Setting a record for the state, the 41-story high-rise has received nearly $190 million in financing from Related Fund Management and Bank OZK.
Construction has begun on Eleven, a 41-story, 118-residence luxury condominium that will become the tallest residential tower in Minneapolis at 550 feet. Funding for the 145,652-square-foot building was completed last month with nearly $190 million in financing coming from Related Fund Management as the mezzanine lender and Bank OZK as the senior lender.
Dougherty Funding LLC, with a team led by Executive Vice President Murray Kornberg, arranged the financing package—the largest construction loan ever secured for a condo project in Minnesota. It is the first deal for Related Fund Management’s credit platform in Minneapolis. Related Fund Management is the private equity arm of Related Cos.
Luigi Bernardi of Arcadia LLC is the project sponsor and co-developer. Ryan Cos. is co-developer and New York City-based Robert A.M. Stern is the architect. Eleven is the first residential building in Minneapolis designed by RAMSA, an architecture firm known for its high-rise projects around the globe including 15 Central Park West in New York City. In 2018, RAMSA was also the lead designer for One Bennett Park, a residential development in Chicago’s Streeterville neighborhood that became the city’s tallest-all residential tower with 70 stories.
Other firms working on Eleven include Peterssen/Keller Architects, Martha Dayton Design and Lakes Sotheby’s International Realty, which is handling sales.
Plans call for the building, which is located in the city’s Mill District, to have about four units per floor, transitioning to two units per floor as the tower rises, and finally, one unit per floor at the top for a total of 17 penthouses. Each unit will have a private terrace, which will be at least 14 by 14 feet. Eleven’s amenities will include a large landscaped terrace, 75-foot lap pool, private motor court, a 24/7 doorman, large fitness suite, multi-sport court, library, golf simulator, children’s splash pad, restaurant space, a demonstration kitchen with dining, residential and guest parking and storage. Prices for the residences will start at $900,000.
Bernardi is president of Arcadia and Aurora Investments, two real estate development and investment companies that have been developing commercial real estate in the Twin Cities since 1987. The firms now focus on multifamily development and medical-related facilities. Recent projects include the VÉLO luxury apartments in downtown Minneapolis’ North Loop neighborhood and Aurora on France in Edina, Minn.
TWIN CITIES MARKET
The Twin Cities multifamily market has been resilient with a 3.1 percent rent increase as of May and year-over-year rent growth 60 basis points above the national average, according to a recent market report by Yardi Matrix. Demand is expected to remain high. About 9,700 units were under construction in the metro as of May, with nearly three-quarters of them considered Lifestyle projects. Development activity was highest in the Minneapolis-Central submarket, where 1,502 units were under construction as of May. The metro saw 6,715 units delivered in 2018. In the first five months of this year, more than 740 units were completed, mostly in the northern part of the metro.
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