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.