Minneapolis-based CPM and some undisclosed East Coast business partners recently closed on a $6 million purchase of the old Sally’s Saloon & Eatery off the University of Minnesota campus in Minneapolis and have started demolition for a 98-unit, 158-bedroom student housing project.
Two certificates of real estate value filed Monday in Hennepin County show the deal closing July 12, with the owner listed as a Marlton, N.J.-based entity called Minneapolis Properties II LLC. But Nick Walton, a partner with CPM Development, says the developer remains the principal partner in the project.
One CRV shows Anthony and Linda Patterson of Wayzata selling for $3 million. The other shows Minneapolis-based D-Bold Investments selling for another $3 million.
Walton says demolition started on schedule this week at the 301 Walnut St. structure. Besides the student housing, a new and improved Sally’s will move into the first floor, part of 11,500 square feet of retail space in the project.
The developer wants to complete construction by summer 2014, in time for students to move in for the new academic year.
Hennepin County presently values the property at $2.15 million for tax purchases, but Walton said the higher purchase price is warranted because of the better use CPM is bringing to the site.
Minneapolis-based CPM Development is proposing a 98-unit, 158-bedrooom student housing project at 301 Walnut St. in Minneapolis that will include retail space. (Submitted graphic: Cuningham Group Architecture)
“We’re putting a better, higher use at the site. Before, we had a two-story building. Now we’ll have a six-story building,” Walton said.
Minneapolis-based Reuter Walton Construction is the general contractor.
The site is a half block from the intersection of Washington Avenue Southeast and Oak Street Southeast in the Stadium Village area of Minneapolis.
The Central Corridor Light Rail Transit line is slated to open next year, with the line’s East Bank station only a block away on Washington in front of Moos Tower between Harvard and Union streets.
Walton said the LRT was not a major factor for the project because it is so close to classrooms. But he still thinks the LRT is “wonderful for the university-area community.”
Finance & Commerce’s Apartment Development Tracker shows more than 1,850 student housing units that are either proposed or under construction, most of them near the campus.
Source: Finance and Commerce