Dougherty Closes $34M Loan for Affordable MN Development

Named 1500 Nicollet, the planned 183-unit community in Minneapolis will include 5,500 square feet of retail space.

A rendering of 1500 Nicollet in Minneapolis
A rendering of 1500 Nicollet in Minneapolis

Dougherty Mortgage has closed a $34.1 million HUD loan for the construction of 1500 Nicollet in Minneapolis. The community is a 183-unit affordable housing development that includes 5,500 square feet of first-floor commercial space. All units are rent- and income- restricted to families earning 60 percent or less of the area median income. According to Yardi Matrix data, Plymouth-based Dominium is the owner of the planned six-story building.

Located at the southwest corner of Nicollet and 15th streets in Loring Park, the property will be in the southwest portion of downtown Minneapolis, with easy access to the junction between interstates 35W and 94. The asset will require the redevelopment of a 1921-built property. The unit mix will include one-, two- and three-bedroom apartments, with refrigerator, oven, dishwasher, washer and dryer, mini-blinds and central air conditioning. Community amenities include:

  • community room with a kitchen
  • fitness center
  • yoga studio
  • 123 underground parking spaces
  • rooftop decks
  • courtyards
  • bike storage and repair shop
  • dog park
  • playground

Complex financing

In addition to the HUD-insured first mortgage, the project will receive equity from the sale of LIHTCs and funds from the Metropolitan Council and Hennepin County to be used for environmental clean-up costs. Dougherty Mortgage affiliate Dougherty & Co. LLC served as the underwriter for the tax-exempt bonds on this transaction. Dougherty’s Minneapolis office arranged the 40-year loan (plus construction period) for borrower Minneapolis Leased Housing Associates IX LLLP.

Recently, Dougherty Mortgage’s Minneapolis office also arranged a $13.7 million loan for the refinancing of Aspenwoods Apartments, a 162-unit luxury community in Eagan, Minn.

Image courtesy of Dougherty Mortgage