Marcus & Millichap Capital Corporation Arranges $89.6 Million Construction Financing for Two Minnesota Multifamily Projects
Marcus & Millichap Capital (MMCC) has arranged $89.6 million in construction financing for two multifamily projects in Chanhassen, Minnesota. The financing package includes $77.5 million in senior proceeds from Kayne Anderson and $12.1 million in mezzanine financing from SteepRock Capital for Minnesota-based Roers Companies.
The projects include the Bennett Apartments, featuring 184 units and 11,853 square feet of retail space, and the Harlow Apartments, offering 126 units and 3,029 square feet of retail space. Both developments, located 15 miles southwest of Minneapolis, are expected to be completed in 2026. The financing deal attracted significant interest from national lenders due to the Midwest's robust economic growth and strong rental demand with supply.
Marcus & Millichap Capital (MMCC) ha organizzato un finanziamento per costruzioni di 89,6 milioni di dollari per due progetti multifamiliari a Chanhassen, Minnesota. Il pacchetto di finanziamento include 77,5 milioni di dollari in proventi senior da Kayne Anderson e 12,1 milioni di dollari in finanziamenti mezzanini da SteepRock Capital per le società Roers con sede in Minnesota.
I progetti includono gli Appartamenti Bennett, che comprendono 184 unità e 11.853 piedi quadrati di spazio commerciale, e gli Appartamenti Harlow, che offrono 126 unità e 3.029 piedi quadrati di spazio commerciale. Entrati sviluppi, situati a 15 miglia a sud-ovest di Minneapolis, dovrebbero essere completati nel 2026. L'accordo di finanziamento ha attratto un notevole interesse da parte di creditori nazionali grazie alla forte crescita economica del Midwest e alla forte domanda di affitti.
Marcus & Millichap Capital (MMCC) ha conseguido un financiamiento de 89,6 millones de dólares para dos proyectos multifamiliares en Chanhassen, Minnesota. El paquete de financiamiento incluye 77,5 millones de dólares en ingresos senior de Kayne Anderson y 12,1 millones de dólares en financiamiento mezzanine de SteepRock Capital para las compañías Roers con sede en Minnesota.
Los proyectos incluyen los Departamentos Bennett, que cuentan con 184 unidades y 11,853 pies cuadrados de espacio comercial, y los Departamentos Harlow, que ofrecen 126 unidades y 3,029 pies cuadrados de espacio comercial. Ambos desarrollos, ubicados a 15 millas al suroeste de Minneapolis, se espera que se terminen en 2026. El acuerdo de financiamiento generó un gran interés de los prestamistas nacionales debido al sólido crecimiento económico del Medio Oeste y la fuerte demanda de alquileres.
Marcus & Millichap Capital (MMCC)는 미네소타 주 샨하센에 있는 두 개의 다세대 주택 프로젝트를 위해 8,960만 달러의 건설 자금을 마련했습니다. 자금 조달 패키지에는 Kayne Anderson로부터 7,750만 달러의 시니어 수익과 SteepRock Capital로부터 1,210만 달러의 메자닌 자금이 포함되어 있습니다.
프로젝트는 상업 공간 11,853 제곱피트와 184개의 유닛을 갖춘 베넷 아파트와 126개의 유닛과 3,029 제곱피트의 상업 공간을 제공하는 하를로 아파트를 포함합니다. 두 개발 모두 미니애폴리스에서 남서쪽으로 15마일 떨어진 곳에 위치하고 있으며, 2026년에 완공될 예정입니다. 이 자금 조달 거래는 중서부의 견고한 경제 성장과 높은 임대 수요로 인해 전국 대출자들의 많은 관심을 끌었습니다.
Marcus & Millichap Capital (MMCC) a organisé un financement de construction de 89,6 millions de dollars pour deux projets multifamiliaux à Chanhassen, Minnesota. Le paquet de financement comprend 77,5 millions de dollars en produits seniors de Kayne Anderson et 12,1 millions de dollars en financement mezzanine de SteepRock Capital pour les entreprises Roers basées au Minnesota.
Les projets comprennent les Appartements Bennett, avec 184 unités et 11 853 pieds carrés d'espace commercial, et les Appartements Harlow, qui offrent 126 unités et 3 029 pieds carrés d'espace commercial. Les deux développements, situés à 15 miles au sud-ouest de Minneapolis, devraient être achevés en 2026. L'accord de financement a suscité un intérêt considérable de la part des prêteurs nationaux en raison de la croissance économique robuste du Midwest et de la forte demande en matière de loyers.
Marcus & Millichap Capital (MMCC) hat 89,6 Millionen Dollar an Baufinanzierungen für zwei Mehrfamilienprojekte in Chanhassen, Minnesota, arrangiert. Das Finanzierungspaket umfasst 77,5 Millionen Dollar an Senior-Erlösen von Kayne Anderson und 12,1 Millionen Dollar an Mezzanine-Finanzierung von SteepRock Capital für die in Minnesota ansässigen Roers Companies.
Die Projekte umfassen die Bennett Apartments, die 184 Einheiten und 11.853 Quadratfuß Einzelhandelsfläche bieten, sowie die Harlow Apartments, die 126 Einheiten und 3.029 Quadratfuß Einzelhandelsfläche anbieten. Beide Entwicklungen, die 15 Meilen südwestlich von Minneapolis liegen, sollen 2026 fertiggestellt werden. Der Finanzierungsdeal erregte aufgrund des robusten Wirtschaftswachstums im Mittleren Westen und der starken Mietnachfrage erhebliches Interesse von nationalen Kreditgebern.
- Secured substantial $89.6M construction financing package for two new developments
- Projects will add 310 residential units plus retail space to a high-demand market
- Strong interest from national lenders indicates market confidence
- Location benefits from robust economic growth and strong rental demand
- Long construction timeline extending to 2026 delays revenue generation
- Significant debt financing may impact future financial flexibility
Insights
This $89.6 million construction financing deal showcases MMCC's strong execution capabilities in a challenging capital markets environment. The sophisticated financing structure, combining institutional-grade senior debt with mezzanine financing, reflects evolving market dynamics where traditional construction lending has become more selective.
The deal's significance extends beyond its size. First, it demonstrates national lenders' growing appetite for Midwest markets, particularly noteworthy given current market uncertainties. The Minneapolis suburban submarket's fundamentals are attracting institutional capital, with Kayne Anderson's $77.5 million senior debt commitment serving as a strong vote of confidence.
The mixed-use component (approximately 15,000 square feet of retail space across both properties) aligns with current market preferences for integrated live-work-play environments. This aspect could enhance the projects' resilience and potential income diversification.
For Marcus & Millichap (MMI), this transaction represents more than just fee income. It reinforces their capital markets capabilities during a period of reduced transaction volume across the commercial real estate sector. The deal's successful execution, particularly in securing institutional capital for midwest development, could position MMCC favorably for similar opportunities as regional markets continue to attract national investor interest.
Gary Sefcik in MMCC’s
“In addition to strong, locally based sponsorship and the desirability of the
The Bennett Apartments, located at 591 West 78th St., plan to feature 184 units and 11,853 square feet of prime retail space. The Harlow Apartments, at 570 Market St., plan to offer 126 units and 3,029 square feet of retail space. The projects are expected to be completed in 2026 and provide future residents with luxury finishes and amenities.
About Marcus & Millichap Capital Corporation
Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE:MMI), a leading commercial real estate investment services firm with offices throughout
About Marcus & Millichap, Inc. (NYSE:MMI)
Marcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20250129040443/en/
Gina Relva, VP of Public Relations
Gina.relva@marcusmillichap.com
Source: Marcus & Millichap Capital Corporation
FAQ
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