Hamline University is a venerable St. Paul college, and it looks the part. The main campus of the university, which traces its history all the way back to 1854, is made up of the brick buildings and leafy grounds that typify the classic image of a small, prestigious institution.
But next month, Hamline will start offering classes for its new business school in a decidedly less traditional environment – the 1600 Tower, a Class A suburban office building at the bustling intersection of Highway 100 and Interstate 394.
“It’s a major presence for us. It’s not just an outpost,” said Linda Hanson, president of Hamline University. (Although billed as Hamline University Minneapolis, the new location is actually in St. Louis Park.)
“It really gives us a strong presence in that part of the Twin Cities. Our name will be on the building, you will be able to see it very prominently, it will be very visible,” Hanson said.
Hamline is far from alone among educational users staking out classy new space in traditional office venues. For instance:
And the phenomenon isn’t just happening in Minnesota. In Fort Worth, Texas,the Tarrant County College District last week paid a whopping $238 million – in cash – for the RadioShack headquarters campus in downtown Fort Worth.
While there’s nothing on that scale locally, the local trend does suggest that schools are trying to bring themselves to students, rather than waiting for students to come to them.
Henry Morris, executive director of off-campus centers and enrollment management for Minnesota State University, said the Mankato-based institution wanted a Twin Cities location because of demographic trends – southwest Minnesota’s population is declining, while the metro area is growing.
Morris said that university officials looked at a few retail locations, but primarily at office buildings. The school had a particular need for ample parking, Morris said.
“We also were excited about being on France Avenue. We thought that was a good brand name,” Morris said.
Minnesota State University has about 14,000 students. The Mankato campus is about 70 miles southwest of the new Edina location, where classes start Aug. 25. The 12,000-square-foot space will offer nine or 10 classrooms, Morris said.
“Hopefully, we will grow that over the next few years,” Morris said.
“It was traditional office space. The space laid out nicely so that it was classroom friendly,” said Wayne Kuykendall, a broker with Bloomington-based Frauenshuh Companies, which owns the building.
“I think that if they’re successful, this could be a good location for them to continue to expand their presence,” Kuykendall said.
St. Paul’s Hamline is taking 32,000 square feet of space on the first and seventh floors of the 1600 Tower in St. Louis Park. Plans call for 12 classrooms and two computer labs, as well as conference space and a book store.
“It will have a very academic feel. Everything is brand new, the décor, the equipment, the furnishings,” Hanson said.
Hamline did its homework before selecting the site.
“We did a lot of research. This was about a six- to nine-month process of identifying which property would serve our academic needs the best,” Hanson said, noting that the location is a “nexus” that also offers “a critical mass of high-volume employers” in the area.
The 1600 Tower is owned by the Indianapolis-based Duke Realty Corp., which is developing The West End, a large mixed-use project near the building.
Hanson wouldn’t comment on whether Hamline is scouting other local sites for additional locations.
Colleges aren’t the only ones expanding. In downtown St. Paul, prep school operator Nacel Open Door has inked a deal for 20,000 square feet at Galtier Plaza. Nacel Open Door will have classroom space on the first level and office space on the second level.
Jerry Driessen, vice president with CB Richard Ellis, works on the team representing Galtier Plaza.
“We felt that it was important to bring in an occupant that brought more energy to the first floor,” Driessen said.
“I think, generally speaking, education is expanding. If you look at the demographic or the employment reports that the state puts out, education is one of the growth employment areas. In a down market, you’ve got more people going back to college, too,” Driessen said. “It seems like the schools are getting more and more competitive. They’re kind of like retailers in terms of trying to have nice facilities.”
In downtown Minneapolis, Globe University is opening classroom space on the lower level of the IDS, a long-vacant corner of the building that has been home to previous retail tenants. Students will be able to earn associate, bachelor’s and master’s degrees there.
Globe, which has six other metro locations, was drawn to the location as a venue to reach downtown office workers.
“Their school is really geared towards professionals in the work force,” said Tim Stewart of Minneapolis-based Tatonka Real Estate Advisors, which represented Globe in its search for space.
“We looked at up to three options but we really identified the IDS Center. It’s in the center of downtown,” Stewart said. “We identified that as being a great location in the center of downtown Minneapolis.”
Jim Durda, vice president and general manager for Inland American Office Management at the IDS Center, isn’t sure that recent educational deals amount to a trend.
“There’s a niche, but it’s not like mortgage companies. These folks are pretty serious about a long-term business plan,” Durda said.
But he’s glad to have a new tenant in long-vacant, lower-level retail space, once home to the American Express corporate cafeteria.
“We are thrilled to have them down here. We think they’re going to be hugely successful,” Durda said. “I think it’s going to be mutually beneficial to the business community.”
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