Jones Lang LaSalle Incorporated: New multi-unit project in the suburb of Minneapolis capitalized
MINNEAPOLIS, October 21, 2021 – JLL Capital Markets announced today that it has put in place $ 85.1 million in joint venture capital and construction finance for the development of Paravel, a market-leading 246-unit community in the suburbs. from Minneapolis to Eden Prairie, Minnesota.
JLL worked on behalf of the borrower, Timberland Partners, to secure the $ 59.5 million fixed rate long-term construction loan through a life insurance company. In addition, JLL raised $ 25.6 million in joint venture capital from a wealthy family office.
This premier asset, located on 4.96 irreplaceable acres, will include 246 units in total (245 apartment units and 1 guest suite), 358 structured underground parking spaces and 67 surface parking spaces. The mix of units will include studio, one-bedroom, two-bedroom and penthouse units.
Eden Prairie, an affluent southwestern suburb of Minneapolis, is consistently ranked one of the best places to live in America by Money Magazine, boasting a high quality of life and a top-ranked school district. It is also located close to jobs with around 5.5% of jobs in the Metro Twin Cities based within a 10-minute drive of the site, growing to over 30% in 20 minutes. Residents will also benefit from being less than a mile from Interstate 494 and close to the South West-Light Rail transit line under construction, which will connect the Southwest Metro to downtown Minneapolis. Paravel will be 0.5 miles from Eden Prairie Town Center Station and 0.7 miles from Southwest Station.
Located at 8300 Commonwealth Dr., Paravel is part of the Castle Ridge mixed-use development. This growing master plan is being completely revamped with a mix of residences, restaurants and businesses. The Eden Prairie Shopping Center with over 90 shops and restaurants is a short walk from the site. The site also has direct trail access and is immediately adjacent to Purgatory Creek Park, which connects to over 200 miles of regional trails.
The Twin Cities region is known for its unrivaled concentration of Fortune 1000 companies and world famous natural and cultural sites. Minneapolis-St. Paul is home to numerous US headquarters for life sciences, financial services, and manufacturing companies. With one of the lowest unemployment rates in the country, investors, employers and workers continue to be drawn to Minneapolis-St. Paul, which is home to one of the most diverse and prosperous economies in the world.
The JLL Capital Markets Investment and Debt Advisory teams representing the borrower were led by Senior Directors Josh Talberg, Brock Yaffe, Dan Linnell and Mox Gunderson, Directors Pat McMullen and Adam Haydon, Partner William Haass and Senior Managing Director Ken Dayton.
“JLL is grateful to be a part of this important transaction,” said Talberg. “Paravel is a game-changer for Eden Prairie and will set the bar for new construction in terms of quality and amenities, while bringing much-needed housing to the supply-constrained southwest Minneapolis submarket. The whole team worked extremely hard to make this a reality. in what was a tough environment after Covid, and I just can’t say enough good things about Timberland Partners. It’s a very good day for the city of Eden Prairie and the market in general.
“Paravel reflects the continued interest and demand by investors and lenders for prime assets in the Twin Cities market, and in particular for suburban areas such as the sought after sub-market of southwest Minneapolis Said Senior Manager Brock Yaffe. “We are very happy and grateful to have been involved in one of the largest fundraising and debt placements for a Twin Cities suburban project in 2021.”
JLL Capital Markets is a global full service provider of capital solutions for real estate investors and occupiers. The company’s in-depth knowledge of the local market and global investors provides the best solutions for clients – whether it is investment sales and advice, debt advice, equity advice or recapitalization. The company has more than 3,000 capital markets specialists around the world with offices in nearly 50 countries.
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