MINNEAPOLIS-Schafer Richardson Inc. has gained a $32.5 million in non-recourse construction and permanent financing for a new 204-unit apartment complex. CBRE Group Inc. arranged the HUD financing for the property, to be called Third North Apartments.
The project is located in the downtown neighborhood known as the North Loop, on land now occupied by a warehouse. Murray Kornberg, SVP of the CBRE Capital Markets team, tells GlobeSt.com that the building needs some environmental clean-up, and then it will be demolished. “Demolition should start this next week,” he says. “It should take about 16 months to completion.”
Monica Newman, first vice president with CBRE, helped Kornberg arrange the 40-year, fully amortizing permanent loan at 3.10%. The design firm is UrbanWorks Architecture, and the contractor is Kraus Anderson Construction Co.
Kornberg says the North Loop area hasn’t had the multifamily activity seen in the past few years in the Uptown neighborhood. “Property in the Uptown area is getting hard to find,” he says. “But there’s demand everywhere in the Minneapolis market, which is 2.5% vacant with very little new construction.”
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