MidWestOne Bank Makes $47M Construction Loan for Minnesota Development
Financing will go toward developing Golden Triangle Station, a luxury housing complex
By Brian Pascus August 30, 2023 1:14 pm
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A joint venture between Greco, a Minneapolis real estate developer, and Eagle Ridge Partners, a Minneapolis development, acquisition and asset management firm, has secured $69 million in equity and construction financing for a mid-rise, luxury housing development in Eden Prairie, Minn.
JLL (JLL) Capital Markets arranged $47 million in construction financing through MidWestOne Bank and Alerus Financial. The JLL Capital Markets team also secured nearly $22 million in joint venture equity from Amstar Group, a Denver-based real estate investment manager.
The JLL Capital Markets advisory team represented the sponsors and was led by Josh Talberg, Scott Loving, Matthew Schoenfeldt, Colin Ryan, Dan Linnell and Max Gunderson.
“The project will be a significant development for the city of Eden Prairie, and we are thankful to have a part in advancing it,” said Talberg in a statement. “The execution of Eagle Ridge and Greco, from concept to closing, has been remarkably impressive.”
Golden Triangle Station, a mid-rise, multi-housing development, has been in the works since 2019, when Eagle Ridge Partners bought 40 acres of land in Eden Prairie for $28.6 million. The affluent southwest suburb outside Minneapolis is located the famous “Golden Triangle Innovation Hub,” a central business district that boasts 600 companies and more than 20,000 jobs.
Located at 6901 Flying Cloud Drive, Golden Triangle Station is expected to add much-needed housing capacity to a growing area, one that has been plagued in recent years by a lack of available land contributing to high-barriers to entry for developers with multifamily projects.
“The Twin Cities markets, particularly sought-after suburban areas like Eden Prairie, consistently experience robust interest and demand from investors and lenders for premium assets,” said Talberg. “This project showcases this continuing trend and signals a promising outlook for both the region and the high-growth submarket.”
Golden Triangle Station is expected to feature 237 luxury units of one-, two-, and three-bedroom apartments. Using Eden Prairie’s exclusionary zoning statutes, between 25 percent of the apartments will be rented at 50 percent to 80 percent of the area median income, allowing the project to capitalize on a Tax Increment Financing Structure it received from the Eden Prairie City Council. The buildings will also include roughly 315 underground parking spaces, an outdoor pool, a spa, theater room, club room and pickleball courts.
Located near the Golden Triangle LRT Train Line, and the future Green Line station—currently under development— Golden Triangle Station is positioned to attract workers looking for easy access into Minneapolis-St.Paul, a metropolitan area that carries a low-level of unemployment at only 3.3 percent, and features the headquarters of companies like Target, Xcel Energy, General Mills, and U.S. Bank.
Founded in 2002, Greco has a portfolio of more than 5,000 housing units and 350,000 square feet of commercial real estate space.
Eagle Ridge Partners has owned and developed more than $1 billion worth of commercial real estate over the last 25 years. The firm’s commercial real estate portfolio in Minneapolis alone comprises more than 3 million square feet of space across multiple asset classes.
Brian Pascus can be reached at bpascus@commercialobserver.com
