Dominium has started construction for the redevelopment of A-Mill Artist Lofts, the adaptive-reuse of the long vacant Pillsbury flour mill on the banks of the Mississippi River in Minneapolis. Environmental remediation and construction has begun to kick off the $150 million project.
The redevelopment would not have been possible without the financial support of numerous financing partners, the most integral being U.S. Bank and Affordable Housing Partners, Inc., a Berkshire Hathaway Company. In addition, the transaction was structured with the help of the law firm of Winthrop & Weinstine, P.A.
U.S. Bank is providing a $118 million financing package to support the renovation. The package includes a construction loan, a letter of credit and a purchase of the Minnesota Historic Tax Credits generated by the redevelopment.
Affordable Housing Partners, Inc., a Berkshire Hathaway Company, is the equity investor, committing nearly $75 million in equity to secure its investment in the Federal Low-Income Housing Tax Credits and Federal Historic Tax Credits.
Permanent financing of nearly $26 million is being provided by Cornerstone Real Estate Advisors. A-Mill Artist Lofts also benefits from financial support from the City of Minneapolis, the Minnesota Historical Society, the Metropolitan Council, Hennepin County and the Minnesota Department of Employment & Economic Development.
A-Mill Artist Lofts will be a full-scale renovation and reconfiguration of the existing Pillsbury flour mill complex. One of 21 National Historic Landmarks in Minnesota, the flour mill was originally built in 1881 and held the title of the world’s largest flour mill for nearly 40 years. Shuttered in 2003, the planned adaptive-reuse will bring vitality back to an important piece of history for the region with 251 artist loft apartments.