Reimagined city block delivers 330 apartment homes to downtown Minneapolis through public-private partnership

Ladder 260 and O2 provide affordable and market-rate living in the Mill District

{MINNEAPOLIS, MINN, October 3, 2024}—Three hundred thirty new apartment homes in the Mill District neighborhood of Minneapolis are announced at a grand opening event with Mayor Jacob Frey, Councilmember Michael Rainville, the City of Minneapolis, Sherman Associates, and development partners.

Ladder 260 and O2 Luxury Tower provide affordable and market-rate living in the multi-phase development of the majority of the city block bound by Washington Avenue, Portland Avenue, South 3^rd Street, and 5^th Avenue South.

Ladder 260 provides a rare new construction, affordable housing product to downtown Minneapolis. With 90 units, the property serves households earning 30-60% AMI (area median income). Ladder 260 uniquely provides free internet to each apartment home for its residents.

O2 Luxury Tower features 240 units with smart home technology including smart thermostats, locks, and lights that allow residents to easily monitor energy usage in their homes. At the street level, 5,500 square feet of commercial space along Washington Avenue builds on the activation in the area. Energy usage for O2 is partially offset by energy production from a solar garden located in Carver County.

“We believe that healthy neighborhoods are built on diversity of both people and uses, and it takes a determined, collaborative effort from public and private partners to bring these communities to life,” said George Sherman, CEO of Sherman Associates. “We are grateful for our partnership with the City of Minneapolis, and its commitment to creating more housing where it is needed. We look forward to doing more projects that follow this successful model.”

In a unique partnership with the City of Minneapolis, Sherman secured tax increment financing for Ladder 260, the affordable development, that utilized a special allocation of tax increment from O2, the market-rate development.

Ladder 260 is a $34 million project financed by RBC Community Investments, American National Bank, National Bank of Commerce, JLL, City of Minneapolis, AFL-CIO HIT, Minnesota Housing, and the Metropolitan Council LHIA. O2 Luxury Tower is a $115 million project financed by a bank group led by Associated Bank.

“Today, we celebrate a vision realized for a more inclusive and sustainable Minneapolis. This project embodies our commitment to providing high-quality housing options that meet the diverse needs of our community,” said Carole Mette, Senior Developer at Sherman Associates. “By integrating affordable and luxury living, we’re enriching the fabric of the Mill District and creating a vibrant environment where people can thrive. We remain dedicated to developing sustainable, innovative spaces with a unique financing strategy that responds to the evolving needs of urban communities.”

The first phase of the redevelopment included the new Minneapolis Fire Station 1, completed by Sherman in 2022. It is approximately 19,500 square feet and consists of an apparatus bay to house fire trucks and a connected two-story structure providing office space, sleep areas, common areas, locker rooms, and a rooftop patio.

The $161 million multi-phase redevelopment is on an approximately 1.75-acre site, which consisted of a surface parking lot and the former Minneapolis Fire Station 1 that was built in 1909. Sherman and the City of Minneapolis collaborated to develop a new and larger Minneapolis Fire Station 1 to serve the needs of the growing neighborhood and optimize the layout of the city block for Ladder 260 and O2.

Kraus-Anderson is the general contractor and ESG Architecture & Design is the architect.

This mixed-use, mixed-income redevelopment speaks to the environmental sustainability and social impact components of Sherman’s ESG Commitment. Ladder 260 and O2 revitalize the city block and the neighborhood by providing high-quality housing to the residents of Minneapolis. The downtown location is transit-oriented with access to mass transit, biking, and walking.

Ladder 260 and O2 Luxury Tower join Sherman’s massive development portfolio of nearly 1,000 units in the Mill District and Elliot Park neighborhoods, plus its 216 units opening this month at Groove Lofts at Northstar Center in downtown Minneapolis.

Visit the websites to learn more about Ladder 260 and O2 Luxury Tower.

Sherman Associates

Sherman Associates is a growing commercial real estate development and management firm based in Minneapolis with properties throughout the Midwest, Colorado, and Florida. Sherman develops, owns, and operates its assets with a long-term vision to build neighborhoods, enrich communities, and empower people.

Sherman Associates has developed over 12,000 multifamily units and currently owns and manages over 7,000 multifamily rental units (affordable and market-rate). Sherman also owns and manages over 720,000 square feet of commercial space, five hotels, four Starbucks, three restaurants, and two solar gardens. Stay connected with Sherman on LinkedIn, Instagram, X, and Facebook.