Mozaic (all phases)

[John]

I bet someone offered them a better deal downtown in either existing or speculative/proposed office space. Huge blow to Mozaic though, I liked the building.

I would think there must be a better reason than just another offer. I am sure Code42 signed a contract with Ackerberg and I doubt they breached their contract just because they got another offer.

For whatever the reason Code 42 bowed out of this project, there still might be potential they want to relocate in the future. I would place a bet they go to The North Loop and maybe the Hines Project...

[xandrex]

My first thought was that maybe they got a really sweet offer for the United Properties wood office building, since the North Loop really is the nexus for software in the metro. Not that there's anything to back that up.

A shame Moziac will have to go back to the drawing board. The article says it'll shrink in size. I wonder if they'll go back to the older design that so many preferred on this board?

[nickmgray]

I would think there must be a better reason than just another offer. I am sure Code42 signed a contract with Ackerberg and I doubt they breached their contract just because they got another offer.

Doubtful. Breaching a contract simply means there's a penalty to pay. If they have another offer on the table that saves them quite a bit of money (including the contract penalty), there's no reason why they wouldn't jump on it. I'm not sure how fast Code42 is planning on growing, but it's doubtful that they would have reached the 700 employee mark in the next 5 years.

Honestly, I hope they find something that will allow them to stay closer to where they currently are. I'd rather have them right across the river than in Uptown.

[mog]

I would think there must be a better reason than just another offer. I am sure Code42 signed a contract with Ackerberg and I doubt they breached their contract just because they got another offer.

Doubtful. Breaching a contract simply means there's a penalty to pay. If they have another offer on the table that saves them quite a bit of money (including the contract penalty), there's no reason why they wouldn't jump on it. I'm not sure how fast Code42 is planning on growing, but it's doubtful that they would have reached the 700 employee mark in the next 5 years.

Honestly, I hope they find something that will allow them to stay closer to where they currently are. I'd rather have them right across the river than in Uptown.

Well, it depends on the contract. I am sure Ackerberg is not happy about Code42 backing out this late in the game.

[twincitizen]

Solid reporting here with some interesting speculation about Code 42 possibly being bought: http://www.startribune.com/business/286587641.html

[David Greene]

A shame Moziac will have to go back to the drawing board. The article says it'll shrink in size. I wonder if they'll go back to the older design that so many preferred on this board?

Bring back the skateboard ramp!

[acs]

The met council rescinded this project's $300,000 TOD grant. Can we call this dead?

[HiawathaGuy]

The met council rescinded this project's $300,000 TOD grant. Can we call this dead?

I would think that they could reapply for another grant once they have a firm proposal again. This property is too valuable to Ackerberg to just let it sit. He'll be back with an updated plan.

[grant1simons2]

Cbre already funded a good chunk of this though I thought.

[jtoemke]

The met council rescinded this project's $300,000 TOD grant. Can we call this dead?

I would think that they could reapply for another grant once they have a firm proposal again. This property is too valuable to Ackerberg to just let it sit. He'll be back with an updated plan.

They are in fact updating the plan. Spoke with someone at Ackerberg about a week ago and they said the problem is reworking the interior. Its design was very specifically oriented to the desires of a single tenant (copious amounts of atriums, gathering spaces) and now needs to be reconfigured into a multi-tenant building. Additionally, making the project financially viable has become alot more difficult because Code 42 was going to be paying higher than market rate.

[grant1simons2]

Very nice to know. Thank you for the information!

[David Greene]

Mozaic I all over again?

[HiawathaGuy]

MoZaic East moving ahead
http://finance-commerce.com/2015/07/moz ... ing-ahead/ [Locked]

The Ackerberg Group intends to start construction in January on the multitenant office building in Minneapolis’ Uptown neighborhood.

[MNdible]

I can see why they're waiting until January -- it's obviously the ideal time to start a construction project in Minneapolis.

[lordmoke]

Filed under: "Things I Will Believe When I See Them"

[John]

Filed under: "Things I Will Believe When I See Them"

Yeah I'm a little skeptical too, but I think there's a chance. Mozaic West has done very well. It's a great location in a high growth neighborhood. What they need are some committed tenants to get it off the ground.

[Wedgeguy]

Filed under: "Things I Will Believe When I See Them"

Yeah I'm a little skeptical too, but I think there's a chance. Mozaic West has done very well. It's a great location in a high growth neighborhood. What they need are some committed tenants to get it off the ground.

Just look at the neighborhood and see all of the spec apartments that have filled up in the last few years. Look what is on the roster for proposed projects yet to get off the ground. This section of town has the energy to pull in businesses. I look at the 2909 building on Bryant that is now full. I never thought they would get businesses to fill only the first floor. But they are there and the old Fire station is booked out also. Ackerberg is watching what has happened with the 515 Marquette, the T3 that is just breaking ground and realizing that his building is of a similar type. It is not huge, but is of the type that the tech/creative companies that are looking to either upgrade, find larger spaces, or be nearer to their employee's home base. Companies will come looking when they see that they do have faith in their product. Uptown is a happening address these days. Short of an all out recession, it will fill pretty darn fast IMO.

[Nathan]

I don't doubt it at all. They had a set back losing a major tenant but this developer is about community development and local synergy. If they plan on opening a hotel in the vacant lot next to Calhoun square they definitely understand the value of housing businesses just a block away. I would think they're trying to create a critical mass of mixed use development in uptown to make each project successful.

[David Greene]

I put out a (tongue-in-cheek) call for Cray to move here!

The response I got from some employees was not unexpected but it did lead me to check out transit travel times from Eagan to Uptown. There's an idiotic gap in the transit system. For some reason the NB 470 does not stop at Lake St. and 35-W after 6:40am but the SB stops there for all trips.

Fix that gap and implement Midtown LRT and suddenly this commute becomes pretty easy!

[Wedgeguy]

I don't doubt it at all. They had a set back losing a major tenant but this developer is about community development and local synergy. If they plan on opening a hotel in the vacant lot next to Calhoun square they definitely understand the value of housing businesses just a block away. I would think they're trying to create a critical mass of mixed use development in uptown to make each project successful.

That is the real key here in what you say, CRITICAL MASS! The old Mono space was filled up shortly after they moved in to the first phase. I really doubt that there is much of any vacant office space that is of a decent square footage in the Uptown area. Again, short of a recession, if you build it they will come. We have the housing, the entertainment, the retail, all we need is the office sector to fill out the critical mass during the 9-5 part of the day and allow better retail and restaurant use during the earlier parts of the day.

If this was one of 4 or 5 project all going in at the same time and vying for the same clients, I'd say be careful. But this is going in as a second phase to an already successful project and all I see is more of the same. They again will be the only office game coming in this section of town. It may even encourage more office down the road. Maybe we can see some REAL mixed use project going forward in this area. Sure hope that they can get the hotel portion off the ground and fill in the half block next to Calhoun Square next or very soon. There really is a lot of under utilized land in Uptown that is waiting for redevelopment .Whether it be retail, office, housing, or restaurant. I'm hoping for many multiple use projects down the road.
IMO