Dominium Secures $96M for Twin Cities Affordable Housing

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When completed, the former Weyerhaeuser lumber site in St. Paul, Minn., will include 241 units for seniors and 121 units for families.

Dominium, an affordable housing development and management company, has obtained tax-credit financing to develop the former Weyerhaeuser lumber site in St. Paul, Minn., into affordable housing apartments. The financing totals more than $96 million.

The development will include 241 affordable units for seniors and 121 affordable units for families. Also included on the site will be a park and a bike trail, along with three roads to be turned over to the city of St. Paul upon construction completion.

U.S. Bank facilitated the financing. Plymouth, Minn.-based Dominium, which acquired the 12-acre site that used to be a lumber distribution center, will immediately start construction on the development, with a planned completion date in early 2020.

Boost Affordable Housing

“By integrating 362 affordable housing units into St. Anthony Park, [Dominium] is giving a number of residents the opportunity to live in a Twin Cities location, who otherwise might not be able to,” said Kyle Kochtanek, assistant vice president of U.S. Bancorp Community Development Corp. (USBCDC), a subsidiary of U.S. Bank. Saint Anthony Park is a neighborhood in northwest St. Paul.

U.S. Bank invested $45 million raised through its investments in federal low-income housing tax credits. Dougherty Mortgage provided $51 million in permanent loans insured by HUD. Bonds underwritten by Dougherty & Co. are bridging the equity provided by USBCDC.

The city of St. Paul provided a $600,000 permanent loan.

The tax-exempt bonds were allocated by the city of St. Paul. The low-income housing credits were allocated by the Minneapolis/Saint Paul Housing Finance Board.

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