2021 NAIOP Awards: Distinctive Properties in Minnesota
The Minnesota Chapter of NAIOP, the Commercial Real Estate Development Association, has selected 16 projects for special recognition. Announcements of these winning projects were made Sept. 22 during the 38th Annual Awards of Excellence event at The Metropolitan in Golden Valley. Ten of the 16 award categories were won by suburban projects. Four winning projects are located in Minneapolis, while St. Paul and Thief River Falls are each home to one winner. A total of 40 projects were nominated this year for NAIOP awards. The judges evaluated the buildings on project development, function and design, architectural integrity, market feasibility, sustainable attributes, and unique project challenges. The winning properties are profiled on the following pages.
Omni Viking Lakes Hotel
Category: Hospitality
Location: 2611 Nordic Way, Eagan Owner: MVE Hotel, LLC Developer: MVE Hotel, LLC General Contractor: Kraus-Anderson Construction Co. Architect: ESG Architects Interior Designer: ESG Architects Size: 381,163 square feet
This four-star hotel, which includes 320 guest rooms and suites, is a central element of the Viking Lakes mixed-use development, which includes the TCO Performance Center for the Minnesota Vikings. Nordic traditions and Minnesota’s history and culture are featured in design elements throughout the property. A local artist hand carved three large wooden pillars that are a centerpiece of the lobby. A full-service spa includes a dry sauna and outdoor saltwater therapy pool. The 14-story hotel includes 35,000 square feet of event space, and the hotel’s bar terrace overlooks the Vikings football practice and training facility.
Digi-Key Electronics Product Distribution Center Expansion
Category: Industrial, Build-to-Suit
Location: 601 Barzen Ave. S., Thief River Falls Owner: Digi-Key Electronics Developer: N/A General Contractor: McShane Construction Co. Architect: Widseth Interior Designer: Widseth Size: 2,200,000 square feet
Located in northwest Minnesota, Digi-Key is a worldwide distributor of electronic components. This four-level product distribution center is one of the largest warehouses in the world. At 2.2 million square feet, the facility was built with 17,000 tons of steel and 1,860 pieces of precast concrete. The multiple levels are connected through 20 miles of conveyors. Digi-Key employs about 4,000 people, and this expansion project will generate thousands more jobs over the next 10 years. The new structure is connected to Digi-Key’s preexisting building through a 328-foot steel bridge. Harsh winter weather was among the construction challenges.
Canterbury Distribution Center
Category: Industrial, Bulk Distribution
Location: 3200 4th Ave. E., Shakopee Owner: United Properties Developer: United Properties General Contractor: RJ Ryan Construction Architect: Lampert Architects Interior Designer: Lampert Architects Size: 302,650 square feet
This facility is a major Class A bulk distribution project in the south metro. It was developed speculatively by United Properties to meet the growing e-commerce demand for modern distribution facilities. The structure has 32 feet of clearance, so it was constructed to serve tenants who have substantial loading requirements, high-bay racking needs, and trailers that have to be stored. The building features a painted precast design, and architects ensured that enhanced natural light would flow into the warehouse. The facility, which has good access to Highways 169 and 101, is adjacent to Canterbury Commons, a master-planned housing and entertainment district.
Kurita America
Category: Light Industrial, High Finish
Location: 6609 94th Ave. N., Brooklyn Park Owner: Ryan Companies US, Inc. Developer: Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: Ryan A+E, Inc., PlanForce Group Interior Designer: Fluid Interiors Size: 156,000 square feet
This facility combines Kurita’s office, lab, and manufacturing activities into a single corporate headquarters building. The new structure replaces three Kurita locations in St. Michael, Plymouth, and Shakopee. The space was designed to represent a new company culture that balances aspects of the Japan-based parent company with characteristics of the American workforce. The building features a 32-foot-high warehouse production area, lab rooms for water testing, and a two-story office space with an observation deck that overlooks production. The architecture of the facility promotes operational efficiency and connectivity among employees. The company hopes the building will help in recruiting top talent.
Schwieters Building 6
Category: Light Industrial, Low Finish
Location: 13925 Fenway Blvd. N., Hugo Owner: Hugo Real Estate LLC Developer: Hugo Real Estate LLC General Contractor: Crawford Merz Architect: BDH Interior Designer: BDH Size: 27,180 square feet
Schwieters Companies needed a larger building for staining, painting, and assembling its millwork, doors, and cabinetry. The new warehouse is more than double the size of the previous building that was used, and the new structure has improved workflow for production and distribution. Seven enclosed truck docks protect the trucks from Minnesota weather and also produce energy savings. Varying elevations, dark banding, and bronze awnings were chosen to create contrasting elements on the building’s exterior. LED light fixtures were installed throughout the entire building, and insulated precast wall panels increase efficiencies associated with heating and cooling.
Regions Hospital Birthing Center
Category: Medical, Over 75,000 Square Feet
Location: 640 Jackson St., St. Paul Owner: HealthPartners Developer: N/A General Contractor: Kraus-Anderson Construction Co. Architect: BWBR Architects Interior Designer: BWBR Architects Size: 153,000 square feet
This four-story expansion was designed to provide state-of-the-art care for mothers and their newborns. Regions can now offer “couplet care,” which means a mother and her newborn can be treated in the same room. The new birth center provides larger rooms and family-friendly amenities, hydrotherapy tubs, and postpartum suites. The neonatal intensive care unit has also been expanded. About 60 percent of birthing patients at Regions are women of color, and about one-fourth need an interpreter for care. The new center aims to advance health equity and offer high-quality care for a diverse population of patients.
Shakopee VA Clinic
Category: Medical, Under 75,000 Square Feet
Location: 12321 Marystown Rd., Shakopee Owner: SDA Developer: SDA General Contractor: Anderson Companies Architect: Pope Architects Interior Designer: Pope Architects Size: 13,667 square feet
SDA, a Denver-based developer, owns this new facility, which is leased to Veterans Affairs. SDA worked with the Minneapolis VA to choose the comprehensive design and construction team for the clinic. The new facility is located off of Highway 169 and Marystown Road in southeast Shakopee. Natural light and large storefront glazing in the lobby and corridors were incorporated to create a calming aesthetic. Doors, flooring, lighting, and signage were designed to serve veterans with mobility challenges. The clinic offers a holistic approach, which includes primary and specialty care, mental health services, imaging, therapy, and educational resources.
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Bridgewater Corporate Center
Category: Mixed Use
Location: 4450 Excelsior Blvd., Ste. 100, St. Louis Park Owner: Bridgewater Bank Developer: N/A General Contractor: IronMark Architect: DJR Architecture Interior Designer: Art Partners Size: 175,824 square feet
This project entailed redeveloping a one-story vacant commercial building into a four-story mixed-use office building. The ground floor includes a Bridgewater branch bank and 7,500 square feet of retail space. The building opened in 2020, and it provides jobs and services for people living in the surrounding housing in the Park Commons District of St. Louis Park. One of the most challenging, and important, aspects of the project was the development of the public plaza on nearby Excelsior Boulevard and Monterey Drive. The project has the electrical infrastructure to support 15 electric vehicle charging stations.
City Club Apartments
Category: Multi-Family High-Rise (8+ stories)
Location: 95 S. 10th St., Minneapolis Owner: City Club Apartments Developer: City Club Apartments General Contractor: Frana Companies Architect: BKV Group Interior Designer: City Club Apartments, BKV Group Size: 227,368 square feet
The project team restored the Handicraft Guild Building, constructed in 1907 during the Arts and Crafts movement in Minneapolis, and attached a new 17-story structure. The result is 307 apartment units, with about half micro and alcove units. A main driver of this project was a desire to pair affordable housing units with a robust amenity package. The project includes a rooftop clubroom, an outdoor pool deck, a business center, and other lifestyle amenities. Twelve parking stalls were included in the final design. Other tenants will use public transportation or existing parking spaces in the neighborhood.
The Lorient
Category: Multi-Family Low-Rise (1 to 4 stories)
Location: 3901 Sunnyside Rd., Edina Owner: Orion Investments, United Properties Developer: Orion Investments, United Properties General Contractor: Stevens Construction Architect: ESG Architecture & Design Interior Designer: ESG Architecture & Design Size: 131,036 square feet
The Lorient includes 45 luxury rental apartments, 6,500 square feet of restaurant and retail space, 74 below-grade resident parking stalls, and 40 at-grade, enclosed public parking stalls. The design was inspired by 1920s-era brick construction. The building consists of three levels of wood-framed construction over a ground-level concrete structure and one underground level of concrete. Empty nesters are targeted for renting the apartment units. The development replaced a dry-cleaning building, two homes, and surface parking. It was designed to offer a welcoming experience so neighbors will want to walk to and from the retail businesses.
Daymark Uptown Apartments
Category: Multi-Family Mid-Rise(5 to 7 stories)
Location: 1477 W. Lake St., Minneapolis Owner: Weidner Developer: Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: Ryan A+E, Inc. Interior Designer: Ryan A+E, Inc. Size: 335,000 square feet
This mixed-use development consists of 318 units of multi-family housing, 15,000 square feet of office space for Sons of Norway, and 5,000 square feet of adjacent retail space along Lake Street. Daymark housing units range from micro-units with shared kitchen and laundry to upscale penthouse suites and townhouses. A tower that replicates a daymark sits at the main corner of Humboldt and Lake, with a lit cupola that’s visible for miles and acts as a design element between the north and south buildings. The development includes fitness and club rooms and a lobby coffee shop.
10 West End
Category: Office Multi-Tenant
Location: 1601 Utica Ave. S., St. Louis Park Owner: 10 West End, LLC (Ryan Companies and The Excelsior Group) Developer: Ryan Companies US, Inc. General Contractor: Ryan Companies US, Inc. Architect: Ryan A+E, Inc. Interior Designer: Ryan A+E, Inc. Size: 752,858 square feet
This 11-story building of Class A office space offers easy connectivity to downtown Minneapolis and the western suburbs. Seven leases were signed within four months of opening, achieving more than 50 percent of occupancy. Built on a speculative basis, the project is designed to serve tenants in a post-pandemic environment. The development balances an industrial-exposed aesthetic with low-maintenance finishes and furnishings. The top floor provides great views. 10 West End includes large conference space as well as many meeting rooms. It offers several amenities, such as a sky lounge, common deck patio, large fitness area, and bike storage.
The Dayton’s Project
Category: Repositioned/Renovated (New Use)
Location: 700 Nicollet Mall, Minneapolis Owner: 601W Developer: 601W General Contractor: Gardner Builders Architect: Gensler Minneapolis Interior Designer: Gensler Minneapolis Size: 1,200,000 square feet
A $350 million budget was allocated to renovate the former Dayton’s department store, which consisted of three buildings. The redevelopment effort involved preserving historical details that included original flooring, the building façade, JB Hudson, and the women’s fourth-floor bathroom. The Dayton’s Project is on the National Register of Historic Places, and it clearly is a distinctive property. But the ability to lease tenants for the showpiece has been hampered by the pandemic and civil unrest in Minneapolis. The Dayton’s Project has new plumbing and HVAC systems, upgraded elevators, modern escalators, and a touchless security system.
Two22
Category: Repositioned/Renovated (Tenant Improvement)
Location: 222 S. 9th St., Minneapolis Owner: Lingerfelt CommonWealth Partners Developer: Lingerfelt CommonWealth Partners General Contractor: Gardner Builders Architect: NELSON Worldwide Interior Designer: NELSON Worldwide Size: 41,401 square feet
Lingerfelt CommonWealth Partners, a Virginia-based commercial real estate investment firm, purchased the 42-story office tower in 2019. The building contains 727,170 square feet, and the new owner allocated about $20 million for renovating key spaces. The new lobby incorporates stone walls and metal accents. Perimeter enclosures in the building’s center were removed to emphasize natural light. The tower’s refresh project also included an outdoor terrace and atrium gathering spaces. When visitors arrive, they see a spacious entryway with white marble floors and constellation-lit ceilings. Two22 also has a distinctive security reception desk in the skyway lobby.
Haven Homes Senior Health and Living
Category: Senior Living
Location: 4848 Gateway Blvd., Maple Plain Owner: Cassia Developer: N/A General Contractor: Anderson Companies Architect: Pope Architects Interior Designer: Pope Architects Size: 189,000 square feet
Augustana Care and Elim Care joined together in 2018 to form Cassia, which developed a new Haven Homes facility in Maple Plain. It replaced a care center that opened in 1966. The new Haven Homes combines housing options for seniors, including skilled care, transitional care, assisted living, memory care, and independent living. It also offers an adult day program. Because of Maple Plain’s agricultural roots, the design of Haven Homes features a modern farmhouse aesthetic. The facility has bright white walls contrasted with dark window frames, dark lighting fixtures, and pops of bold color.
Jardín Spanish Immersion Academy
Category: Special Purpose
Location: 14615 Glazier Ave., Apple Valley Owner: Frauenshuh, Inc. Developer: Frauenshuh, Inc. General Contractor: Copeland Building Architect: CNH Architects Interior Designer: CNH Architects Size: 12,192 square feet
Jardín Spanish Immersion Academy needed a new location to provide day care for about 150 children. A site near Cedar Avenue and County Road 42 was chosen as a visible location that’s convenient for parents. The available land was limited, so a two-story building was constructed, and a playground was placed on the Cedar Avenue frontage area. Regulations required that infants and toddlers be located on the main floor, while the older children could engage in their activities on the second floor. The design employs brick, glass, and panels to provide a fun, functional, and creative aesthetic.
NAIOP Nominees for 2021 Excellence Awards
Sixteen NAIOP awards were given to outstanding projects this year on Sept. 22. Twenty-four other projects were recognized as nominees.
Here are the nominees by category:
Industrial, Build-to-Suit
Bosch Automotive Service Solutions, Owatonna
Cherne Industries at Brick Yard Exchange, Shakopee
Colder Products Company, Roseville
InverPoint Business Park, Simpson Strong Tie, Inver Grove Heights
X3 Properties, New Production Facility, St. Michael
Light Industrial, High Finish
Arbor Lakes Corporate Center, Maple Grove
Medical, Under 75,000 Square Feet
CityPlace III, Woodbury
Northfield Hospital Birth Center and Clinic Expansion, Northfield
Park Dental & The Dental Specialists, Radio Drive, Woodbury
Rosemount Professional Building, Rosemount
Multi-Family Low-Rise (1 to 4 Stories)
The Barnum, White Bear Lake
Multi-Family Mid-Rise (5 to 7 Stories)
Five 90 Park Apartments, St. Paul
The HUE, Rochester
The Redwell, Minneapolis
Vesi North Loop Apartments, Minneapolis
Viridium, Minneapolis
Repositioned/Renovated (Tenant Improvement)
7201 Metro Blvd, Edina
Tennant Headquarters Office Relocation, Eden Prairie
Wings Financial Credit Union Headquarters, Apple Valley
Senior Living
Bethesda Cornerstone Village, Victoria
Cherrywood Pointe of Bloomington, Bloomington
Legends at Berry, St. Paul
Lexington Landing Senior Living, St. Paul
Zvago Lake Superior, Duluth
NAIOP President’s Award
Lori Larson Heller, who built a career in commercial real estate that spanned three decades, is the winner of the 2021 NAIOP Minnesota President’s Award. It is NAIOP’s highest honor, and the winner is selected by chapter leaders from a field of candidates nominated by members.
Most recently, Larson Heller was executive vice president of Dougherty Real Estate Equity Advisors LLC.
She began her career in 1982 as an asset manager at Saint Paul Properties. Her career has included leadership positions at Opus, CBRE, and Dougherty Real Estate Equity Advisors. She also operated her own consulting firm.
Larson Heller’s experience extended across the commercial real estate industry. She was involved in property acquisition, disposition, finance, joint venture structuring, development, corporate real estate, and asset management.
Her vast industry knowledge is based on more than $4 billion worth of real estate transactions completed in more than 25 U.S. markets.
The NAIOP President’s Award is given to people who have made outstanding contributions to the commercial real estate industry as well as NAIOP and the broader community.
Through her commitment to give back to the community, Larson Heller has served for several years on the boards of directors of three nonprofit organizations. Bridging helps furnish homes for those in need. CornerHouse provides a range of services to address child abuse. Special Olympics Minnesota supports people with intellectual disabilities who wish to take part in sports. Larson Heller’s professional and community work has been recognized by business and trade publications.
Twenty years ago, Larson Heller became the first woman to serve as president of NAIOP Minnesota. She also was a member of the board of directors and served as the organization’s vice president and treasurer. She was a speaker or emcee for many events, took part in or led several NAIOP committees, and was a mentor to many in the industry.
Larson Heller left her commercial real estate career in 2018 after her husband, Jim, was diagnosed with ALS, a neurological disease that’s often called Lou Gehrig’s disease. She became his full-time caregiver until his death in May 2020.
Jim Heller was a successful real estate developer who came to Minnesota to work for Opus. Larson Heller established the Jim Heller “End ALS” Memorial Fund. She’s become a passionate advocate on behalf of other ALS patients. She’s raised about $500,000, gotten involved in ALS research and awareness efforts, and focused her energy on state and federal legislation that addresses ALS.
