Dec 22, 2021 - Real Estate

A pair of late-year wins for downtown Minneapolis

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.
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