Opus Seals Financing Deal for Nicollet Residences

By Gabriel Circiog, Associate Editor Opus Development has secured financing for a 27-story residential development in Minneapolis, the Minneapolis / St. Paul Business Journal reports. Dave Menke, senior vice president & general manager of Opus Development, confirmed the company has sealed a financing deal with an unnamed large regional bank. He said demolition work is [...]

Opus Development has secured financing for a 27-story residential development in Minneapolis, the Minneapolis / St. Paul Business Journal reports.

Dave Menke, senior vice president & general manager of Opus Development, confirmed the company has sealed a financing deal with an unnamed large regional bank. He said demolition work is scheduled for early October, and construction of the Nicollet Residences could start in early December.

The 250-unit luxury apartment tower is set to become the tallest building constructed in downtown Minneapolis in five years. The estimated $90 million high-rise luxury rental building, located at the corner of Nicollet Mall and South Fifth Street, has been designed to achieve LEED certification. Amenities will include a fitness center, a yoga studio, a private theater, an outdoor roof terrace with pool and spa and a 24/7 door attendant and concierge service.

Designed by Opus AE Group Inc. and Elness Swenson Graham Architects, the project is being developed by Opus Development Corp., with Opus Design-Build L.L.C. constructing the building.

Opus is set to take advantage of an improving rental market. According to a recent market report released by Marcus & Millichap, the average asking rents have climbed 2.4 percent in the past year, reaching $972 per month, while the Class A asking rents increased by 1.1 percent, reaching $1,155 per month in the first half of 2012. Operators are expected to record the highest annual asking rent increase since 2008, due to low vacancy this year.

As previously reported on this page, Opus Development is currently constructing a 212,000-square-foot office building adjacent to Nicollet Residences. The nine-story building will be fully leased to Xcel Energy.

For more market data on Minneapolis, please click here.

Rendering Courtesy of: www.ci.minneapolis.mn.us

Chart Courtesy of: Marcus & Millichap Real Estate Investment Services Inc.