Finance & Commerce –
Minneapolis developer Alatus LLC has closed on all the land it needs for a new, $125 million apartment tower in Rochester and will likely begin construction this fall.
The developer closed Aug. 8 on the $10.47 million purchase of a chunk of properties on the 1400 block of Second Street Southwest, according to a certificate of real estate value made available Wednesday. The seller was a Rochester-based LLC called 1406 Second Street Associates, which is tied to Ed Pompeian, president of Realty Growth Inc., according to a filing with the Minnesota Secretary of State. Pompeian was not available for comment on Wednesday. “It’s kind of a flipped Oklahoma shape on the east side of the block,” Alatus development director Chris Osmundson said Wednesday.
It is the final puzzle piece for Alatus, which has been painstakingly acquiring properties for its 2.77-acre building site since early this year. The company closed on its first purchase, a single-family home at 220 15th Ave. SW, in March. Osmundson said all in all, negotiations included 14 different parcels and six different seller groups. The total purchase price for the acquisitions adds up to about $12.5 million to $13 million. About 1.1 acres of the site is now occupied by two aging hotels, the Ray-Mar and the Brentwood on Second, which were built in the 1950s and 1970s respectively, according to Olmsted County property records. The rest is split between single-family homes, the hotels’ parking and vacant parcels.
Alatus’ plans call for a 347-unit, market-rate housing and retail complex at the site, which is within the Destination Medical Center development district and directly across the street from Mayo Clinic’s St. Marys Hospital campus. Once complete, the complex will include a 13-story tower with 310 apartments, flanked by 37 three-story townhomes, Osmundson said. All the units will be for lease only. The ground-floor retail space will accommodate three or four tenants, likely eateries, Osmundson said. Alatus is also looking into making the second level into a co-working and incubator space. No leases have been finalized yet, he said.
Asbestos abatement has already started at the site. Demolition will begin soon, Osmundson said. Alatus plans to begin construction in October or November. Richfield-based Weis Builders is the general contractor. ESG Architects did the design work. Osmundson said the building is on a 24-month construction schedule, with an opening set tentatively for September or October 2019.
Rochester City Council Member Nick Campion said he’s eager to see forward movement on the project. “This is additional housing that we desperately need,” Campion said Wednesday. “The Alatus project in particular is well-designed and took to heart the mission of the Destination Medical Center plan. It’s good to see it come to fruition.”
By: Clare Kennedy
Date: Aug 30, 2017
View original article and images here.