St. Paul secures final financing for Penfied
HUD mortgage insurance commitment was key financial hurdle
Today, the City of Saint Paul finalized financing for the Penfield project including a commitment from the U.S. Department of Housing and Urban Development to provide mortgage insurance for the Penfield. Closing on the financing is expected within the next 30 days, with construction beginning shortly thereafter. “The Penfield project is catalytic, not just for downtown but for all of Saint Paul. It will drive business along the Central Corridor and provide the quality, full-service grocery store our downtown residents having been seeking for many years. I am thrilled we have received this critical HUD commitment, and I look forward to breaking ground in the very near future,” Saint Paul Mayor Chris Coleman said.
The Penfield, located just one block from the Central Corridor light rail transit line, is a LEED Silver, new construction, mixed-use development with 254 market-rate apartments, and a 27,000 square foot full-service Lunds grocery store.
“There is a tremendous need for a full-service grocery store in the downtown Saint Paul community, and we are looking forward to providing area residents and workers with our brand of quality, service and expertise,” said Tres Lund, chairman and CEO of Lund Food Holdings. “We applaud Mayor Coleman and city officials for their continued commitment to bringing more vitality to Saint Paul through projects such as the Union Depot, Central Corridor light rail and the Penfield development that will include our Lunds.”
With the Housing and Redevelopment Authority of the City of Saint Paul as the sole owner, Penfield LLC will own and operate the project. The full development team includes Dougherty Mortgage LLC as the lender, BKV Group as the architect, WEIS Builders as the general contractor, STUDIO FIVE Architects as the owner’s representative, and Village Green as the property manager. Village Green operates several housing complexes around the country under the name “City Apartments.”
“New life will be brought to this underutilized block. The work of the Capitol River Council and enthusiastic advocates has finally been realized. The Penfield and Lunds will add to the fantastic vitality of Lowertown, and I’m thrilled that after years of hard work, we are about to build this project,” Councilmember Dave Thune said.
The city’s Housing and Redevelopment Authority approved the financing for the $62 million project at the end of 2011 and the establishment of a tax increment financing (TIF) district in 2012.