Dominium, a Twin Cities-based apartment development and management company said this morning that it now owns the historic Pillsbury A Mill building in Minneapolis and is proceeding with its plans to convert the building into 251 units of affordable housing for artists.
The $150 million project, which is along the banks of the Mississippi River, has been several years in the making and is a complicated deal that involves several organizations. Partners in the project include U.S. Bank, which is providing $118 million in financing, and Affordable Housing Partners Inc. (a Berkshire Hathaway Company), which is committing nearly $75 million in equity to secure their investment in the Federal Low-Income Housing Tax Credits and Federal Historic Tax Credits. The building is one of 21 buildings in Minnesota that's listed on the National Register of Historic Places.
Dominium is getting permanent financing of nearly $26 million from Cornerstone Real Estate Advisors, and will get some financial support from the city, the Minnesota Historical Society, the Met Council and others.
Environmental remediation work is underway, and occupancy is expected to happen in late 2015.
House prices in the Twin Cities metro area rose in synch with the national average during August, but the housing recovery in the Twin Cities appears to have been more consistent that in most major metros of the country, according to the latest S&P Case-Shiller Home Price Index.
From July to August the index, which tracks repeat sales of the same property, rose 1.8 percent to 137.34 - that was a 10.2-percent increase from the same time last year. By comparison, the 20-city composite increased 1.3 percent to 164.53, a 12.8 percent annual increase.
All 20 cities tracked by the index showed an annual increase in prices, but there were signs that prices gains are showing signs of moderation in some of the most active markets. Still, 13 regions showed double-digit annual gains with Las Vegas and California posting the biggest gains - both more 20 percent.
The Twin Cities and Miami have recorded 19 consecutive months of year-over-year increases, by that measure outperforming much of the nation.
Here's a link to an interactive chart showing all of the local data.
Though site prep is well underway, a ceremonial groundbreaking was held today to mark construction of the Regatta Wayzata Bay Condos in Wayzata. The 59-unit project is one of several phases of a massive mixed-use redevelopment effort - the biggest in the city's history - called The Promendate of Wayzata. It includes senior housing, which is ready for occupancy, and more than 130,000 square-feet of retail on the main level, including a new Lunds Kitchen and Lakes Sotheby's International real estate office.
The condos are priced from $450,000 to $2 million-plus for units ranging from 850 to 4,500 square feet. Developer, Steve Bohl of BohLand Development, told me that since June he's pre-sold 45 percent of the units.
The project is just one of three condominium buildings under construction in the Twin Cities, it joins StoneBridge in downtown Minneapolis and ParkSide in St. Louis Park. More on this topic in the coming weeks.
Minneapolis ranks second among the 25 largest U.S. metropolitan areas in terms of home affordability, according to a new report from Interest.com. The median household income in the Minneapolis/St. Paul area exceeds the income required to purchase a median-priced home in the Minneapolis/St. Paul area by 24 percent,That’s down from 32 percent last year and second only to Atlanta, Georgia.
Keenan Raverty, a vice president at Bell Mortgage, is the new president and chairman of the board of the Minnesota Mortgage Association (MMA), a trade group that represents thousands of mortgage professionals statewide.
Raverty is currently the chair of the MMA Government Affairs Committee and sits as a member of the MMA board of governors. Raverty is also a past president and board chair of the Mortgage Bankers Association of Minnesota and the Mortgage Association of Minnesota (MAM), where he has worked for over five years.
The MMA was formed in 2007 when the MAM and the Minnesota Association of Mortgage Brokers merged.
Bell Mortgage is a division of Bell State Bank and Trust Bell Mortgage and is Minnesota’s oldest and largest privately-owned mortgage-banking company. Raverty lives with his wife and four children in North Saint Paul.
Home sales across the state were up 13 percent compared with last year, and the median sale price of those deals was up almost 11 percent. That's according to a monthly sales report from the Minnesota Association of Realtors, which tracks homes sales in 13 economic development regions throughout the state. New listings statewide were up 14 percent, but there were wild variations in sales activity from region to region. In the Northwest region, for example, closings were down 46 percent, while closings in the Arrowhead nearly doubled. Such variations aren't unusual because of the small sample size, but the trends are clear: The recovery is happening unevenly across the state. Click here to see a summary of sales activity those regions.
The report comes on the same day that the National Association of Realtors released its September sales report, which showed that sales across the country were down 1.9 percent - a smaller decline than expected.