CBRE Capital Markets has arranged $77.8 million in bridge financing for Chicago-based developer Magellan and their joint-venture partner DeBartolo Development‘s LPM apartments, a 354-unit luxury high-rise apartment tower with ground-floor retail in Minneapolis, Minnesota.
The firm secured the loan through its relationship with New York-based TPG Real Estate Finance Trust. The non-recourse loan was sized at approximately 65 percent total project costs and at a competitive market interest rate. The new loan was used to retire the borrower’s maturing construction loan on the property.
Located in the Loring Park neighborhood of Minneapolis, the building is completing lease-up and is expected to reach stabilized occupancy later this year. The retail portion of the project is 100 percent occupied as of March 2016. Tenants include Eggy’s Diner, YogaFit, Inspire—an arts and crafts shop with a humanitarian mission—and a 12,500 square-foot Lakes & Legends Brewing Company brewery and taproom.
Murray Kornberg and Jessica Lytle of CBRE’s Minneapolis office represented the JV.