A-MILL Artist Lofts 2017 Colvin Case Study Challenge Sponsored by November 2017 Team 9 Table of Contents Introduction.......................................................................................................................................................1 Historical Context............................................................................................................................................2 Developer...........................................................................................................................................................3 Vision.................................................................................................................................................................4 Project Description..........................................................................................................................................5 Market Analysis.................................................................................................................................................6 Planning & Entitlement...................................................................................................................................9 Project Financing..............................................................................................................................................11 Design & Construction...................................................................................................................................13 Marketing.........................................................................................................................................................16 Operations........................................................................................................................................................17 Impact of Development..................................................................................................................................18 Appendix...........................................................................................................................................................19 • Draw Schedule & Market Analysis Capture Rate..............................................................................19 • Sources and Uses....................................................................................................................................................20 • LEED Score Card ................................................................................................................................21 • Comparable Map ................................................................................................................................. 22 ∗ Comparable Quality & Rent .................................................................................................................23 ∗ References...............................................................................................................................................24 November 2017 A-Mill Artists Lofts | Colvin Case Study Challenge Introduction Awards • Business Journal - Best in Real Estate- Adaptive Reuse Multifamily • NAHB - Multifamily Community of the Year • Affordable Housing Finance - AHF Readers' Choice Awards The A-Mill Artist lofts are Dominion, a Plymouth, MN • Novogradac - Historic located in the historic Pillsbury based developer, spent $150 Rehabilitation Awards flour mill building; in the heart million dollars restoring the of downtown Minneapolis, original construction of the mill • NAHMA - 201 6 Minnesota. Originally into a gathering place for both Affordable Housing local artists and the community. constructed by Charles Alfred Vanguard Award Historic Pillsbury in 1 880, the Pillsbury The buildings 250 artist lofts, flour mill was one of the largest artist workshops, and social • MFE Awards – Project of flour mills located in the U.S for spaces, are sustainably designed the Year: Green over 40 years. Powered by water utilizing hydrothermal heating from the St. Anthony Falls, the and cooling, roof water • NH&RA- Timmy Award Pillsbury flour mill produced irrigation, and LED lighting. -Best Historic over 1 7,500 barrels of flour per The building also includes a Rehabilitation day with the use of two large conversion of the old neon hydro-powered turbines located “Pillsbury’s -Best Flour” sign. in raceways under the mill. This flour was shipped from the heart of the mid-west, along the mighty Mississippi, to consumers throughout the U.S. Recently this historic building experienced a rebirth as a LEED certified affordable artist lofts building anchoring the cities Mills District. Page 1 1 Historical Context In the 19th century, as the from Northern Minnesota and Western Frontier began Platteville limestone from a local settlement, Charles Pillsbury was quarry. Pillsbury insisted that the attracted to an area in building have a style, which was Minnesota alongside the uncommon for a factory Mississippi river. Pillsbury was building in that era, and drawn to a piece of land in commissioned well-respected Minneapolis directly alongside Minneapolis architect Leroy the only waterfall on the entire Buffington to design the river; Saint Anthony Falls. What complex. Historians now refer to as “The waterfall that built Charles Pillsbury started his Minneapolis”, Saint Anthony career by making technological stems and seeds and further Falls was the foundation of the improvements to the middlings refined the flour. This Twin Cities. The site became purifier, which allowed a more improvement resulted in an home to the Pillsbury A-Mill in efficient process of producing increase in capacity and energy 1881, which would serve as the flour for production. After the savings. The A-Mill’s flour world’s largest flour mill for completion of the A-Mill, production would steadily grow many decades. The 6-story Pillsbury made another building was constructed with from 4,000 barrels per day in technological advancement with local materials: timber which 1882 to 17,500 barrels a day in floated down the Mississippi the plansifter, which filtered out 1905. James J Hill, another Twin Cities mogul, provided rail service and tracks directly into the mill where rail-cars were loaded before being shipped across the United States. In 1950, the plant was modernized to use the old water raceways to create power and generate electricity. The mill was eventually phased out of operation in 1975. In 1966, the Pillsbury Milling Complex was added to the National Register of Historic places. The Pillsbury A-Mill became a National Historic Landmark, and is a contributing property to the Saint Anthony Falls Historic district. 2 Page 2 Developer their new development & acquisitions LLC for the sole focus of acquiring and developing apartment communities. Dominium expanded this vision, under the leadership of Mr. Mark Moorhouse, Mr. Owen Metz, and Mr. Neal Route, by investing in the A-Mill project in downtown Minneapolis. Aligning with local stakeholders, Dominium painted the vision of what is The availability of affordable confronted the affordable today the historic A-Mill Artist rental housing has become rental problem head-on as one lofts community. As an anchor a problem for our country. of our country’s largest cornerstone to the Historic Mills Within the past 8-10 years, affordable housing operators. district, the A-Mill artist lofts the availability of natural Dominium owns and operates provide not only affordable occurring affordable rentals, has over 26,000 apartment units housing for our community, but been diminished due to the throughout the continental encourage the development of reinvestment and refurbishment U.S. Originally founded in entrepreneurial artists; by of older apartment buildings. 1972, by Mr. David Brierton providing them with an inviting Largely a function of investors and Mr. Jack Safar, Dominium housing community where they seeking better returns in a low has expanded rapidly under the may work and live. interest rate economy, this trend initial vision of these early has forced many lower-income founds. In 1999, this initial As a community, the city households further away from vision was extended with the of Minneapolis, alongside urban cores. As a result, families formation of Dominium Hennepin County and are often strained with Development & Acquisition Dominium partners, have been additional commute times to LLC; under the additional at the forefront when investing their jobs, children are often leadership of Mr. Armand in the arts, and preserving forced to change school districts, Brachman and Mr. Paul Sween. the historical past of our and families are relocated further With the formation of the Mills district. This common away from the urban cores that Dominium Development & investment, not only provides often provide critical support. Acquisition LLC, Dominium the necessary foundation for the spun-off their initial property upward mobility of our citizens, As a company, Dominium has management group, and utilized but preserves our historical past. 3 Page 3 Vision Vision needs, Dominium is During the peak of operations, addressing the national shortage the Pillsbury Flour mill used of affordable housing, creating innovative technologies and was a local jobs, and acting vital component to American environmentally responsible by growth. Over time technologies restoring and improving evolved, and the one-time sustainable features within