NorthMarq Adds Six Malls to its Portfolio

MINNEAPOLIS-NorthMarq has added six retail malls to its management portfolio, in part due to the pickup of employees from the recent closure of the local Capital Growth Madison Marquette office in late November. The additions total 845,000 square feet, and include the 170,000-square-foot Calhoun Square here.

Wendy Aaserud, Jim Larson and Ken Seifert all came over from the Capital Growth office, which had been managing the Calhoun Square redevelopment project for owner BlackRock. The other sites include four properties owned by Principal Real Estate Investors and the 110,000-square-foot Fountain Place in Eden Prairie, owned by LaSalle Investment Management Inc.

Seifert tells GlobeSt.com that the more than $20 million renovation now going on at Calhoun Square is going to boost the retail center. The property, a collection of non-retail buildings that was completely redeveloped in the mid-1980s, is undergoing another change. BlackRock bought the property in summer 2007 for $45 million. “We’ve torn down a bunch of the older buildings, and are reconfiguring and rebuilding, including adding two levels to the parking ramp,” Seifert says. The 70%-occupied center will see a new 35,000-square-foot LA Fitness move into the center next year. “This is really a high-profile center, in the middle of the Uptown neighborhood. The goal from a leasing perspective is to add tenants you wouldn’t ordinarily find in a regional mall, we’re looking for companies that want an entry into the market, such as fashion stores, and tenants that appeal to people in their mid-to-late 20s to late 30s.”

The Principal properties include the 100%-occupied Plymouth Town Center (26,000 square feet), the 85%-occupied Shoppes at Oak Park Heights (173,000 square feet), the 93%-occupied Apple Valley’s Fischer Marketplace in Apple Valley (251,000 square feet) and the 70% occupied Southdale Square in Edina (115,000 square feet). Tenants include Kohl’s, Michaels, Bed Bath & Beyond, and Barnes & Noble. Fountain Place is 100% occupied and has tenants that include HomeGoods, Sports Authority and Michaels.

Seifert says while some of the properties have good occupancy, the retail market in Minneapolis is the same as the rest of the country. “We’re all holding our breath to get through the holiday season,” he says.