Confronting Vacancy Post-COVID: Trusting Relationships Yield Success
When COVID-19 swept through the U.S., markets became unpredictable, leaving those in commercial real estate wondering how to pivot, and where their efforts were best utilized. The Waters Business Center property, a six-building industrial park of heavy office finish in Eagan, Minnesota, was deemed undesirable by owners and tenants—like other corporate offices in the country, given the landscape of remote work opportunities at the time.
While high interest rates remained steady, Hyde Development saw an opportunity to leverage the demand for industrial space and acquired this location with Mortenson Properties in the Fall of 2022. The acquisition of the 325,947 square foot industrial property, which hosts companies such as Encore Medical, Toshiba, and Union Brass, turned into an overall project value of $41 million USD. Originally constructed in 1999, The Waters Business Center project included a massive refresh of the building exteriors, including landscaping, paint, new metal panel entry elements, exterior lighting, and monument signs, to establish an appealing bold and modern look.
The exceptional coordination among the development, brokerage, and construction teams, coupled with strong relationships with MNCREW, distinguished this transaction. The project leveraged long-term relationships between MNCREW member companies Hyde Development and Greiner Construction, and Hyde Development also established a new relationship with MNCREW membership company Pope Design Group. Additionally, MNCREW membership company JLL and Mohagen Hansen were collaboration contributors, as well as non-membership companies like acquisition partner Mortenson Properties, Bridgewater Bank, Old Republic Title, and Midwest Landscapes.
MNCREW members Heather Weerheim (Greiner Construction), Cally Samson (Hyde Development), and Nichole Klonowski (Pope Design Group) have each dedicated nearly a decade or more to the organization, a commitment that is reflected in the Waters Business Center project.
“It takes time to develop relationships and build trust. This project has been years in the making,” Weerheim said.
Klonowski also pointed out that relying on CREW relationships has its advantages. “Of course, challenges happen, but being able to call up another CREW member involved and talk through solutions is key. That relationship is based on common interests, such as supporting women in the industry and trust.”
There is something to be said about the level of trust in relation to a project's success. MNCREW membership companies were able to flex the trust muscle, collaborate with various companies, and showcase flexibility in a time when post-COVID markets appeared bleak. The Waters Business Center exemplifies how trusting relationships—both longstanding and newly established—can lead to successful outcomes.
The Waters Business Center project is a MNCREW 2023 Collaborative Business Award Recipient.
Project leads
Greiner Construction
Hyde Development
Pope Design Group
Chelsey Klasnich, American Drapery Systems
Chelsey Klasnich is the Vice President of Sales & Business Development at American Drapery Systems in Golden Valley, Minnesota, and holds a bachelor's degree in Communication Studies and Broadcast Journalism from The University of St. Thomas (St. Paul, MN) and a masters of business administration from St. Mary’s University- Twin Cities (Minneapolis, MN). A passionate solutions provider with over 16 years of experience in business development, sales, and marketing, she leverages these skills with her educational experience to contribute to the CREW Communications and Editorial Committee and her position as co-chair of MNCREW’s Finance Committee.
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