2024 Minnesota Family Business Awards: Crossroads Property Management
Headquarters: Oakdale
Inception: 1996 (as Crossroads Properties)
Family name: Johnson
What the company does: Commercial real estate property management, brokerage, and development
Type of ownership: LLC
Principal owners: Andy Johnson, Amy Kotsmith-Johnson, Catie Johnson, Erik Johnson, Cathy Johnson
Employees: 11 full-time, 3 contractors
Family members in the business: 2
Family members on the board: 3
David Johnson had built a successful property management firm in the eastern suburbs of St. Paul. When he passed away suddenly in August 2023, his son Andy Johnson and daughter-in-law Amy Kotsmith-Johnson were thrown into leadership of Oakdale-based Crossroads Property Management.
That would have been a tough situation for any family. What made it even more challenging was that David Johnson had had trouble letting go of leadership. There was a lot his son and daughter-in-law had to learn.
They’re still learning, but they’re making it work. As company president, Kotsmith-Johnson manages Crossroads’ operations, making sure the buildings are profitable and being maintained. Andy Johnson is CEO of Crossroads Properties, which oversees the property management business and his family’s investments. (His siblings, Catie, Erik, and Cathy Johnson, are co-owners but aren’t involved in Crossroads’ day-to-day operations.)
Though Crossroads was founded in 1996, the company’s origins date back to the late 1970s, when Walter Johnson owned a discount retail chain called Conn-Co Shoes. He and his son, David Johnson, also began buying commercial real estate. Successful at first, by the 1990s the Johnsons found themselves overextended and had to declare bankruptcy. But the Johnsons still had local bankers and developers willing to support them. They started over in 1996 as Crossroads Properties, beginning with a former auto dealership near the intersection of Interstates 694 and 94 in Oakdale that the family calls the 7500 Building (based on its street address). Father and son successfully rented it out to various other small businesses, then built a commercial structure next door. In 2001, the Johnsons founded Crossroads Property Management LLC to handle the family’s property business.
In 2022, the Metropolitan Council acquired the 7500 Building and demolished it to make room for a Gold Line bus transit park-and-ride facility. While that legacy property is gone, “we now have this beautiful portfolio of buildings,” Kotsmith-Johnson says. Crossroads currently owns 16 buildings, some of which it has acquired, others of which it has built. Most are located in the east metro communities of Oakdale, Woodbury, and Lake Elmo. The company also manages several buildings owned by others.
“We specialize in industrial small space and working with the business owners that live and work in the community. They’re people who started in their garages and are looking to take the next step.”
—Amy Kotsmith-Johnson, president
Under Walter and David Johnson, Crossroads developed “a different approach to the businesses that come in as tenants,” Kotsmith-Johnson says. “We specialize in industrial small space and working with the business owners that live and work in the community. They’re people who started in their garages and are looking to take the next step. They might not have that credit history that some of the bigger real estate developers and owners might require.” Crossroads can offer shorter leases, even month-to-month. “The basis of Walter and David was helping small businesses succeed,” Kotsmith-Johnson says.
Another differentiator is Crossroads’ “product”—small-bay industrial, or properties with multiple tenants between 1,000 and 10,000 square feet. “People aren’t building that now,” Kotsmith-Johnson says. “But it’s perfect for this side of town.” Crossroads also has office and mixed-use buildings in its portfolio.
About 2,280 square feet of space in one of Crossroads’ Woodbury properties is being leased by SpaceTurtle Construction, a residential and commercial remodeling firm. SpaceTurtle business manager Meagan Garofalo says that Crossroads keeps the property well maintained. “That’s very important because we bring in clients to meet with us.”
“Anytime we have a question or a situation, they take care of it immediately, so we always know that we’re in good hands with them,” Garofalo adds. She notes that Crossroads holds regular client appreciation events, which help strengthen the bond between tenants and landlord—almost like family, one could say.
Though David Johnson left a strong legacy for his family, they wish he had put more time into succession planning. But his son understands why he didn’t.
“Dad had very deep wounds from the bankruptcy,” Andy Johnson says. “He was never going to let that happen again. As a function of that, he just had a tight grip on everything.” That made it difficult for him to relinquish day-to-day decision-making. A few years ago, Andy Johnson began having conversations with his father to “convey what I needed for my family to help us get through,” he says. “It’s been a challenging four years.”
Things have been running more smoothly of late. Kotsmith-Johnson says that in the last six months, “we’ve really found a groove—we’ve found balance. We can go out on a date and not talk about work. We figured it out, and we’re still figuring it out.”