The Duffey Lofts
MINNEAPOLIS—CEDARst Cos. has completed the acquisition of two adjoining historic properties and a land site in the North Loop section of Minneapolis and ultimately will redevelop the property as 6th and 3rd, an approximately 345-unit, fully-amenitized multifamily complex. The site was acquired for approximately $21.1 million. The seller of properties was a consortium led by the Martin Falk Paper Co. Cedar was represented by Pat Minea and Dan Trebil of Northmarq, who facilitated acquisition financing from First Western Bank & Trust. Lamar Newburn of Lee & Associates represented CEDARst in the transaction.
The business plan for 6th and 3rd will resemble CEDARst's revealed plans at The Duffey Lofts, also in the North Loop market. That project involves the adaptive reuse of the C.J. Duffey Paper buildings, located at 500-528 Washington Ave N, into 190 multifamily units and 20,000 square feet of commercial space.
"This represents our second transaction with the Duffey family in less than a year. From day one we wanted to acquire both properties. It was a tremendous opportunity to own 500 + units in the heart of the North Loop," says Will Murphy, CEO and Managing Partner of CEDARst Cos., in a prepared release.
"This development has something for everybody," he continues. "It is part adaptive reuse, part ground-up development, a landmark designation and we will be working with the State Historic Preservation Office to define scope and procure historic tax credits. The more complicated the deal, the more opportunity we see. It's going to be a beautiful project and great contribution to the neighborhood."
The newest acquisition by CEDARst includes two multi-story warehouses. The first is an eight-story, 275,000-square-foot property and the second is a five-story, 108,000-square-foot building. CEDARst also acquired an adjacent, 32,000-square-foot surface lot.
According to CEDARst's development plans, the renovation and repositioning of the larger warehouse includes the creation of 260 residential units, 15,000 square feet of retail space and underground parking. The smaller building will be transformed into a 20,000-square-foot amenity space along with 7,000 square feet of retail space, 50 residential units and underground parking. On the surface lot, the CEDARst plan calls for the development of 34 residential units, 20,000 square feet of ground floor retail and parking for 284 vehicles.
CEDARst expects to break ground in the fourth quarter of 2020 and anticipates a construction cycle of approximately 20 months allowing it to begin delivering units in Summer 2022.
The amenities being incorporated into 6th and 3rd go above and beyond what typically would be found in any residential development, the release notes. "The most unique in the amenity suite is a roof top ice skating rink/icehouse featuring dramatic views of the Minneapolis skyline. The rink can be converted to a soccer field or other uses in the Spring and Summer."
Other amenities include a bowling alley, paddle courts, swimming pool and coworking center. The complex also will feature F&B service—coffee and grab and go food—through CEDARst's Heritage branded affiliate.
"The scale and scope of this particular development allow for an exceptional amenity package. We want to differentiate ourselves from the market" adds Murphy.
The North Loop submarket in downtown Minneapolis is one of the city's fastest growing and popular neighborhoods. It is known as a live-work area because of its walkability, award-winning restaurants and taprooms, fashionable shopping, entertainment venues and converted warehouse buildings. Additionally, it is just a short distance from Target Field and Target Center.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
