CENTENNIAL LAKES
Pre-Development Services, Feasibility, Development Management
CLIENT: UNITED PROPERTIES
CITY: EDINA, MN
SIZE: 100 ACRES
1,656,000 SF OF OFFICE/RETAIL SPACE
346 HOUSING UNITS
CHALLENGE:
United Properties, in a public / private partnership with the land seller and City of Edina, was the Master Developer of a 100-acre former gravel pit in the heart of Edina. Significant public investment created a public park and surrounding infrastructure. These improvements were funded with general obligation bonds and financed with tax increment financing. When the real estate market collapsed in the late 1980’s Savings and Loan Crisis, United Properties was unable to perform on its obligations to the City of Edina and the seller and was at risk of losing the project and having to pay off the municipal bonds.
RESULTS:
• Performed detailed market analysis and used data to create a consensus among the parties about how to work out the defaulted agreements.
• Negotiated a public / private agreement to allow the City to step
into the buyer’s role on the contract for deed, removing the property from the tax role and significantly reducing carry costs.
• Refined the site plan to position the project to capture the first increments of new demand in the marketplace.
• Formed a joint venture with an institutional investor allowing United Properties to commence the development of nearly 1,000,000 square feet of class A office space before any other projects were able to get out of the ground.
• Project fully constructed within 13 years.
