Gaughan Exhibits at 2017 MNCAR Expo
Several members from our development and brokerage team attended this year’s MNCAR EXPO hosted by the MN Commercial Association of Real Estate at the Minneapolis Depot.
Our team shared with attendees the projects that Gaughan Construction and Development are working on. They also learned about the ventures of the 70 other exhibitors and broker members. Our team is always looking for ways in which they can better serve clients.
Precast Construction at Lighthouse Lofts
“You can’t build a great building on a weak foundation. You must have a solid foundation if you’re going to have a strong superstructure.” – Gordon B. Hinckley
The next step in the construction at Lighthouse Lofts Luxury Apartments has begun! Materials arrived on site at the end of August to begin placement of precast columns, beams and planks. Once precast is complete, metal framing will begin at street level and wood panel construction will be installed on levels two through five.
Thank you to Molin Concrete Products for their hard work on the precast products.
Check out the construction progress everyday at http://www.lighthouseloftsmn.com.
Snelling Ave. at I-94 Will See New Development in 2018
St. Paul, MN – July 21, 2017 – Gaughan Companies, Commercial Real Estate Developer and General Contractor, closed on the purchase of 304-308 Snelling Avenue in St. Paul on July 12, 2017. The final decision for the purpose of the new development is still being considered. Gaughan Companies is eager to develop in the city of St. Paul again.
Just off of I-94, the property is within walking distance of the Minnesota United FC Stadium and the Snelling Avenue Metro Transit Green Line. In addition to a new Whole Foods, this ideal neighborhood is also conveniently located near several major universities, including Concordia University, Hamline University, Macalester College, University of St. Thomas and St. Catherine University. Over 42,000 vehicles pass by this corner every day.
The current building was constructed in 1913, and the property has been owned by the same person for nearly 40 years. Gaughan Companies is looking forward to the opportunity to redevelop this site and build a new facility for the community.
For more information, visit www.gaughancompanies.com.
Art and Science Academy Ground Breaking Ceremony
We are honored to be chosen as the General Contractor for the Art and Science Academy’s new middle school in Isanti. It was our pleasure to host a ground breaking ceremony to celebrate the construction of this incredible project.
School Director Carlo Galeazzi, Isanti Mayor George Wimmer, the school Board of Directors, including Chairwoman of the Board Susan Mackert, Economic Development Director Sean Sullivan, teachers, staff, and many others gathered at the construction site to celebrate. We are thankful for the opportunity to build this facility and work with all of these great people.
For more information, visit the Gaughan Construction Facebook page.
https://www.facebook.com/gaughanconstruction/videos/781124825427689/
Prepare the Construction Site for Severe Weather
In Minnesota, summer is a coveted season, and in the construction industry, it is the busiest season. There aren’t too many months out of the year when building can be done outside. In order to maximize the benefits of this season, general contractors need to prepare their construction sites for the chance of severe weather because while the weather can be perfect for construction, it can also be dangerous.
Late spring and summer severe weather in Minnesota includes torrential rains, flooding, hail, wind storms and tornados. These can all slow down construction and drastically increase the cost of a project if major damage and delays happen.
For wind storms and tornados, discuss with the project engineer where structure bracing can be done. Confirm that all loose materials and tools are properly secured or stored away. Airborne machinery can cause damage to more than just a construction site.
For rain and flooding, install temporary or permanent drainage systems where necessary. If a storm is approaching, check that these systems are free of debris. To also prepare for hail, temporary roofing or material coverings should be put into place until the permanent roof and building openings are all secured.
As every good general contractor knows, always check for severe weather alerts and have emergency plans put into place before the project begins.
-Jeff Bock
Artist’s Dream Comes True in Uptown
In November of 2016, Gaughan Construction began work on a new glass blowing studio in Minneapolis for Legacy Glassworks. A few short months later, in January, the studio was ready for a grand opening.
Josh Wilken-Simon, owner of Legacy Glassworks, chose Gaughan Construction to build the new studio because our project manager was the only contractor out of the ones that bid on the project who understood the complexity of the studio’s HVAC needs. Without knowing that Gaughan would win the bid, he drove up to Duluth to examine the system in the first studio.
Wilken-Simon began his studio in Duluth originally because of the artistic community. He spent six years there to confirm that only selling glass from the studio or from artists he knew personally would be fruitful. Wilken-Simon became interested in glass blowing in high school and hopes to be able to teach young artists this craft. Minneapolis was chosen as the location for the second studio in an effort to expand their clientele and share the art of local glass blowers with a greater audience.
Gaughan Construction Time Lapse: Family Pathways
As General Contractor for Family Pathways, Gaughan Construction delivered their new building ahead of schedule and under budget. We love working with the Family Pathways organization!
Commercial Real Estate Market Statistics: A Summary of 2016 and a Look Toward 2017
2016 was a hot market year for Commercial Real Estate. Thousands of new jobs were created that are having a dynamic impact on our industry and consumer spending continues to rise.
2017 is looking bright as we head into the New Year, and we are excited to see continued growth from business investments, exports, reconstruction and supply chains.
Here’s a brief look back into 2016 and a projection of what’s to come in 2017.
2016
- Third quarter results show that personal consumer spending rose at an annual rate of 2.1 percent. Most of the spending was on goods and services.
- Export activity increased, which means that companies are coming closer to their goal of serving global markets.
- Business investments are up by 5.4 percent. Owners are interested in growing their businesses and are willing to take more monetary risks right now.
- 619,000 jobs were created. Of those, 28,100 were in warehouse employment. The retail sector added 51,200 jobs and the wholesale trade industry gained 18,300 jobs.
- Demand for industrial properties rose, while older properties such as malls and community centers often remained empty.
- Office and retail space building and leasing remain stagnant as business owners are turning their attention to industrial space.
2017
- The national unemployment rate is under 5 percent. This will allow companies to be more profitable since they have enough workers to commit to their production lines and run their office operations. Low unemployment rates also benefit every other industry because these individuals will keep buying goods and services, in turn, balancing out the old economic scale of supply versus demand.
- There will be a small increase in the need for apartments and senior housing as millennials and baby boomers seek to settle into properties that are not single family dwellings.
- An increase in the need for retail and office space is expected, as business owners take more risks and add products and services to their offerings.
- Investor spending by business owners located outside of the U.S. is expected to increase due to the low lending rates and new opportunities afforded them in this country.
- Old malls and dated commercial properties will be re-purposed, turning into classrooms, last mile supply warehouses, expanding city government offices, and possibly new places for entertainment such as kid’s play zones, bowling alleys, and other family-oriented entertainment centers.
- Lower energy prices will continue to be a factor as companies are able to spend less on operations and more on bringing products and services into an area.
Although 2017 seems brighter, there is still work to be done in each community in order to fully restore economic prosperity. Gaughan Companies is excited for these new opportunities, and we look forward to working with you to meet all of your commercial real estate needs.
-Patrick Gaughan
Demolition Begins for Lakes Area Youth Service Bureau’s New Home
On Saturday, December 3, a group of volunteers from Gaughan Companies, the Forest Lake community and area youth gathered together to begin demolition at the site of the Lakes Area Youth Service Bureau’s new space. LAYSB is moving from their current building to the Town Center building in the heart of downtown Forest Lake. The plans for the new space include an education center, group rooms, counseling room, office spaces, reception and staff areas. Gaughan Companies is excited to help LAYSB be able to continue their mission to help the youth in our area.
LAYSB began in 1976 by local law enforcement, teachers and concerned citizens in the Forest Lake, Minnesota community in an effort to help young first time offenders from violating the law again. Since its creation, “the programs have evolved to include Youth Enrichment & leadership, Jobs Plus Programs, Mentoring and Family Support in addition to early intervention for youth, ages 9 to 18 years.” The bureau serves the Forest Lake School District and all of Chisago County.
The Commercial Construction Process – Part Three
This concludes the series on the commercial construction process. When we left off a few weeks ago, the HVAC, plumbing, electrical systems, drywall and doors had all been completed. (You can read part one here and part two here.) Now let’s turn our attention to finishing up and moving in.
After the building’s main systems have been installed, it’s time for the cosmetic details to be applied. Flooring, painting, light fixtures, plumbing fixtures, door hardware, electrical device covers, trim and cabinets are installed as the last step of the building process.
Landscaping and final site improvements are completed. HVAC, electric and water systems are turned on. All required inspections are completed to assure that construction has been performed in accordance with the plans and specifications and that the building is safe to occupy. Once all inspections have been satisfactorily completed, a Certificate of Occupancy is granted deeming the building safe to begin business.
As the building was being built, it was inspected by professionals at every step of the process. After the final inspections, most general contractors will call a meeting with their team to discuss how the project went. This provides them a chance to discuss any problems that may have occurred along the way and develop a plan for their next project. It’s also a good time to review the budget and verify that everything has been completed as budgeted.
As the contractors walk through the building, they create a punch list of any items that need immediate repair. These normally relate to defects in finishes and typically include repairing nicks in walls, repairing a crack in the floor, or changing light fixtures.
If a formal closing has not already been established by the lender, the building owner will need to complete this step before anything else can be done.
Lastly, if not already on site, curtains, blinds, cabinets, furniture, office equipment, desks, chairs, phone lines and appliances (such as microwaves and refrigerators for breakrooms) will be installed.
Depending on the size and planned use of the new building, the business owner may arrange for the press to come out for a grand opening. Often, a ribbon cutting ceremony is accompanied by a festival-like atmosphere as employees and members of the community are brought in to tour the building. A start date for operations is determined and staff are given a report date. Generally, within a few days or weeks of taking occupancy of the building, the business is ready to open its doors, and the process is complete.
-Dan Hebert
