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Property Management

Ownership Cycle of a Commercial Property

WEST BLOOMINGTON BUSINESS CENTER
6300 W Old Shakopee Rd, Bloomington, MN
Written by: Fred Hedberg

In 1997, Fred Hedberg, Principal of Paramount Real Estate Corporation was asked by a past client to determine the value and marketability of some excess land that was remaining after building a mini-storage facility on a site in Bloomington, Minnesota.  Fred provided a valuation and marketing plan for the land.  He also suggested that his client might want to consider developing an office-showroom or industrial building on the site.  The market for that type of product was very strong at that time. Fred suggested to his client that if this was of interest, he would like to co-develop and own the building with his client.

Forming a Partnership-The prospect of continuing to own the land and to not pay capital gains tax on a sale was appealing to Fred’s client.  It was beneficial having the opportunity to partner with a seasoned real estate professional who had a good understanding of the market and what kinds of buildings and spaces tenants were looking for at that time.  They agreed to move forward on a new development together.  They  began to work with an architect and contractor to lay out a building on the site that would meet current market demands for space and to meet the test of time.
Developing the Property-After a review of financial projections prepared by Fred, a partnership was formed to move forward with the project.  Construction drawings were completed, city approvals and financing was secured.  Krause Anderson was selected to act as the general contractor for the new 80,714 SF project called West Bloomington Business Center.
Completing the Project-Paramount Real Estate Corporation was hired to lease and manage the building for the partnership.  The shell building was completed in 1998 and it was fully leased and built out by the end of 1999. The building attracted well-known local and national tenants that leased the majority of the building as office space.In 1999 the building was recognized by NAIOP as a recipient of their Awards of Excellence for the Light Industrial-High Finish category. The building has performed well though the various real estate cycles that followed and has stood the test of time as different tenants with uses other than office have found it to be a desirable building and location for their businesses.
Selling the Building-After 20 years of ownership, Fred and his partner decided that it would be in their best interests to sell the building during the current business cycle for estate planning purposes and to maximize their return on the investment.  Fred found a local investor that was in need of a 1031 exchange property. West Bloomington Business Center fulfilled his exchange requirement and his desire to own a well performing, high quality asset.  The property was sold in August 2018 and the new owner hired Paramount Real Estate Corporation to continue to lease and manage the building.
Paramount Continues to Lease and Manage Property-Fred and his leasing and property management team are excited to be able to continue to work on this project in the future.   See detailed information about the space currently available at West Bloomington Business Center.

If you would like real estate investment advice,
please contact:
www.paramountre.com
(952) 854-8290

TCN Worldwide Among NREI 2018 Top Property Managers

NREI 2018 Top Property Managers List


TCN Worldwide is honored to be named to the National Real Estate Investor Top Property Managers List for 2018.  The ranking is based on total square footage of space managed globally.  TCN manages nearly 446 million square feet.  TCN Worldwide Real Estate, a consortium of independent commercial real estate firms which Paramount Real Estate Corp is a member, provides complete integrated real estate solutions locally and internationally. An extensive range of real estate services coupled with a personal commitment to exceed expectations is what allows TCN Worldwide to be a leader in this competitive industry. Comprised of leading independent brokerage firms, serving more than 200 markets globally, TCN Worldwide combines an entrepreneurial approach with years of local experience. Around the globe, across all property types and service groups, TCN Worldwide’s more than 5000 brokers and salespeople have a well-earned reputation for providing straightforward expert advice.

Paramount InSite Newsletter | June 2018

Check out the June 2018 edition of
Paramount’s Insite Newsletter. 
CLICK HERE.
You will find interesting articles related to Property Management,  find out if your space helps or hurts your hiring efforts, read about a recent transaction with Warners’ Stellian, and check out upcoming events around the Twin Cities.

Call Paramount for all your 
commercial real estate needs today.
(952) 854-8290
www.paramountre.com

Press Release | Borene Promoted to VP of Property Management

MINNEAPOLIS, MN.  Paramount Real Estate Corp | TCN Worldwide promotes Lisa Borene to Vice President of Property Management Services.  Lisa is responsible for providing asset and property management services for the Paramount property management portfolio.  Paramount management services include third party management of office, industrial, retail and flex properties and receivership services throughout the Twin Cities area.
“Lisa is highly respected and trusted by our property owners for her responsive and creative problem solving, understanding of critical operational issues, and sound real estate advice.  Lisa is a highly valued member of the Paramount team”, Principal Fred Hedberg said.
Lisa has been with Paramount as a Property Manager for 10 years.  Her property management efforts focus on providing exceptional service to tenants, contract negotiations, and budgeting, as well as implementing and improving tenant customer services.
Lisa has had an extensive career in commercial real estate.  Prior to working at Paramount, Lisa was employed by Regis Corporation and Caribou Coffee managing lease locations across the country.  Lisa brings years of experience, creativity, property knowledge, and a “can do” attitude to her tenants and property owners making her one of the Twin Cities’ premier property managers.
Paramount Real Estate Corporation is a Minneapolis/St. Paul based commercial real estate company specializing in representation, consultation, and property management services for individuals, corporations and institutional clients. Paramount provides creative solutions to complex commercial real estate transactions through knowledge, experience and innovation.