Train Schedule Challenges Soo Line Apartments

MINNEAPOLIS—As previously reported, GlobeSt.com is partnering once again with the National Association of Home Builders to highlight finalists in its annual Pillars of the Industry Awards. This first installment in that series highlights a unique adaptive re-use that involved a challenging relocation, a 100-year-old historic building and, as if those were not enough, the Department of Homeland Security. (To register for the awards presentation, click here.)

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This Week's Project: Soo Line Building City Apartments
City: Minneapolis
Award Category: Best Adaptive Re-Use (non-residential to residential)
Developer: Village Green
Architect: BKV Group
Interior Designer: BKV, Village Green

Mission: There hasn't been a new apartment building in downtown Minneapolis for a quarter century. So says Jonathan Holtzman, chairman and CEO of Farmington Hills, MI-based Village Green. His firm was on a mission to correct that and in doing so serve the corporate professionals—Boomers and Millennials—who work there.

With that goal in mind, Village Green committed $11 million for the North American headquarters and operations center of Soo Line Rail Road, a century-old office building in the CBD. The firm saw an opportunity to redefine modern city living and pack the place with hospitality-style amenities.

Execution: Adaptive re-use is always fraught with challenges, among them relocation timing and lease buyouts. But emptying an office that is home to a railroad, which occupied the upper floors of the building, created what Holtzman calls one of the most challenging renovations his company has seen.

“There are significant electronics having to do with running a railroad,” he says. “They couldn't move without a simultaneous electronic setup in their new office.” This critical coordination prevented shutting down building utilities—basically putting a stop to any renovation—until Soo Line had vacated. One thing that worked in their favor was the fact that the railroad's target site was right next door, which was logistically fortunate.

Not so fortunate, however, at least in terms of planning, was the presence of the federal government. “After 9/11, railroads became part of Homeland Security,” says the Village Green chief, who explains that the firm wasn't allowed into those spaces for pre-acquisition test drive. “We had to buy the building without 100% due diligence.” Plus, all Soo Line relocation activities fell as well under the auspices of the government agency. Happily for Holtzman and Village Green, dealing directly with the federal agency would be Soo Line's responsibility.

Once the railroad pulled out, the plan called for a mix of market-rate and penthouse dwellings designed to attract the widest range of renters, from Millennials to Boomers. Both the bones and the location of the building would help Village Green achieve its goals; the building featured ample fenestration and ceilings that ranged from 10.5 to 24 feet high. Its location, across the street from the Light Rail Line, would give residents easy access to St. Paul, the airport and the Mall of America.

End Game: In its NAHB award application, Village Green stated that the “The Renaissance Revival property's visual appeal is the restoration and deft integration of many restored architectural details with chic contemporary interiors,” clearly a nod to the building's classic architectural highlights.

Amenities such as 24/7 concierge and a dry cleaner speak to Holtzman's view of the direction of multifamily projects. "Apartments and hospitality are merging," says Holtzman, especially in urban environments. In a neighborhood virtually devoid of restaurants, the firm also included an upscale eatery and wine bar, adding inside access to the two locations as further perks. Topping off those amenities (literally) is the rooftop indoor/outdoor pool and roof deck, complete with grilling stations and a dog walk.

But the proof of the pudding comes in the lease-up, and Soo Line's 252 market-rate units are 95% leased. “The average age of our residents was a bit older than we thought,” says Holtzman. “And the average income was higher than we thought—around $90,000 to $95,000.”

The recognition has followed. In the Pillars Award application, the company reported that since opening, Soo Line has already won the CEL & Associates A List Award for customer service excellence, two Best in America Living Awards for design, and an Excellence Award for stone construction restoration. What's more, its emphasis on sustainability has garnered a green certification under the National Green Building Standard.

And the Soo Line is on track to be the first A+ apartment tower in Minneapolis in 25 years.