Marcus & Millichap Capital Corporation (MMCC), a premier provider of commercial real estate capital markets financing solutions, has successfully arranged $89.6 million in financing for the construction of two multifamily projects in Chanhassen, Minnesota. These projects, Bennett Apartments and Harlow Apartments, are situated 15 miles southwest of Minneapolis and are poised to bring luxury living and retail spaces to the growing suburban market.
Financing Details and Market Appeal
The financing package, secured by MMCC’s Gary Sefcik from the Manhattan office, includes $77.5 million in senior loan proceeds provided by Kayne Anderson and $12.1 million in mezzanine financing from SteepRock Capital. The funding was secured on behalf of the project’s sponsor, Minnesota-based Roers Companies, a firm known for its expertise in multifamily development.
Sefcik highlighted the strong demand among national lenders for investments in the Midwest, particularly in Chanhassen. “In addition to strong, locally based sponsorship and the desirability of the Chanhassen submarket, our financing package generated a high level of interest from national lenders. The Midwest has been experiencing robust economic growth and rental demand, coupled with a relatively limited supply of new housing,” he noted.
The appeal of Chanhassen lies in its dynamic economy, strong employment base, and growing population. With its proximity to Minneapolis and a high quality of life, the area has attracted significant investment in both commercial and residential real estate. The financing arranged by MMCC reflects the confidence that lenders have in the continued growth and stability of the region.
Project Details and Future Prospects
The Bennett Apartments, located at 591 West 78th St., will feature 184 residential units along with 11,853 square feet of prime retail space. The neighboring Harlow Apartments, positioned at 570 Market St., will comprise 126 residential units and 3,029 square feet of retail space.
Both projects are expected to be completed by 2026 and are designed to offer high-end amenities and finishes, catering to the modern renter seeking convenience, comfort, and accessibility. The addition of retail space within the developments further enhances their appeal, creating a mixed-use environment that promotes walkability and an urban lifestyle within a suburban setting.
Roers Companies has built a strong reputation for delivering high-quality multifamily developments across the Midwest. Their strategic approach to site selection and commitment to luxury living standards have positioned them as a key player in the regional real estate market. With these new projects, Roers aims to meet the growing demand for upscale housing while contributing to the economic vibrancy of Chanhassen.
Midwest Real Estate Trends and Investment Appeal
The demand for multifamily housing in the Midwest continues to rise as population growth and economic expansion drive the need for more residential units. Chanhassen, in particular, has seen increased interest from developers and investors due to its strong job market, excellent schools, and community-oriented lifestyle.
Nationally, there has been a noticeable shift towards suburban living, with renters seeking more space, modern amenities, and a balance between urban accessibility and residential tranquility. The Bennett and Harlow Apartments align with these evolving market trends by offering high-end living spaces in a location that provides easy access to employment hubs while maintaining a suburban charm.
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Additionally, the limited supply of new multifamily developments in Chanhassen creates an attractive investment opportunity. The financing secured by MMCC underscores the confidence lenders have in the long-term viability of these projects and the overall strength of the local housing market.
About Marcus & Millichap Capital Corporation
MMCC is a subsidiary of Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with a broad presence throughout the United States and Canada. Specializing in commercial real estate capital markets financing solutions, MMCC offers a range of services including debt and mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales, and due diligence consulting.
In 2023 alone, MMCC closed 1,076 transactions totaling $6.73 billion, solidifying its position as a dominant player in real estate finance. The firm’s extensive network, deep market insights, and strategic partnerships enable it to deliver tailored financing solutions that support the growth and success of its clients.
For more information about MMCC’s services, visit marcusmillichap.com/financing.
About Marcus & Millichap, Inc.
Marcus & Millichap, Inc. (NYSE: MMI) is a nationally recognized brokerage firm specializing in commercial real estate investment sales, financing, research, and advisory services. With a network of 1,783 investment sales and financing professionals operating in over 80 offices, the company provides comprehensive services to buyers and sellers of commercial real estate across various asset classes.
As of December 31, 2023, Marcus & Millichap had successfully closed 7,546 transactions, representing a sales volume of approximately $43.6 billion. The firm’s deep market expertise, data-driven insights, and client-focused approach make it a trusted partner for investors seeking strategic real estate opportunities.
