Kraus-Anderson said Tuesday that it plans to consolidate its headquarters operations under one roof in downtown Minneapolis, doubling the current number of employees.
The Minneapolis-based commercial real estate and construction firm, which has been headquartered in downtown since 1897, will locate its new headquarters at the southeast corner of Eighth St. S. and Fifth Av. S. The current headquarters at 525 Eighth St. S. was constructed in the mid-1970s.
Kraus-Anderson said it will build a LEED-certified facility on the site for about 250 employees. There will be plenty of room for future expansion, the company said.
“We’re working to create a modern, sustainable environment that complements the renewed vitality of east downtown, and reflects our collaborative approach and values,” said KA Chairman and CEO Bruce Engelsma.
The new facility will include employees from the KA Construction office in Circle Pines and the KA Realty Company office in Bloomington. The new building will also house Kraus-Anderson Mortgage and Kraus-Anderson Capital, as well as the parent corporation, Kraus-Anderson Cos.
“It’s the old story of the contractor who’s so busy working on everybody else’s projects, they don’t have time to build their own,” said Al Gerhardt, chief operating officer of Kraus-Anderson Construction Co. “Now is the time.”
The company said it is in "growth mode," hiring more than 100 new employees over the past year. The firm is currently active in 10 states, with sales exceeding $790 million in 2013.
Recent big projects include the 420,000-square-foot Gundersen Health System Legacy Building in La Crosse, Wis.; 114,000-square-foot Duluth International Airport Terminal; and The Marshall, a 584,000-square-foot, 317-unit student housing/mixed-use project near the University of Minnesota in Minneapolis.
In addition, Kraus-Anderson Realty leases and manages more than four million square feet of commercial property and has developed more than 500,000 square feet of commercial properties over the past five years, including medical office, retail, apartments and senior housing properties.
Recent developments under way include senior housing communities Deephaven Woods in Deephaven and Engel Haus in Albertville. The company is also collaborating on the redevelopment of the former 100-acre State Farm corporate campus in Woodbury, for corporate, retail, medical office building and restaurant tenants.
Although Kraus-Anderson Capital serves clients primarily in the five-state region, it recently expanded activities into the booming Williston, N.D., market.
“Plans for the new KA headquarters facility are still in early development but our goal is to create a highly collaborative environment with leading-edge technology,” said Mike Korsh, vice president and director of development for Kraus-Anderson Realty.
Planned amenities at the new headquarters include a training center, cafeteria, fitness center, formal and informal meeting areas, and a landscaped exterior. “We’re getting input from our employees and also working closely with the city and the neighborhood to make the new facility an asset to all stakeholders.”
The new building is being designed by Pope Architects. Construction of the new headquarters is expected to begin in the fall of 2014, with a 12-month schedule for completion. “We’re reinvesting in downtown Minneapolis, and reinvesting in our employees,” Engelsma said.