– MSP Business Journal
Forecasters have been predicting the end of a commercial real estate boom for a couple years now, and so far the market remains hot. That means 2019 could be another big year for development in the Twin Cities. Besides redevelopment of the Ford site in St. Paul and work on the Southwest light rail line ramping up (you can read about those projects elsewhere in this issue) here’s what I will be watching in 2019:
The building of Gateway Tower
It’s been four years since United Properties won development rights to a city-owned surface parking lot at Nicollet Mall and Washington Avenue, and it appears the Minneapolis developer has finally got a project that will work. Four Seasons Hotels & Resorts and RBC Wealth Management have committed to anchoring the 37-story tower and United Properties says it will break ground this spring.
Can the Dayton’s Project get tenants?
New York investor 601W Cos. made a bold move in acquiring and redeveloping the former Dayton’s/Macy’s store on downtown’s Nicollet Mall — to the tune of $191 million. While the development team, which includes United Properties, has landed an Andrew Zimmern-run food hall that will open this fall, so far office leasing has been quiet. There’s roughly 1 million square feet to fill and so far no leases have been announced. 601W and its marketing partner, Telos Group, had previously said the building would be ready for office tenants this month. One challenge is that the floor plates are 90,000 square feet, the largest in the Twin Cities.
The opening of Allianz Field
On April 13, Minnesota United FC will play its first game in Allianz Field. The $150 million stadium will hold 19,400 spectators for soccer games. It’s also the centerpiece in a redeveloping Midway neighborhood of St. Paul. There’s already several nearby projects in the pipeline, including a Wellington Management apartment complex and Ryan Cos. US Inc.’s O’Gara’s redevelopment.
Ramsey County’s two development sites
It’s been a rough couple of years for Ramsey County in its efforts to redevelop two major sites. After two years of negotiations and $41 million worth of public investment, it’s reached a standstill with the city of Arden Hills and Minneapolis developer Alatus on a major redevelopment of the 300-acre former ammunition site. Alatus is optimistic a plan can still happen, but the project has remained silent since November.
In downtown St. Paul, Ramsey County lost another developer for the former West Publishing site along the riverfront, and has now chosen Los Angeles-based AECOM’s ambitious plan for a pair of office towers, apartment tower and hotel, with a land bridge connecting downtown to the river. Ramsey County and AECOM will be working on those plans throughout most of the year.
A condo comeback
It’s been a quiet decade for condo development, but several projects could make 2019 a banner year for new construction. Ryan and Alatus have each cleared all necessary hurdles to build condo towers of 40-plus stories on both sides of the Mississippi River. Chicago-based Vermilion Development also won city approvals for a 14-story condo tower in Prospect Park. All three projects, are scheduled to begin construction this spring and would add more than 300 condos to the market.
By: Nick Halter
Date: Dec 31, 2018
View original article and images here.