CHANHASSEN, Minn., January 30, 2025 — Marcus & Millichap Capital Corporation (MMCC) has successfully arranged a total of $89.6 million in financing for the construction of two adjacent multifamily projects in Chanhassen, Minnesota, located approximately 15 miles southwest of Minneapolis. These projects, Bennett Apartments and Harlow Apartments, are part of a broader effort by Roers Companies, a leading Minnesota-based developer, to meet the growing demand for high-quality housing in this suburban market.

Financing Details and Key Stakeholders

The financing package for the projects includes $77.5 million in senior proceeds, provided by Kayne Anderson. In addition, SteepRock Capital contributed $12.1 million in mezzanine financing to complete the funding for these projects. Gary Sefcik, who works in MMCC’s Manhattan office, played a pivotal role in securing this financing, ensuring the projects would move forward in a competitive lending environment.

"In addition to strong, locally based sponsorship and the desirability of the Chanhassen submarket, our financing package generated a high level of interest from national lenders for the Midwest, which has been enjoying robust economic growth and rental demand with relatively limited supply," said Sefcik. This sentiment highlights the growing interest in the Midwest as a stable and expanding market for multifamily real estate, with demand for housing continuing to outpace supply in many areas.

Project Overview: Bennett Apartments and Harlow Apartments

• Bennett Apartments will be located at 591 West 78th St., and will feature 184 residential units and approximately 11,853 square feet of prime retail space on the ground level. The development is designed to cater to both urban professionals and families, offering luxury finishes and modern amenities.
• Harlow Apartments, located at 570 Market St., will offer 126 residential units, with a smaller retail component of 3,029 square feet. This development is positioned as a more intimate, yet equally luxurious, option for residents in the growing suburban area.

Both developments are expected to be completed by 2026, offering prospective residents access to a wide range of on-site amenities such as fitness centers, community spaces, and high-end interiors. These projects are part of a broader trend of urban-to-suburban migration, as residents increasingly seek quality housing options in areas with a lower cost of living and access to key employment centers.

Regional Demand for Housing and Impact on the Local Economy

The decision to develop these multifamily projects in Chanhassen comes at a time of high demand for housing across the Twin Cities metro area. Chanhassen, known for its excellent schools, proximity to Minneapolis, and picturesque suburban environment, has seen significant growth in recent years. However, the market remains underserved in terms of rental housing, especially in the luxury multifamily space. The Bennett Apartments and Harlow Apartments are set to address this gap and provide much-needed housing to residents seeking more modern living options in the region.

Local officials have welcomed the developments, noting their positive impact on both housing options and the local economy. The addition of retail space in both projects is expected to further bolster the area’s vibrancy by providing new services and amenities for both residents and nearby businesses.

A Growing Market for Multifamily Development

As a leading developer, Roers Companies has made significant strides in multifamily development across the state of Minnesota. With a proven track record of successful projects, Roers Companies is well-positioned to take on the challenge of these two major developments in Chanhassen. The company’s expertise in building high-quality, sustainable communities aligns with the growing demand for well-designed, amenity-rich residential spaces in suburban markets.

"We are excited to be part of the growing Chanhassen community and to help meet the demand for high-quality housing in this market," said a representative from Roers Companies.

About Marcus & Millichap Capital Corporation (MMCC)

Marcus & Millichap Capital Corporation (MMCC) is a leading commercial real estate financing firm that specializes in providing comprehensive capital markets solutions. MMCC offers a range of services, including debt and mezzanine financing, preferred and joint venture equity, loan sales, and consultative due diligence.

With a robust presence in commercial real estate financing, MMCC closed 1,076 transactions totaling $6.73 billion in 2023, reinforcing its strong position as an industry leader. The company’s ability to access capital from both national and regional sources makes it a go-to partner for developers, investors, and property owners across the U.S.

About Marcus & Millichap, Inc. (NYSE:MMI)

Marcus & Millichap, Inc. is a national leader in commercial real estate brokerage, investment sales, financing, research, and advisory services. The company, with a network of over 80 offices and 1,783 professionals, offers comprehensive services for investors and property owners looking to buy, sell, or finance commercial real estate across various asset classes.

In 2023, Marcus & Millichap closed 7,546 transactions, totaling $43.6 billion in sales volume. The company’s extensive research capabilities provide clients with critical market insights to inform their real estate investment decisions.

Looking Ahead

As Bennett Apartments and Harlow Apartments break ground, they represent a significant investment in the future of Chanhassen. These projects, funded with robust financial backing, are set to deliver quality living spaces while contributing to the ongoing economic growth of the Minneapolis suburbs. The successful financing of these projects highlights the strong interest in the Midwest real estate market and sets a positive precedent for future developments in the region.