Debt and equity capitalization secured for 275-unit multi-housing development in Minneapolis-St. Paul

MINNEAPOLIS, March 11, 2022 – JLL Capital Markets announced that it has arranged construction financing and secured equity for the development of Minnetonka Station, a 275-unit, Class A, transit-oriented multi-housing development project in Minnetonka, Minnesota.

JLL represented Linden Street Investments to arrange a joint venture with Virtus Real Estate Capital, as well as a four-year, floating rate construction loan with Bank OZK. Stevens Construction Corp. is the general contractor.

Minnetonka Station represents Linden Street’s entry into the Minneapolis-St. Paul MSA, after multiple successful multi-housing and mixed-use developments throughout the Midwest. Linden Street is led by Scott Richardson, Principal. Within this transaction, Stevens Construction Corp brings decades of experience in general contracting and development in Wisconsin and Minnesota, while Virtus Real Estate Capital is an experienced investor in the Minnetonka submarket through their ownership of the nearby RIZE at Opus Park.

“Linden Street has found success developing in east coast and midwestern markets dedicated to smart growth. We spent two years collaborating with Minnetonka city staff to entitle a project that is sustainable, visually appealing and that will contribute much-needed housing to the western Minneapolis suburbs,” said Richardson.

Located at 10400 Bren Rd. East, the development is situated in the Opus Park neighborhood of Minnetonka, eight miles southwest of Minneapolis-St. Paul and half of a mile from Edina. Located within Opus Business Park, the project will afford residents easy access to over 4.2 million square feet of commercial space and more than 14,000 jobs in the immediate area. The project is adjacent to the Southwest Light Rail Transit’s Green Line Extension, a major light rail expansion that will allow Minnetonka Station residents to commute by rail to downtown Minneapolis in just 22 minutes.

The JLL Capital Markets team was led by John Marshall, Matt Benson, Josh Talberg and Kellan Liem. The Minneapolis multifamily investment sales team, including Dan Linnell, Mox Gunderson and Adam Haydon, provided local market support.

“Linden Street was able to create a win-win solution with the city of Minnetonka and create a project that blends market rate and affordable units, while providing sustainable, transit-oriented housing,” said Marshall. “This vision and their track record allowed JLL to secure multiple, attractive bids from both institutional joint venture partners and national construction lenders to capitalize the full project cost. We look forward to Linden Street’s continued growth and a successful project with Virtus and Bank OZK.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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