Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Kristen Leigh Painter.

Doran Construction will build next phase of BlueStone Commons development in Duluth

Posted by: Jim Buchta under Architecture Updated: April 17, 2015 - 10:38 AM

View of the entry at BlueStone Flats

Bloomington-based Doran Construction will build Bluestone Flats, a 142-unit luxury apartment building that's part of the BlueStone Commons mixed-use development near the UMD campus. Minnesota Summit Management is the owner and developer of  the project, which will have 700 units of market, student, and mixed-use housing in several buildings called BlueStone, Summit Ridge, Boulder Ridge, and Campus Park. Mark Lambert, principal of Summit Management, said the project will cater to a diverse group of residents from empty nesters couples to recent graduates. The latest building will have studio, one- and two-bedroom units that include balconies, six-foot windows, granite countertops, custom wood cabinets, stainless steel appliances, plank flooring and pendant lighting. The Shops at BlueStone is the retail component of the project and includes a variety of service and retail businesses ranging from Tavern on the Hil to Waxing the City. A groundbreaking ceremony for BlueStone Flats will happen in May.

A siteplan showing the entire BlueStone Commons development

A siteplan showing the entire BlueStone Commons development

Most expensive street in the Twin Cities: Harrington Road, where the median home value is $4.3 million

Posted by: Jim Buchta under Buying Updated: April 16, 2015 - 3:43 PM
This four-bedroom, seven-bathroom house on Harrington Road sold in late 2013 for $4.4 million.

This four-bedroom, seven-bathroom house on Harrington Road sold in late 2013 for $4.4 million.

Harrington Road, the most expensive street in the Twin Cities metro, is a short lane in Wayzata where the median home value is $4.3 million, according to a new analysis of the most expensive streets in America by Zillow. Harrington Road, which bisects a leafy point of land that juts into Lake Minnetonka, has only about a dozen or so houses on it and many of them have lakeshore on Brown's Bay and Wayzata Bay.

Here's a complete list of the most expensive streets in the Twin Cities:

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And the most expensive streets in America:

 

Fixed-rate mortgages remain near 2015 lows

Posted by: Jim Buchta under Buying Updated: April 16, 2015 - 1:45 PM

Hey, buyers! Fixed mortgage rates remain near 2015 lows, according to several weekly surveys. Here are the latest rates from Freddie Mac's Primary Mortgage Market Survey for the week ending April 16.

  • The 30-year fixed-rate mortgage (FRM) averaged 3.67 percent with an average 0.7 point compared with 4.27 percent a year ago.
  • The 15-year FRM this week averaged 2.94 percent with an average 0.5 point compared with 3.33 percent a year ago.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.88 percent this week with an average 0.5 point compared with 3.03 percent a year ago.
  • The 1-year Treasury-indexed ARM averaged 2.46 percent this week with an average 0.4 point compared with 2.44 percent last year.

HCMC increases size of new building at a cost of $33 million

Posted by: Kristen Leigh Painter under Architecture Updated: April 16, 2015 - 12:55 PM

The board at Hennepin County Medical Center approved a significant increase in both size and scope of its new ambulatory outpatient building on Tuesday.

The new specialty complex's footprint will increase 45,000 square feet from 322,000 to 367,000 square feet. This also raises the total cost $33 million, from $191.7 million to $224.6 million, according to a news release.

 HCMC's board decided its current plans weren't big enough.  Without expanding its plans, "significant additional investment would have been needed to relocate and renovate up to six clinics that did not fit into the new facility."

There are currently 43 individual clinics scattered across nine buildings. This massive relocation effort will allow all of those to be consolidated into 25 clinics, as well as its Comprehensive Cancer Center, at the new six-story care center.

"It's a really complex place," said Scott Wordelman, vice president of ambulatory services. "We are in the process of updating our entire campus plan based on this decision."

Located between 8th and 9th streets and Chicago and Park avenues, the new building is meant to improve efficiency and accessibility while also expanding evening and weekend hours to meet the growing demand of its patients.

“As we completed a careful analysis of our current needs and the volume growth that we’ve seen in the past two years, it has become clear that we would not be able to consolidate all of the clinics and services that are today spread across nine buildings downtown in the square footage originally proposed,” said  in the release.

The Star Tribune reported Sunday that east downtown Minneapolis is undergoing a surge in development interests and HCMC, as the neighborhood's largest employer, is a major player in that transition. 

“Understanding the changing needs and development in the east downtown area, this plan gives us the greatest flexibility for the rest of the campus as we take a fresh look at our facilities,” said Wordelman.

HCMC's revised plan will delay ground breaking by a few months, pushing it back to November. The new specialty building is expected to start seeing patients in December 2017. Hennepin County will be asked to issue bonds to finance the project. The healthcare center will pay down the debt through its operating income.

Mortenson sells Hampton Inn & Suites, first newly constructed hotel downtown Minneapolis since recession

Posted by: Kristen Leigh Painter under Buying Updated: April 14, 2015 - 11:24 AM

M.A. Mortenson has sold the new Hampton Inn & Suites, the first hotel built in downtown Minneapolis since the recession, for $39 million.

The Golden Valley-based construction and development firm announced the sale one day after the new 211-room hotel opened for guests. The buyer is Texas-based Summit Hotel Properties, a publicly-traded REIT with 91 lodging properties in 21 states.

The Hampton Inn & Suites is the first of this brand in Minneapolis. Located in the heart of the city's entertainment district at the corner of 1st Avenue and 8th Street, the nine-story building is one block from 1st Avenue & 7th Street Entry entertainment venue and skyway-connected to the parking garages next to Target Center. It is two blocks from the popular Loews Minneapolis Hotel.

“The new Hampton Inn & Suites represents the first ground-up hotel to open downtown Minneapolis since 2009 and will contribute to the continued renaissance within the City’s urban core,” said Nate Gundrum, development executive at Mortenson, in a statement. “We are excited to bring this property to the market and look forward to completing several other real estate development projects in the area.”

Mortenson announced in November its plans for developing and building an AC Hotels by Marriott at 401 Hennepin Av. S. across 4th Street from the Minneapolis Central Library. That is also a nine-story hotel with 244 rooms and is estimated to cost $48 million to build.

Hampton Inn & Suites in Minneapolis

Kimberly Ihle named president of BOMA, an influential commercial real estate group

Posted by: Kristen Leigh Painter Updated: April 13, 2015 - 5:31 PM

One of the most recognized commercial real estate interest groups in Minneapolis has named its new Board of Directors.

Kim Ihle

Kim Ihle

Building Owners and Managers Association (BOMA) of Greater Minneapolis announced Kimberly Ihle as its president for 2015-2016 on Monday. Ihle, general manager for CBRE, most recently served as vice president of BOMA.

Michael Hagen, property manager of The 614 Company, will move to vice president from his previous position as Secretary/Treasurer, while Amy Wimmer will fill the position he is vacating.

BOMA is a national organization with about 100 affiliate locations throughout North America. The Greater Minneapolis organization is the sixth largest in the United States and wields its influence to affect tax issues and legislative or regulatory decisions that impact commercial real estate. 

The officers are elected for one-year positions. Several others were elected to the board for varied term lengths, BOMA announced.

Greg Wohlforth of ABM Onsite Services was elected as a service provider member for two years while Kelly Lentz of Zeller Realty Group and Nathan Reed of Shorenstein Realty Service were named to three-year terms.

Several board members will continue in their director roles, including Ted Campbell, Kevin Connolly, Lynette Dumalag, Brett Greenfield, Cindy MacDonald, Patrick McQuiston, Andy Sundgaard and David Wright (the outgoing president).

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