Beltline Station

JLL is seeking $32.53MM of joint venture equity for the development of Beltline Station. This project is a 298-unit, two-building market rate multifamily development with 19,300 SF of retail space and 394 parking spaces located in St. Louis Park, a thriving first-ring suburb of Minneapolis. The blue-chip Sponsorship Team of Sherman Ventures, which includes Sherman Associates and Almanac Realty Investors, a business unit of Neuberger Berman, has a successful track record with 16 projects across the country. They have been working on this project with the City since 2017, resulting in favorable incentives and financial grants. Equity investors in this project will benefit from a $9.3MM TIF in cash flows and over $3.2MM in public funding, reducing their cost basis. The project is currently shovel-ready, with all entitlements, construction drawings, and construction pricing finalized and approved.

The Beltline Station project is of vital importance to the City due to its transit-oriented location along the Beltline Boulevard Station of the Metro Green Line Extension. The Extension project, scheduled for completion in 2027, is a significant $2.74 billion project connecting the esteemed western suburbs to the Twin Cities, sports arenas, and the international airport. Beltline Boulevard Station, one of the City's three Metro Stations, and the very first outside of Minneapolis will be directly along the project. The City is eager for development to begin as soon as possible to avoid the conversion of one of the last few developable sites in the neighborhood to surface parking by Metro Transit authority to serve transit riders.

The larger Beltline Boulevard project consists of four buildings, but this Offering specifically includes Buildings 1 & 3, which house a total of 298 units, along with their associated parking stalls in the parking ramp structure. Building 2, which comprises 82 units of LIHTC apartments, and the public portion of the parking ramp have also received considerable financial support from the City and Metro Council but are not part of the current Offering.

Investment Summary

• Project Name: Beltline Station
• Address: 3251, 3285, & 3130 Beltline Blvd., St. Louis Park, MN
• Units: 298
• NRA: 259,017 SF (Residential) | 19,300 SF (Commercial)
• Total Project Costs Net of TIF: $94,893,000 | $318,000/unit
• Apartments & Parking Project Costs Net of TIF: $87,670,000 | $294,200/unit
• Requested Equity (90/10): $32,535,000 ($109,200/unit)
• Sponsor Equity: $3,615,000 ($12,100/unit)
• Underwritten Construction Loan: *Please Note: The Sponsors have received commitments from repeat lenders for first mortgage and preferred equity funding, both with union ties as noted below. JLL has UW conventional financing but also has the lender commitment format modeled in the Deal Room.
• $64,750,000
• 7.10%, being 3-year SOFR SWAP Rate + 2.60%

Return Metrics

• Return on Cost:
• Untrended Yield on Cost, Private Sources: 7.10% | Net of TIF: 6.98%
• Trended Yield on Cost, Private Sources: 7.36% | Net of TIF: 7.10%
• Levered Return:
• Bridgewater Bank, AFL-CIO, WhiteStar financing: 27.33%
• JLL Underwritten Financing: 25.84%
• Lender/Preferred Equity Commitments:
• Construction Loan Commitment from Bridgewater Bank and AFL-CIO: 
• $59,646,000
• Interest Rate: 5-year UST + 2.60% (fixed rate)
• Preferred Equity Commitment from WhiteStar Real Estate:
• $11,00,000
• Dividend: 5.25% current pay / 5.25% accrual