Riverside Plaza Apt. Complex Gets $50M Investment
The Riverside Plaza apartment complex in Minneapolis has secured additional financing-$50 million from the AFL-CIO Housing Investment Trust (HIT)-for the rehabilitation and modernization of its 1,303 housing units.
The six-building complex, which consists of a cluster of towers ranging from four to 39 floors that together comprise more than 30,000 square feet of commercial and community space, will use the money for rehabilitation work on deteriorating mechanical, plumbing, and electrical systems, as well as substantial exterior and interior work.
“Riverside Plaza is an excellent investment for our portfolio, and we are pleased to be participating in this project,” HIT Executive Vice President and Portfolio Manager Chang Suh said in a statement.
All on-site construction work for the $123 million project will be performed under collective bargaining agreements with local building and construction trades unions. The project is estimated to generate about 635 union construction jobs.
In November, the Minneapolis City Council unanimously approved $1.9 million in assistance and the issuance of up to $80 million in tax-exempt, multifamily housing revenue bonds for the project.
The city's investment in Riverside Plaza is part of a larger strategy for the Cedar Riverside/West Bank neighborhood. Called the “Marshall Plan,” the idea is to prepare for the Central Corridor light-rail transit line and to help the neighborhood realize its potential as a model transit-oriented development community.
The AFL-CIO HIT is a fixed-income investment company that manages nearly $3.9 billion in assets for approximately 350 investors-17 of which are in Minnesota.