Dec 22, 2021 - Real Estate

A pair of late-year wins for downtown Minneapolis

Nick Halter

The rendering of a downtown Minneapolis apartment tower that will be built next to U.S. Bank Stadium. — This rendering shows an apartment tower that will be built next to U.S. Bank Stadium. Image courtsey of Ryan Cos.

In a span of about two months, developers will break ground on high-rise towers on opposite ends of downtown Minneapolis.

Why it matters: News like this was commonplace during downtown's boom from 2014 to 2020. But Minneapolis housing development has slowed dramatically in late 2020 and early 2021 following COVID-19, civil unrest and crime concerns, as well as new city housing regulations.

Investors betting hundreds of millions of dollars that people still want to live, work and play downtown is a great sign for the city.
"None of it has knocked us on our back," said Minneapolis Downtown Council president Steve Cramer.

Details: Minneapolis-based Ryan Cos. confirmed that it will — with partner Weidner Apartment Homes — start digging early next year for a 24-story, 342-unit apartment tower next to U.S. Bank Stadium.

In early November, Houston-based Hines broke ground on a 36-story tower next to Target Field that will have 350 apartments, 100 short-term rental units and will be paired with a 14-story tower with 350,000 square feet of office space.

Between the lines: Housing investors have gained some certainty because residents re-elected and gave more power to Mayor Jacob Frey, who opposes rent control.

Yes, but: Cramer said investors still have uncertainly about downtown public safety and want to see what the new City Council will do about it.

What to watch: The next potential big project in downtown Minneapolis could be a redevelopment of the city's former public service block at Third Avenue and Fourth Street.

The city entered into exclusive negotiations with a Chicago developer in April.

Add Axios on Google

A pair of late-year wins for downtown Minneapolis

More Twin Cities stories