GoodNeighbor Properties secured $40.3 million in construction funding to build a mixed-use development in Minnesota, Commercial Observer Can First report.
First western bank provided a senior construction loan of $30.8 million for the project planned by GoodNeighbor on a 2.5-acre lot in Alexandria, Minnesota. Improved Capital provided $6 million in equity and $3.5 million in Commercial Property Assessed Clean Energy (C-PACE) funding as part of the deal.
Stack Sourcean online commercial real estate platform, arranged the transaction with a team led by Beth Mercante, Senior Vice President of Business Development, and Chris Peters, director.
The Manhattan-based company is coming off a busy 2021 in which it grew its origination volume by more than 200% from 2020 levels.
“As interest rates continue to rise, it’s important to work with a team of professionals who can bring real solutions to the capital stack beyond senior debt,” Tim MilazzoCEO of StackSource, said in a statement.
The GoodNeighbor Properties project is at 319 Broadway St. about 130 miles northwest of Minneapolis. GoodNeighbor plans 72 luxury apartments for those 55 and older, 27,700 square feet of retail space and a 90-seat restaurant in a four-story structure. The property will also include underground parking.
Ted Christiansonfounding partner of GoodNeighbor, credited Mercante with his diligent work in helping close the deal.
“Beth and her team are living proof that I say, ‘Anyone can find a reason to say no. Successful people find a yes! Christianson said in a statement.
Officials at First Western Bank and Enhanced Capital did not immediately respond to requests for comment.
Andrew Coen can be reached at [email protected].