By Keith Loria
Dougherty Mortgage LLC has closed a $42.8 million HUD 221(d)(4) loan for G4 Partners LLC’s development of Green on Fourth, a 243-unit mixed income multifamily community located in the Prospect Park neighborhood of Minneapolis.
“The project is right by the University of Minnesota and right along its transitway, which is a dedicated bike path that goes from the Minneapolis campus to the St. Paul campus,” Michael P. Bisanz, Jr., Dougherty Mortgage’s vice president and deputy chief FHA underwriter, told MHN. “The HUD 221 (d)(4) is a really good fit for projects like this. HUD really liked the neighborhood and that the project included 66 affordable units.”
G4 Partners is a joint venture between Prospect Park Properties and Timberland Partners.
Green on Fourth will offer a mix of market-rate and affordable units with 177 available at market rate, 49 units restricted at 50 percent of AMI, and 17 units restricted at 60 percent of AMI. Units will consist of studios, one-, two- and three-bedrooms and will boast granite countertops and vanities, in-home washer/dryer, garbage disposal, fully equipped kitchen and private balcony.
Amenities in the building will include a rooftop deck with spectacular view of the Minneapolis skyline, a tech-focused fitness center, yoga room, community room with pub-style lounge and game room, package center, dog run, heated underground parking and bike storage.
The property will be situated adjacent to the 29th Avenue Green Line Station and the Rise project, and will share the block with the district stormwater biofiltration system and more than half an acre of future park land.
“As it relates to the location alone, the appeal is obvious, it’s 10 minutes to Minneapolis by light rail, and 15 to St. Paul,” Tim Larkin, Dougherty Mortgage’s co-founder, told MHN. “You’ve got all sorts of commercial real estate popping up and it’s an area springing up with new development.”
A Fresh Thyme grocery store will be located across the street from the property and Surly Brewing Company’s destination brewery is just “a stone’s throw” away.
Plans for the project are to highlight active living and open space with a pedestrian-focused design that is cohesive with the city’s Green 4th Street Initiative, which consists of the reconstruction of 4th Street with pedestrian-level lighting, furniture, bike lanes and decorative vegetation.
“Getting affordability in the area with that access of getting to and from downtown is a huge need in the area,” Larkin said. “There is a huge demand for something like this.”
Funding for the property also came from AHTF and LCDA Loans from the City of Minneapolis and TOD Funds from Hennepin County.
The 40-year HUD 221(d)(4) loan has a 40-year amortization schedule, and was arranged through Dougherty’s Minneapolis office.