Minneapolis residential project secures $ 22 million loan
Bessemer Apartments LLC, in partnership with Schafer Richardson, Seward Redesign and Noor Cos., Received a $ 21.5 million loan for The Bessemer at Seward Commons in Minneapolis, a community of 128 transit-focused units currently in operation. construction.
Merchants Capital and Merchants Bank of Indiana provided the 30 month funding.
The project located at 2200 Snelling Ave. is part of the Seward Commons redevelopment area, which will include 260 rental units across four properties, as well as a 33,000 square foot business incubator serving local small businesses.
Located next to the METRO Blue Line and the Hiawatha Bike Path, The Bessemer will be located one block from Franklin Avenue Station. Common facilities will include a club room, fitness center, storage system, bicycle storage and repair station, as well as on-site management.
The upcoming ten different community funding sources included a $ 5.4 million City of Minneapolis Tax Increase Funding (TIF), which has been used over the past 26 years. Hennepin County, the Metropolitan Council, and the Minnesota Department of Employment and Economic Development provided environmental clean-up funds, while Hennepin County provided transit-focused development funding .
According to Amanda Janzen, senior director of development at Schafer Richardson, the project also used two funds qualified for opportunity zones – the Catalyst Opportunity Funds and the Schafer Richardson Opportunity Zone Fund – making Bessemer one of the first projects to be launched. develop in a designated opportunity area in the city.
Merchants Capital Executive Vice President Marsha Goff is behind the loan. Earlier this fall, Merchants Capital also assisted Great Lakes Capital in financing its mixed-use River Point West development in Elkhart, Indiana. With delivery scheduled for 2021, the 173-unit community was under construction at the time of the transaction.