Sherman Associates announced the financial closing on its multifamily development at the Civic Center North Lot site in downtown Rochester, located at 217 East Center Street. The transformative mixed-income development will bring 349 new homes to downtown Rochester along the Zumbro River and adjacent to the Mayo Clinic campus.
The project represents a significant public-private partnership among Sherman Associates, the City of Rochester, and the Destination Medical Center (DMC), and marks Sherman’s entry into the Rochester market to help meet Rochester’s growing demand for housing and support the continued evolution of its downtown core.
The $136.5 million multi-phase development will deliver a 273-unit market-rate residential tower and a 76-unit affordable senior housing building, connected by a shared 350-stall enclosed parking structure.
“This is an exciting milestone for a project that has been years in the making,” said Rochester Mayor Kim Norton. “By bringing both market-rate apartments and affordable senior housing to the heart of downtown, this development will provide more housing options while creating new opportunities for people to live, work and stay connected to our community. We are pleased to see this important site moving forward through a strong public-private partnership.”
The project supports the community’s vision of transforming Rochester into a vibrant destination city through mixed-use development that integrates housing, healthcare, employment, hospitality, entertainment, and public spaces.
“A strong downtown is not simply a place people visit. It is a place people can call home,” said DMC Executive Director Patrick Seeb. “Sherman Associates’ investment will bring hundreds of new residents to the heart of Rochester, create more housing choices across ages and incomes, and reconnect an important downtown site to the Zumbro River. We are grateful for Sherman’s confidence in Rochester and for the public-private partnership turning a long-held vision into a defining investment in downtown’s future.”
The market-rate tower will offer a unique blend of housing options, including 221 traditional apartment homes and 52 fully furnished short-term and month-to-month residences. The flexible housing units are designed to meet the needs of healthcare professionals, visiting medical staff, patient families, and others seeking temporary accommodation near Mayo Clinic and downtown Rochester.
The affordable senior housing community will provide 76 affordable homes for older adults, addressing a critical housing need while enabling residents to remain connected to healthcare, downtown amenities, and the broader Rochester community.
“Rochester continues to experience tremendous growth, creating a need for more housing options that support the people who work, receive care, and live in the community,” said Chris Sherman, President of Sherman Associates. “By bringing together a variety of housing options in the downtown core, we’re helping create a more connected, vibrant neighborhood that supports Rochester’s growth and long-term economic vitality.”
The project will also feature a new publicly accessible riverfront walking path along the Zumbro River, which directly borders the site to the east, expanding community access to the waterfront and enhancing connectivity throughout downtown.
Sustainability is a key component of the development, supporting Sherman’s ESG Commitment, with the market-rate tower pursuing National Green Building Standard (NGBS) Silver certification and the affordable senior housing community pursuing both Enterprise Green Communities and ENERGY STAR Multifamily New Construction certifications. Designed with ENERGY STAR appliances, solar-ready infrastructure, and high-performance building systems that meet Minnesota Sustainable Building 2030 (SB2030) standards, the development supports energy efficiency, environmental stewardship, and long-term building performance.
Located near the Link Bus Rapid Transit (BRT) station at the Civic Center and with adjacent access to Rochester’s riverfront trail system and pedestrian skyway network, the transit-oriented development connects residents to Mayo Clinic, the Civic Center, shopping, dining, hotels, entertainment, and services.
Together, the projects demonstrate how market-rate and affordable housing can be planned, financed, and delivered through an integrated development strategy to address a range of community housing needs. Through a complex financing structure, Sherman secured tax increment financing (TIF) that supported both projects, enabling them to advance simultaneously as part of a unified vision for the site.
Construction is being led by Frana Companies as the general contractor, with ESG Architecture & Design serving as architect. Construction is underway, with both buildings expected to open in spring 2028.
