Three executives from Bloomington-based Doran Cos. broke ground Thursday on a $30 million luxury townhouse and apartment community in Tonka Bay that will be the first multifamily complex for the area, which sits on the south shore of Lake Minnetonka.
The 86-unit project by Doran RE Partners could significantly boost the population of the town, which has about 1,561 residents on just 2 square miles of land. The project will be situated along County Road 19 next to the Tonka Bay Village shopping center.
“We understand the community here and are excited to contribute to its vitality while preserving its historic charm,” said Doran Cos. CEO and Doran RE partner Anne Behrendt.
Tonka Bay Mayor Gerry De La Vega said Friday that the community is “really excited. We think it’s a great addition” because it will offer the first apartments for the broader area that includes Tonka Bay, Excelsior, Deephaven, Shorewood and Greenwood. It’s important, “particularly since a lot of residents are now downsizing. A lot of them want to stay in the community but don’t have many options. So this will serve them well.”
The complex should also help the area economically, De La Vega said, noting that part of the project will be built where about 10 vacant stores now sit at Tonka Bay Village, which has roughly 20 storefronts.
Once completed, a road will separate Doran’s new housing project from the downsized shopping center.
The complex has been in the planning process for two years and was delayed by the COVID-19 pandemic. It is expected to be completed by summer 2021, a spokeswoman said.
Doran RE Partners paid about $2 million for the land. The final project will feature two buildings with two-story townhouses plus apartment units with one, two and three bedrooms. The upscale complex will also feature a pub, business center, coffee bar, lounges, bike repair station, dog run and pet spa, heated garage, fitness center and an entertainment suite.
Behrendt said potential renters are already making inquiries. “We simply can’t build it quickly enough.”
The project is one of two that Doran RE Partners is pursuing in the area. It is in the process of building the Birke luxury multifamily complex in Minnetonka that is scheduled to open to residents later this year.