JLL Capital Markets announced that it has arranged mezzanine and construction financing totaling $60.14 million for Avalon Apartments and Townhomes, a mid-rise multifamily and townhome development located in the preferred submarket of Inver Grove Heights and bordering Eagan, Minnesota.
JLL worked on behalf of the borrower, a St. Cloud-based Trident Development, to secure the $45 million competitive construction loan from Alerus, a provider of business and consumer banking products and services based out of North Dakota. Additionally, JLL sourced $15.14 million in mezzanine financing from Centerspace, a real estate investment trust focused on the ownership, management, acquisition and redevelopment of apartment communities across the Midwest and Mountain West.
Situated as a key gateway between the Twin Cities and Greater Minnesota, Inver Grove Heights delivers the best combination of urban services and amenities located within its sizable commercial core along with an abundance of parks and recreational destinations. Avalon Apartments and Townhomes will provide premier access to both downtown St. Paul and Minneapolis via Interstate 35E and Highway 55 which are 10-minute and 20-minute drives respectively.
The subject site, located in the Primary Market Area of Inver Grove Heights/Eagan, Minnesota, is one of the fastest-growing markets in the Twin Cities metro. Fortune Magazine recently placed Eagan as the #11 community on their list of the “50 Best Places to Live for Families”. The property is located within the Eagan school district, which consistently ranks as one of the top districts in the state, making it an ideal destination for families.
Minneapolis-St. Paul has one of the largest concentrations of Fortune 1000s in the world. The region is home to numerous international headquarters, American headquarters for foreign firms, and substantial office operations for firms that are headquartered on either coast. With one of the lowest unemployment rates in the nation, investors, employers, and workers continue to be drawn to Minneapolis-St. Paul, home to one of the most diverse and successful economies in the world.
The JLL Capital Markets Advisory Team representing the Sponsor was led by Managing Directors Dan Linnell, Scott Loving, Josh Talberg and Mox Gunderson.
“The project will be a significant development for Inver Grove Heights, and we are thankful to play a role in advancing it. The execution between Trident and Centerspace was extremely impressive despite challenges in capital markets, and is a testament to the strength of the project, sponsorship, location, and teams on both sides ” said Managing Director Dan Linnell. “The Twin Cities market, particularly in established suburban areas like Inver Grove Heights and Eagan consistently outperform in tenant demand as well as demand from investors and lenders for premium projects” Linnell added. “This project also showcases the continuing demand for projects catering to townhome as well as multi-family residents and signals a promising outlook for both the region and the submarket.”
