Exceptional Business Woman Dakota County Award 2014

Exceptional Business Woman Dakota County Award 2014 – Awarded to Roz Peterson

Roz Peterson, CERRON Commercial Properties

Roz Peterson, CERRON Commercial Properties Roz Peterson, CERRON Commercial Properties

Roz Peterson has been awarded an Exceptional Business Woman Dakota County Award and the entire team at CERRON Commercial Properties and APPRO Development couldn’t be more proud!

Roz is a passionate and talented sales and leasing agent for CERRON, with a focus on office and retail properties, in the South of the River region of Minnesota. Roz has a knack for building strong relationships with clients and delivering superior service that not only meets, but exceeds clients’ expectations. In addition to her success in commercial real estate and business ownership, Roz has also devoted herself to her community. She has been involved in many local organizations – the Dakota County Regional Chamber of Commerce, the Lakeville Foundation and the Lakeville School Board, just to name a few.

We are very proud of Roz and her accomplishments and thrilled for her, as she is such a valued part of our team.

The 5th Annual Exceptional Businesswomen Recognition Banquet

Exceptional Business Woman Dakota County 2014Roz and nine (9) additional Exceptional Businesswomen received recognition at a Banquet at the Lost Spur Golf & Event Center in Eagan, on the morning of Tuesday, February 25th. In addition to a breakfast reception, each recipient received a plaque, and were part of a panel discussion, moderated by Catherine Byers Breet, owner of ARBEZ (an online job hunt coaching system).

Among our favorite words of wisdom, were the following quotes and comments from the some of the award recipients:

  • It is important to love what you do. I am surrounded by a great team and enjoy the people I work with. -Karen DeVaughn, Life Wellness Center, Lakeville & Eagan
  • Having cheerleaders and strong supporters in your career can make a world of difference. -Audrey Aronson Johnson, Johnson Companies, Lakeville
  • I am able to help people every day. I only wish that one day there wasn’t a need for what I do; when there is no need to fundraise for cancer because a cure has been found. -Kari Mitchell, Charity Events of Minnesota, Rosemount
  • Three things are necessary to be successful in life: 1. Order: bring order to your life, outsource/delegate so that you can focus on what matters; 2. Organize: surround yourself with the right people; having a great team around you can make all the difference; and, 3. Prioritize: make decisions on the actions you take, based on your values. -Roz Peterson, CERRON Commercial Properties, Lakeville
  • “Google me!” (her reputation speaks for itself, as she received countless unsolicited reviews, increasing her client base) and to have a positive attitude, work hard, and send thank you’s, regardless of the outcome. -Linda Radue, Burnsville Volkswagen, Burnsville
  • Have a vision statement upon which your team can rally around. Be proactive in looking for solutions in your business. “What is your paper?” (as a reduction in paper sales impacted many other product lines in their industry, they have found it necessary to create new opportunities in their industry). -Jennifer Smith, Innovative Office Solutions, Burnsville
  • Assess your interests and talents and then go put them to use. Get involved – If you see something needs to be done, go do it! -Karen Wentworth, HOBO Inc., Lakeville

The event was organized by ECM Publishers and the Dakota County Tribune and Sun Thisweek who did a great job, as well as the many event sponsors who helped to make the morning a great event!

If you would like to learn more about Roz Peterson from our team, you may visit her campaign website, or view her commercial property listings page HERE.

Again, from all of us at APPRO and CERRON – Congratulations Roz and All of the 2014 Exceptional Businesswomen Award Recipients!

Kris with Bag from Lillian's CERRON’s Kris Bockelman with handbag awarded by Lillian’s of Lakeville

Roz-Jack-Bruce-Exc-Biz-Wmn-Awd-2014 L to R: Jack Matasosky, Roz Peterson, & Bruce Rydeen

Panel of Women at Award Breakfast 02252014 Award Recipient Panel Assembled

Lakeville Women - Exc Biz Wmn Awards--2014 Lakeville Award Recipients

MN Warehousing Tax – Part 1

MN Warehousing Tax – Part 1

MN Warehousing Tax– Part 1 is the first of two reports we are planning to bring to our readers regarding the new warehouse tax on the books for MN businesses. If you are involved in third party warehousing as a part of your business, we are sure you have heard the MN Warehousing Tax is due to go into effect on April 1st. It is actually one of three business to business (B2B) taxes to go into effect in 2014. This specific warehousing tax would impact businesses which provide third party warehousing services, as well as those businesses who utilize these third party services.

According to the MN Department of Revenue, “Starting April 1, 2014, business-related warehousing and storage services will be taxable in Minnesota. This means state sales and use tax is due when a business buys warehouse or storage services for its tangible personal property.” There are exceptions to this rule, which are dependent upon business use[1].

Come April 1st, Minnesota would be one of few if not the only state with a warehousing tax of this kind, which could ultimately put the businesses in our state at a distinct disadvantage. Some companies are already feeling the impact of this tax. According to an article by Jessica Harper for Sun Thisweek Dakota County Tribune, in an interview with warehousing General Manager, Kathy Forester, in talking about the tax, she states, “With its customers seeking services elsewhere, Strategic lost 18 percent of its revenue between August 2013 and January 2014, which prompted the company to lay off 22 percent of its workforce[2].”

The Minnesota Legislature is scheduled to reconvene on February 25th. At that time, the Minnesota State Budget will be reviewed. If there is a sufficient surplus, Governor Dayton may consider a repeal of one or more of these B2B taxes[3]. As it stands now, however, these taxes have been signed into law and only a new bill that strikes the provision of the current tax could repeal it. There are many groups working right now, toward the effort to repeal the MN Warehousing Tax.[4]

Stay tuned to learn more in the weeks to come, or feel free to contact our team with concerns about the impact on your current commercial space.

Upcoming Dates:

  • Mid-February – State Budget Forecast (Gov. Dayton will use this information to determine if these new taxes are necessary)
  • February 25th – New Legislative Session Begins
  • April 1st – New Warehouse Tax goes into effect

[1] MN Department of Revenue Warehouse Tax Summary

http://www.revenue.state.mn.us/businesses/sut/Pages/2013_WarehouseStorageServices.aspx

[2] Businesses impacted by the MN Warehouse Tax

http://hometownsource.com/2014/01/27/businesses-legislators-feel-heat-from-new-taxes/

[3] Businesses vow to repeal the warehouse tax and Gov. Dayton to support repeal if sufficient surplus exists

http://www.mprnews.org/story/2014/01/08/businesses-vow-to-seek-repeal-of-warehouse-tax

[4] Commercial Real Estate Group works to repeal the tax

http://www.startribune.com/business/242830181.html

 

Commercial Real Estate Lending – 2014 Outlook

Commercial Real Estate Lending – What the Experts have to say about the 2014 Outlook

Commercial lending review by Jack Matasosky

According to a recent article by the ABA Banking Journal, Commercial Real Estate is coming back! The article caught our attention because commercial lending’s strict standards have had a direct impact on our business. We can go through all the necessary steps to assist our clients with a new purchase or the construction of a new building, but it is the hoops our clients are required to jump through we have found to be a major stumbling block to the process of securing an ideal property solution.

According to Steve Cocheo, in his ABA Banking Journal article, “CRE’s Coming Back”, “Amid indications that commercial real estate credit activity has been picking up again at the nation’s banks, an inter-industry survey reports a strong preference for commercial banks as a source of CRE credit.”

Cocheo further cites a Deloitte Center for Financial Services report, “2014 Commercial Real Estate Outlook: Trimming the sails for growth; business transformation is key,” in which the firm stated:, “Bank lenders are easing their standards, leading to increased CRE lending volumes and a rebound in commercial mortgage-backed securities issuance. Transaction activity and pricing are healthy for prime properties.”

We consider this good news in the commercial real estate lending arena and are optimistic for 2014 to be the year we start to see the pendulum swing in the other direction regarding lending standards.

You may read the full article at the ABA Banking Journal HERE.

As you consider your commercial property needs, contact our expert team at APPRO and CERRON to provide you with the most up to date trends in commercial real estate or commercial construction.

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!