Ascensus builds for future in old retail landmark
'We are committed to staying here'
Just one glance inside will tell you it's not the old J.C. Penney store.
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Extensive remodeling may not adequately describe the changes that transformed the former retail department store in the East Brainerd Mall into offices for the retirement services company Ascensus.
Ascensus, formerly known as BISYS and before that as Universal Pensions Inc., is a retirement products and solutions service provider in the IRA and retirement plan industry. The company reports it is the nation's largest independent administrator and record keeper for small- and mid-sized retirement plans.
For years, Ascensus has had offices in Brainerd and Baxter. Recently, large numbers of employees have been split between the company's offices along Golf Course Drive in Baxter and another site near the intersection of Highways 210 and 25 in Brainerd.
Workers climbed the new stairway to second floor office space, which includes large meeting rooms. The former J.C. Penney Co. space in the East Brainerd Mall was remodeled into Ascensus offices. Ascensus staffers are moving into the new office in phases, leaving space in Baxter. Brainerd Dispatch/Kelly Humphrey » Purchase reprints of this photo.
This isn't the company's first experience turning former retail space into offices. Ascensus has offices in the former Pamida store just across the intersection from the East Brainerd Mall.
And that nearness was one of the reasons the former J.C. Penney store space was attractive. Steve Christenson, Ascensus senior vice president, said the company wanted to create a campus where offices would be close together. They could have looked outside the city for space. But staying in Brainerd was considered key. With Ascensus' East Coast-based ownership concerns have surfaced over the years that the business may move out of the lakes area.
Christenson said the financial investment in the move, with Nor-Son Inc. doing the renovation work, should alleviate concerns of a move.
"We are committed to Brainerd," Christenson said. "We are committed to staying here."
The front entrance opens to a broad main hallway and winding open staircase leading to second-floor offices. An atrium was created above to let in an abundance of natural light, which actually saves money by reducing artificial lighting costs.
The entrance to the former J.C. Penney Co. in the East Brainerd Mall has a radically different look with Ascensus office suites lining a main walkway. Brainerd Dispatch/Kelly Humphrey » Purchase reprints of this photo.
Christenson said they refer to the wide hallway, with offices on either side, as Main Street. The space was designed to encourage interaction between staff members.
In a time of electronic everything, Christenson said it is important to have "face time." E-mail has its place, but Christenson said some communication is lost in translation or interpretation that can be more easily gleaned by walking a few steps and talking face-to-face with a co-worker.
A core feature in the office design is a company belief that people matter, Christenson said.
"We really looked at that," he said.
The upstairs offices the retailer used could have been described as a rabbit warren. Small offices led into one another. Once it was opened up, Christenson said they were surprised at the total space - some 60,000 square feet.
"We had no idea of the working areas we were able to develop," he said.
There is enough room upstairs to have a company-wide meeting and a large board room means supporting staff members will be able to take a seat in the room instead of being in a line out the door. The complex includes large training space, which is expected to build relations with clients even further and remove the need for off-site meeting locations, Christenson said.
Staff members were encouraged to generate ideas for the renovation. Many of those ideas gained purchase thus creating a greater employee ownership in the process, Christenson said.
The use of the space, from the open areas to glass doors and single campus-like setting is all designed to promote interaction on multiple levels, Christenson said. The design layout also took into consideration work teams and departments that interact. With the legal and compliance department, IT and sales and service all close by, Christenson said it makes it easier to promote conversations between them.
"We want people to interact and have those discussions, that's really what we were after," Christenson said. "I think we'll be a lot more efficient."
Ascensus calls its main level corridor "Main Street." And in an age of electronic communication, the office space was designed to encourage face-to-face interaction between departments. Brainerd Dispatch/Kelly Humphrey » Purchase reprints of this photo.
Julie Brooks, IT project manager, said the vast space and larger cubicle space created a good working environment.
"We like it a lot," she said.
Quarters were so tight in the Baxter facility, large closet spaces were converted into offices.
In the late afternoon, Brooks made a quick stop at Cub Foods, just down the sidewalk at the mall, coming back to work with a bag load of items.
"This is convenient too," she said and smiled.
That is no doubt welcome news to nearby businesses - Subway, Caribou Coffee, Pam's Hallmark, the Dollar - which all may benefit from having hundreds of workers just feet away every day.
With sensitive client functions to care for, Ascensus planned its move from Baxter to Brainerd in phases.
The information technology department was the first to move in a multi-phased transfer. Different groups move in 90- to 120-day gaps. By June, the entire move is expected to be complete.
The offices in the former J.C. Penney will be called Brainerd North and the offices in the former Pamida building have been christened Brainerd South.
The recession has taken a wide swath in its economic destruction. But in the retirement services industry, the end of the gravy days when accounts grew with apparent ease may have actually been good for business. As the tough economy has clients looking for expertise to navigate through this rough patch.
Lakes area entrepreneur Arnie Johnson, who started the company that evolved into Ascensus, has a number of businesses - including Integrated Retirement Initiatives.
Johnson said the retirement services industry has slowed down with the recession, but there are opportunities to be found. Johnson said investors and record keepers all still need clients and the goal is to provide the services that will help them with those customers, thus creating business opportunities.
As for the recession, Johnson said he's optimistic about the economy and the markets are making a recovery. When the country entered the recession, Johnson said he thought there would be an 18-month climb out. When he sold the company that became Ascensus, Johnson received a 10-year commitment that the company would stay in the Brainerd area. Two years remain on that commitment and Johnson said he's pleased to see an investment that indicates the company plans to be here even longer.
At Ascensus, Christenson said business has been strong even in the tough economy.
"Even in tough times we are looking to future expansion," Christenson said. "We wanted to grow."
The new office space provides room for future expansion in any of the company's business lines. And the construction effort created work for local contractors.
In July, Ascensus announced it acquired CUNA Mutual Group's IRA Services division based in Madison, Wis. IRA Services provides IRA and health savings account education, compliance products and services to the credit union marketplace serving more than 4,000 credit unions nationwide, Ascensus reported.
In a news release at the time, Bob Guillocheau, Ascensus president, said the investment demonstrates the company's view that strong growth opportunities exist in the retirement market and especially in IRAs.
RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.