Solar Energy – A Good Idea?

Solar Energy – The Pros and Cons of Alternate Materials in Commercial Construction

Image Source: Wikimedia, 2014 – Solar Panel Installation

A Solar Energy incentive program (Made in Minnesota Solar Incentive Program) for both residential and commercial buildings recently came to our attention. Upon being asked our opinion of the program, a lively discussion ensued in the offices of APPRO and CERRON surrounding the use of environmentally friendly materials and sustainable energy resources.

APPRO & CERRON both work diligently to provide the best product at the best price for each of our customers – whether building new or remodeling existing. We work a lot in our neighborhood here in the Airlake Industrial Park which is comprised of many small businesses focused on the industrial and manufacturing industries.

Over the past few years, APPRO has brought forward energy efficient design ideas and alternate material types and equipment that enhance energy savings in response to public sentiment for more environmentally friendly buildings. We have found the LEED certification process cumbersome and not as cost effective as we may be lead to believe initially. We have strived to find a balance between energy savings that provide payback to you as a building owner and ways that reduce the initial start-up costs of construction.

In our experience, as we competitively bid out new projects, we have found that some “green” or LEED certified materials make a lot of sense to incorporate in to a project to cut costs (e.g. insulation). While the use of other materials might only make sense to fulfill a PR objective or to enhance marketability, the incorporation of those materials may not make sense from a business perspective.

As a Minnesota based design-build general contractor, APPRO is aware of the solar incentives available and are more than happy to discuss the pros and cons of working this into your next building project. We create property solutions for you and with you – how may we help you today?

MN Snow Day – Fun Friday!

MN Snow Day – Fun Friday Facts

MN Snow Day - Do Not Try this at Home Kids… DO NOT try this at home! (Picture Source: A Christmas Story, 1983)

Well, Gov. Dayton has officially declared Monday a “Snow Day” for all schools in the state of Minnesota. So, even though our state’s snow day is due to extremely cold temperatures predicted, around here at the offices of APPRO and CERRON, we wanted to share some of our own snow day fun links:

Top 11 Super Cool Snow Sculptures

12 Face Freezin’ Snow Creations

So, whether you are in the office burning the midnight oil or working from home this coming MN Snow Day, the entire Team at APPRO and CERRON wish you a very Happy, Warm & Safe Snow Day, as we start off the New Year!

P.S. Our offices will be open for business – we are a hearty bunch of Minnesotans after all!!

 

Purchase I-35 Land Now: Lee Lake Commercial, Lakeville, MN

Ready to purchase I-35 Land? Lee Lake Commercial Lots are Available in Lakeville, MN

Purchase I-35 Land Now at Lee Lake in Lakeville, MN. These picturesque lots are the ideal location for retail or office with excellent freeway exposure garnering 83,000-103,000 vehicles per day in traffic counts. The site may also be an ideal location for senior housing or a memory care facility, as this property is located in C-3 zoning district (which was recently approved for this type of use by the City of Lakeville – (see Star Tribune article, Nov. 24, 2013). Additional use options may include apartments (re-zone), medical, restaurant or hotel.

Conveniently located on the southwest corner of I-35 and CR-46, this 13.91 (saleable) acre site is divisible to one (1) to two and a half (2.5) acre lots to meet your needs. Water, sewer and electricity are available on this site and multiple site options and configurations are available to review.

Join area businesses which include: Starbucks, Fitness 19, SuperAmerica, KwikTrip, Leo’s South, KFC, McDonald’s, Brunswick Zone, Gander Mountain, Pizza Ranch, HOM Furniture, AmericInn, Cracker Barrel, and Fleet Farm to name a few.

Lakeville is a growing community and is anticipated to be Dakota County’s largest city by 2040 according to a recent Vision Study completed by the City of Lakeville.

Great demographics, great traffic counts, and a great community. Now is the time to purchase a lot at Lee Lake. See our Lee Lake Commercial Lot listing page for additional details and a full brochure.

Call our friendly team today to learn more about this property and to discuss site options at CERRON Commercial Properties, a full service Real Estate brokerage.

What to Look for in Investment Properties

Want to know what to look for in investment properties? This is a great place to start.

what to look for in investment properties information from CERRON Commercial PropertiesLove Real Estate? Thinking about getting into Investment Properties?

Most people know the common formula affectionately known as IRV.

Income = Rate X Value

Income is the net operating income (revenues minus operating expenses and before debt service).

Value is the real estate market value.

Rate is the capitalization rate. When you have a higher cap rate, the lower the value for the same amount of income or conversely, the lower the cap rate, the higher the value. Cap rate also reflects risk. Typically the higher the cap rate, the higher the risk. Lower cap rates come from credit tenants who are perceived as less risky. Cap rates run around 4% to 12% with an average of 8%. For easy figuring many use 10%–$100,000 of income is a $1 million value.

The other part of the equation is not reflected here: what does is cost to borrow. If interest rates remain low (as they are predicted to do), then the cost of borrowing will stay low and allow for greater property values that still provide a desirable rate of return. Some investors have recently enjoyed 5 year money for as little as 3% interest. When you can leverage your money, you can make more money, but it is also more risky. I suggest you talk to your banker before looking to buy to find out how much you could borrow and at what terms that work for you. If you don’t have a banker, we can provide several professional contacts we have enjoyed working with over the years.

Other things to look for:

  • quality of the tenants
  • length of the term of the leases in place and renewal terms
  • vacancy (and vacancy allowance)
  • quality of the building, grounds and parking lot
  • condition of HVAC
  • condition of the roof
  • responsibilities of landlord/tenant in the lease
  • property management
  • operating expenses—are they in line?
  • real estate taxes –property tax detail
  • location –ease of access, lit intersection
  • potential changes in roadways or development-contact the city
  • zoning code and allowable uses
  • potential reuse
  • parking stalls—parking ratio
  • visibility
  • signage

The good news is that anyone can be a real estate investor. The key is to have good people to help you with your property: banker, property manager, commercial real estate agent, contractor, accountant and real estate attorney. The APPRO/CERRON team can help with leases, sales, acquisitions, management, market/proforma analysis, architectural design, and construction. We have contacts to cover the other areas to fit your project. Take their professional advice, use common sense and follow the golden rule of real estate: don’t fall in love with it. When it is time to sell, sell.

<em>The information contained on this website and from any communication related to this website is for information purposes only. As with all financial matters, consult your tax, legal or accounting professionals to discuss how investment decisions may impact your specific circumstances.</em>

Senior Housing – Great News for Lakeville, MN

Senior Housing about to get a boost in Lakeville, MN

Image Source: Simon Quinton via Flickr

Senior housing is about to get a boost in the City of Lakeville as Lakeville’s City Council recently approved a change in the zoning code to allow for more senior housing (assisted living) and memory care facilities in commercial zoning districts which previously did not allow this type of use.

You may read a recent article in the Star Tribune HERE.

If you have been considering building this type of project, please contact our team at APPRO and CERRON. We have CERRON Commercial Properties available in the City of Lakeville and a team with the knowledge, expertise and vast experience to help you navigate the process to bring more senior housing options to the residents of Lakeville, MN.

APPRO & CERRON: A Time to Count Blessings

A Time to Count Blessings – At Thanksgiving and Every Day

With Thanksgiving just one week away, it’s that time of year when we count blessings (the many blessings!) in our lives. You and I may have some of the same items on our “list of things to be thankful”: family, friends, jobs, pets, travel, food on our tables and a warm place to sleep – but let me offer a few new ideas.

This Thanksgiving…

  • Be thankful for the people in our lives who give us the support and love we need to make a difference.
  • Be thankful for the opportunity to build something bigger than ourselves.
  • Be thankful for those people who rekindle the inner spirit.
  • Be thankful that we live in a country packed with freedoms and opportunities so many only dream of.
  • Be thankful for the hard times, the mistakes and the pain, for they make us stronger and smarter.
  • Be thankful for the unique privilege of being YOU!
  • Be thankful that every single day is a fresh, new start.
  • Be thankful for the joy of laughter.

A Little Thanksgiving Trivia

The pilgrim leader, Governor William Bradford, had organized the first Thanksgiving feast in 1621. He invited the neighboring Wampanoag Indians to the feast and thanksgiving. The celebration lasted for three days. Lobster, rabbit, chicken, fish, squashes, beans, chestnuts, hickory nuts, onions, leeks, dried fruits, maple syrup, radishes, cabbage, carrots, eggs and goat cheese are thought to have made up the first Thanksgiving feast.

Lakeville-based APPRO Development and CERRON Commercial Properties wish you a Happy Thanksgiving and remind you to be thankful for all the blessings in your lives!

Warehouse Building Considerations: Midwest Review

Warehouse Building Considerations – What you should know before you buy, build or remodel

Warehouse building considerations have been a topic of discussion of late, as one of the building types APPRO/CERRON is frequently contacted about for real estate and construction projects happens to be warehouse projects. There have been some great deals on warehouses in the last few years, and a potential buyer is often posed with the dilemma of whether it makes the most sense to buy an existing building and spend the money to renovate it to his or her company’s individual needs, or design and build a warehouse custom built to those needs.

To build new, one potentially loses out capitalizing on the devaluation of existing buildings (the availability of which are quickly diminishing on the commercial market). To renovate, however, often means to compromise on some of the features of the building, and/or to invest money into a building whose components might not all last as long as those in a new building.

With APPRO pricing your projects, you can weigh the various pros and cons of either option to come up with a solution that best fits your needs before proceeding to hire us to assist you along whichever solution (buy, remodel, add or build) you choose.

Some of the other considerations that we’ve seen owners look at include more detailed considerations (or checklist), like the following:

  • What are the clear height dimensions and door size dimensions that will work best for you?
  • Are super-flat floors a requirement for forklift traffic, more typical of higher clear height warehouses?
  • Are steel fibers or a special floor coating required for wear?
  • Will high-speed racking be utilized?
  • What height will the product be stored to, and what will be stored in the warehouse, as this affects sprinkler coverage, and associated cost?
  • How susceptible will the walls be to damage from forklifts, which will affect whether the exterior walls are precast, metal or something else?
  • Will rail access be a consideration?
  • Will a loading dock be needed, as is typical, or just drive-in doors that close at pavement height?
  • If a loading dock is needed, will the design include locks to attach the truck to the dock while loading or unloading?
  • Is it important for the truck to be able to engage its dock and park, and then open truck doors (drive through docks); or is it OK to open truck doors before backing into its dock space?
  • Will there need to be a stop and go light system in place for trucks?
  • Will a canopy be needed above the overhead doors?
  • What kind of grade is acceptable driving in and out of the docks for trucks?
  • Will the warehouse need to be heated and/or cooled? Insulated?

There are more considerations, of course, than those above. But take a look at the list and consider which of these options are important to you when you make that all-important decision to buy or design/build.

Whether you are just starting the process or have been considering your building needs for a while, allow our team to assist you with any questions you may have about the construction (remodeling, additions or new building) process. We are here to help!

Secrets, secrets are no fun… Changes to LEED v4

Changes to LEED v4 – APPRO Architect Casie Radford Discusses Recent LEED Activity

 

LEEDBuilding-APPRO Development discussion of recent LEED v4 changes LEED Building. Source: Oregon-DOT (Flickr)

LEED (Leadership in Energy and Environmental Design) has been the primary program for certifying the sustainability and “greenness” of buildings for the past 15 years. Now LEED v4 has come out and the focus on the building industry has been expanded to include the manufacturing industry, particularly as it relates to materials and resources. The focus and responsibility is not off the building and construction industry, but will trickle down the line to understand more clearly where and how materials (and the raw materials involved) are manufactured and with what they are manufactured. Sustainability reporting is no longer the exclusive responsibility of the building industry.

Manufacturers and materials suppliers will now have stronger motivation to complete life cycle assessments (LCA) or they could see a decline in demand, as the use of their products for more than just one LEED credit won’t be allowed. Best to take care of LCAs, EPDs, and HPDs (mentioned later), before the requirement goes into full effect and LCAs may be harder to complete in a timely or cost effective manner. Don’t worry though, projects can file under the previous version of LEED up until 2015.

One interesting factoid about the revised credits are that one LEED point can be obtained if a manufacturer of a building product discloses information related to environmental and health impacts – even if it is not environmentally friendly or healthy. I understand the importance of honesty here and also that “transparency drives improvement for business”, but what about the point of LEED in the first place. Isn’t there another way to promote safe materials? Why should a product be rewarded by being honest if not an otherwise LEED credit acceptable material?

Utilizing LCA as a tool to assess products is an important tool for evaluating the true energy and environmental impacts a product has. A new tool created for product assessment is the Environmental Product Declarations (EPD) which is a third-party verified LCA. This tool will enable a product to achieve additional points if the impacts to the environment are below industry averages. This goes to show that a peer review is never undervalued. Similar to the transparency point, you can still get one LEED point for just having an EPD.

Supply chain information, for certified wood for example, is often viewed as highly confidential. To achieve a credit for the responsible sourcing of all raw materials; however, manufacturers are required to report extraction locations and supplier commitments for 90% of a product’s raw materials. The aim for LEED is to reward those who already openly disclose and communicate with suppliers to avoid future issues.

LEED v4 will also address hazardous materials by requiring companies to declare every ingredient more than 0.1% (by weight). For declaration alone one LEED point can be achieved, while another point can be had by proving they are dodging hazardous materials as determined by the government. The Health Product Declaration (HPD) has been created as a format for reporting a product’s ingredients.

Have concerns about commercial or industrial building materials or manufacturers; or, want to know more about how LEED has an impact on your next building project? Contact the APPRO Design and Architecture team for more information HERE.

Commercial Architect – Services by APPRO Development

MN Commercial Architect

Commercial Architect - APPRO Development - MNThe commercial architect services by APPRO Development, provides our clients attention to every detail – within their budget and time frames – to create unique commercial spaces. We recently completed a project for Erik’s Bike Shop which is now located in St. Paul just off of Ford Parkway. This commercial construction project illustrates the design process involved with the remodeling of this commercial retail building. We met with the owner to determine site feasibility, design the new space design and to discuss the details of this specific site and its impact for this local bike retailer.

Our initial steps in the process were to create plans that not only met the owners needs and requirements, but also with the City of St. Paul and State of Minnesota officials. As a commercial architect with more than 26 years of experience, we put our expertise to use to work with city officials to obtain the necessary permits and to follow the guidelines involved in commercial building. Our process initially includes a competitive bidding phase in which we invite pre-approved subcontractors to submit bids for our projects. This allows us to present the best priced product to the owners with whom we work. We work with a team of highly skilled subcontractors to execute the building plans. When the plans and budget are determined and agreed upon by all vested parties, a design-build contract is put in place and the construction work begins (in some instances, it makes sense to place a design contract in place initially, and then add the construction contract further along in the process).

Our talented design/architecture team along with our expert project management team oversees each and every one of our projects from initial inception to final completion. Project managers work closely with the owners, subcontractors, architect, and city and state officials to ensure streamlined communication with all vested parties in the project. If materials or finishes change during the project, those changes and associate costs are made known to the owner. The owner and subcontractors are then issued change orders to document the agreed upon changes.

Upon completion of the project, a walk-through with the owner and exit interview is scheduled to review the projects, and to determine if any outstanding items remain for the final completion (e.g. plantings or seeding in the spring). A substantial completion form is also issued at this time and the warranty period begins.

Our entire team makes every possible effort to not only meet the expectations of our clients, but to exceed them! We are not happy until you are. If you would like to discuss a project you have in mind, or simply have more questions about our process, please do not hesitate to contact us. An initial conversation costs you nothing more than a few minutes of your time, but could save you much more by choosing to start that initial conversation with a reputable commercial architect.

CONTACT AN ARCHITECT
APPRO Services

Lakeville High School Career Jamboree (2013)

Lakeville High School Career Jamboree (2013) – Lakeville Community Event

Casie Radford and Kris Bockelman at the 2013 Lakeville High School Career Jamboree

The 2013 Lakeville High School Career Jamboree was a very exciting and well attended event! Three (3) team members from APPRO and CERRON were able to attend the event held on on Monday, November 4, 2013:

  • Casie Radford, APPRO’s architect
  • Kris Bockelman, CERRON’s Commercial Administration Assistant
  • Andrea Kaderlik, Marketing Coordinator for both APPRO and CERRON

Representing both APPRO and CERRON, these team members spoke to many of the 850 Lakeville High School (North and South) juniors who were invited to this event between 2:30 p.m. until 4:30 p.m. While meeting with the students, we had the opportunity to discuss careers in each of our respective fields of design and architecture, commercial real estate and administration, and sales and marketing.

The students asked many thoughtful questions and hopefully learned about opportunities in the commercial real estate, design, architecture and construction services fields. Many students were surprised to find out the amount of years required to obtain an architectural degree and subsequent license upon visiting with Casie. Students were also curious to find out what a typical day in commercial real estate administration or of a marketer may look like, should they choose to pursue a career in these areas of interest.

Our two sister companies, APPRO and CERRON, were joined by approximately 70 other area businesses including: agriculture, food and natural resources, arts, communication and information systems, business management and administration, engineering, manufacturing and technology, health sciences technology and human services. It was a full house indeed!

The entire team at APPRO Development and CERRON Commercial Properties, is thrilled to be a part of the Lakeville community and to volunteer our time for events like this. We were very encouraged and highly optimistic about the future of our community as a result of conversations with the students with whom we met this week!

Feel free to read more articles about our commitment to and involvement in our local community in the “Community” section of our Blog Page. You may also see the handout we shared with students: 2013 – career jamboree handout-full page. We are grateful to Lakeville (North and South) High School and the Lakeville Area Chamber of Commerce for the opportunity to be a part of this fun day! Thank you!