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Mortenson Will Lead Development Around Allianz Field in Minnesota

Build-Out Will Cover 2M SF in St. Paul’s Snelling-Midway Area
June 4, 2018
One of Minnesota's largest construction companies has been chosen to spearhead redevelopment of 25 acres embracing Allianz Field, a $250 million stadium in St. Paul, MN that will be home to the state’s professional soccer team, the Minnesota United.

The property owner, New York City-based RD Management, announced Thursday that it had tapped M.A. Mortenson of Golden Valley, MN to be master developer of the site, a large block bounded by University Avenue, Snelling Avenue, Pascal Street and Interstate 94. The build out will cover approximately 2 million square feet and take seven years to complete, said Jeremy Jacobs, Mortenson’s director of real estate development, and will come with an impressive price tag.

"It’s hard to tell what the [total development cost] will be right now," Jacobs said on Thursday. "But the stadium project is at $250 million currently, and it’s fair to say that the surrounding development will multiply that a few times over."

The spot is in the heart of St. Paul’s Snelling-Midway neighborhood. Until recently, the property was occupied by an aging shopping center anchored by a Rainbow grocery store. The first phases of demolition began last fall, according to the neighborhood newspaper, The St. Paul Monitor.

Mortenson has been pursuing a relationship with RD Management for "quite some time," Jacobs said. The company sees lots of potential at the site, he said. It is well-connected to every form of transit – highways, rapid transit bus lines and light rail – and it is about halfway between the core business districts of Minneapolis and St. Paul. As such, a tall building there could boast stunning views of both downtowns’ skylines, he said.

Conceptual drawings for the site show four office buildings, a cinema, a fitness club, three residential buildings, two hotels and a handful of standalone retail shops. The developments would line either side of two green spaces just north of the stadium, Midway Square and Victory Plaza. Jacobs was quick to clarify that the drawings are a starting point, not a hard and fast plan.

"The puzzle pieces will change over time as the project progresses," Jacobs said. "Some elements will get bigger, some will get smaller and some will be replaced depending on the users we recruit."

Much work will have to be done before construction can begin. Only a few spots are shovel-ready, Jacobs said. At the earliest, Mortenson will begin building in 2019 or 2020, but it could be up to three years before they break ground.

The stadium is about half done, according to a news release. It is set to open in spring of 2019.

Mortenson will be working with S9, an architecture firm based out of New York City. Beyond that, Mortenson has not yet established which brokers and subcontractors it may work with on the project, Jacobs said.

The Snelling-Midway redevelopment will be one of two large-scale efforts led by Mortenson. In 2016, the Mayo Clinic chose Mortenson to helm its 20-year initiative to revitalize the area around its campus in downtown Rochester, MN. Total development costs are projected to top out at $5.6 billion there.

Executives with RD Management responded to a request for comment, but were not immediately able to provide additional information.

Clare Kennedy, Minneapolis / St. Paul Market Reporter  CoStar Group   
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