Spring Thawing – Snow/Ice Build-Up on Roofs

A record-breaking snowfall for Minnesota in the month of February is no small deal! At this time of year, and the weather we have been having, is cause to pay attention to impacts to buildings and roofs. With more wet snow on the way, over the next few weeks, we urge you to take action now. Here are a few of the main maintenance tips we would like to share with you.

1. REMOVE EXCESS SNOW

Experts say that more than a foot of packed snow can cause damage to your roof and increase the risk of it collapsing. Snow drifting from the recent snowfalls and blowing snow may cause issues at hi/low building walls and roof parapets. Inspecting these areas for excessive snow amounts are key to avoiding water damming and potential roof and wall leaks due to thawing snow that usually occurs under these large drifts. Inspecting these areas can usually be done from the ground, or other flat fairly safe spot.

2. CHECK FOR ICE DAMS

Have you noticed icicles hanging from your gutters? This is usually a sign of ice dams. Ice dams can cause serious damage to your downspouts. Remove ice dams right away to avoid future costly repairs. Downspouts (particularly on the North sides of buildings) may experience freezing / ice due to thawing on roof and the fact that the water freezes as it descends the cooler (shaded) downspout on the building. Interior piped roof drains can experience the same issue. Heat tape / heat coils and/or salt blocks can help this situation.

3. CHECK YOUR DRAINAGE SYSTEM PRIOR TO THE NEXT SNOWFALL

Downspouts and roof drains can become plugged – due to freeze/thaw cycles or debris. Remove debris from your downspouts. Having clear roof drains will allow moving water to stay off your roof, which will reduce the possibility of damage occurring. Culverts and underground piping can also experience freeze up in the spring / fall periods. If this happens – typically it is best to steam the pipes open.

free snowNEXT STEPS:

Please do not hesitate to reach out to our team regarding this or any other question you may have about your building. We will help you in any way we can. Our main office number is (952) 469-2171, or click on the following links to contact our team via email:

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For more information on building maintenance, please request our Commercial Building Maintenance Checklist here:

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 Image sources: “Icicles” via State Farm on flickr and “Free snow” via Teresa Boardman on flickr .

Information on County Road 70 expansion project

The Appro team would like to remind our clients and commercial property owners about the upcoming construction on County Road 70. The city of Lakeville plans for expansion on County Road 70 from Kensington Boulevard/ Kendrick Avenue to Cedar Avenue. The purpose of this project is to improve safety and operations due to increasing traffic volumes. The following is a list of the project goals, potential benefits and concerns, and time schedule. In effort to assist our clients on what they need to know about the upcoming expansion, we hope this information is useful for future business decisions.

Unknown-1This Project Intends to:

  • Expand the County Road from from a 3 to 4 lane highway
  • Improve drainage
  • Construct turn lanes at major intersections
  • Manage access(designates where and how vehicles access and exit a roadway)
  • Reconstruct signals to accommodate the additional lanes
  • Add capacity to the major truck and business area that is growing
  • Reduce delays
  • More details, including the opportunity to sign up for updates may be found HERE: 

https://clients.bolton-menk.com/csah70/

Project goals:DJI_0024-e1528899864170

  • Develop a plan that meets principle arterial access requirements with stakeholder support
  • Provide safety improvements for all users
  • Accommodate needs for the next 20 years of growth

Project schedule:

  • Design– 2018-2019
  • Right of way acquisition– 2019-2020
  • Construction– 2020-2021

The above is intended for general information purposes to accommodate for the upcoming construction

If you find any additional concerns or questions you may have about what this means for your business, please contact us! Our relationship with you is very important to us along with your business.  

For additional information about the progress of this construction and how it may impact your business, please contact Jack Matasosky or Bruce Rydeen for additional information:

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About the Author:

Jackson Matasosky is a guest author with the team at APPRO and CERRON. Jackson is a full-time student at the University of Kansas (KU), studying Finance and Economics in their School of Business.  

1031 Tax Deferred Exchanges Explained

Our company would like to share some information regarding a 1031 exchange, also known as like-kind exchanges. This is very relevant to an industrial business owner and may be seen as very beneficial to look into further. 1031 exchanges have been a vital aspect of the tax code since 1921. It allows investors or business property owners to sell a property, buy a new property, and defer paying capital gains tax on the sale, as long as both properties are of like kind. In the future, the taxes will have to be paid because it is a deferral, not an exclusion. There are many rules for how the exchange must be carried out, so we provided some options that may be useful for business owners of industrial buildings.

Like-kind Properties

  • Refers to the nature or character of the property, rather than its grade or quality
  • Any real property held for productive use in trade or business, investment, whether improved or unimproved, is considered like-kind real property.
  • Personal property is excluded and not eligible for 1031 exchange tax deferral.

Drones_in_commercial_and_industrial_constructionPros of 1031 exchange

  • By deferring taxes, there is more money currently available for investment.
  • The option to exchange and replace properties for others with less responsibility, if you own several properties that are burdened with extensive maintenance costs or requiring more intense management.
  • More wealth and asset accumulation, compared to a real estate investor that chooses to sell and pay taxes each time a sale occurs.

Exchange types

1. Simultaneous exchange

  • Occurs when the replacement property and relinquished property close on the same day

2. Delayed Exchange

  • Occurs when the exchanger relinquishes the original property before he or she acquires replacement property.

3. Reverse exchange

  • Occurs when you acquire a replacement property through an exchange accommodation titleholder before you identify the replacement property

4. Construction/improvement exchange

  • Allows tax payers to make improvements on the replacement property by using the exchange equity

As you can see, there are many considerations when it comes to real estate investing, and the choice to utilize a 1031 tax deferred exchange is just one of many as you navigate the process of purchasing your next commercial property. The team at APPRO and CERRON is well versed in this and many other options available for real estate investing. Please contact our team with your questions and to let us know how we may help with your next commercial property investment.

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If  you would like to learn more about 1031 Tax Deferred Exchanges, please click on the link below to learn more:

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About the Author:

Jackson Matasosky is a guest author with the team at APPRO and CERRON. Jackson is a full-time student at the University of Kansas (KU), studying Finance and Economics in their School of Business. 

 

Image Source: Man standing at window via Freepik.com (designed by Pressfoto); drone/aerial image via APPRO by Brandon Rowell Photography.

industrial land for sale - rosemount business park

Last Mile Logistics: Case Study, Rosemount, MN

Last mile logistics is a hot topic in today’s retail environment. We have seen the decline in the standard retail storefront over the past few years, with many of these storefronts have been replaced by Amazon Prime trucks zipping across the freeways, fulfilling orders placed online for items which used to be purchased at the neighborhood store. So, what do these changes in consumer habits, and therefore changes in supply chain logistics, mean for builders, commercial real estate practitioners, investors, and owner/operators? We offer a definition, considerations, a case study and additional resources to consult for logistics site considerations.

Definition of Last Mile Logistics

So, just what does the term “Last Mile Logistics” mean? According to Business Insider, “In a product’s journey from warehouse to customer doorstep, the ‘last mile’ of delivery is the final step of the process – the point at which the package finally arrives at the buyer’s door.”

E-commerce is driving the demand for these last mile logistic sites, and there doesn’t appear to be an end to the demand in the foreseeable future.

“Businesses have begun to develop new technologies and experimental supply chain models to increase parcel volume, expedite deliveries, and delight customers – all while trying to cut costs.” – Business Insider

E-commerce is growing at a steady rate of 15% per year. Current logistics portfolio for current retail is only 9.6% of the market – there is a lot of room to grow! Enter Industrial Warehousing.

What type of building is ideal?

warehouseAccording to information presented at this year’s 2018 Investment Real Estate Symposium, held on Tuesday, October 2nd, 2018, the following building features are ideal, if not necessary, for successful logistics operations:

  • Clear heights of 40’
  • 500,000 SF facility sizing
  • Mezzanines
  • Food Related / Cold Storage
  • Infrastructure for automation
  • Rapid delivery systems

During this symposium, the current state of the logistics industry was discussed. Currently, the availability of buildings with each of these features, is significantly down. Therefore, rental rates have risen in response to the current supply (or lack thereof). As a result, many logistics companies are turning to new construction to build what is needed for modern delivery systems. “The growing trend is for organizations to build or take advantage of urban warehouse space and have easy access to products for fast delivery,” according to SupplyChain 24/7.com. If new construction is your best solution, as an owner/operator, there are many considerations as you take that next step.

What are the ideal distribution center considerations?

According to AreaDevelopment.com, you need to ask the following questions when considering your next distribution center location:

  • Where should last-mile considerations fit into your site scenario?
  • Is there such a thing as an ideal number of last-mile DC’s?
  • Are there ideal last-mile DC venues?
  • Exactly how close should a company’s last-mile facilities be to its customers?
  • How important are traffic patterns?

Each business is unique as are the consumers they serve. As a result, a site that may work for one business, may not for another. As a result, our team created a case study on one site to illustrate the various considerations in the selection of a distribution center site.

Case Study: Rosemount Business Park – West, Rosemount, Minnesota

Aerial 2 with Outline 2017-1The Rosemount Business Park – West site is located at the southeast corner of Highway 3 and County Road 42 in Rosemount, Minnesota. It is situated on the west side of the established business park, which is already home to This is a +/- 35 acre site is zoned BP – Business Park District which allows for office warehouse, warehousing, wholesaling and distribution facilities. Additionally, the site offers the following features which would be of interest to a site selector for a distribution facility:

Transportation

Rail – This site is located on a Progressive (PGR) short line rail line (Class III).

Highway – in addition to being located at the intersection of Hwy 3 and CR-42, the site is located approximately seven (7) miles west of US Highway 52 (which runs north / south between St. Paul and Rochester) and is accessible to Interstate 35 via County Road 46.

Airport – The site is located approximately 15 miles south of the Minneapolis-St. Paul International Airport (MSP)

Demographics / Workforce

(Data Source: City of Rosemount, Economic Development, Kim Lindquist, via this LINK)

Businesses can obtain customized training programs with Dakota County Technical College (DCTC), a part of the Minnesota State college system.

Approximately 80% of Rosemount’s population of almost 23,000 is in the workforce.

Available housing for a growing workforce is growing at an average rate of 73 new units per year, with ample commercial options (250+) for residents, an excellent education system, and recreational areas.

Utilities

  • Natural Gas – MERC, MN Energy Resources
  • Electric – Xcel
  • Fiber is available to the site
  • Water/Sewer are both available to the site

Economic Incentives (via State of Minnesota)

Many economic incentives exist, but you will want to consider which incentives (if any) make sense for your business. Tax Increment Financing (TIF), and Tax Abatement programs exist, but may require a specific number of new hires within an allotted timeframe. As more automation occurs, a company may want to weigh the pros and cons of tapping into these incentives.

Affordable land pricing – currently listed at $3.75/SF, this is an affordable option for a warehouse / distribution center, ideal for cold storage, logistics, and more.

Build-to-Suit (BTS) – This site is currently divisible to a customer’s needs and the owners are offering a build to suit option on this site.

Design/Build – APPRO Development is a trusted resource to assist with all design build scenarios (including working with an owner through city process). Our expert team has been working on projects like this for more than 30 years. A variety of options exist for this site (including dividing the lot).

Learn more about this site at: Rosemount Business Park, Rosemount, MN

As you can see, there are many features of a site to consider. We hope that this example helps you in your search process. If you would like additional information on the site referenced in this Case Study, or links to any of the articles referenced, please see the resources section below, or feel free to contact our team with any additional questions you may have.

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Resources

Meet the APPRO and CERRON Team: Dalton Swager

Meet the APPRO and CERRON Team: DALTON SWAGER

We would like to introduce you to Dalton Swager, who will be working with our team to provide drafting / design help to our team. We hope you enjoy learning more about us and our great team at APPRO & CERRON.

 

Name: Dalton Swager

Role:  CAD Technician, CERRON Commercial Properties & APPRO Development, Inc.

 

The APPRO and CERRON team helps businesses find and/or create great spaces – what about that do you appreciate or enjoy?

  • The way that the two companies work in tandem to find a building site and then to show the client the potential of that site through site sketches and illustrations to convey available options.

Why should someone who doesn’t know APPRO and CERRON, choose our companies?

  • They are able to provide a full package for the client – with the ability to sell the lot, build a building, or sell an existing building. 

snowboard

What is your earliest memory of selling, designing or building something?
  • At about age 4 or 5, I realized I loved to design and build things out of just about anything I could get my hands on.
What do you do outside of the office for fun?
  • I love to go for bike rides in the summer; snowboard in the winter; and, draw or play video games throughout the entire year.

What is something people might be surprised to know about you?

  • I am actually very artistic and love to learn just about anything I can.
Where is one place you have not been, but would really like to go?
  •  I would love to go to Japan

We are excited to have Dalton as a member of our design team. He is always upbeat, flashing a smile in  your direction, and eager to tackle the next project that comes our way. We look forward to seeing his contributions to our design build team.

View more team member links HERE.
 
If you would like to consider joining our team, be sure to check out our CAREERS page for current open positions.
 
Would you like to learn more about our team and all that we do to provide expert property solutions? If you haven’t already done so, please subscribe to our newsletter to receive project updates, design ideas, current available properties, and much more! {{cta(‘d460cbc2-63ba-4882-b207-d05998195700’)}}


Miller Hartwig Insurance Remodel with Second Floor Addition

Miller Hartwig Insurance Remodel with Second Floor Addition Project Summary: New office remodel with second floor addition approximately 2,572 sq. ft. in Lakeville, MN, project done by APPRO Development. Services Provided by APPRO: Full design build package If you’d like to know more about this client and their business click here   APPRO Development has been a design-build company since …

Stein Air 2020-02

Airport Hangar New Construction: SteinAir – Faribault, MN

Airport Hangar New Construction: SteinAir, Faribault, MN Project Summary: New construction of an Airport Hangar including office and work space approximately 15,872 sq. ft.  in Faribault, MN, project by APPRO Development. This project was unique in the process of building this type of facility within the guidelines of the City of Faribault, and within a municipal airport. Special Considerations: Worked …

Meet the APPRO and CERRON Team: Gordy Schiltz

Meet the APPRO and CERRON Team: Gordy Schiltz

If you have been following our blogs for the past couple of months, you have been learning a little more about our team, and as we are coming down to the final members of our team, we would like to introduce you to Gordy Schiltz! We hope you enjoy learning more about us and our great team at APPRO & CERRON.

 

Name: Gordy Schiltz

Role:  Project Manager,  APPRO Development, Inc.

 

Describe your role in ten words or less 

  • I oversee the commercial construction process from start to finish.

What is something people might be surprised to know about you?

  • I spent 10 years in the United States Air Force
What is your favorite sport (to cheer on or to play)?
  • Baseball – I love watching my son play!

What is the best compliment you have ever received?

  • My wife saying, “yes” when I proposed 30 years ago
What do you do outside of the office for fun?
  • Hunting, fishing, baseball, sitting at the fire pit with my family (maybe even with a cold beer in hand)

What is your favorite quote?

  • It is what it is!
Where is one place you have not been, but would really like to go?
  • Moose hunting in Alaska

 

Gordy Schiltz is the most senior project manager on our team, having started with APPRO Development in 2003. He is honest, straight forward, devoted, and hardworking. Gordy takes great pride in a job well done, placing value on building strong relationships with both our subcontractors and the owners of each project we work on.

As a subcontractor you will meet Gordy during the initial or competitive bidding phase of a new project, as well as working together throughout the entire construction phase and into the final close out of a project. As a commercial property owner, you will meet Gordy during the initial planning and budgeting phase, work with him throughout the construction of a project, and as he wraps up the construction phase to turn the building over to you, on time and on budget.

Gordy is a pretty humble guy, but if you ask, he might be willing to share his stories of having survived being on a life raft in the middle of the ocean, eating insects, or hunting large game in Africa. We are fortunate to have Gordy and ALL the skills he brings to our great team!

View more team member links HERE.
 
Would you like to learn more about our team and all that we do to provide expert property solutions? If you haven’t already done so, please subscribe to our newsletter to receive project updates, design ideas, current available properties, and much more! Subscribe Now



Meet the APPRO and CERRON Team: Cam Luong

Meet the APPRO and CERRON Team: Cam Luong

If you have been following our blogs for the past couple of months, you have been learning a little more about our team, and as we are coming down to the last few members of our team, we would like to introduce you to Cam Luong! We hope you enjoy learning more about us and our great team at APPRO & CERRON.

 

Name: Cam Luong

Role:  Project Manager,  APPRO Development, Inc.

 

APPRO and CERRON helps businesses find and/or create great commercial spaces – what about that do you appreciate most?

  • It’s a one stop shop. CERRON helps our clients find spaces and APPRO provides our clients an estimate for the build-out.

What makes our team unique?

  • We are an open book General Contractor. We disclose our subcontractors’ bids to our clients – you don’t see many, if any, General Contractors out there willing to disclose this information.
What do you do outside of the office for fun?
  • I enjoy golfing, attending the kids’ sporting events, downhill skiing, and reading a good book.
What is your favorite quote?

  • “Do not follow a path where it may lead, but instead create your own path, so others may follow.”
What is your favorite sport (to cheer on or to play)?
  • Football

Cam has been a longtime APPRO team member, originally starting with our team in 2004. He is hard working, detailed, and has a sense of humor that keeps our group on our toes. Cam is respected  for his expertise and strong work ethic by our team internally, as well as by the subcontractors, vendors, and owners with whom he interacts on a daily basis. 

As a vendor or subcontractor, you will work with Cam on commercial or industrial construction projects from initial inception to final completion during bid, construction and final completion phases. As a building owner, landlord, or property tenant, you will work with Cam during all phases of construction, as he expertly manages the entire process to your satisfaction – striving to not only meet, but to exceed your expectations.

Cam cares deeply about his family, has a zest for all that life offers, and is a valued member of our APPRO and CERRON Commercial Property Solutions Team!

View more team member links HERE.
 
Would you like to learn more about our team and all that we do to provide expert property solutions? If you haven’t already done so, please subscribe to our newsletter to receive project updates, design ideas, current available properties, and much more! {{cta(‘d460cbc2-63ba-4882-b207-d05998195700’)}}


Meet the APPRO and CERRON Team: Jim Connelly

Meet the APPRO and CERRON Team: Jim Connelly

Continuing to introduce you to our team, we have the interview from our next property solutions team member. We are pleased to introduce you to Jim Connelly, and we hope you have fun learning more about our fabulous team at APPRO & CERRON.

 

Name: Jim Connelly

Role: Designer, Project Manager, Co-Owner, APPRO Development

 

Describe your role with APPRO & CERRON in ten to fifteen words or less.

  • Problem solver, creating solutions through design or construction to solve clients’ needs.

 

What inspires and/or motivates you in what you do with APPRO & CERRON?

  • The final result. Helping to shape the outcome of a project.

 

What do you do outside of the office for fun?

  • Spend time outdoors with my family.

 

What is your favorite sport (to cheer on or to play)?

  • Whatever sport my kids are participating in. It’s much more interesting to me to watch a sporting event when there is a personal connection.

 

Jim is a an APPRO co-owner and has been a part of the APPRO team since 1996. He is an excellent leader, designer, and project manager. Additionally, Jim works with our team, leading us as we embrace the “Lean” principles throughout our organization. As a business owner you will meet Jim during the initial planning and design phases of a commercial construction project. As a subcontractor, you will meet Jim on projects he either manages or oversees in his design role. One of the things our team especially appreciates about Jim is that he has a great sense of humor, and has been known to pull a prank or two in his day…be on your toes is all I can say!

View more team member links HERE.
 
Want to continue to learn more about our team and all that we do to provide expert property solutions? If you haven’t already, subscribe to our newsletter. {{cta(‘d460cbc2-63ba-4882-b207-d05998195700’)}}