Timberland Grows in Twin Cities, Obtains $50M Loan
- Mar 06, 2018
Timberland Partners has obtained the land and financing required to begin construction at a new, 222-unit apartment community in Eden Prairie, Minn. The project is a transit-oriented development, adjacent to the planned Southwest light rail station.
Timberland obtained financing for the $63.7 million project from multiple sources. JLL arranged a $49.7 million HUD-insured 221(d)(4) loan. Additional funds were provided by Hennepin County, the City of Eden Prairie and the Metropolitan Council.
Elevate at SouthWest Station Apartments will comprise 64 studios, along with 115 one-bedroom and 43 two-bedroom units. Designed with sustainability in mind, the community will feature a green roof, rainwater cistern, permeable pavers and electric car charging stations. Common amenities will also include a bocce court, outdoor kitchen, a pool, yoga studio, a fitness center, a co-working lounge and a game room. The building will also offer 13,266 square feet of retail space, according to Yardi Matrix.
The apartment community will be located at the intersection of Prairie Center Drive and Technology Drive, adjacent to the upcoming METRO Green Line Extension connecting downtown Minneapolis and Eden Prairie. Construction of the light rail extension is expected to begin this year, with completion slated for 2023.
The location is also next to the diamond interchange of Route 212 and Interstate 494, facilitating access to multiple transportation routes. Several restaurants are also situated nearby, while retail options can be found along Prairie Center Drive.
“[The project] aligns with the clear vision that both us and the City of Eden Prairie had with regards to how the site was redeveloped. It’s another great example of what strong public/private partnerships can accomplish. Like our other TOD projects, Elevate utilized a variety of funding sources and because the LRT line will literally run along our property boundary, it involved close coordination with the Southwest LRT Project Office,” said Ryan Sailer, vice president of development at Timberland, in a prepared statement.
The Twin Cities multifamily market exhibits the highest occupancy rate among the major U.S. metros, at 97.7 percent, with a 3.9 percent year-over-year rent growth through November 2017, according to the latest Yardi Matrix report. Timberland Partners currently owns nine existing multifamily properties in the metro, with Elevate scheduled for completion in August 2019. Kaas Wilson Architects designed the building and Frana Cos. is the main contractor for the project.
Rendering courtesy of Timberland Partners