10/21/2021 | Press release | Distributed by Public on 10/21/2021 12:44
MINNEAPOLIS, Oct. 21, 2021 - JLL Capital Markets announced today that it has arranged $85.1 million in joint venture equity and construction financing for the development of Paravel, a 246-unit best-in-market multi-housing community in the Minneapolis suburb of Eden Prairie, Minnesota.
JLL worked on behalf of the borrower, Timberland Partners, to secure the $59.5 million long-term construction-to-permanent fixed rate loan through a Life Insurance Company. Additionally, JLL sourced $25.6 million in joint venture equity from a high-net-worth family office.
This best-in-class asset, situated on 4.96 irreplaceable acres will include 246 total units (245 apartment units and 1 guest suite unit), 358 underground stalls of structured parking, and 67 stalls of surface parking. The unit mix will include studio, one-bedroom, two-bedroom and penthouse units.
Eden Prairie, an affluent southwest suburb of Minneapolis, is consistently ranked among the best places to live in America by Money Magazine, boasting a high quality of life and top ranked school district. It is also situated near jobs with an estimated 5.5 percent of Twin Cities metro area employment based within a 10-minute drive from the site, increasing to more than 30 percent within 20 minutes. Residents will also benefit from being less than a mile from Interstate 494, and within close proximity to the under construction South West-Light Rail Transit line, which will provide connection from the southwest metro to Downtown Minneapolis. Paravel will be 0.5 mile from the Eden Prairie Town Center Station and 0.7 mile from Southwest Station.
Located at 8300 Commonwealth Dr., Paravel is a part of the Castle Ridge mixed-use development. This growing master plan is in the process of being entirely redeveloped with a mix of residences, restaurants and shopping. The Eden Prairie Shopping Center featuring more than 90 shops and restaurants is a short walk from the site. The site also features direct trail access and is immediately adjacent to Purgatory Creek Park, connecting with more than 200 miles of regional trails.
The Twin Cities region is known for its unmatched concentration of Fortune 1000 corporations and globally-renowned natural and cultural landmarks. Minneapolis-St. Paul is home to numerous American headquarters for life sciences, financial services, and manufacturing firms. With one of the lowest unemployment rates in the nation, investors, employers, and workers continue to be drawn to Minneapolis-St. Paul, home to one of the most diverse and successful economies in the world.
The JLL Capital Markets Investment and Debt Advisory teams that represented the borrower was led by Senior Directors Josh Talberg, Brock Yaffe, Dan Linnell and Mox Gunderson, Directors Pat McMullen and Adam Haydon, Associate William Haass and Senior Managing Director Ken Dayton.
"JLL is grateful to be a part of this significant transaction," Talberg said. "Paravel is a game changer for Eden Prairie and will set the bar for new construction in terms of quality and amenities, while bringing much needed housing to the supply constrained Southwest submarket of Minneapolis. The entire team worked extremely hard to make this one a reality in what was a difficult environment post-Covid, and I simply can't say enough good things about Timberland Partners. This is a very good day for the city of Eden Prairie and the broader market."
"Paravel speaks to the continued interest and demand from investors and lenders for best-in-class assets in the Twin Cities market, and especially for suburban areas such as the desirable Southwest submarket of Minneapolis," said Senior Director Brock Yaffe. "We are very excited and grateful to have been involved in one of the largest capital raises and debt placements for a suburban Twin Cities project in 2021."
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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