Connection - Minnesota Shopping Center Association

THE
INSIDE THIS ISSUE:
Trends to Watch For...................................... 1-2
Snapshot: RBC Plaza.........................................2
Rising Star: King and I Thai.............................3
Member Profiles................................................4
Minnesota Marketplace................................ 5-6
MSCA Leadership.............................................7
Calendar of Events & Corp. Sponsors............8
August Learning Session..................................9
MSCA Hall of Fame Submittal Form............10
Connection
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AUGUST 2015
FEATURE
ARTICLE
Four Retail Distribution Trends
to Watch in 2015
by Kris Bjorson, International Director of Retail E-Commerce and Distribution, JLL
Retailers, consumer goods and e-commerce companies are driving nearly 40 percent
of all industrial real estate demand. A new JLL report on global e-commerce points to
four major 2015 retail distribution trends:
1) Hello, Online Grocery Shopping.
Grocery shopping as we know it is
changing. Boston Consulting Group
(BCG) expects the global online
grocery market to increase from
$36 billion in 2013 to $100 billion
by 2018. This expansion from an
industry with highly perishable
goods requiring quick delivery and
near-proximity will add urgency to
the already overly-saturated demand
for logistics facilities near major U.S.
population centers.
2) Customers demand full channel
integration. Delivering a seamless
customer brand experience means
using all channels—stores, websites
and mobile platforms that must
work together. And so should their
real estate. Outdated distribution
centers that don’t support an
integrated, omni-channel strategy
will require updating or even
eliminating. Likewise, stores must
support e-commerce transactions
without cross-channel glitches.
3) Sophisticated logistics
strategies reshape real estate.
Creative logistics strategies are
pushing retailers in new directions.
Amazon’s ‘anticipatory shipping’
threatens to take consumer
expectations about convenience to
the next level. Another potential
new development is the introduction
of the ‘click and collect’ concept,
where retailers partner with thirdparty logistics (3PLs) companies to
allow customers to pick up online
orders from convenient locations
such as train stations, convenience
stores or airports. As these strategies
play out, both retail properties and
distribution networks will change.
4) Flexibility = profitability.
Location has long been a prime
success factor for retailers, but it
takes on a much broader scope in
the new retail landscape where the
location of store fronts, fulfillment
centers and warehouse distribution
centers all take on equal importance.
To keep up with rapid changes to
the market, retailers must plan their
distribution networks and buildings
with flexibility in mind. For
instance, more retailers are using
stores to help fulfill online orders,
which may require adjustments to
store layouts, dedicating more space
to the backroom.
– continued on page 2
Outdated
distribution
centers that
don’t support
an integrated,
omni-channel
strategy
will require
updating
or even
eliminating.
august | 2015
FEATURE ARTICLE CONTINUED: Four Retail Distribution Trends to Watch in 2015
Facts:
Predictions:
• Global e-commerce sales are predicted to jump from $1.5 trillion in 2014 to more than $2.3 trillion by 2017.
• An omni-channel approach can provide retailers with
significant benefits, including an increase in sales
through enhanced availability and responsiveness
and a stronger brand reputation based on superior
customer service.
• It is no longer enough for retailers to offer customers
multiple shopping channels. These now need to be
fully integrated and managed to provide customers
with a seamless omni-channel shopping experience.
• Delivering a seamless and integrated customer
experience across all shopping channels requires
significant business restructuring, embracing new
processes, technology, people and external partners.
• The reconfiguration of industrial real estate is a critical
part of this change. The specification and internal
layout of facilities for omni-channel logistics are
significantly different from those that service stores.
• Because the retail landscape can change so rapidly,
successful retailers will build flexibility into their
distribution networks and buildings so they can
respond quickly to changes in consumer demands.
It is no
longer
enough for
retailers
to offer
customers
multiple
shopping
channels.
• Retailers with international capabilities and a global
platform will be best-positioned to take advantage of
strong e-commerce growth in emerging markets.
• Having the right physical real estate, retail and
distribution, in the right locations with the flexibility
to change will be critical success factors for retailers. Download a copy of JLL’s report here
SNAPSHOT: RBC plaza
LOCATION: 555 Nicollet Mall
Owner: KBS III 60 South Sixth Street, LLC
managing Agent: Cushman & Wakefield/NorthMarq
CENTER MANAGER: Theresa Elveru
REAL ESTATE REPRESENTATIVE: Cushman & Wakefield/NorthMarq
Kim Meyer, 952-893-8887
Architect: Lohan & Associates – Original Building Architect
Shea Architects – Renovation Architect
Construction contractor: RJM Construction
GLA: 24,379 sf retail on 1st & 2nd floor
RBC Plaza has recently completed a stunning
multi-million dollar renovation. The property has three
skyway connections as well as a below grade parking facility. There are approximately 1,800 employees in the 600,000 sf
office tower. The street and skyway levels will consist of
retail, restaurant and services. Retail Tenants: Caribou Coffee, D’Amico & Sons, The Fresh Market,
Affinity Plus Federal Credit Union, and Sprout Salad Company
OFFICE tenants: RBC Capital Markets, Fish & Richardson,
Marquette Companies and Best & Flanagan
market area served: Downtown Minneapolis CBD
WEBSITE: www.rbcplazaminneapolis.com
2
august | 2015
RISING
STAR
King and I Thai, Mendota Plaza
by Nicole Urista, Paster Properties
King and I Thai was established
in 1981 at 1034 Nicollet Mall,
downtown Minneapolis. After
nine years in business, the original
owners decided to go back to
Thailand and sold the restaurant
to Pu and Gary. In 1999 Target
Corporation asked King and I Thai
to relocate and six short months
later the restaurant opened at 1346
LaSalle Ave. In 2012 the LaSalle
building switched hands; the new
owners gave King and I Thai 30 days
to cease business. At that time, King
and I Thai’s staff used social media
to let their devoted customers know
they would be closing the restaurant
on December 16, 2012.
After much anticipation, King and
I Thai opened their doors to the
100-seat restaurant at Mendota
Plaza in Mendota Heights on
Wednesday, July 15 and the same
chef as the previous location is
cooking the food. The 3,046 square
foot restaurant is next to Teresa’s
Mexican Restaurant, Custom
Professional Upholstery and Fresh
and Natural Foods.
King and I Thai offers homemade
authentic Thai food and is known
for its curries. A few of the all time
favorites are #34 Roasted Hot Pepper
Sauce, #32 Holy Basil Stir-Fry and
#43 Garlic Sauce Stir-Fry. King and
I Thai offers a large selection of craft
beers and wines that change with
the seasons. For a dessert that you
cannot pass, King and I Thai offers
Izzy’s Ice Cream. King and I Thai
also has “to go” ordering which
is available by phone or on their
website.
You’ll definitely leave King and I
Thai feeling satisfied and full as they
serve the finest Thai cuisine in the
Twin Cities! n
Two years later, Gary and Pu
collaborated with their son Leonard,
on the plans to re-open King and
I Thai. On December 19, 2014
King and I Thai posted a photo
of storefront signs reading “King
and I Thai Coming Soon!” on their
Facebook page with the caption
“It is really happening!!” This post
received 250 likes and over 50
comments and shares. Another
Facebook follower wrote “For the
same menu, we’d even follow you to
Iowa. Can’t wait!” King and I Thai
continued to keep their loyal fans
updated throughout the build out
process. The number one question
remained: When are you opening?
Website: http://www.kingandithai.com/
Facebook Page: www.facebook.com/kingandithai
Press: Pioneer Press. King and I Thai Now Open in Mendota Heights!
http://www.twincities.com/food/ci_28487378/king-and-i-thai-now-open-in-mendota-heights
Minneapolis Business Journal. King and I Thai Reopens in Mendota Heights
http://www.bizjournals.com/twincities/morning_roundup/2015/07/king-and-i-thai-reopens-in-mendota-heights-photos.htm
City Pages. King and I Thai Now Open in Mendota Heights!
http://www.citypages.com/restaurants/king-and-i-thai-now-open-in-mendota-heights-7490377
3
august | 2015
MEMBER PROFILES
GREGORY KOZULLA
Shawn Elizabeth Wiski
job title: President
Area of Focus: Project Management/
Owner’s Representation Services in
Design & Construction Projects
Year Joined MSCA: 2015
job title: Property Manager
Area of Focus: Office & Retail
Year Joined MSCA: 2015
Kozulla & Associates, Inc.
Kraus-Anderson CompanIES
What was your first job in this industry and for how long?
My formal education was in architecture. I began as a young
architectural drafter in a small firm working on just about any
building type project that came into the office. Time passed and
my technical knowledge and experience grew, and now I have
been providing management services to my clients in some
capacity in excess of 35 years.
What was your first job in this industry and for how long?
I worked for the management office at Rosedale Center for 5
years and held the position of Accouting Assistant and Specialty
Leasing Manager.
What keeps you in the business? I like the variety of the job and
enjoy the great relationships I have made through this career.
Who has been an influential teacher, mentor, or model to you
and what did you learn from them? The person who has been
the most instrumental in my real estate career is Dawn Grant.
She was a former boss and taught me a lot about the industry in a
short period of time and instilled a great work ethic in me!
What keeps you in the business? The self-satisfaction to provide
a quality service not only to my client but to all members of
the team. It’s also very gratifying to watch the project from
conception to occupancy and beyond.
Who has been an influential teacher, mentor, or model to you
and what did you learn from them? First and foremost, my
father. Coming from a farming and construction background, the
nonstop work ethic to understand the issue, address and execute
as best as you can — every time. Don’t waste time.
What is the most unique project/lease/property that you
ever worked on in your career? Probably the “Red Carpet
Initiative”. It was an initiative to get short term retailers to come
to downtown St. Paul during the RNC Convention in 2008.
What is the most unique project/lease/property that you
ever worked on in your career? There have been many. As an
ex-practicing architect and current owner’s representative, I’ve
done numerous unique and interesting projects, each with their
own challenges. One which is special to me and to this group is to
receive a STARR SM Award for an exterior retail renovation in 2012.
If you had unlimited funds to invest in a retail franchise, which
one would it be and why? Anthropologie – I love that store!
If you are a seasoned veteran, what advice would you give to those
new in the industry? Be respectful and courteous of everyone on
the team, be willing to do whatever it takes no matter what hour
of the day or night, and don’t lose track of the owner’s schedules
and budgets. Surround yourself with a team qualified to perform
the task.
What is your favorite real estate related app? It’s nothing high
tech but I would have to say I would have to say my cell phone
camera. I don’t know what I’d do without it!
If you are a seasoned veteran, what advice would you give to
those new in the industry? Give your tenants the utmost in
customer service that you can while keeping the owner’s best
interest in mind.
What is your favorite word these days? Grateful.
What profession other than yours would you most like to
attempt? I have always had an interest in being an architect.
What is your favorite real estate related app? Being in the
design and construction side of the business, I have my own
developed sheets.
Thanks Shawn
What is your motto / personal mantra? Make the right decision
quickly to keep the project moving forward.
When you retire, you want to ___________? Keep active,
whether it be my professional career to some capacity, outdoors,
mechanics, carpentry, do-it-yourself projects. It’s what keeps me
going. I can’t see myself going fishing every day.
IT’S YOUR BUSINESS.
Whether you’ve created the business of your dreams or it’s a
dream-in-progress, you can count on me to help you protect it.
Let’s talk, business owner to business owner.
Thanks Gregory
4
Fost Choles Agency Inc
(952) 224-2992
(612) 961-5583 mobile
[email protected]
august | 2015
IN THE
NEWS
Minnesota Marketplace
by Jeff Orosz, Sambatek, Inc. and Katie Prater, Paster Properties
4 Eyewear retailer, Warby Parker,
will open its first Twin Cities
boutique in Askov Finlayson in
August, 2015. Warby Parker will
occupy roughly 250 sf of the Askov
Finlayson, and will show its entire
line of glasses and sunglasses.
Meanwhile, Askov Finlayson is
relocating to a 2000 sf space in
the building next to The Bachelor
Farmer.
4 The Ox Cart Ale House opened
in July in St Paul’s Lowertown
neighborhood. Joe Kasel and Kevin
Geisen, the same group behind
Eagle Street Grille and The Salt
Cellar, describe Ox Cart “as similar
to Eagle Street, but kicked up a few
notches.” The restaurant, located
at 255 E. Sixth St, occupies 6,500 sf
with a 4,000 sf rooftop deck opening
later this summer.
4 Local Mexican restaurant
concept, Salsa a La Salsa announced
that it will be taking over the
Romano’s Macaroni Grill Space
in Minnetonka in the Westridge
Market Shopping Center. This will
be Salsa a La Salsa’s 4th location.
The restaurant will occupy
7,486 sf and add a 1,894 sf patio.
Construction is slated to begin in
September with a January 2016
opening planned.
4 Blaze Pizza opened in the
Shoppes at Knollwood in July.
The 2,430 sf build your own
pizza restaurant joins other pizza
concepts, PizzaRev, Pieology,
and The Pizza Studio, which have
entered the Twin Cities market over
the past couple years. A second
Blaze location is in the works for
Stadium Village located near the
University of Minnesota campus.
4 A new furniture store and
home staging business called
Habitation opened at 4317 Excelsior
Boulevard in St. Louis Park. The
store offers modern, mid-century,
contemporary, and post-industrial
furniture and accessories.
4 Anthropologie opened a store in
Wayzata at the new Promenade of
Wayzata after they recently closed
the Shoppes at Arbor Lakes location.
Visit the new location at 801 Lake
Street, Wayzata.
4 Crayon maker Crayola has plans
to open a Crayola Experience store
at Mall of America. The 60,000
sf store will occupy the former
Bloomingdale’s space on the third
floor. The store will offer 25 handson-activities for customers and is
planning a summer 2016 opening.
HABITATION
ANTHROPOLOGIE
4 Hobby Lobby announced that
they will be moving into two former
Rainbow Foods stores. The former
Rainbows are in Maple Grove in
Dunkirk Square Shopping Center
and Bloomington at 2600 American
Blvd, according to Hobby Lobby’s
website. The Maple Grove store
is set to open in August, and the
Bloomington store in September.
4 After a two year hiatus, King
and I Thai opened a new location
in Mendota Heights at Mendota
Plaza. The restaurant occupies
roughly 3,000 sf and has seating for
100. King and I is serving many of
the same recipes as served at their
Minneapolis location and is also
serving beer and wine.
CRAYOLA EXPERIENCE
– continued on page 6
KING AND I THAI
5
august | 2015
CONTINUED:
Minnesota Marketplace
4 Total Wine & More announced
that they are planning a store in
Chanhassen. Plans submitted to
the city show a 19,000 sf store on
undeveloped land located at Main
and Lake Drive.
4 Pet Supplies Plus announced
they will be opening an 8,400 sf
store in a former Hallmark space at
Crystal Shopping Center in Crystal.
The pet store will sell natural pet
food and grooming and hold various
events, like pet adoptions.
4 Hammer Made will open their
fourth store, this time at Ridgedale
Center. The store will not open until
October alongside the other stores
in the Nordstrom wing including
Athleta, Banana Republic, Michael
Kors, Tommy Bahama, LUSH, Tumi,
Dry Goods, The Disney Store, and
Johnston & Murphy. Hammer
Made designs and manufactures its
own collection of men’s shirts, with
an assortment that varies with each
location. n
HAMMER MADE
2016
ADVERTISING
AND
BE released
RELEASED
AUGUST
2016
ADvertising
andSPONSORSHIPS
sponsorships WILL
will be
august
3rd!
1010TH!
2015 msca advertising and sponsorship opportunities
The 2015 Advertising and Sponsorship menu is available on our
website. Please consider taking advantage of these great opportunities.
www.msca-online.com
like us on facebook for great updates
and information!
https://www.facebook.com/mscaonline
 Asphalt - Repair -Overlays
 Asphalt - New Construction
 Seal Coating - Crack Fill
 Sweeping - Lot Marking
 Concrete - Catch Basins
 24 Hour Emergency Service
Summer hours:
msca office closes
at noon on fridays
Interstate Companies
651-765-0765
– memorial to labor day –
interstatepm.com
6
august | 2015
msca LeaDERshiP
oFFicers:
sTaFF:
President: Tony Barranco – Ryan Companies US, Inc.
1st Vice President: Bob Pounds – Colliers International | Minneapolis-St. Paul
2nd Vice President: Rick Plessner – Inland Real Estate Corporation
Treasurer: Hans Rasmussen – McGough Companies
Secretary: Jesseka Doherty – Mid-America Real Estate – Minnesota, LLC
Executive Director: Karla Keller Torp (p) 952.888.3490 (c) 952.292.2414
Associate Director: Ryan Hericks (p) 952.888.3491 (c) 952.292.2416
Layout Design: Christine Moen (c) 612.481.5061
commiTTee chairs:
golF................................ Dan Jernberg – All Elements Roofing
................................. Jon Fahning – Shingobee
Learning session ......... Sheila Zachman – Commercial Realty Solutions
................................. Brian Klancke – Marcus & Millichap
LegislaTiVe..................... Leah Maurer – Cushman & Wakefield/NorthMarq
................................. Paul Berg – WaterStone Bank
neTWorking................... Emily Becker - Cushman & Wakefield/NorthMarq
................................. Julie Stanke – Fresh Paint Inc.
neWsleTTer.................... Judy Lawrence – Kraus-Anderson Companies
................................. Susanne Miller – Loucks
Program........................ Jeff Budish – CBRE
................................. Matthew Mock – QT Commercial Construction
................................. & Roofing
ReTail ReporT................ Jesseka Doherty – Mid-America
................................. Real EstateMinnesota, LLC
................................. Mike Sturdivant – Paster Properties
sponsorship................. Wendy Madsen – Ryan Companies US, Inc.
................................. Kurt Stenson - Cushman & Wakefield/NorthMarq
sTaRR aWards................ Charla Evenson – Caribou Coffee Company, Inc.
................................. Stefanie Meyer - Mid-America
................................. Real Estate – Minnesota, LLC
DirecTors:
Caleb Frostman – U.S. Bank
Jeff Johnson – Barna, Guzy & Steffen, Ltd.
Margaret Jordan – Caribou Coffee Company, Inc.
Wendy Madsen – Ryan Companies US, Inc.
Leah Maurer – Cushman & Wakefield/NorthMarq
Holly Rome – JLL
Paul Schroeder – Westwood Professional Services
Deborah Carlson Immediate Past President (as Director): Cushman & Wakefield/
NorthMarq
neWsleTTer commiTTee RosTer:
Greg Brenny - Briggs & Morgan, P.A.
Deborah Carlson - Cushman & Wakefield/NorthMarq
Steve Day - Sullivan|Day Construction
Phil Foster - CMA
Lindsay Gardenhire - JLL
Richard Jahnke - Sunbelt Business Brokers
Natina James - RSP Architects, Ltd.
Jackie Knight - The Ackerberg Group
Judy Lawrence - Kraus-Anderson Companies
Greg LaMere - Metro Equity Management LLC
Susanne Miller - Loucks
Brandon O’Connell - Mid-America Real Estate – Minnesota LLC
Jeff Orosz - Sambatek, Inc.
Katie Prater - Paster Properties
Jeffrey Serum - Fredrikson & Byron, P.A.
Nicole Urista - Paster Properties
Welcome
nEW mEmBERs:
Sunrise Banks, N.A...................Kevin Sevcik
Sunrise Banks, N.A...................Cindy Ohlenkamp
The Opus Group.......................Joe Mahoney
Doran Companies....................Tony Kuechle
mEmBER nEWs:
• maTTheW mock has recently joined QT
Commercial Construction and Roofing as
General Manager.
• Joe mahoney has joined The Opus Group
• Paul seVenich has joined Tri-Land Properties as
their Vice President of Leasing
msca is cuRREnTLy LooKing FoR commiTTEE mEmBERs FoR 2015!
If you would be a dedicated and hardworking addition to one of our nine committees, then take a look
at our committee page for your chance to contribute to this great association.
Committees meet at all sorts of different times throughout the year, so find the one that fits your
interests and schedule the best.
7
click here For The
commiTTee page!
august | 2015
Register for these 2015 Calendar events by clicking here
EVENT
VENUE
DATE
RETAIL DEVELOPMENT GOING SMALL
Doubletree Hotel Mpls Park Place
August 5, 8:00-9:30am
TO LEASE OR NOT TO LEASE?
4400 Baker Road, Minnetonka
August 18, 8:00-9:30am
third thursdays networking - FREE
Macy’s Lakeshore Grill, Ridgedale Center - Minnetonka August 20, 3:30-5:00pm
Hosts: Steve Day, Sullivan|Day Construction and Emily Becker, Cushman & Wakefield/NorthMarq
SPONSORED BY: GGP - Free appetizers and drinks
DIRECTIONS
http://www.msca-online.com/events/calendar/date/2015-08
MSCA 2015 CORPORATE SPONSORS
AUGUST FEATURED SPONSORS – Click on the logos below to learn more about our corporate sponsors.
ACI Asphalt Contractors, Inc.
All Elements Roofing
All Ways Drains LTD
Allied Blacktop Company
Aspen Waste Systems, Inc.
Asphalt Associates Inc
BMO Harris Bank
Barna, Guzy & Steffen, Ltd.
Bremer Bank, N.A.
CBRE
CSM Corporation
Colliers International | Minneapolis-St. Paul
Cuningham Group Architecture, Inc.
Cushman & Wakefield/NorthMarq
Cutting Edge Property Maintenance
Doran Companies
The Driessen Group, LLC
Faegre Baker Daniels LLP
Fendler Patterson Construction, Inc.
First American Title Insurance Co.
Fredrikson & Byron, P.A.
Great Clips, Inc.
Great Southern Bank
H.J. Development, Inc.
Inland Real Estate Corporation
JLL
Kimley-Horn and Associates, Inc.
Kraus-Anderson Companies
Larkin Hoffman
Lindquist & Vennum LLP
Mall of America
The Mandinec Group Landscaping Inc.
Marcus & Millichap
McGladrey
Messerli & Kramer P.A.
Mid-America Real Estate – Minnesota, LLC
Midwest Maintenance & Mechanical, Inc.
Minnesota Real Estate Journal
NaturalGreen Landscape Management
Oppidan, Inc.
8
The Opus Group
Outdoor Environments
Paster Properties
Prescription Landscape
Ryan Companies US, Inc.
Sambatek, Inc.
Smith Gendler Shiell Sheff Ford & Maher
Stinson Leonard Street LLP
TCF Bank
TCI Architects/Engineers/Contractor, Inc.
Target Corporation
Trautz Properties, Inc.
U.S. Bank National Association
United Properties
Vantage Law Group
Venture Mortgage Corporation
Weis Builders, Inc.
Wells Fargo Bank, N.A.
Westwood Professional Services, Inc.
august | 2015
9
2015 SUBMITTAL FORM
MSCA HALL OF FAME
BACKGROUND INFORMATION:
Name:
Company:
Number of Years in the Retail Real Estate Industry:
Number of Years in MSCA:
MSCA Involvement (Participation and Year):
JUDGING CRITERIA:
This award shall go to a current MSCA member who has shown outstanding participation,
leadership, and achievement for at least 10 years of service within MSCA and the retail
real estate industry. The candidate must be a valuable ambassador to MSCA and
demonstrate identifiable results within our industry. The candidate must exhibit mentorship
skills by sharing his or her knowledge to help better our industry and individuals.
Please attach a narrative description using the judging criteria above: (500 words or less)
Please include an award statement of 5 sentences or less. This will be read if your
candidate is selected.
SUBMISSION DUE DATE TO A BOARD MEMBER: September 11, 2015
Potential candidates can be nominated by any MSCA member via a current Director of
the MSCA Board. The Board Member will then qualify the nominee and forward to the
nominating committee (MSCA President, First Vice President and Past President) for
consideration.
This award is given at the discretion of the nominating committee.
Checklist:
 5 copies of the completed submittal form and narrative description
 1 colored digital image scanned at 300 dpi, JPEG or TIF format preferred, for display
board and presentation
Please send required checklist to MSCA. Thank you for your submission.
8120 Penn Avenue South, Suite 464
Bloomington, MN 55431
phone (952) 888-3491
fax (952) 888-0000