Sherman Associates is pulling the plug on plans to build a mixed-use complex with a 12-story apartment tower and 10-story hotel next to Thrivent Financial’s new corporate headquarters.
In March, Minneapolis-based Sherman unveiled a proposal for “two-and-a-half” structures immediately to the south of an eight-story office building that Thrivent will build on a 2.5-acre block bounded by Fifth Ave. S, S. Sixth St., Portland Ave. and S. Seventh St. in downtown Minneapolis.
At the time, Sherman pitched a 150-unit apartment building to the west, a 120-key hotel to the east and a two-story connecting building that would include a daycare center.
Last week, Sherman called it quits on the project.
“Due to a combination of factors (rising interest rates, other commitments/projects we have going on, and increasing construction costs) the project was no longer feasible for us and we decided we needed to step away,” wrote Shane LaFave, director of multifamily development at the company, in an email.
Sherman’s proposal was scheduled for approval by the city’s planning commission this week, but will now be taken off the agenda, LaFave said.
As of Wednesday, LaFave was not aware of another suitor for the site, which is currently a surface parking lot owned by Thrivent, though he was under the impression that Thrivent is shopping the site to other developers.
Thrivent Spokesperson Samantha confirmed that this is indeed the case on Monday.
“Thrivent is in the process of inviting other prospective developers to share their ideas for this site. This announcement does not disrupt the timeline or construction schedule for our new corporate center, which is expected to be completed in mid-2020,” she wrote in a prepared statement.
John Breitinger, executive director at Cushman & Wakefield’s Minneapolis office, has been tasked to find a new developer.
Meanwhile, multifamily activity continues to bustle all over Minneapolis. Here are some of the highlights:
- Chicago’s CA Ventures has yet another apartment project in the works for Minneapolis, this time at a site that sits between the city’s Northeast neighborhood and Dinkytown, a district heavily populated by students from the University of Minnesota. According to materials submitted to a neighborhood group, the company is floating plans for a six-story apartment building at 1202 Fourth St. SE. The building would have 120 to 130 market-rate units, which would be targeted at student renters.
- CA Ventures recently completed a luxury apartment building in Prospect Park with partner Harlem Irving, also of Chicago. The two have another project in Prospect Park, and last week pitched an apartment tower for downtown Minneapolis as well.
- On the other side of campus, Minneapolis’ Wall Cos. hopes to embark on Phase I of Malcom Yards, a massive mixed-use project in Prospect Park. This Thursday, the developer will debut a plan at the planning commission’s committee of the whole that calls for three buildings at 445 Malcom Ave. SE: A six-story structure with 145 market-rate apartments and 33,000 square feet of commercial space on the ground floor; a six-story building with 142 affordable apartments; and a food hall in the newly overhauled Harris Machinery Building, which dates to 1890.
- At the intersection of Chicago Avenue and Lake Street, Minneapolis-based North Bay Cos. wants to build a five-story building at the current site of Los Ocampo taqueria. The development would have 48 studio apartments and 4,200 square feet of commercial space on the street level.
- Plymouth-based Dominium is moving ahead with apartments at historic Fort Snelling. The company has asked Hennepin County’s housing and redevelopment authority to issue $58 million in housing revenue bonds for the project, which calls for the renovation of 26 buildings at the Upper Post at 6247 Bloomington Rd. The buildings, which were constructed between 1879 and the early 1900s, will be turned into 176 affordable rental units. The total development cost is estimated to be $98 million. The item will go before the county redevelopment authority on Tuesday.
