Minneapolis developer United Properties has a contract for land in Eden Prairie, MN and appears to be planning both senior and multifamily housing at the site.
A contract for deed dated to May 30 shows that United Properties is buying 4.4 acres at 16389 Glory Ln. from a church, Resurrection Life Ministries. The purchase price is listed as nearly $1.63 million, which would work out to about $368,500 an acre.
The document was signed by two United Properties executives in its senior housing team, Mark Nelson, senior vice president and director of senior housing development, and Alex Hall, senior vice president of senior housing.
Eden Prairie City Planner Julie Klima said Wednesday that the city has received a land use development application for the property, which is currently under review by its staff.
United Properties’ proposal includes 100 cooperative senior housing units, six townhomes and 58 multifamily units, she said in an email statement.
The parcel is a triangle of land bounded by Highway 212, Eden Prairie Road and Highway 5 / Arboretum Boulevard, positioned just south of Birchwood Laboratories’ 10-acre corporate campus and headquarters. The Minnesota River Bluffs LRT Regional Trail runs along its southeast side. The site is also about one block north and east of Miller Park.
Neither church officials nor executives at United Properties could be immediately reached for comment.
According to Hennepin County property records, the land last sold in June 2000 for $302,000.
United Properties develops senior housing under two brands, Cherrywood Pointe and Applewood Pointe.
Applewood is a housing cooperative for active seniors. The first was built in Roseville in 2004. There are now 12 Applewood locations, all in the Twin Cities suburbs, and three more on the way in Eagan, Maple Grove and Champlin.
Cherrywood offers independent living as well as additional services housing such as assisted living and memory care units. There are five existing Cherrywood locations, all of which are also outside Minneapolis and St. Paul proper.
Both chains are operated by Ebenezer Management Services, which is a division of the Minneapolis-based healthcare provider Fairview Health.
Albertville Crossing, located at 5620 Lacentre Ave. in Albertville, MN, sold for $12.8 million in February 2018.
Nearly a decade after the end of the Great Recession and in the midst of the retail sector right-sizing, the overall investor interest in retail real estate has remained strong in Minneapolis, despite the attention-grabbing headlines that have been declaring the end of brick and mortar retailing.
To be sure, there are some issues with the sector nationwide, as store closures continue to make headlines. These closures are as much about a correction from being oversupplied the past two decades as the impact of e-commerce.
The U.S. has roughly five times more retail space per capita than the retail-abundant U.K. But despite that, U.S. retail vacancy rate has fallen to below 5 percent, a much lower figure than those in the more-talked-about office and multifamily property types.
In fact, retail vacancy is less than it was at the peak of the last economic cycle, when it hit 5.7 percent in 2006. This trend of low retail vacancies has also played out in greater Minneapolis.
Retail vacancy through mid-2018 in the Minneapolis metropolitan area is considerably lower than the national average at 3 percent. Big-name stores, including Sears, Herberger’s and Toys R Us have closed locations in the area, just as they have across the U.S. But even though robust multifamily sales have garnered much of the attention in recent years, the investment volume of retail buildings has accelerated later in this cycle.
The historical average for volume in the market is about $790 million. Following a string of years from the end of the previous cycle though the middle of the current one, where volume was below that average, the tide turned in 2014. The acceleration continued, as 2015 topped $1 billion and 2016 surpassed $1.1 billion. While 2017 was slightly off that pace, volume came in just shy of that $1 billion mark.
Neighborhood centers have been a popular play for investors in Minneapolis. This type of shopping center is typically anchored by a grocery store, which is an area that e-commerce has not yet substantially penetrated. The supply chain and logistics of cold storage and transportation is simply not yet in place. Most people still do their grocery shopping at brick and mortar locations, where they have the ability to also visit ancillary stores in these centers.
As a result, these shopping centers are somewhat more insulated from the challenges facing other retail property types, such as non-luxury malls. This factor has made neighborhood shopping centers a popular choice with investors here and nationwide.
One example is the February 2018 sale of Albertville Crossing. Located on LaCentre Ave. N., in Albertville, MN, the center was purchased for $12.8 million, or about $129 per square foot. The property is anchored by a Coborn’s grocery store and was fully leased at the time of sale. In total, Albertville Plaza measures 99,000 square feet and also includes a Great Clips and Verizon Wireless store.
The Chartres Lodging Group LLC has sold the Radisson Blu hotel in downtown Minneapolis for more than twice the amount it paid for the 360-room hotel in 2013.
Newton, MA-based Hospitality Properties Trust (HPT) bought the hospitality property at 35 S. Seventh St. for $75 million, or about $208,000 per door, in an off-market transaction, Chartres’ senior analyst Greg Morgan said on Tuesday. The sale was announced Monday by Radisson Hotel Group, a Minnetonka company owned by Chinese giant HNA, which called the trust a “longtime partner.”
On a recent buying spree, HPT has spent $59 million in acquisitions in 2017 alone, adding 20 hotels and one travel center to its portfolio.
San Francisco-based Chartres bought the hotel back in April 2013 for just $28.88 million, or about $80,000 per room, from Carlson Real Estate Services LLC, according to CoStar data. The company invested millions into renovating the building, then known as the Radisson Plaza. Morgan declined to give an exact figure as to how much the work cost, but described it as a top-to-bottom refresh of the rooms and common areas.
See CoStar COMPS #2722090.
“It was very dated when we acquired it,” he said.
In 2014, it was rebranded as a Radisson Blu. The hotel includes 29,000 square feet of meeting and event space, a 24-hour business center and the FireLake Grill House & Cocktail Bar.
Morgan said the timing of the sale was in keeping with Chartres’ strategy. Typically, the company buys a full-service hotel in a major metro area, fixes it up, and holds the property for just three to five years. With the Radisson Blu off its books, it no longer has property in Minnesota, though Chartres would buy here again if the right opportunity came up, Morgan said.
For its part, the downtown hotel will bring HPT’s commercial holdings in Minnesota to six. The trust also owns Country Inn & Suites in Brooklyn Center, a Courtyard by Marriott in Eden Prairie, a Sonesta ES Suites in Eagan, Candlewood Suites in Richfield and a TA travel center in Rogers.
In September 2017, HPT sold the 209-room Park Plaza in Bloomington to an entity tied to Eagan-based JR Hospitality, which paid $8.5 million for the hotel.
Radisson Hotel Group Spokesperson Laura Langemo said HPT has no plans to update or alter its newest acquisition, but did announce that it would put more than $50 million into renovating eight other hotels in its portfolio, including the Brooklyn Center Country Inn. Work is already under way on the Country Inn hotels, and should done by the third quarter of 2018.
As of March 31, HPT owned 323 hotels and 199 travel centers spread across 45 states, Canada and Puerto Rico, with a total of 49,902 rooms in all, according to June 15 investor presentation.
The 16-story, 368,243-square-foot Radisson Blu was originally constructed in 1986 on four-tenths of an acre in the city’s CBD, making up the lower floors of the 36-story PwC Plaza office tower, which is located in Plaza VII, a multi-use development which includes the hotel, a retail and conference center, a 19-story office tower and a 315-stall underground parking garage.
Please see CoStar COMPS #4302125 for additional information on this latest transaction.
368 unit apartment community includes more than 60,000 square feet of amenity spaces for residents to enjoy
Doran Companies and CSM Corporation today announced that they have broken ground on The Expo, a more than $100 million luxury apartment community in the St. Anthony Falls Historic District in downtown Minneapolis. The multi-family Doran Design-Build project is a joint venture between Twin Cities-based CSM Corporation and Doran Companies.
The Expo, named as an homage to the former Industrial Exhibition Hall that was once close to the existing site, will be constructed on one city block that is currently a surface parking lot along University Avenue between 2nd and 3rd Avenues SE. With full views of the Mississippi River and the downtown skyline,The Expo includes more than 60,000 square feet of amenity spaces and will offer 199 apartments within a 25 story post-tensioned, concrete-framed high-rise building, and an additional 157 apartments and 12 street level, direct-entry townhomes in a brick-clad lower-level building. The community will include 10 affordable units and more than 3,175 square feet of retail space.
“We are excited to get going and to further add to the vitality of this unique neighborhood along the Mississippi River,” said Doran Companies founder Kelly Doran. “Our long-term commitment to this dynamic part of downtown – including our existing 338-unit Mill & Main luxury apartment community – remains a key focus for us and we are excited to develop, build and manage additional property here for the long-term.”
Consistent with other Doran residential properties, the amenity-rich residential community will include extensive indoor bike storage and a heated garage, a pub, clubrooms and entertainment suites with full dining and lounge areas and chef-grade kitchens, multiple terraces, including a central terrace overlooking the river with a heated pool, bar, dining areas, grilling stations, fire features, bocce ball and a contoured putting green. Additional amenities will include a business center, state-of-the-art fitness center, spa, sauna and game room with a golf and sports simulator.
“CSM Corporation and Doran Companies have worked very hard and we are proud to bring these beautiful, amenity-rich buildings to the market,” said CSM CEO Gary Holmes.
Design firm DLR Group will lead the interior design of the project. “We are incredibly excited to be a part of this unique high-rise project,” expressed Staci Patton, DLR Group interior design lead for the project. “Having worked with Doran Companies and CSM Corporation in the past, we know and admire their design commitment. Our team can’t wait to begin bringing their vision for these luxury homes to life.”
Doran Companies Chief Operating Officer Anne Behrendt, stressing the positive economic impact for the community, said, “Hundreds of local jobs will be created through the construction phase of this project. It is always exciting to see the cranes in the air and know that we are enhancing lives and helping to build the community we care so much about – both in terms of creating jobs and providing high-quality housing.”
A grand opening is anticipated in late spring or early summer of 2020.
Vail, CO-based Solaris Redevelopment Corp. is poised to start work on its first project in Minneapolis, a 300,000-square-foot, six-story building in the city’s burgeoning North Loop neighborhood.
The sleek black building will house 156 market-rate apartments and 22,000 square feet of retail space surrounding a public plaza. It will rise on a one-acre site at 128 N. Second St., a half-block chunk of land that has long been used for surface parking.
The developer secured a $41.4 million construction loan from Minneapolis-based Dougherty Funding in late May, according to a mortgage document filed with Hennepin County.
Richfield, MN-based Weis Builders is scheduled to start construction in early July, said Sharon Cohn, president of Solaris. Cohn declined to disclose the total development cost.
Plans for the site and others immediately adjacent to it have gone through several iterations over the last two years.
Until now, Twin Cities business publications have associated Howard Bergerud with the property. Cohn said on Friday that Bergerud did assemble the land for the company but is not the developer.
“The site was brought to us [by Bergerud],” Cohn said, adding that Solaris purchased the site in October 2016. “It’s an amazing property in an amazing area.”
Sales documents show that Solaris bought the property for about $7.4 million from entities tied to two individuals.
For his part, Bergerud said Thursday that Solaris has been involved in the project since “the beginning,” but could not be reached for further clarification.
Solaris is a boutique development company that was founded by Peter Knobel, an ex-New Yorker who made his fortune in East Coast real estate and telecommunications, according to multiple articles about him. When contacted, Knobel referred all questions to Cohn.
Solaris is known for a major redevelopment in its hometown: In 2010, the company finished work on a 500,000-square-foot mixed-use complex in Vail – The Solaris Residences, a luxury living complex, and The Shops at Solaris Plaza.
The Shops include a plaza that can be used as an ice rink in winter and a recreation area in summer, a three-screen movie theater, and a bowling alley. Retail tenants there include a furrier, a shop specializing in cashmere, and a sushi restaurant run by celebrity chef Nobu Matsuhisa, who is described by Eater as “the culinary world’s Madonna.”
Cohn was not yet ready to talk about who may fill up the retail roster for Solaris’ debut project in Minneapolis, but said the company hopes to bring something new to the market, an ambition reflected in the building’s design.
For the past year, Solaris has been working with Minneapolis-based Snow Kreilich Architects on the project. The firm’s design principal and partner, Matt Kreilich, said he and Cohn had an instantaneous rapport when it came to matters of taste.
“They are a very unique developer in that [Cohn] and Solaris really care about the aesthetics. They didn’t want to do what everyone else is doing,” Kreilich said on Monday.
Solaris’ brick and metal clad building will be a minimalist and restrained structure, that pays subtle tribute to the North Loop’s industrial past, Kreilich said. The team opted to use small number of building materials and a limited color palette.
“Recently [Minneapolis] has seen new construction that uses lots of different building materials, so that the end result is kind of a collage,” Kreilich said. “We wanted our project to stand out. It’s going to be sophisticated and elegant.”
Like many apartment buildings in the North Loop, it will have a rooftop deck for residents, he said, but the centerpiece of the development will be the public space on the ground floor.
“The site sits on this alleyway and we’re going to use the courtyard space as a portal that connects it and the sidewalk, which will cut through the building and give it an open and porous feel,” Kreilich said. “The design is intended to blur the public and private realm. We think it will be the new heart of North Loop.”
The building is on a 16-month construction schedule, Cohn said.
By David Arbit on Monday, June 18th, 2018
More sellers may finally be jumping into the market at a time when buyers are facing the challenges of low inventory. Since 2013, new listing activity has been subdued relative to buyer activity and hasn’t surpassed 9,000 new listings per month since 2010. Excluding 2010, we haven’t had this many new listings for any month since May 2008. Increasing seller activity and tapering demand are consistent with a marketplace that’s starting to loosen up just a bit. That said, buyers shopping this spring and summer will still face stiff competition. Being successful in this market takes commitment, decisiveness and persistence—traits not necessarily typical of every buyer. In fact, May marked the sixth consecutive month of year-over-year declines in closed sales, likely reflecting the lack of homes for sale and not weakness in the economy. Strong demand combined with low supply means sellers yielded an average of 100.2 percent of their list price in May, a record high for any month and the first time this indicator has exceeded 100.0 percent. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common. Homes continue to sell quickly and for close to or above list price in this tight market, but nearly 12,000 buyers and sellers managed to transact real property last month.
May 2018 by the Numbers (compared to a year ago)
- Sellers listed 9,164 properties on the market, a 2.9 percent increase
- Buyers closed on 5,739 homes, a 11.3 percent decrease
- Inventory levels for May fell 17.8 percent compared to 2017 to 10,403 units
- Months Supply of Inventory was down 16.0 percent to 2.1 months
- The Median Sales Price rose 8.4 percent to $271,000, a record high
- Cumulative Days on Market declined 9.6 percent to 47 days, on average (median of 17)
- Changes in Sales activity varied by market segment
- Single family sales sank 12.3 percent; condo sales fell 3.5 percent; townhome sales declined 7.5 percent
- Traditional sales fell 9.7 percent; foreclosure sales sank 38.1 percent; short sales plummeted 59.7 percent
- Previously-owned sales fell 12.4 percent; new construction sales rose 11.1 percent
If you’re a fan of art deco, you have probably admired Minneapolis’ Foshay Tower and St. Paul’s City Hall, but have you heard of the “House that Flax Built”?
That is 1667 Snelling Ave. N in Falcon Heights, a 161,000-square-foot structure that was one of the last major buildings in the Twin Cities to be constructed in the art deco style, an aesthetic that favored sleek forms and a bold palette that dominated architecture and design during the 1920s and 1930s.
It was also one of the first corporate headquarters to be constructed in the suburbs, said Larry Millett, former architectural critic for the St. Paul Pioneer Press and author of numerous books about buildings across the Twin Cities.
In his “AIA Guide to the Twin Cities: The Essential Source on the Architecture,” he described it as “superb” example of late Deco.
“It’s got a wonderful design and it’s in a great setting,” Millett said on Tuesday. “If it’s not on the National Historic Register, it should be. It’s a pretty significant Twin Cities building.”
The building, which went on the market over the first week of June, is currently owned and occupied by TIES (Technology and Information Educational Services), an educational technology consortium owned by 48 Minnesota school districts. However, it has a long and rich history, Millett said.
It was constructed in 1946 to serve as the seat of the Farmers’ Union Grain Terminal Association (GTA), an agricultural cooperative that provided 16 million of the 80 million bushels of wheat the U.S. sent to war-torn Europe after World War II, according to the Minnesota Historical Society. The new headquarters was financed with the profits that GTA garnered through the sale of flax, which gave the structure its informal name.
The Grain Terminal Association opened the building in January 1947, two years before Falcon Heights was incorporated as a village. At the time, it was a state-of-the-art corporate campus surrounded by cornfields, said TIES Executive Director Mark Wolak.
“It was meant to be a self-sufficient, stand-alone enterprise,” Wolak said. “It had its own cafeteria, its own elevator operators, a barber shop, a carwash and its own generators as well.”
The building sits on a 0.4-acre lot improved with a four-story central pavilion flanked on either side by two three-story wings, with one running along Snelling and another fronting on Larpenteur.
The exterior is clad in Indiana limestone. Inside, the pièce de résistance is the main lobby, which is decked out in glossy, warm wood paneling and flooring inset with intricate, vivid geometrical designs.
Grain Terminal Association, which became Harvest States Cooperatives, stayed in the building until 1998, when it merged with Cenex to form Inver Grove Heights-based CHS Inc. TIES acquired the asset in 2002.
The current condition of the building varies a good deal, said Jaclyn May, a Cushman & Wakefield broker tasked with marketing the property for sale.
“Some parts of it have been renovated recently and have that exposed look, but there is also older stuff going back all the way,” May said. “A prospective buyer could buy it as-is, or do a major overhaul depending on what they want to preserve.”
The building now houses a data center, which will be removed, and a 55,000-square-foot conference and event center, which was added to the property in 2014.
It is on a rapid transit bus line and just a few blocks north of the Minnesota State Fairgrounds, the University of Minnesota’s St. Paul campus and Como Regional Park.
“This building could be used for office, events, education or housing and each of those would command a different dollar amount, so we’ve made that part negotiable,” May said.
The building was assessed at roughly $7.8 million for taxes payable in 2019, according to Ramsey County property records.
TIES, which is being absorbed into a national educational cooperative, has listed the property without an asking price.
Wolak added that the nine-member executive committee that governs TIES will decide which buyer will win out, based on several different factors like the amount offered, proposed use and impact on community.
Tours and question-and-answer sessions end on July 31 and proposals are due by Aug. 3. A buyer will be selected by the end of August.
“Whoever buys it, I hope they treat it nicely. I’m afraid it might be a tear-down,” Millett said. “That would be a shame.”
BURNSVILLE, MINNESOTA, Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of River Ridge Circle, a 23,138-square foot office property located in Burnsville, MN, according to Jon M. Ruzicka, regional manager of the firm’s Minneapolis office. The asset sold for $2,100,000.
Marc C. Paylor and Claire J. Roberts, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller, a limited liability company.
River Ridge Circle is located at 190 S River Ridge Cir in Burnsville, Minnesota. The three story building was constructed in 1994 and originally served as The Minnesota River School of Fine Arts. In 2009 the school closed and the building transitioned into an office building providing space to a variety of tenants from the creative arts and professional healing communities. The new owner will maintain some of the existing tenant base, while occupying space for themselves.
The city of Minnetonka wants to increase density, improve traffic flow, make area more walkable and add green space, trails
For years, the city of Minnetonka has envisioned plans to transform the Ridgedale Center area into a higher-density, more walkable, mixed-use community that would become more of a gathering spot, rather than just a place to shop.
Similar to other suburbs, Minnetonka is looking to make the city more pedestrian-friendly and attractive to both empty-nesters and young professionals.
Now that vision is starting to become a reality.
Redevelopment proposals for sites around the mall are coming in, and Ridgedale Center itself has made major improvements. Built in the 1970s, Ridgedale has completed significant updates, including the redesign of the Macy’s store, the addition of Nordstrom and a 50,000-square-foot expansion. Plus, additional development by mall owner GGP is underway.
The city’s vision for the area
In 2012, the city released “Ridgedale: A Vision for 2035,” which essentially looks at how the Ridgedale area could look over the next two decades. In 2017, it released the “Ridgedale Area Public Realm Guidelines,” which focus on transforming the shopping center into a mixed-use community and providing developers with design inspiration and guidance.
The master plan calls for adding 800 new housing units, 180,000 square feet of office/medical office space, 250 hotel rooms, a conference center and new restaurants. Each new project would add public amenities and pedestrian connections to link building entrances, parking, sidewalks, transit stops and other destinations. Plans call for improving streets and sidewalks to encourage walking and bicycle use, enhancing transit service, and over time, replacing surface parking with structured parking.
The guidelines also focus on enhancing the area’s natural features and encouraging environmentally friendly places. It outlines improvements including rebuilding Ridgedale Drive into a tree-lined parkway – which is scheduled to begin in 2019 — and improving the area’s other main streets – Plymouth Road, Wayzata Boulevard and Cartway Lane — to help manage traffic flow.
The city is investing in major road infrastructure.
“The city has a vision to redo the 1970s mall pattern,” says Julie Wischnack, Minnetonka community development director. “It doesn’t happen overnight. The road projects are intended to start creating a new pattern that has trails and sidewalks, vegetation, storm water enhancements — all those things that are so missing from that area.”
Redevelopment of Highland Bank property is catalyst
One significant project getting credit for kicking off the city’s vision is the redevelopment of the Highland Bank property into a $35 million, mixed-use apartment building called The Residences at 1700.
St. Louis Park-based Bader Development and St. Paul-based Paster Properties partnered to redevelop the property at 1700 and 1730 Plymouth Road, directly across from Ridgedale Center. The three-story bank building, which was owned by Paster, was demolished to make way for the six-story, 115-unit mixed-use apartment/retail complex.
“Paster is a retailer developer and we’re a multifamily developer, and we thought we could both put our expertise to good use and create this urban-style development,” says Robb Bader, president of Bader Development.
“We noticed this [type of development] happening certainly in St. Louis Park at West End and in Edina at Southdale, and it really wasn’t really happening around Ridgedale,” Bader says. “However, Ridgedale had a lot of investment poured into it and continues to as a mall. Nordstrom was a driver and clearly it worked, because there are many other retailers coming. You see that, and you see the demographics of the area and you really put two and two together. The multifamily around there before ours was 20-plus years old.”
Bader says this type of higher-density, urban-style project is what the city envisioned when they started talking a “long ways back.”
“Somebody’s got to kick it off,” Bader adds. “We felt the demographics are strong enough and the demand was strong enough that we were willing to make that type of investment and be the first one in.”
“That project probably started this interest in what’s going on at Ridgedale,” Wischnack says. “That project was a pretty big investment. Once people see that happening, there’s continued interest and synergy among other projects. “
The Residences at 1700’s luxury apartments and the 15,800 square feet of ground-floor retail – called The Shoppes at 1700 – opened in 2017. The retail space includes a new Highland Bank, T-Mobile, Caribou Coffee/Einstein Bros. Bagels and Craft Burger.
Bader says the apartments are between 96 and 98 percent leased, which is “exactly where you want to be.”
Amenities include heated underground parking, an outdoor pool/sundeck, lounge areas, a yoga studio, clubroom and fitness center.
In terms of unit size, Bader says they’re a little bigger than traditional urban apartments currently being developed. “We deliberately did that recognizing that a big chunk of our demographics would be empty-nesters living in that area and looking for a different lifestyle; maybe leaving a home and wanted something a little bigger,” he says.
High-profile TCF Bank site is redeveloped
Across the street, Eden Prairie-based Solomon Real Estate Group redeveloped the TCF Bank property, located at the main entrance into Ridgedale Center, into the Ridgedale Corner Shoppes. The project includes a new 2,400-square-foot TFC Bank branch attached to about 7,800 square feet of new retail space leased to Starbucks, Wedding Day and Sprint. TCF owns the bank branch while Solomon owns and operates the retail space.
“We had gone through a whole bunch of design configurations because the city considers it the gateway into the Ridgedale mall area,” says Solomon Real Estate partner Steve Johnson. “RSP Architects designed this building, which is a little different than traditional retail buildings because of its much more high-profile look.”
The building design is contemporary with a translucent glass tower and brick accents. Johnson says lighting accents will allow the building to be very prominent in the evening hours.
“We did lots of work with them to keep this vibe that we’re trying to create,” Wischnack says. “There was a lot of back and forth about design. They stuck it out and were able to make that corner really look like it should. It was an old colonial, 1970s- branch, and they have new branding. We were able to get a really good project in the end.”
Ridgedale Center building restaurants, entertainment in parking lot
Ridgedale’s owners GGP have their own development project underway. GGP is creating restaurant/entertainment pads – including outdoor patios and landscaping — in the northwest corner of the mall’s parking lot.
This is a growing trend in which malls are turning underused portions of their surface parking lots into high-density uses like restaurants, hotels and apartments. Southdale Center in Edina, for example, has high-end apartments and a hotel in part of its parking lot.
GGP will have a new building under construction soon for iFLY, an indoor skydiving venue. It will be iFLY’s first Minnesota location and is scheduled to open in November. Xfinity Store by Comcast will open a location in late summer/early fall. Café Zupas will open this summer, and plans call for another fast-casual restaurant and there’s also space for a full-service restaurant, says Joan Suko, senior general manager at Ridgedale Center/GGP.
“It’s just kind of been underutilized,” Suko says of that section of the surface lot. “Cities are excited about adding some densification where they can. It will be an additional attraction for us for sure.”
What else is happening at Ridgedale Center?
“We’ve got a lot going on,” Suko adds. New beauty concept store Riley Rose opened its first Twin Cities location in March. The Cheesecake Factory opened last October, and Old Navy will open on the lower level center court in late summer. The mall also has a new 6,000-square-foot indoor kids’ play area.
Sears is an anchor at Ridgedale, however, the giant retailer announced in April that it’s closing its Maplewood Mall store, leaving just four stores in the Twin Cities. The Ridgedale location will likely be redeveloped in the relatively near future.
GGP owns the Sears building. “Obviously, down the road we’re looking for some development opportunity,” Suko says. “That whole side of the property has a lot of potential, and certainly quite a few scenarios that developers are looking at down the road.” She says potential redevelopment could include everything from a food hall and entertainment to residential and other uses.
Housing proposals on the drawing board
Dallas-based developer Trammell Crow Co. is proposing a six-story, 168-unit senior apartment building on another underutilized Ridgedale parking lot that would also include a public park. The site is in the southwest corner of the mall’s parking lot and is owned by J.C Penney.
Trammell Crow’s project — called the Ridgedale Active Adult Apartments — would offer luxury senior living for the 55-plus demographic. Minneapolis-based ESG Architects is the project architect, and plans call for amenities like an outdoor terrace with a pool and hot tub, a fitness center and community room.
The proposal goes before the Minnetonka City Council in early June.
Ridgedale Executive Apartments proposed
Across the street to the south of Trammell Crow’s site, Minnetonka developer Rotenberg Cos. is proposing an upscale, 77-unit apartment project on the site where Redstone Grill previously was located, before relocating in Ridgedale Center.
The vacant restaurant building, owned by Rotenberg Cos., would be razed and a new, four-story luxury apartment building called the Ridgedale Executive Apartments would be constructed. The project would include a mix of one- and two-bedroom units. Amenities would include fitness facilities (including yoga, Pilates and spin studios), a community room, an outdoor patio/pool area, a sports simulator and putting green. Also, a 24-hour onsite concierge would be available. The proposal says the units are designed to attract both empty-nesters and young professionals. The proposal was scheduled to go before the city’s planning commission in late May.
One Discovery Square was designed with collaboration in mind to support the acceleration and translation of the most promising health-related therapies and technologies. Mortenson has announced that the University of Minnesota Rochester (UMR) will be a new tenant in the unique, state-of-the-art facility in Destination Medical Center’s Discovery Square, where doctors and researchers will explore innovative new discoveries and bring them to market – and ultimately to patients – faster.
UMR will join Mayo Clinic as an anchor tenant in the building and utilize its space there for hooded laboratories, learning labs, and collaborative space for faculty, students, and other building tenants to connect.
“Our mission as an innovative undergraduate health sciences university is greatly enhanced by our immersion in the Rochester community,” says UMR Chancellor Dr. Lori J. Carrell. “Our presence in Discovery Square will enrich our students’ experience.”
UMR will be an important addition to the anticipated mix of tenants in the building. Their mission to promote learning and development through research, education, and outreach support priorities for the first phase of Discovery Square: to present opportunities for unparalleled partnerships. UMR students also will add an energy and vitality that will enhance the collaborative culture of the building.
“The University of Minnesota Rochester will be an invaluable asset to the dynamic mix of occupants we will see in One Discovery Square when it opens next year,” says Chris Schad, Destination Medical Center Director of Business Development – Discovery Square. “Their tenancy offers significant opportunities to leverage the skills and talent of the leadership, faculty, and students to enhance the culture of learning, development, and discovery in this new space.”
One Discovery Square is slated to open in 2019. To learn more about Discovery Square, click here.