2005 Corporate Sponsors Adolfson & Peterson Construction The Avalon Group Barna, Guzy & Steffen, Ltd. Bremer Bank, N.A. news Brookfield Properties (US) LLC The Business Journal Volume 19, Number 5 May 2005 CB Richard Ellis CSM Corporation Cambridge Commercial Realty Colliers Turley Martin Tucker Feature The Collyard Group L.L.C. Downtown Residential Growth Commercial Partners Title, LLC Cuningham Group Architecture, P.A. Finally Spurs Grocery Component Dalbec Roofing Exeter Realty Company by Deb Carlson, Northstar Partners Faegre & Benson LLP Fantastic Sams n today’s market, low interest rates are independent grocers, have pursued downtown General Growth Properties, Inc. encouraging more and more people to sites to no avail, being stumped by constraints Gray Plant Mooty Imove toward home ownership, and for square footage and parking. Finally, both Great Clips, Inc. downtown markets such as Minneapolis are Lunds and Whole Foods have announced plans H.J. Development, Inc. benefiting. In fact, residential growth is to open downtown stores. Heitman Financial Services LLC exploding in downtown Minneapolis. The CBD Lunds is set to open two new stores on J.E. Dunn – North Central housing base has dramatically increased over opposite ends of downtown. The first will be J.L. Sullivan Construction, Inc. the past few years and this growth trend is at 1201 Hennepin Avenue, the former Billy Jones Lang LaSalle expected to continue as impressive new condo Graham headquarters. Lunds recently KKE Architects, Inc. projects continue to lure residents downtown. Kraus-Anderson Companies acquired the property and plans to renovate LandAmerica Commercial Services In response to the growing residential the building to make way for a new 17,000 sf Landform population, several grocers have made an store, which is slated to open by early 2006. Larkin Hoffman Daly & Lindgren Ltd. attempt over the years to make a grocery The second store location will be at 313 LaSalle Bank N.A. store site work in downtown Minneapolis. Central Avenue, in what is now the Lunds- M & I Bank Kowalski’s Markets, as well as other Downtown continued on page 2 Madison Marquette Messerli & Kramer, P.A. Midwest Maintenance & Mechanical, Inc. NorthMarq Capital, Inc. Snapshot Northtown Mall/ Glimcher Properties River Center Plaza Oppidan, Inc. Opus Northwest LLC Park Midwest Commercial Real Estate Paster Enterprises, LLC RLK-Kuusisto Ltd. RSM McGladrey, Inc. Location: Rochester, Minnesota Current Occupancy: 65% RSP Architects Month/Year Opening: Opened in June, 1968; Number of Stores: 15-20 Reliance Development Company, LLP Rehab Project in 2005 and 2006 Robert Muir Company Anchor Tenants: NRI Electronics, VIP, Ryan Companies US, Inc. Owner: Northbrook, LLC Insty-Prints, Glynners Pub, Fiesta Mexicana SUPERVALU INC. Managing Agent: Lanmark Property Market Area Served: Rochester and Target Corporation Advisors, Inc. Southeast Minnesota TCF National Bank Minnesota Towle Financial Services Center Manager: Dan Hebert Construction Style: Modern style, brick, U.S. Bank glass and EIFS Leasing Agent: Michael J. Wilson, Broker, United Properties Lanmark Property Advisors, Inc. Additional Facts/Narrative: Located one Venture Mortgage Corporation mile from Rochester’s downtown on the city’s Weis Builders, Inc. Architect: Jordan Architects main thoroughfare with over 45,000 car traffic Wells Fargo Bank, N.A. Construction Contractor: Key Builders Inc. count daily. Located in the midst of one of the Welsh Companies, LLC city’s highest growth corridors. Westwood Professional Services, Inc. GLA: 127,020 sf DOWNTOWN continued owned Rick’s Market at Eastgate Center. Program Recap In concert with Exeter Realty’s plans to Geographic Forecast reposition the center with new retail and a residential component, Lunds plans to by Christopher Naumann, KKE Architects Inc. open a new 20,000 sf grocery store at this high-traffic site. The second location is Synopsis: On the afternoon of Wednesday, • Mankato is also home to several recently scheduled to open in the Spring of 2006. April 6th, at the Holiday Inn Metrodome, built power centers catering to national big Barry Brottlund of InSite Commercial Real box tenants including a Wal-Mart Supercenter, Meanwhile, Whole Foods has announced Estate moderated a panel of greater Home Depot and Gander Mountain. plans to purchase the current Luther Minnesota community representatives who Automotive’s Jaguar and Land Rover discussed the state of development outside May Professional Showcase dealership site at Hennepin Avenue and the Metro Twin Cities area. Tony Goddard, Washington Avenue South. The Whole of St. Cloud Opportunities Inc. and Philip Horizon Roofing & Sheet Metal was Foods store isn’t likely to open until 2007 Wheeler, Director of the Rochester/Olmstead started in 1976. They have installed though because Whole Foods still needs to Consolidated Planning Department were in over eleven million square feet of obtain city development approval and attendance and presented on their respective roofing and have done it to the highest Luther Automotive needs to first construct communities. Unfortunately, Patrick of standards. They have won thirteen a new dealership elsewhere. Once Hentges of the City of Mankato, scheduled manufacturer’s quality workmanship completed, however, the site will draw to appear, was unable to attend. However, awards, two of which put Horizon consumers from the hundreds of new Karla Keller Torp, of MSCA, made his Roofing and Sheet Metal in the top 6% housing units being added along the power point presentation available. of licensed installers in North America. Minneapolis riverfront. Horizon installs roofing systems St. Cloud Highlights: The St. Cloud throughout the state of Minnesota, with Why now? Simply put, grocery store sales regional trade area is comprised of 90% of their work within the seven are driven by density - the more people in communities of the cities of St. Cloud, county area. For your next roofing proximity of a site, the more food dollars Sauk Rapids, Waite Park, and Sartell. concern or roof project call Horizon available. Surveys have shown that the • The St. Cloud trade area is comprised of Roofing & Sheet Metal at 140,000+ workers in the Minneapolis a population of 260,000 and has grown (612) 333-1481 or (320) 252-1608. downtown market generally spend their 4.5% since the year 2000. disposable grocery dollars in their home • St. Cloud is home to six post secondary neighborhoods. Additionally, the housing educational institutions which serve base staying downtown has historically over 20,000 students who account for been too low to support high overhead costs over $69.7 million in commercial and the high sales volumes that grocers spending annually. need to make their 1% to 3% profits work. • Among popular retail destinations are the In 2000, just 20,200 residents lived in recently renovated Crossroads Shopping downtown Minneapolis. As of January Center, Rivertown Village, Sundial Mall, 2005, that figure has increased nearly 30% Pine Lakes, Albertville Premium Outlet, to 29,350, finally providing a sufficient Centenial Shopping Center, Division Place, population base to warrant the addition of and East Village Shopping Center. Thanks to member Kurt Scepaniak for a grocery component. Rochester Highlights: Rochester recently sponsoring April’s professional showcase. And what about downtown St. Paul? Yes, became the third largest city in the State. the St. Paul CBD includes a significant • Median income in Rochester is $70,000. Search Me employee base from businesses and • Rochester’s population has grown 32% Popular Dictionaries government offices, but downtown retail is since 1990 and the projected population of generally considered weak. While urban The American Heritage Dictionary: the city will be 134,000 by the year 2030. housing has increased, including www.yourDictionary.com Lowertown residential growth, it is at a • Rochester averages 150 days to process development proposals. This is well under Merriam-Webster Dictionary: noticeably slower pace than its www.m-w.com the 194 days allocated by ordinance. Minneapolis counterpart. In 2000, the Word or Phrases: www.onelook.com downtown St. Paul residential population Mankato Highlights: Mankato was was just 5,743 and today that number recently voted one of the top 15 most Definitions from Webster’s and more: stands close to 7,000—certainly an livable small cities in America. www.Dictionary.com increase, but still not enough population to • Mankato is home to the River Hills Mall, Cambridge Dictionaries: support a grocery store. As a result, there a regional shopping center owned by www.Dictionary.Cambridge.org are no current plans for new grocery General Growth Properties. It is the A Search for Glossaries/Subject entries into the St. Paul CBD and none are dominant shopping center serving both Dictionary: www.Glossarist.com likely in the foreseeable future. southern Minnesota and Northern Iowa. msca news 2005 2 www.msca-online.com MemberJeffrey J. CarriveauProfile Primary Career Focus: Family: Emily is my wife and a wonderful To develop, manage and mother to our 16-month-old son, Jordan acquire successful retail Hobbies: Fishing, hunting, golf, traveling investments Job History: 1996’-1998’ Call4 Wireless, Company: H.J. 1998-2003 United Properties, 2003- present 2005 LEADERSHIP Development, Inc. OFFICERS H.J. Development, Inc. President Title: Partner, leasing Very First Job: Paper route Paul Sevenich, CCIM, Kraus-Anderson Co. agent, management, 1st Vice President