The Doughboy’s New Home: Dominium to Transform Pillsbury Flour Mill into Loft Apartments

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Construction has begun to transform a long vacant Pillsbury flour mill on the banks of the Mississippi River in Minneapolis into artist loft apartments, in a $150 million project financed in part by equity generated by federal and state tax credits.

Minneapolis-based Dominium, a developer, owner, and manager of apartment communities nationwide, is the developer of the project, which is called A-Mill Artist Lofts.     A-Mill Artist Lofts will be a full-scale renovation and reconfiguration of the existing Pillsbury flour mill complex. One of 21 National Historic Landmarks in Minnesota, the flour mill was originally built in 1881 and was the world’s largest for nearly 40 years. The facility was closed in 2003. The planned adaptive-reuse will bring vitality back to an important piece of history for the region with 251 artist loft apartments.

Environmental remediation and construction began shortly after the late 2013 closing. The project is scheduled to be completed by the fall of 2015.

The adaptive-reuse is specifically designed to suit the needs of artists. Common amenities will include a yoga/Pilates studio, dance studio, pottery studio, play/performance studio, sound studios, paint studio, clay studio, kiln room, tool shop/frame room, and multiple gallery spaces and art display walls. The property will also have a fitness center, multi-purpose space, pre-function hall, bike storage, lobby/reception area, and conference room.

Multiple Financing Partners

“We are extremely excited about bringing the landmark Pillsbury A-Mill back to life,” said Owen Metz, developer and project lead for Dominium. “We wouldn’t have been able to make this deal happen without the strong support of the City of Minneapolis, U.S. Bank, Affordable Housing Partners, Inc., and our various financing partners. This is an iconic redevelopment for not only Dominium, but for the Twin Cities. This will help

make the east bank of the Mississippi River shine even more.”

U.S. Bank is providing a $118 million financing package to support the major renovation. The package includes a construction loan, a letter of credit, and equity provided in exchange for Minnesota historic tax credits generated by the redevelopment.

Affordable Housing Partners, Inc., a Berkshire Hathaway Company, committed nearly $75 million in equity as an investor in exchange for federal low-income housing tax credits and historic rehabilitation tax credits generated by the project.

Permanent financing of nearly $26 million is being provided by Cornerstone Real Estate Advisors. A-Mill Artist Lofts also has financial support from the City of Minneapolis, the Minnesota Historical Society, the Metropolitan Council, Hennepin County, and the Minnesota Department of Employment & Economic Development.

“The redevelopment of the Pillsbury A-Mill building has been a highly-anticipated project in the Twin Cities,” said Kyle Hansen, executive vice president for U.S. Bank Commercial Real Estate. “By preserving a landmark in this historic part of Minneapolis and meeting the market’s demand for affordable housing, A-Mill Artist Lofts is a win for all involved parties.”

“Affordable Housing Partners, Inc. is extremely pleased to be the equity partner in this transaction,” said Mike Fowler, president of Affordable Housing Partners, Inc. “Not only will an iconic building be put back to life, but 251 households will have an opportunity to enjoy the striking views of the Mississippi River and the downtown Minneapolis skyline.”

The law firm of Winthrop & Weinstine, P.A. helped structure the transaction. The architect for the project is BKV Group.