The Rune mixed-use project in Minnesota is set to benefit from a US$ 32.6M subsidy. The funds were acquired by the developer of the project, GoodNeighbor Properties. First Western Bank issued a US$ 21.5M senior construction credit. Enhanced Capital on the other hand contributed US$ 5M in C-PACE financing and US$ 6M in equity.
The Rune mixed-use project will be developed on 2.5 acres of property in Alexandria, Minnesota. The site is about 130 miles northwest of Minneapolis, at 319 Broadway Street. The development will be a four-story building. It will feature 72 luxury apartments, 27,700 square feet of retail space, and a 90-seat restaurant. The apartments will be designated for people aged 55 years and above.
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Additionally, the building will include subterranean parking.
Commentary on The Rune Mixed-Use Project subsidy
Tim Milazzo, CEO of StackSource, commented on the project subsidy. He said that it is crucial to collaborate with a team of experts, especially, those that can provide meaningful solutions to the capital stack beyond senior debt as interest rates continue to increase.
On the other hand, Ian McCulley, said his firm was happy to join hands with such an amazing team. McCulley is the director at Enhanced Capital responsible for the company’s C-PACE division. He explained that the team would deliver environmentally friendly senior housing in an area that can greatly benefit from greater supply.”
Moreover, Ted Christianson, a founding partner of GoodNeighbor, praised Mercante for her hard effort in assisting with the transaction. He said, “My adage, ‘Anyone can find a reason to say no,’ is exemplified by Beth and her crew. Successful individuals can always get a yes!”
