Construction begins on $68 million apartment in north Minneapolis shopping complex

Developer Tim Baylor — flanked by employees, associates, supporters and city officials — broke ground Thursday on the largest market-to-market housing project ever on North Minneapolis’ main commercial thoroughfare.

After seven years of planning and fundraising, Baylor has launched the first phase of a $68 million project that will eventually include up to 220 apartments and retail space on three blocks along W. Broadway lower.

The first phase of 112 apartments will be aimed primarily at middle-class tenants, with 20% earmarked for those with incomes up to 60% of the Twin Cities area median.

Baylor, a Washington, D.C. native, stayed in Minneapolis after playing for the Minnesota Vikings, building a career as a corporate property manager and McDonald’s franchisee on the North Side and elsewhere in the Twin Cities. He formed JADT Development, along with Doris, his wife of 48 years, their son and other employees.

“If I’m good at anything … it’s translating an idea into action,” Baylor told a crowd of several hundred at the construction site Thursday. “And I love playing in the [real estate] dirt. And Doris was friendly. Most of the time.”

Several speakers praised Baylor for its dogged determination to craft a plan and package that involved acquiring multiple properties, myriad city and community approvals, and piecing together a complex mosaic of equity financing. and by loan on what will be a few years of construction on the whole project.

“Tim asked to create a quality building for a quality community,” said Mohammed Lawal, the 11-year-old founder of LSE Architects from the North Side. “I’ve said at times that we need to make the vision smaller… than 216 housing units on three blocks.”

Baylor stuck to the groundbreaking plan that sought to significantly revitalize a disproportionately lower-income community made up of people of color.

“A vision has come to fruition and it’s a beautiful day on the North Side,” said Mayor Jacob Frey, who noted the lack of investment and “intentional segregation” that has always plagued the area. “Tim and Doris … pursue diversity in people and socio-economic classes. It doesn’t fill a void, it revitalizes a community.”

Major financial players include Catalyst Opportunity Funds, a Utah institutional investor seeking projects in economically disadvantaged areas; David Mortenson, president of Mortenson Construction; and retired Ecolab CEO Doug Baker.

The net worth of the project would approach 50% of the overall capitalization, including a mortgage. Equity includes land and “patient capital” of long-term investors who might not get what is considered a total market return, as well as tax-credit investors in a neighborhood that has been declared a federal opportunity eligible for tax benefits. area.

The city, county and state have also contributed funds to ensure that approximately 20% of all apartments are set aside for low-income renters.

“No one is more persistent or determined than Tim Baylor,” Mortenson said. “Tim did this because he cared about this community.”

Mortenson called the project “just the beginning” of reconstruction-based economic development, job training and opportunities for neighbors.

It is also the largest development launched in the W. Broadway shopping corridor. When complete, it will total approximately $125 million and will include two major affordable housing projects, several commercial building renovations, and renovations to neighborhood arts stalwarts, Juxtaposition Arts and the Capri Theater.

Andrea Brennan, Minneapolis’ director of planning and community development, said the city is providing up to $3.9 million in additional tax liabilities to the first phase of Satori Village, a 112-apartment building.

The funds, which will be covered by an increase in property taxes over the years, will help the developer provide 20% of discounted housing to renters with household incomes below 60% of the Twin Cities median household income. Satori’s first phase is valued at around $33 million.

“It’s really exciting,” Brennan said. “New construction and more market rate housing will help spur additional investment on the North Side. It is difficult to get appraisals and financing without more market rates. We are grateful for Tim Baylor’s investment and its partners. And we need more housing in town.”

Brennan said Hennepin County and the Minnesota Department of Jobs and Economic Development are also contributing about $800,000 in funding.

The second and third phases of Satori Village are pending on nearby land assembled by the developer.

Comments are closed.