U.S. Bank and Village Green in mid-November closed a significant piece of financing for the development of the Soo Line Building in Minneapolis. The renovation of the historic office tower into the Soo Line Building City Apartments will bring 254 luxury apartments, a restaurant and gourmet market into the heart of the city.
U.S. Bank, a longtime partner of Village Green, is providing a $40 million construction loan, a more than $19 million bridge loan and a $23 million federal and state Historic Tax Credit commitment through its St. Louis-based community development subsidiary U.S. Bancorp Community Development Corporation. U.S Bank is the lead lender and Associated Bank is the joint lead arranger for both the construction loan and bridge loan. U.S Bank previously provided $5.7 million in acquisition financing for Village Green to purchase the property in September of 2011.
Soo Line Building City Apartments is the first significant luxury rental community in 25 years in Minneapolis’ Central Business District. Village Green celebrated a ground-breaking ceremony in early October. Construction is scheduled to be completed by Dec. 31, with first occupancy scheduled in the summer of 2013.
“U.S. Bank is very proud to be a part of this project in downtown Minneapolis,” said John Besse, executive vice president of commercial real estate with U.S. Bank. “The Soo Line Building is an impressive, historic structure and this redevelopment will enable it to become a premier multi-family property in our downtown core.”
The property is located on the southeast corner of Marquette Ave. and 5th St., adjacent to the Nicollet Mall Light Rail Station and Nicollet Ave. The building will also contain 21,000 square feet of retail and restaurant space and is connected to more than eight miles of the Minneapolis Skyway system.
