jack Hurley $18.6 million for the Grand Pre Apartments by the Park, a 216-unit apartment building at 200 Winthrop St. S. in St. Paul.
In March, Main Street hopes to begin construction on The Elmwood, a five-story, 70-unit mixed-use development at 5605 W. 36th St. in St. Louis Park that would include commercial space on the ground floor and senior housing above.
Two high-profile Minneapolis developers are teaming up on a $25.65 million proposed apartment complex near Edina’s busiest retail centers, Southdale Mall and The Galleria.
The site in question is a 1.6-acre lot at 4040 W. 70th St., according to plans put forward by Aeon, a non-profit, and Ryan Cos. U.S. Inc. The proposal calls for 90 units spread over two buildings, three- and four-stories in height. The shorter of the two would front on Valley View Road.
The structures would be connected by a common area on the ground floor.
The mix of units would be tilted toward families and those of modest means. The majority of the apartments would be on the large side, with 33 three-bedroom and 34 two-bedroom units, with just 16 one-bedrooms and seven studios.
Ten percent of the units will rent for market rates, which range from $1,066 a month for a studio to $2,125 for a three-bedroom apartment in the area, according to a fiscal analysis of the project prepared for the city by Ehlers & Associates.
The other 90 percent would be targeted at renters with moderate or limited incomes, according to a letter by Blake Hopkins, Aeon’s vice president of property development. Ten are intended for renters making 30 percent of the area median income (AMI), 15 for those making 50 percent of AMI, and 56 for those making 60 percent of AMI.
In 2017, Minneapolis-St. Paul’s AMI stood at $90,400, according to the Metropolitan Council.
Right now, the site is improved with a 49-year-old, Class C office building owned by American Collectors Association International, a trade group for collection agencies. The property was valued at $2.76 million for taxes payable in 2018, according to Hennepin County records.
According to Hopkins’ memo, acquisition costs will amount to about $3 million. Ryan is working on securing a purchase agreement with American Collectors, Hopkins said on Wednesday.
The fate of the project hangs on the availability of public financing. There is $6.8 million gap in financing, primarily because of the high cost of acquiring the land and demolishing the building, according to Ehlers.
To make up the difference, Aeon and Ryan are asking for $4.1 million in tax increment financing, $1.2 million from the Edina Housing and Redevelopment Authority and $1 million from the Edina Housing Foundation. The developers also plan to apply to Minnesota Housing Finance Agency for low income housing tax credits and a deferred loan, and may defer a portion of the $2 million developer fee as well.
The project will go before the HRA for the first time on Thursday morning.
Aeon and Ryan hope to have financing for the project nailed down by April 1, 2019. Construction would then begin shortly after. If all goes according to plan, the complex would be leased out by August 2020.
On February 7, 2018, during the National Pavement Expo in Cleveland, Ohio, Bituminous Roadways, Inc. was presented the “Best of the Web” award, along with a “Paving Award (non-parking lot)” for their work on the Shakopee Public Schools, Vaughan Field athletic complex. The awards were presented by Pavement Maintenance & Reconstruction magazine.
“It is an honor to be recognized for our hard work on the Vaughan Field project and our new website, especially on a national level,” stated Bituminous Roadways key accounts manager, Jason Krause. “We take great pride in the work we do throughout all levels of the company,” he added.
The Vaughan Field project involved many different scopes of work, including the track and event surface, the new east parking lot, and the trails leading to and from the junior high school. While on site, Bituminous Roadways crews installed more than 8,000 tons of aggregate in multiple phases, along with more than 4,000 tons of asphalt comprised of six
different mix designs, again in multiple phases.
In addition to the Paving Award, Bituminous Roadways won a national voting contest for their newly designed website. In the spring of 2017, a new corporate logo was approved and work began with a digital marketing firm, Triton Commerce, to completely redesign the company’s website. The goals were to create a bold, new design with user friendly navigation. It was also important to consider a mobile friendly design as more and more customers are using their mobile devices when researching businesses.
It’s no surprise that the Twin Cities Metro Area is experiencing a tight labor market. The unemployment rate, at 2.3 percent, is at its lowest point since December of 1999. Job vacancies, at approximately 73,900, are at their highest point since 2001, when DEED began its Job Vacancy Survey (JVS). Through the second quarter of 2017, there were an estimated 55,900 unemployed persons in the Metro Area for the 73,900 vacancies. As such, there was less than one unemployed person for every job vacancy. Hence, the tight labor market. Check out DEED’s website for more on the region’s tight labor market, and creative solutions for aligning workers and job vacancies.
One major consequence of a tight labor market: wage growth. Recently, Minnesota Economic Trends highlighted wage growth in the state. According to the article, “Average weekly wages as measured by the Quarterly Census of Employment and Wages (QCEW) has been on a steady upswing for four years, including the first half of 2017.” Further, the article states, “Real (inflation-adjusted) average wages rose 7.2 percent between the second quarters of 2013 and 2017, compared with 2.6 percent over the previous 10 years, which included a period of declining wages during the recession.”
Recently, wages have also been on the rise in the Twin Cities Metro Area. Between the second quarters of 2014 and 2017, average weekly wages rose by 6.2 percent (inflation-adjusted). This was after a decade of little to no growth, with average weekly wages only increasing by 1.5 percent between the second quarters of 2004 and 2014. This included a period between quarter four, 2008, and quarter one, 2010, when wages declined by 3.5 percent (Figure 1).
Which industries experienced the most wage growth over the year? Between the second quarters of 2016 and 2017, wages increased in 17 of the 20 main industry sectors, most notably in wholesale trade, agriculture, administrative support and waste management services, and finance and insurance. For reference, the average weekly wage for the total of all industries increased by about 4 percent over the year. Average weekly wages rose in 19 of 20 industries since the second quarter of 2017, with only educational services seeing a decline. To analyze these industry employment and wage trends in more detail, visit DEED’s QCEW tool.
DEED’s Job Vacancy Survey tool also allows analysis of wage trends over time, for both industries and occupations. When analyzing the change in median hourly wage offers between the second quarters of 2014 and 2017, the occupational groups witnessing the largest growth include Food Preparation and Serving, Legal, Sales and Related, Office and Administrative Support, Computer and Mathematical, and Building and Grounds Cleaning and Maintenance occupations.
For a look at current wages by occupation and occupational group, visit DEED’s Occupational Employment Statistics tool.
For More Information
Contact Tim O’Neill at 651-259-7401.