CEDARst Closes $170M in Capital to Develop Apartment Project in Minneapolis

by Kristin Harlow

MINNEAPOLIS – CEDARst Cos., a national multifamily developer, has closed $170 million in capital with plans to develop 358 apartment units above 40,000 square feet of retail space along North Sixth Avenue in the North Loop neighborhood of Minneapolis. CEDARst has invested nearly $250 million of capital in the North Loop over the past two years, having successfully developed the Duffey, its first development in the submarket consisting of 188 apartment units, located at the corner of North Sixth and North Washington avenues.

CEDARst’s second development, Duffey 2.0, consists of both an adaptive reuse and ground-up component. It is located within a landmark overlay and required approval from the National Park Service for the procurement of historic tax credits at the state and federal level. This represents CEDAR’s seventh tax credit development.

In addition to syndicating over $30 million of tax credits, CEDARst partnered with ULLICO on a $101 million construction loan and Pearlmark on a $12 million structured finance investment. The remaining $27 million was CEDARst equity. Pat Minea and Dan Trebil of Northmarq arranged the financing on behalf of CEDARst.

CEDARst has already broken ground and plans to complete the development by the end of 2023. BKV is the architect of record. RJM will serve as the project’s general contractor.

Duffey 2.0 will include a robust amenity package consisting of multiple food and beverage concepts that will be managed by CEDAR’s hospitality team. Concepts will include a rooftop bar and restaurant overlooking the city with a large outdoor seating area, a New York City-style bodega and coffee house.

Additional amenities will include a rooftop pickleball court, which will double as an ice rink during winter months, rooftop lounge and pool, spa and wellness facilities, fitness facilities, bowling alley, movie room, golf simulator and large coworking space. A skyway connects the two existing structures.

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