$77 million worth of financing has been secured by Minnesota real estate development company Schafer Richardson, for Soul mixed-use development in Saint Paul, Minnesota.
Multifamily financing provider Merchants Capital arranged the funds. A $33 million construction loan came from Merchants Bank of Indiana (MBI). A $16.6 million bridge loan came from MBI equity while $27.4 million came from Freddie Mac Tax-Exempt Loan.
RBC Capital Markets served as the equity provider while the City of St. Paul contributed through the allocation of American Rescue Plan Act funds and grants.
An overview of the Soul mixed-use development in Saint Paul
The Soul mixed-use development is located at the intersection of Robert Street and Plato Boulevard, a redevelopment site of a current city infill. All construction will be completed as union labor and union construction.
The development will comprise 178 one-, two-, three- and four-bedroom units. There will also be a total of 178 units. Of the entire units, 23 three-bedroom and 12 four-bedroom apartments will be restricted at 30 percent area median income (AMI). These units will remain affordable at 30 percent AMI for 30 years.
The remaining 143 units will be restricted to individuals earning 60 percent AMI or lower. They will remain so for 40 years.
The Soul mixed-use development in Saint Paul is designed to earn an Enterprise Green Communities Certification. It will also meet all necessary standards to comply with the City of St. Paul’s sustainable building policy.
Environmental cleanup of the area will be associated with the redevelopment. Additionally, the development will feature solar panels on the roof to support lower electricity rates.
Kaas Wilson Architects is the project architect, while Weis Builders is the general contractor. Construction is expected to be completed in the second quarter of 2024.