Doran Companies today announced it has closed on approximately $200 million in loans with Nuveen Real Estate, placing permanent debt on three of its luxury apartment communities in Maple Grove, Hopkins and Brooklyn Park.
“At Doran, we develop, design, build, manage and in many cases continue to own our properties for the long-term, all the while operating them in-house,” said Doran Companies Founder and Partner Kelly Doran. “Securing permanent non-recourse loans on these projects reinforces our long-term commitment to these properties and our decision to maintain our strong presence in this market.”
The three properties included in the financing deals are The Reserve at Arbor Lakes in Maple Grove (255 units), The Moline in Hopkins (239 units) and 610 West in Brooklyn Park (480 units).
“We’re not interested in developing projects that look shiny just long enough to sell,” said Doran Companies President and CEO Anne Behrendt. “Our residents continue living in our luxury apartment communities because they know the quality and continued investment is there and that we are laser focused on delivering to them an exceptional living experience.”
Doran Companies Chief Financial Officer and Partner Ryan Johnson says the high level of interest in Doran luxury apartment communities has kept pace with its rapid growth. “We are experiencing robust absorption rates across our entire portfolio and are actually accelerating some of our development and construction activity to ensure we keep pace with the interest.”
In Maple Grove, The Reserve at Arbor Lakes was more than 93 percent leased less than one year after the completion of the first residence, which included 255 apartments and townhomes. A second building with an additional 123 units will be completed later this year and the entitlement process for a third building was just completed, with construction set to begin in late 2019.
“Nuveen Real Estate has been actively pursuing multifamily investment opportunities in the Twin Cities given the solid market fundamentals,” said Hannah McCarty, Debt Originator at Nuveen Real Estate. “As a long-term owner with an established presence in the market, Doran Companies is aligned well with Nuveen Real Estate’s commercial mortgage investment objectives. We have been impressed with the high-quality construction and best-in-class management that Doran provides at its luxury apartment complexes.”
About Doran’s new partnership with Nuveen, Johnson added, “We are pleased to start a new relationship with Nuveen, a major real estate investor across the country – and excited to be one of their first multi-family partners here in the Twin Cities.”