Mixed Use - Debt, Equity

Northmarq’s Minneapolis office completes $140,500,000 construction financing for mixed-use development in Minneapolis’ North Loop

MINNEAPOLIS, MINNESOTA (July 25, 2022) – Dan Trebil and Pat Minea of Northmarq’s Minneapolis office arranged construction financing for a mixed-use development in Minneapolis’ North Loop submarket. The financing was arranged on behalf of longstanding Northmarq client Chicago-based developer CEDARst Companies. Construction is underway and the project is slated to deliver in 2024.

CEDARst acquired two adjoining multi-story warehouses and a nearby surface parking lot in the North Loop and will renovate and redevelop the properties as a mixed-use project to include 358 apartment units, 40,000 square feet of commercial space and a parking structure.  The project will utilize federal and historic tax credits to preserve the historic nature of the existing buildings.  

As part of the capital stack, Northmarq originated a $101,500,000 non-recourse construction loan via Union Labor Life Insurance Company, a $12,000,000 mezzanine loan via Pearlmark and an approximately $27 million equity bridge loan from a regional bank. 

“This was a very complex transaction with numerous financing sources, and Northmarq was happy for the opportunity to be part of it,” said Trebil. “CEDARst has done a number of very successful historic rehabs similar to this around the country, and we look forward to seeing it take shape.”  

Northmarq is an industry-leading capital markets resource for commercial real estate investors, offering seamless collaboration with top experts in debt, equity, investment sales and loan servicing. We combine industry-leading capabilities with an open, flexible structure, enabling our team of seasoned professionals to create innovative solutions for clients. Our solid foundation and entrepreneurial approach have built an annual transaction volume of over $30 billion, and loan servicing of nearly $70 billion.