Grand Real Estate's Proposal

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Grand Real Estate's Proposal DEVELOPMENT PROPOSAL FOR: 205 PARK IN RESPONSE TO: REQUEST FOR DEVELOPMENT PROPOSALS FOR CITY-OWNED REAL PROPERTY AT 205 PARK AVENUE SOUTH, MINNEAPOLIS SUBMITTED: JUNE 10, 2016 June 10, 2016 City of Minneapolis – Community Planning and Economic Development Request for Proposals for: 205 Park Avenue Parcel 105 Fifth Avenue South, Suite 200 Minneapolis, MN 55401 RE: 205 Park Avenue South RFP Dear Ms. Stern: We are very pleased to submit this development proposal for CPED’s consideration. We are hopeful that staff and city leadership will find our proposal compelling as we have tried to meet as many of the stated priorities as possible. Our proposal is for a mid-sized project that focuses on complementing the scale of neighboring buildings and providing for the design and construction quality of Park Avenue Lofts and other significant projects in the neighborhood. We have deviated from the “bookend” originally intended in plans from years past by incorporating retail that adds a more public face to the structure along Washington Avenue. We have also looked at the opportunity for expanded landscaping with “yards” and sculptural treatments to the screening of the parking structure, in addition we have addressed bike parking and a dog relief area. We, both as developers and as community members, have been very involved with and supportive of affordable housing. We know that the city understands that it is a real challenge to meet this need in such a small project/parcel and in an ownership product. That said, we are committed to exploring the viability of including affordable units, but cannot commit to it at this stage. We have met with Jeff Washburne of City of Lakes Community Land Trust to explore the feasibility of including a number of land trust units. We will continue that conversation. Peggy Lucas and Brighton have an impressive track record of bringing affordable housing to the market. The developer will be a yet to be formed LLC – managing principals include Peggy Lucas and Tanya Bell. We are excited that the balance of the ownership will be made up of prominent community members who have already made significant investments in this neighborhood of Minneapolis and feel passionate about its success. Peggy Lucas has extensive experience in the City of Minneapolis in developing ownership, market rate rental and affordable rental housing. Although the principals of Brighton Development have retired there is still a commitment to their original vision for the Mill District. Their first project North Star Blanket was a pioneering condo project at a time when banks were reluctant to finance condos. Since then they developed Stone Arch Lofts, Washburn Lofts, the Mill City Museum, Humboldt Lofts, St Anthony Mills Apartments and Park Avenue Lofts. All these projects have won design awards and their success has anchored the redevelopment of the Mill District. This proposed development of 205 Park would complete their vision for the district. 1664 Grand Avenue. Suite 3. Saint Paul. MN. 55105 Tanya Bell, while at Wellington Management, developed 300 condominium units in St. Paul and with her partner, Judd Fenlon, developed Corridor Flats and Lake Street Station adjacent to the Lake Street Station stop in Minneapolis. Grand Real Estate Advisors will manage the project and all communications for the development entity can be directed to: Tanya Bell 1664 Grand Avenue, Suite 3 St. Paul, MN 55105 (651) 253-5435 [email protected] [email protected] . We are very excited about this opportunity to complete the vision of the Mill District. We look forward to your feedback. Sincerely, Peggy Lucas Tanya Bell 205 Park Avenue– Ownership Housing Proposal Contents Project Description Capital Pro Formas Further Project Information/Timeframe Release of Response Data Project Description Good design, high quality construction, detailed finishes and connection to the street and neighborhood are the key attributes of this proposed condominium project. The evolution of this neighborhood and the key to its success has been anchored by the architectural landmarks of the Guthrie Theater, the Mill City Museum, Humboldt Lofts, Washburn Lofts, North Star Blanket and Park Avenue Lofts and now we propose to add 205 Park Avenue. This new project is designed as a slightly modified second phase of the very successful Park Avenue Lofts located at 200 Park Avenue and will complete the originally envisioned “bookends” that serve as the gateway to the Mill District. The proposed building is designed by award winning Snow Krelich, Julie Snow, and will be constructed in the same high quality materials as Park Avenue Lofts with a concrete structure, brick exterior, landscaping and large windows. The architecture will complement Park Avenue Lofts while adding current features of retail and a bit more density. To meet the current market demand, we have made a few other key modifications – first floor units will not be two-story (though the walk up front door and yards will remain) and a set back top floor will provide penthouse units with private rooftop areas along with a project rooftop amenity. 205 Park Avenue Lofts is a for-sale project with 42-52 units on five or six floors with 2,900 square feet of retail along Washington Avenue. There are two levels of below grade parking to accommodate 85 cars (18 of the stalls are tandem). The units would range in size from 952 to 2,803 sf and in price from $342,720 to $1,324,000. The building would also have a social/community room off of a rooftop deck on the top floor and exercise room with yoga studio on the first floor near the dog relief area. Approximately 2,900 square feet of retail will front Washington Avenue and include an outdoor seating area. There will be bicycle storage and parking at the project both in the garage and on the street. We would look to the City of Minneapolis to provide for screening of the exterior of the neighboring parking ramp. The screen design would need to be effective 12 months of the year and provide visual and perhaps sound buffer to the activities in the ramp. The idea would be as simple as metal mesh panels or similar and then the project would add tall columnar evergreens to add to the buffer and greening of the site. Why this project? We know that others may propose more units, higher land proceeds to the city, and/or perhaps more retail, but we believe that the pent up demand for condominiums is real. Today’s market is delivering “mega” projects 205 Park Avenue– Ownership Housing Proposal such as The Legacy and many of the rental projects recently completed. We believe that our city also has many people who want the advantages of urban living while enjoying a smaller, more intimate environment that this project would provide. The condominium development market is virtually non-existent and we believe we have assembled a team committed to the success and execution of this project. The relatively modest size will help manage the risk currently being avoided by the marketplace as well as making pre-sales achievable. Although the principals of Brighton Development have retired there is still a commitment to their original vision for the Mill District. Their first project North Star Blanket was a pioneering condo project at a time when banks were reluctant to finance condos. Since then they developed Stone Arch Lofts, Washburn Lofts, the Mill City Museum, Humboldt Lofts, St Anthony Mills Apartments and Park Avenue Lofts. All these projects have won design awards and their success has anchored the redevelopment of the Mill District. This proposed development of 205 Park would complete their vision for the district. Public Amenities - We acknowledge the interest of the neighborhood in a “Dog Relief Area” and would look to incorporate a small area that would not interfere with privacy and access to the new project. Please see the site plan for location and configuration. Retail – We are very familiar with the neighborhood and the community’s interest in a breakfast spot and an activated Washington Avenue. We have incorporated 2,900 square feet of retail with outdoor seating and access to the street. Given this is a condominium product; we would hope to provide an ownership option for the retailer(s) and look to sell that space as a condo as well. Affordability – Mill City Times’ May 22, 2016 article did a fine job describing the challenges of building affordable ownership housing. This combined with an investor market that remains very wary of the risks associated with constructing multi-family ownership housing makes this an even greater challenge. Peggy and Tanya both have experience in affordable housing and are open to the continued exploration of including four units of affordable ownership in partnership with Jeff Washburne of City of Lakes Community Land Trust. Insert – Rendering, site plan and floor plans ⸀ 䔀 嘀 䄀 䬀 刀 䄀 倀 圀䄀匀䠀䤀一䜀吀伀一 䄀嘀䔀⸀ LEVEL UNIT AREA (SF) LEVEL UNIT AREA (SF) LEVEL UNIT AREA (SF) P1 001 1205 L2-L4 201 1937 L5 501 2288 (30 UNITS) 202 1965 (4 UNITS) 502 2323 L1 101 1912 ALT: L2-L5 203 1992 ALT: L6 503 2323 (8 UNITS) 102 1938 204 2793 504 2598 103 1965 205 2804 104 2387 206 1456 105 2246 207 952 106 1351 208 1357 107 952 209 1421 108 2005 210 1266 RETAIL 2892 PARKING STALLS P1 P2 SUBTOTAL SINGLE SPOTS 30 37 67 TANDEM SPOTS 9x2 0 18 TOTAL 85 SNOW KREILICH ARCHITECTS PARK AVENUE LOFTS EAST DATE: 2016.06.10 UNIT AREAS AND PARKING STALLS 205 Park Avenue– Ownership Housing Proposal Identifications of the entities: We have enclosed letters from each of our proposed project partners.
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