The University of St. Thomas

2014 Minnesota Real Estate Hall of Fame Induction Ceremony Recap

Keynote speaker Robert Senkler, CEO of Securian Financial Group, shared some great advice with the crowd at the 2014 Minnesota Real Estate Hall of Fame Induction Ceremony during his address. He stated:

Ask: Would this look good on the front page?

Mr. Senkler was talking specifically about undocumented compensation in the insurance industry but this applies to many decisions. If a decision made the front page of the newspaper, would it look good for you, your company, your employees and your client? If not, take the time to really think about why.

Check your balance sheet.

In 2005 and 2006, Securian made sure that if the unthinkable happened, they’d be ready. Now, they call the unthinkable 2008. Because they created scenarios to test their business, they were ready. Rather than having to be reactive, they had a plan in place. This helped them to weather the storm through 2008 and 2009 for their company by saving jobs and keeping their business afloat.

Do the simple things well.

With this real estate group, Mr. Senkler used the example of checking financial records and receiving solid valuations. While that is something much less complex than coming up with a development plan, many smart people missed the simple step in the last few years which caused big problems. In other words, don’t forget the details and how important they are in the overall scope of business.

Ethics.

All employers have to pay people to come to work for them. But, they don’t all make their employees feel good about what they are contributing to the company. Community service and the ability to give back as part of a job is a great way to differentiate among other employers. It helps to build a work environment routed in ethical business practice and hardworking people who give back not only because they are being paid to do so but because they want to do so.

Once again, congratulations to the 2014 Minnesota Real Estate Hall of Fame inductees:

George R. Karvel, Ph.D.

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Cyril “Cy” Kuefler, Sr.

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Jim Stanton

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Published on: Monday, November 10th, 2014

Iconic Rotterdam Project Uniquely Combines Open Air Market and Housing

October saw the opening of an innovative development in Rotterdam, Netherlands which features a combination of uses found nowhere else in the world. The innovative design includes the Netherlands’ first indoor covered market hall, which is enveloped by a 230-unit apartment building. In addition to the covered market with 100 vendor stalls, the property contains space for restaurants, a supermarket and underground parking.

Markthal in Rotterdam

It was designed by Dutch firm MVRDV, which was among the wave of “Superdutch” architects that emerged in the Netherlands in the 1990s. Despite being enclosed, the market space feels open-aired due to the vast space enclosed by the 11-story building. Perhaps the most striking feature of the market is a vast mural along the market’s ceiling which is intended to help transform the cavity into a welcoming public space.

A view of the interior of the market hall, which is overlooked by windows of the apartment units. (Source: The Guardian)

The horse shoe shaped arch of the building consists of housing from the third to the eleventh floor, in total 102 apartments and 126 condo units. Each unit has an Read the rest of this entry »

Published on: Friday, October 31st, 2014

Completion of 26-Story Apartment Building Brings Luxury Living to Minneapolis’ Nicollet Mall

The Nic on Fifth™ is the first high-rise luxury apartment development in downtown Minneapolis in nearly three decades. Recently completed by Minnetonka-based Opus Group, the 26-story luxury apartment building is located on the corner of Fifth Street and Nicollet Mall. It features 20,000 square feet of retail space and skyway levels with 253 apartment units above (including 26 penthouses). The building already started welcoming new residents since September 12 of this year and so far, it is more than 60 percent leased. The Opus Group adds that The Nic on Fifth™ reflects current and future needs of the urban center of more than 35,000 residents and aligns with the city of Minneapolis’ vision of expanding the downtown population to 70,000 by 2025.

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Published on: Wednesday, October 29th, 2014

Twin Cities Real Estate Agent and UST MSRE Student Brandon Doyle Offers 3D Virtual Tours of His Listings

Brandon Doyle is a Twin Cities tech-savvy real estate agent currently pursuing a master of science in real estate at the University of St. Thomas. He is also a licensed salesperson with RE/MAX Results in Minnesota. His creativity in the real estate sector has been drawing more public attention toward his work. He was recently featured in a Star Tribune article for his innovative use of a 3D camera made by Matterport, a California-based startup that offers a major breakthrough in HQ, rapid 3D visualization of physical spaces.

Source: Star Tribune

Source: Star Tribune

Equipped with such a sophisticated camera, Doyle offers a breathtaking three-dimensional virtual tour experience of his listings. Aware of potential competitions that this technology would bring in once adopted by other Minnesota real estate agents, Doyle states “My focus is on real estate, and, at the end of the day, that’s my career and that’s where I’ll spend my time.”

Published on: Tuesday, October 7th, 2014

UST MSRE Student Profile – Brandon Doyle, Realtor

The UST Opus College of Business Master’s in Real Estate program welcomes the new class to the 2014-2015 academic year!  Take a look at a brief snapshot of the students in this year’s class.

FULL NAME:  Brandon DoyleDoyle - Photo

What is your educational background and experience?
Bachelor of Science in Real Estate from St. Cloud State University.
Doyle Real Estate Team – RE/MAX Results  REALTOR

Why did you choose the MSRE program at UST?
I joined the MSRE program in order to network with other top professionals in the real estate industry.

What are your future career goals?
I’m currently growing my residential real estate team and am looking to expand into commercial, investments, and development.

As you enter the MSRE program, what aspect of the program are you most excited about?
I’m excited to have the opportunity to connect with other top professionals in the real estate industry, as well as MBA and Law students.

What do you enjoy most about the real estate industry?
 The opportunities within the real estate industry are endless, you’re able to create your own career path and are constantly interacting with other professionals.

What is your favorite non-real estate pastime and why?
I enjoy traveling and experiencing new cultures.

Published on: Friday, October 3rd, 2014

Rezoning, new tax credits, economic shifts hit real estate law

Wells FargoThe folowing was reposted from an article written by the staff of the Minneapolis / St. Paul Business Journal

We asked leaders of the biggest real-estate law practice groups to tell us about mistakes clients make, cases they’re interested in and how the practice is changing. Responses have been edited for length and clarity.

Thomas Bray, shareholder at No. 1 Briggs and Morgan

What are the most common mistakes clients make in real estate law?“The two most common mistakes I see are first, clients assuming their property is free of title concerns, and failing to identify and resolve potential title issues before undertaking to sell or mortgage the property. The second common mistake is clients failing to appreciate the costs and disputes that can arise from an unfavorable or poorly drafted lease, and devoting inadequate time and attention to lease review and negotiation.”

What real estate cases issues in Minnesota are you following right now?“The 2006 amendments to the eminent domain statute made it significantly more difficult for municipalities to work with developers on certain types of redevelopment projects. If the economy continues to strengthen, we will be curious to see if municipalities will attempt to persuade the Legislature to expand that authority of municipalities to use eminent domain for redevelopment. We are also closely following St. Paul’s development of the zoning ordinances that will govern redevelopment of the Ford plant.”

Christopher Dolan, real estate group chairman at No. 2 (tie) Fredrikson & Byron

What areas of real estate law are growing and which are contracting? “We have a significant number of health care clients who have been active for the past few years in developing, leasing and purchasing real estate projects. We also have a strong corporate department that has been very active in the merger/acquisition markets. These deals often include a substantial amount of real estate that have kept many of our real estate attorneys busy over the past few years. As for markets that have declined, foreclosures and work-out matters declined as the real estate market improved. While the level of development work is getting much stronger than in the past, we have not yet reached the levels we experienced before the Great Recession.”

Todd Urness, shareholder at No. 2 (tie) Winthrop & Weinstine

What areas of real estate law are growing and which are contracting? “ The recently enacted state historic tax credit provides additional assistance for the rehabilitation of historically significant buildings. We have noticed keen interest in clients using this subsidy to preserve historic structures, particularly in the North Loop and Minneapolis riverfront. Also, the demand for luxury rental housing construction has created a lot of demand for legal services in that area. Some areas of real estate finance and development, such as loan securitizations and condominium development, have not participated in the recovery, and demand for these types of legal services continues to be depressed.”

Mark Hamel, real estate and land use department head at No. 9 Dorsey & Whitney

What real estate cases in Minnesota are you following right now? “I rarely follow real estate cases. Real estate cases are the domain of trial lawyers. I try to steer my clients as far from litigation as possible. I read real estate decisions after they are handed down by the courts.”

Published on: Thursday, October 2nd, 2014

Shipping Container Building Proposed for Minneapolis North Loop

A unique office building to be constructed of shipping containers has been proposed for a small site in Minneapolis’ North Loop neighborhood. The project is being developed by Akquracy, a Minneapolis-based marketing firm that will be the primary tenant for the office space. Its located just blocks from Target Field, near two other recent creative office developments in the Ford Center and the new Be The Match headquarters building.

Steelcase

The building will be about 18,000 square feet, consisting of office space and a small café/restaurant space with outdoor seating. The design involves fifty shipping containers, each 75 feet in length. The containers will be stacked three levels high, with a portion of the building elevated over a public plaza. To minimize foundation piling due soil conditions on site, one triangular half of the building will sit on top of an existing underground parking structure, while the other half is shifted one level upwards. The lifting of half the building allows for the creation of covered plaza space and opens up the street corner.

The developer for this project commissioned New York-based architectural firm LOT-EK to design the building. The firm is known for its use of “up-cycling,” or repurposing unique materials in order to create unique designs and build sustainably. Shipping containers have become an increasing popular building material in recent years, having been used for everything from small homes to multifamily and office buildings.

Published on: Tuesday, September 30th, 2014

St. Thomas real estate analysis for August: Big drop in foreclosures and strong demand for moderate-priced homes

 Market ReportThe percent of foreclosure and short sales is back to 2007, pre-crash levels;

it’s more evidence that the Twin Cities housing market has recovered.

 Minneapolis, Minn. –     An analysis of the 13-county Twin Cities real estate market for August found a healthy decrease in the number of foreclosures along with a stronger demand for moderately priced homes than for higher-priced homes.

 Each month the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business looks for real estate trends in the Twin Cities and tracks the median price for three types of sales: nondistressed or traditional-type sales, foreclosures, and short sales (when a home is sold for less than the outstanding mortgage balance).

 “During the early part of this year the percentage of distressed sales was hovering near 30 percent,” said Herb Tousley, director of real estate programs at the university. “In August, the percent of distressed sales was 10.6 percent, a level not seen since mid-2007. More importantly, the number of new foreclosures continues to drop; that means there should be even fewer distressed sales in the next 12 to 18 months.”

mortgages After a persistent period of l0w inventory, the number of homes available to purchase has increased to 18,205. That compares to 16,747 in August 2013 and is now near pre-housing-crash levels.

 “The increase in the number of homes for sale will result in a better balance between buyers and sellers,” Tousley said. “Buyers will have more choices as the market moves from a seller’s market to a normal equilibrium.”

 Another trend the Shenehon Center follows is the number of homes available in different price brackets. By comparing the asking price of homes in the Twin Cities and how many were sold, the Shenehon Center found a stronger demand for homes priced under $140,000 than homes listed at $300,000 or higher.

Home prices in August

 Median sale prices for the Twin Cities recovered in August from a slight decline observed in July. The median price of a traditional (nondistressed) home increased to $228,000 in August, close to the high-water mark for the year set in June at $229,900. Compared to August of last year, the sale price for a traditional home is up 5.3 percent in 2014.

 Overall, the number of closed sales in August was down 7.3 percent compared to the same month a year ago, but it’s not all bad news because most of the decrease was due to a sharp decline in the number of distressed sales. Compared to last year, August saw a 4.6 percent increase in traditional sales, a 58 percent decrease in short sales, and a 50 percent decrease in foreclosure sales.

The UST composite indexes

Each month the Shenehon Center tracks nine housing-market data elements, including the median price for three types of sales, and creates an index for each: nondistressed or traditional-type sales, foreclosures, and short sales.

 The composite index for traditional sales moved up just one point in August, to 1086, but it’s a new yearly high and reflects the strong market for traditional sales seen in 2014. 

 The composite index for short sales was 936 in August, up 14 points from July. It also is up 5.3 percent compared to one year ago. “Look for the short sale index to play a less significant role in our analysis as the number of short sales drops below 3 percent of the total monthly sales,” Tousley said. 

 The composite index for the foreclosure market moved from 804 in July to 810 in August. The index is 2.3 per cent higher when compared to August 2013.

 

Published on: Tuesday, September 30th, 2014

2014 Minnesota Real Estate Hall of Fame Inductees Announced

halloffame

The Shenehon Center for Real Estate is pleased to announce
the 2014 Minnesota Real Estate Hall of Fame Inductees

George R. Karvel, Ph.D.
Cyril “Cy” Kuefler, Sr.
Jim Stanton

Join the Shenehon Center for Real Estate for the 2014 Minnesota Real Estate Hall of Fame Induction Ceremony

Thursday, November 6, 2014
7:30 a.m. Sign-in
8:00 a.m. – 10:30 a.m. Awards Ceremony featuring keynote speaker Robert Senkler, CEO, Securian Financial Group

Event Details
Golden Valley Golf and Country Club
7001 Golden Valley Road
Golden Valley, MN 55427

Individual cost: $50
or
Sponsor a table for 10: $700

The Shenehon Center for Real Estate at the University of St. Thomas Opus College of Business has established
the Minnesota Real Estate Hall of Fame to honor, preserve and perpetuate the names and outstanding accomplishments
of real estate leaders who have made a significant contribution in real estate and demonstrated care and concern for
improving their community as a business leader

Published on: Friday, September 26th, 2014

Kraus-Anderson Construction Company (KA) Completes $73 Million High School in Alexandria, MN

The beginning of the 2014-15 school year couldn’t be any better for the Alexandria School District in Alexandria, MN. Just in time, Kraus-Anderson Construction Company (KA) has completed a $73 million and 280,000-square-foot senior high school for the district.

The new high school commons (Source: REJournals.com)

The new high school commons (Source: REJournals.com)

Designed by Cuningham Group Architects to be a flexible learning environment, the new high school will house 1,400 students and replace the district’s Jefferson High School which was initially built in 1957. Speaking of flexibility, Trevor Peterson, director of business services for the district, adds “Not knowing what education is going to look like five years from now or 15 years from now, we needed to make the building adaptable”.

Published on: Wednesday, September 10th, 2014