Sherman Associates has revitalized a city block in downtown Minneapolis with affordable and market-rate housing.
The local development firm unveiled Ladder 260, which provides 90 affordable homes, and O2 Luxury Tower, which features 240 market-rate apartments, in the Mill District neighborhood.
The housing follows the construction of a new Minneapolis Fire Station 1, completed by Sherman in 2022. The station is approximately 19,500 square feet and consists of an apparatus bay to house fire trucks and a connected two-story structure providing office space, sleep areas, common areas, locker rooms, and a rooftop patio.
“We believe that healthy neighborhoods are built on diversity of both people and uses, and it takes a determined, collaborative effort from public and private partners to bring these communities to life,” said George Sherman, CEO of Sherman Associates. “We are grateful for our partnership with the city of Minneapolis, and its commitment to creating more housing where it is needed. We look forward to doing more projects that follow this successful model.”
The $161 million multi-phase redevelopment is on an approximately 1.75-acre site, which consisted of a surface parking lot and the former Fire Station 1 that was built in 1909. Sherman and the city collaborated to develop a new and larger station to serve the growing neighborhood and optimize the layout of the city block for Ladder 260 and O2.
The firm secured tax increment financing for Ladder 260 that utilized a special allocation from O2, the market-rate development.
In addition to the city, financing partners for the $34 million Ladder 260 development include RBC Community Investments, American National Bank, National Bank of Commerce, JLL, AFL-CIO Housing Investment Trust, Minnesota Housing, and the Metropolitan Council Local Housing Incentives Account.
The community serves households earning 30% to 60% of the area median income. Ladder 260 uniquely provides free internet to each apartment home.
O2 Luxury Tower is a $115 million project financed by a bank group led by Associated Bank. The 22-story development features smart-home technology, including smart thermostats, locks, and lights that allow residents to easily monitor energy usage in their homes.
At the street level, 5,500 square feet of commercial space builds on the activation in the area. Energy usage for O2 is partially offset by energy production from a solar garden located in Carver County.
“This project embodies our commitment to providing high-quality housing options that meet the diverse needs of our community,” said Carole Mette, senior developer at Sherman Associates. “By integrating affordable and luxury living, we’re enriching the fabric of the Mill District and creating a vibrant environment where people can thrive. We remain dedicated to developing sustainable, innovative spaces with a unique financing strategy that responds to the evolving needs of urban communities.”
Kraus-Anderson is the general contractor, and ESG Architecture & Design is the architect.
Ladder 260 and O2 Luxury Tower join Sherman’s development portfolio of nearly 1,000 units in the Mill District and Elliot Park neighborhoods, with another another 216 units opening this month at Groove Lofts at Northstar Center in downtown Minneapolis.