MINNEAPOLIS—Village Green, based in Farmington Hills, Mich., has gained about $82 million in loans and incentives through U.S Bank for the redevelopment of the Soo Line Building office tower here into 254 apartments.
The locally based bank is providing a $40 million construction loan, a more than $19 million bridge loan, and a $23 million federal and state Historic Tax Credit commitment through its St. Louis-based community development subsidiary U.S. Bancorp Community Development Corp. U.S Bank is the lead lender and Associated Bank is the joint lead arranger for both the construction loan and bridge loan. U.S Bank previously provided $5.7 million in acquisition financing for Village Green to purchase the property in September 2011.
The property is on the southeast corner of Marquette Avenue and Fifth Street, adjacent to the Nicollet Mall Light Rail Station and Nicollet Ave. The building will also contain 21,000 sq. ft. of retail and restaurant space, and is connected to the Minneapolis Skyway system.
Village Green started the renovation in early October. First occupancy is scheduled for summer 2013. The complex will be called the Soo Line Building City Apartments.
Jonathan Holtzman, chairman and CEO of the apartment developer, said the Minneapolis core has more than 36,000 residents, as well as more than 160,000 employees working downtown. “By transforming a historic building into a mixed use luxury rental community, restoring existing architecture and preserving features and materials – that combination of new and existing materials creates a truly green building,” he said in a statement. His firm operates more than 40,000 apartment units in 13 states, including 12 apartment communities in Minneapolis.