First Western Leads $33M Construction Deal for Minnesota Mixed-Use Project

Online CRE platform Stacksource arranges deal that involves senior loan, equity placement and C-PACE financing.

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GoodNeighbor Properties has secured $32.6 million of construction financing to build a mixed-use development in Minnesota, Commercial Observer can first report.

First Western Bank provided a $21.5 million senior construction loan for GoodNeighbor’s planned project on a 2.5 acres of land in Alexandria, Minn. Enhanced Capital supplied $6 million of equity and $5 million of Commercial Property Assessed Clean Energy (C-PACE) financing toward the deal. 

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StackSource, an online commercial real estate platform, arranged the transaction with a team led by Beth Mercante, senior vice president of business development, and Chris Peters, director. 

The Manhattan-based firm is coming off a busy 2021 in which it increased origination its volume by more than 200 percent over 2020 levels. 

“As interest rates continue to rise, it’s important to work with a team of professionals that can bring real solutions to the capital stack beyond senior debt,” Tim Milazzo, CEO of StackSource, said in a statement. 

GoodNeighbor Properties’ project is at 319 Broadway Street about 130 miles northwest of Minneapolis. GoodNeighbor plans 72 luxury apartments for ages 55 and over,  27,700 square feet of retail space and a 90-seat restaurant in a four-story structure. The property will also include underground parking.

“Our firm is proud to partner with such an excellent team to help provide environmentally friendly senior housing in an area that will greatly benefit from more supply,” Ian McCulley, director at Enhanced Capital who is responsive for the firm’s C-PACE business.

Ted Christianson, founding partner of GoodNeighbor, credited Mercante with her diligent work to help close the deal. 

“Beth and her team are living proof of my saying ‘Anyone can find a reason to say no. Successful people find a yes!” Christianson said in a statement.

Officials for First Western Bank did not immediately return a request for comment.

Andrew Coen can be reached at acoen@commercialobserver.com