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.”
