MINNEAPOLIS – June 9, 2016 – CBRE Capital Markets has arranged $77.8 million in bridge financing for LPM apartments, a 354-unit luxury high-rise apartment tower with ground-floor retail in Minneapolis, Minnesota.
Murray Kornberg and Jessica Lytle of CBRE’s Minneapolis office represented the sponsor—Chicago-based developer Magellan and their joint-venture partner DeBartolo Development, on the project. CBRE secured the loan through its relationship with New York-based TPG Real Estate Finance Trust. The non-recourse loan was sized at approximately 65% total project costs and at a competitive market interest rate. The new loan was used to retire the borrower’s maturing construction loan on the property.
“We appreciate the diligence and professionalism that the CBRE team demonstrated in securing this transaction. Our Magellan team will always welcome the opportunity for future engagements with CBRE,” noted David Carlins, President of Magellan Development Group.
“This was a complicated financing to complete given the borrower’s organizational structure and the challenging capital markets environment. The borrower and lender were both creative in structuring the loan in order to meet the borrower’s refinancing requirements,” said Mr. Kornberg, Senior Vice President, CBRE Capital Markets.
Located in the Loring Park neighborhood of Minneapolis, the building is completing lease-up and is expected to reach stabilized occupancy later this year. The retail portion of the project is 100% occupied as of March 2016. Tenants include Eggy’s Diner, YogaFit, Inspire—an arts and crafts shop with a humanitarian mission—and a12,500 square-foot Lakes & Legends Brewing Company brewery and taproom.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.