Northmarq has secured both the equity and construction financing for One West Drive, a 49-unit market-rate rental housing development in the heart of Excelsior, Minnesota.
Financing was procured on behalf of the local developers, Red Leaf Partners, LLC and Monarch Development Partners, LLC. The equity partner is Denver-based Brue Baukol Capital Partners. The construction loan is being provided by MidWestOne Bank.
Northmarq’s Andy Finn, senior vice president/senior director – debt/equity in the Minneapolis office, ran a competitive process to secure both the equity and debt at the best available terms. The construction loan was structured with 65% leverage on a three-year term with three years interest-only and limited guarantees, and the equity partner provided capital up to 90% of the total project costs.
One West Drive is a development opportunity in downtown Excelsior just steps from Lake Minnetonka and dozens of restaurants and shops. The developers worked closely with the City of Excelsior on a redevelopment plan for the 1.4-acre site that includes market-rate apartments and row homes along with much needed public parking. A below-grade parking garage will create 322 parking stalls, 78 of which will be dedicated to One West residents.
