A former Weyerhaeuser lumber site in St. Paul, Minn., will be developed into 362 affordable apartments by Dominium.
U.S. Bank announced today that it closed on two low-income housing tax credit (LIHTC) financing packages of more than $45 million with Dominium, a leading developer and owner of apartment communities, to finance the ambitious project.
The development includes 241 affordable apartments for seniors and 121 housing apartments for families. The development includes a park and a bike trail, along with three roads to be dedicated to the city of St. Paul upon construction completion.
“Dominium is a great steward of the tax credit program as exemplified by this deal. By seamlessly integrating 362 affordable housing units into St. Anthony Park, they are giving a number of residents the opportunity to live in a great Twin Cities location who otherwise might not be able to. We’re proud to be a part of the positive impact this will have on the community for years to come,” said Kyle Kochtanek, assistant vice president of U.S. Bancorp Community Development Corp. (USBCDC), a subsidiary of U.S. Bank.
Dominium will immediately start construction on the development, with an anticipated completion date in early 2020.
“This is the largest new construction project we have done to date, and it would not have been possible without USBCDC as our development partner,” said Owen Metz, vice president and project partner for Dominium of Plymouth, Minn. “We are excited to provide the city of St. Paul with a development that thousands of seniors and families can call home over the coming years.”
“We are thrilled to have partnered with Dominium on the creation of new affordable rental units in a prospering neighborhood near the Green Line. Providing affordable housing for our growing city is a priority and essential to keep St. Paul vibrant and thriving,” said Patty Lilledahl, housing director for the city.
U.S. Bank invested $45 million raised through its investments in federal LIHTCs. Dougherty Mortgage provided $51 million in permanent loans insured by the Department of Housing and Urban Development. Bonds underwritten by Dougherty & Co. are bridging the equity provided by USBCDC. The city of St. Paul provided a $600,000 permanent loan and allocated the tax-exempt bonds. The LIHTCs were allocated by the Minneapolis/St. Paul Housing Finance Board.
