Opus Breaks Ground on Second Downtown Minneapolis Luxury Apartment Complex

By Gabriel Circiog, Associate Editor

Opus Development Corp. recently announced plans to begin development and construction of a new boutique luxury residential apartment complex in downtown Minneapolis. The project, dubbed VÉLO, French for “bicycle,” will be owned by Twin Cities-based real estate investment company Sentinel Management Co. 

Located at 103 N. Second St. In the North Loop neighborhood, VÉLO will feature 101 luxury units and 12,000 square feet of retail space on the first level. The residential complex is closely located near Minneapolis’ well-known bike path system and offers access to various amenities including an outdoor plaza, club lounge, yoga studio, fitness centers and rooftop terrace, complete with resident garden boxes.

“We’re excited to offer a unique living experience for those seeking a luxury and lifestyle-rich rental option in the thriving North Loop neighborhood,” said Tom Lund, vice president of real estate development for Opus. “VÉLO will be the ultimate hub for residents seeking a balanced lifestyle in the heart of America’s premier bike city.”

The project is scheduled to break ground in April 2013 and is expected to be completed and ready for occupancy in spring 2014. Observed Luigi Bernardi, president of Sentinel Management Co. and Aurora Investments L.L.C.: “We are looking forward to working with Opus on developing this unique and exciting property in the heart of Minneapolis.”

The developer of the project is Opus Development Corp., while Opus Design-Build L.L.C. will construct the building. Opus AE Group Inc. and Elness Swenson Graham Architects Inc. will collaborate on the design.

As previously reported by Commercial Property Executive, Opus Development Corp. is also currently developing The Nic on Fifth, a 26-story luxury apartment building in downtown Minneapolis, slated for completion at the beginning of summer 2014.

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Rendering Credits to: Opus AE Group Inc. and Elness Swenson Graham Architects Inc. via www.minneapolisloftscondos.co

HealthPartners Opens $36M Mental Health Building at Regions Hospital

By Gabriel Circiog, Associate Editor

HealthPartners recently announced the opening of a new mental health building at Regions Hospital. The new eight-story facility will replace the existing inpatient facility on its St. Paul campus.

“Regions Hospital is a place of hope and healing, and we continue to make investments that reflect the needs of the community,” said Brock Nelson, president & CEO of the hospital. “This project is more than a building. It’s about providing our patients and their families care in an environment that is equal to the level of care we provide for other illnesses.”

The new $36 million building is specifically designed to care for patients with mental illnesses and features 100 private rooms, with the possibility to add 20 more, close to double the size of the previous space. The construction process lasted 18 months and factored in the input of former patients and family members in the design and the way care is provided. The facility is the largest private investment in mental health in state history.

“The care we provide will play an important part in our patients’ road to recovery, but we know it is just one part of the journey,” said Mary Brainerd, president & CEO of HealthPartners. “Together with the HealthPartners Clinics and community-based resources, we can provide patients with the right level of care throughout their treatment.”

In other healthcare real estate news, Sabra Health Care REIT Inc. acquired an 87-bed skilled nursing facility in Minneapolis known as Camden Care Center for $7.2 million. At the same time, Sabra Health Care signed a 15-year triple-net lease with Trinity Health Systems L.L.C. for the property. The initial yield on cash rent is expected to be 10 percent, with $0.9 million in annual lease revenues.

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Photo Courtesy of: www.regionshospital.com

LCS Enters into JV with Nine Senior Living Communities

By Gabriel Circiog, Associate Editor

Des Moines, Iowa-based LCS has entered into a joint venture with Chicago-based real estate investment firm Harrison Street Real Estate Capital that has acquired an equity position in nine senior living communities in Greater Minneapolis.

The market-rate rental communities feature a total of 1,116 residential units. Through CRSA, an LCS company, LCS will provide a wide range of management and marketing services to the communities. Out of the nine communities, seven offer assisted living care and one provides memory care services.

“LCS and CRSA are pleased to have the opportunity to offer our hospitality, management and marketing expertise to this impressive collection of senior residences,” says Steve Nornes, director of operations management for CRSA. “Each community will receive customized support based upon our 41-year experience in the management and development of senior living communities.”

The nine communities on which LCS and Harrison Street have partnered include Earle Brown Terrace–Brooklyn Center; Heathers Estates–Crystal; Heathers Manor–Crystal; Meridian Manor–Wayzata; The Rivers–Burnsville; The Timbers–Apple Valley; Tradition–Brooklyn Park; Waterford Estates–Brooklyn Park; and Waterford Manor–Brooklyn Park.

Founded in 1971, LCS has had a presence in the Twin Cities area since 1978. Currently the company is developing Trillium Woods, a continuing-care retirement community in Plymouth, Minn. The new developments will be managed by Life Care Services, an LCS company that specializes in the management and marketing of CCRCs. Overall, LCS companies currently provide services to more than 30,000 residents in 31 states and the District of Columbia.

For more market data on Minneapolis, please click here.

Opus Closes on Financing, Prepares to Break Ground on Luxury High-Rise Apartment Building

By Gabriel Circiog, Associate Editor

Opus Development Corp. recently announced it has closed on financing for a planned luxury high-rise apartment building, The Nic on Fifth. The name of the development reflects the location of the project on Nicollet Mall and Fifth Street in downtown Minneapolis. The financing was provided by SunTrust Bank, and construction is expected to break ground by the end of November.

“With the financing secured, Opus is thrilled to begin work on The Nic on Fifth. Minneapolis is definitely a top-tier city for both equity investors and lenders,” said Dave Menke, senior vice president & general manager.

As previously reported on this page, the project is adjacent to another Opus project, the new Xcel Energy building. The two properties aim to transform the north end of Nicollet Mall.

Opus is joint venturing with private real estate investment firm Founders Properties L.L.C. According to Founders senior vice president Wade Lau: “This is a major investment in Downtown, and we are extremely pleased to be involved in a project that is so instrumental in transforming our central business district.”

The Nic on Fifth is set to become the first new high-rise residential building in downtown Minneapolis in close to 30 years. The 26-story luxury apartment building will feature 253 units, 26 of them penthouses. The building will also be the first high-rise apartment project designed to achieve LEED certification. The construction will feature high-end finishes and amenities including 24/7 concierge service, an outdoor roof terrace with pool and spa, a yoga studio, a fitness center, an outdoor fire pit, guest suites and a dog play area. The first residents are expected to move in at the beginning of summer 2014.

“The Nic on Fifth will bring a new level of luxury apartment living to downtown Minneapolis and establish a new benchmark for those seeking high-end luxury high-rise living. The combination of extensive amenities, a light-rail station, skyway connectivity, restaurants and retail will be very attractive to residents looking for luxury high-rise living,” said Tom Lund, Opus’ vice president of real estate development.

The building will be constructed by Opus Design Build L.L.C., while Opus AE Group Inc. and Elness Swenson Graham Architects Inc. will collaborate on the design.

For more market data on Minneapolis, please click here.

Rendering courtesy of www.ci.minneapolis.mn.us

Shorenstein Properties Acquires Minneapolis City Center for $202.5M

By Gabriel Circiog, Associate Editor

Shorenstein Properties has closed on the acquisition of Minneapolis City Center, a 50-story mixed-use complex located in the heart of downtown Minneapolis. Shorenstein made the purchase on behalf of Shorenstein Realty Investors Ten L.P., a commingled fund formed in 2010 and with $1.2 billion of committed capital.

Located at 33 S. Sixth St., the complex occupies an entire city block bounded by Nicollet Mall, Hennepin Avenue and Sixth and Seventh Streets. The 1.6 million-square-foot complex features a 50-story tower with 1.1 million square feet of Class A office space on top of a 489,000-square-foot, four-level retail podium. The anchor tenant is Target Corp., occupying 72 percent of the office space under a lease that expires in December 2023. Overall, the property is 95 percent leased. The transaction also included a 687-stall, three-story parking structure and a ground lease encumbering the 583-room Minneapolis Marriott City Center Hotel adjacent to the complex.

Shorenstein Properties acquired Minneapolis City Center from Brookfield Office Properties Inc. for $202.5 million gross. Net proceeds to Brookfield were around $106 million. Eastdil Secured advised Brookfield on the sale.

Shorenstein Properties chairman & CEO Douglas Shorenstein said: “This property is in a superior office and retail location in a dynamic city. Minneapolis is growing faster than many larger metro areas, and it has wisely invested in its future success by developing the infrastructure necessary to attract more businesses and residents to downtown. We are pleased to have Target, which has done so much for Minneapolis, as our major tenant. We plan to work with our tenants and the community to add value to the city and to this important property by using our extensive expertise operating Class A office properties.”

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Photo Courtesy of: www.brookfieldofficeproperties.com