We’ve recently closed another extremely notable deal. I’m delighted to announce our investment of $20 million preferred equity for the ground-up construction of RiZe at Opus Park, with a total deal capitalization of approximately $73 million. RiZe, located in Minnetonka, Minnesota, will be converted into a 322 unit, Class A multifamily asset with premier amenity and unit packages, a main clubhouse, and a two story parking garage.
The sponsors, our longtime partners and friends Sal Lecesse of LeCesse Development Corp., and Bob Morgan of Morgan Management, recognized the great potential for redevelopment in the Minneapolis-St. Paul (MSP) area, and jumped at the chance to take on this project.
Sal and Bob are two of the brightest in their industry, and I’m proud to say this will be the third transaction between our companies. It is the first to take place in Minneapolis, an extremely vibrant hub for business, technology, and education, with one of the strongest multifamily markets in the country.
RiZe at Opus Park is located within the Opus Business Park in Minnetonka, an affluent suburb just nine miles southwest of downtown Minneapolis. The Southwest LRT Management Committee has recently approved an extension of MSP’s rail system, which will include a stop at Opus Park, a quick five minute walk from RiZe. Our redevelopment couldn’t be coming at a better time, as residents will now have easier access to downtown MSP.
The property, currently an office park, is now undergoing demolition with the first phase of leasing expected to begin in 15 to 18 months. Two additional phases of leasing will follow, and we expect the project to reach completion within 21 to 24 months.
Just like the team at UC Funds, Sal and Bob are true entrepreneurs. Their ability to seek out profitable opportunities is something that I greatly admire, and is one of the many reasons I enjoy working with them. I have no doubt that RiZe at Opus Park will exceed expectations, matching the success of our previous collaborations.
On October 22, I will be running in the Marine Corps Marathon to raise money through the Palmier Foundation for InterVol, a not-for-profit whose mission is to recover viable unused medical supplies from hospitals and clinics and distribute them to those in need. We’re hoping to raise $26,200 for InterVol—a rate of $1,000 per mile. If you’d like to help us reach our donation goal and assist this great organization, you can make a pledge on The Palmier Foundation’s CrowdRise page.