MINNEAPOLIS—The Chicago-based Magellan Development Group, the developer of the planned 37-story Loring Park apartment tower in the downtown here, has gained $20 million in financing for the project.
Ullico Inc. said it will extend up to $20 million in financing through its Separate Account J, also known as “J for Jobs”, for the construction of the 354-unit tower. “We are proud to be a part of this great project,” said Edward M. Smith, president and CEO of Ullico. “The commercial real estate market has weathered a storm over the last few years. But, we see new and exciting opportunities to make quality investments and generate returns in the marketplace right now.”
Magellan will develop, lease and manage the property, which will be built with 100 percent union labor. Ullico made the union deal a requirement of the loan. “Since the recession began, about 20 percent to 30 percent of our members have been out of work,” said Dan McConnell, business manager of the Minneapolis Building and Construction Trades Council. “To have a company like Ullico make an investment like this that puts our members to work and lets them provide for their families is more than welcomed.”