Dive Brief:
- AECOM is pursuing two major developments in the Minneapolis-St. Paul metro area, both of which represent the addition of more residentially based undertakings to the company’s portfolio of construction projects, the Star Tribune reported.
- While company officials told the Tribune it would like to have several area projects in its pipeline, there are two that AECOM is focusing on right now — a condominium project in Minneapolis and the Bluff redevelopment along the Mississippi River in St. Paul. AECOM is reportedly the city's favorite to build a 12-story, “Cubist” mixed-use condominium building in the Central neighborhood of Minneapolis, a project that would aim to be WELL- and LEED-certified and include between 125 and 150 luxury units, office and first-floor retail space, a self-cleaning “bio concrete” exterior, “pocket” gardens in recessed areas of the structure and a rooftop garden that will supply vegetables for an on-premises restaurant.
- AECOM is within a six-month due diligence period with Ramsey County for the St. Paul Bluff project and is expected to then negotiate a final agreement for the potentially $1 billion development. AECOM would take on the project in three phases, build up to four towers with as many as 350 apartments, 150 condos, 250 hotel rooms, underground parking, amphitheater, restaurants and retail. Construction for the first phase of the Bluff development could be complete as early as 2021, with final buildout expected by 2026.
Dive Insight:
Redevelopment of the Bluff site, which has already cost the county $17 million in demolition and site preparation, hasn’t managed to get off the ground despite the site’s potential.
"There is approximately a 4% vacancy of true, class A space in the 4 million square feet available in St. Paul Central Business District”, Jim Thomson, AECOM vice president and regional cities leader of the company’s Central Region practice, told Construction Dive. "The amenities this site connects together — the Mississippi River, St. Paul downtown core and the enhancement of the public realm — make this a once-in-a-lifetime urban opportunity for the creation of a true live-work environment that's attractive to anchor corporate clients, to Ramsey County and the city of St. Paul.”
The Twin Cities move is just the latest in a series of new strategies for AECOM. The company recently announced that it would exit approximately 30 smaller markets around the globe in order to focus on areas with more growth potential, implement a $225 million expense reduction plan and shift leadership in its construction services division after “avoidable and unacceptable” issues that impacted its 2018 financial results.
