Northmarq's Minneapolis Debt + Equity team secures $59.8M construction financing for a $98.9 million project in Golden Valley, MN

GOLDEN VALLEY, Minn. (August 16, 2024) — Northmarq’s Minneapolis Debt + Equity team secured $59.8 million construction financing for a $98.9 million project in Golden Valley, Minn that is led by local developers, Sentinel Management Company and Monarch Holding Company. The 303-unit multifamily mid-rise apartment building will be developed on 3.083 acres at 640 Wisconsin Avenue North.

The Northmarq team, led by Regional Managing Director Dan Trebil, arranged financing on behalf of the borrower, 640 Golden Valley, LLC. The deal required multiple banks taking part, with three local and regional banks involved. The transaction also includes a $9 million loan secured by Tax Incremental Financing (TIF).

"Construction financing is challenging in this environment, particularly if a syndication is required,” Trebil said. “However, the strength of the sponsor and location made it possible to close this ‘club’ bank deal at attractive terms to move this excellent project forward."

“This community is in the heart of Golden Valley’s vibrant downtown district, overlooks the Brookview Golf Course, and has the best amenity package in town, including an 18,000-sq.-ft. outdoor courtyard,” said Fabrizio Montermini, managing director at Sentinel. The equity group, which is led by Sentinel, also includes a set of private investors.

The apartment complex will include 46 affordable housing units for renters with 60% of the Area Median Income (AMI). Located in Golden Valley, a suburb roughly 6 miles west of downtown Minneapolis, the property is positioned with close access to Highways 55, 100 and 169, Interstate 394 and nearby public transportation options.

The multifamily property boasts an ideal location, within blocks of restaurants and coffee shops, banks, retail and fitness centers.