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2012-11-26 Correspondence
0000 CHAUNCEY GARDENS, LLC 9 ,i. .3,s v / , View looking south; a project that truly gives back to the City Project Vision • Engage the public • Integrate public spaces • Include community gardens • Provide vibrant commercial amenities • Attract a variety of long -term residents • Sustainable and iconic project • Provide a 'healthy' development Chauncey Gardens, LLC PO Box 3473 Iowa City, Iowa 52240 319.530.8238 Added community green space Pulik Gr••n syuo(Exisisi Public Green Space(Ne ) _0_000 CHAUNCEY GARDENS, LLC 4�t Susmmable imfiafires will create o truly healthy budding for our community 315w //a 6 Appropriote'streetwe[l' proportioning provides a orart sbeekcope olong Glb- St. Jesse Allen Tom Kout President Vice President r Chauncey Gardens, LLC Chauncey Gardens, LLC Dwight Khalid Khan Dobberstein Project lk Project Mgr. s Designer Neu mann Neumann Monson Monson Architects / Architects John George Rummelhart Millemberillign Wagner Member Mgr. Chauncey Chauncey Gardens, LLC WmGardens,LLC Matt Krieger Brad Sustainabilify Johnson Leader Project Exec. Neumann Knutson Monson Construction Architects Chauncey Gardens, LLC PO Box 3473 for more information visit: Iowa City, Iowa 52240 www.neumannmonson.com 319.530.8238 or search Chauncey Gardens atYouTube n CD O N (TI I \ V C`O ^♦ 90 N CD Cr `TV `V O rMIL ♦y CD Z ^~ CD ! 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Having earned a strong reputation for quality and follow- through, cities around the country have turned to Sherman Associates to pioneer redevelopment in their highest priority urban neighborhoods. In the process, Sherman Associates has become an industry leader in tax credit, affordable housing, and tax increment financing projects. Such developments have been successful for the participating cities, investors, residents, and businesses. Sherman Associates has developed approximately 8,500 multifamily, townhouse, and single - family homes and 600,000 square feet of commercial and hotel space. I rasherman 2 ASSOCIATES DEVELOPER PROFILE / November, 2011 SELECTED EXPERIENCE Sherman Associates' experience includes construction of new and rehabilitation of historic retail, office, hotel, and office warehouse buildings. With over 30 years of development and construction experience, Sherman Associates is able to offer a diverse range of services in the commercial, single - family, and multifamily markets. They encompass many skills including: • Development Services • Design -Build Services • Financial Analysis /Feasibility • Federal, State and Local Housing Programs • Property Management Services • Construction • Site Analysis • Marketing Programs /Feasibility • Equity and Debt Funding Sherman Associates has established an impressive and prolific track record, completing over $2 billion in real estate development. Our current pipeline consists of $200 million to $250 million a year in new developments, both commercial and residential. A few key projects are profiled in the following pages to illustrate the quality, complexity, and variety of our firm's experience in: • Assembling financing from a variety of public and private sources • Creating strong public - private partnerships • Catalyzing neighborhood renaissance • Completing mixed -use and mixed - income projects • Ensuring thoughtful design and quality construction • Creating tangible community impact I' %sherman 3 A S S O C I A T E S DEVELOPER PROFILE / November, 2011 I ' SELECTED EXPERIENCE ' Riverside Plaza Minneapolis, MN ' Riverside Plaza represents the largest housing development project in the state of Minnesota and one of only two projects in the United States that were built as part of a HUD pilot program called "New Town, ' In Town." Originally constructed between 1971 -1973, Riverside Plaza consists of 1,303 rental units that housing for over 4,000 individuals in the Cedar Riverside neighborhood of Minneapolis. Sherman provide Associates acquired the property in 1988 and at that time performed the first substantial rehab of the complex utilizing low- income housing tax credits and a HUD - insured mortgage as the primary sources ' of financing. t In January of 2011, Sherman Associates closed on one of the largest tax credit rehabilitation projects in the nation's history and began a $132 million, two -year refinance and renovation of this iconic property. In the process, Riverside Plaza was placed on the National Register of Historic Places less than 40 1 years after it was initially constructed. The historic designation was in part due to the concepts and design brought forward by world renowned architect Ralph Rapson. The rehabilitation, scheduled to be completed in December of 2012, will focus on substantial upgrades to the mechanical and electrical systems that will extend the Iifespan of the property for another 30 years. Exterior and site work will focus on returning the Riverside Plaza complex to its original 1970s appearance. • Historic Rehabilitation and Stabilization • 1,303 total apartments in I I buildings • I, 174 tax credit units (60Yo AMI) ' 669 project -based section 8 units • Project Value: $132 Million I • Financing: Federal 4% LIHTC Equity, HUD - Guaranteed I st Mortgage, Federal and State Historic Tax Credits, MN Housing Finanace Agency EDHC & PARIF, City of Minneapolis AHTF, Greater Metro Housing Corp Funds, Met Council LHIA, Family Housing Fund, Met Council /Brownfield r TBRA, Hennepin County/ Brownfield Environmental Response Fund, Deferred Developer Fee Role: Developer, General Partner Anticipated Completion: December 2012 %sherman ASSOCIATES DEVELOPER PROFILE/ November, 2011 1 4 Riverside Plaza Project Narrative Riverside Plan represents the largest housing development project in the state of Minnesota and one of only two projects in the United States that were built as par[ of a HUD pilot program called "New Town, In Town ". Originally constructed between 1971 -1973, Riverside Plan consists of 1,303 rental units that provide housing for over 4,000 individuals in the Cedar Riverside neighborhood of Minneapolis. Sherman Associates acquired the property in 1988 and at that time performed the first substantial rehab of the complex utiliting low income housing tax credits and a HUD insured mortgage as the primary sources of financing. In January , 2011 Sherman Associates closed on one of the largest tax credit rehabilitation projects in the nation's history and began a $132 million, two -year refinance and renovation of this iconic property. In the process, Riverside Plan was placed on the National Register of Historic Places less than 40 years after it was initially constructed. The historic designation was in pare due to the concepts and design brought forward by world renowned architect Ralph Rapson. The rehabilitation, scheduled to be completed in December of 2012, will focus on substantial upgrades to the mechanical and electrical systems that will extend the lifespan of the property for another 30 years. Exterior and site work will focus on returning the Riverside Plan complex to its original 1970's appearance. I �sher le ASSOCIATES Project Facts Sources include 4% Federal UHTC, State Historic Tax Credits, Federal Historic Tax Credits, Tax Exempt Bonds, HUD Insured Mortgage, MHFA's Economic Development and Housing Challenge, MHFA's Preservation Affordable Rental Investment Fund, City of Minneapolis Affordable Housing Trust Fund, Metropolitan Council's Local Housing Incentive Account, Family Housing Fund, Greater Metropolitan Housing Corporation and multiple Brownfield sources. Largest housing development in Minnesota 1303 units within I I buildings ranging from 2 -39 stories 1174 tax credit units 669 Section 8 units that float within the tax credit units 15 homeless units One of the first deals to incorporate the Minnesota State Historic Tax Credit (Value of $16 million) Project Funders Minneapolis Community Planning and Economic Development Agency Minnesota Housing Finance Agency Department of Housing and Urban Development AEGON Google, Inc. Piper Jaffray Greater Metropolitan Housing Corporation AFL -CIO Housing Investment Trust Minneapolis -St. Paul Family Housing Fund Metropolitan Council Riverside Plan Partners fasherman A S S O C I A T E S DEVELOPER PROFILE / November, 2011 '.. rJ I 1 II SELECTED EXPERIENCE Grand Boulevard Lofts Kansas City, Missouri The former Dierks Building, a 17 -story, steel frame, brick clad office building in the heart of downtown Kansas City, sat vacant for a decade. Through the help of City, State and Federal funds, this project now houses 134 families offering them rental opportunities that are integral to Kansas City's efforts towards downtown revitalization. Re- christened Grand Boulevard Lofts, this project represents Sherman Associates' first move into the Kansas City housing market. Opening to fanfare from city officials, the community has gained tremendous support from community organizations such as The Urban Core Group. The building is listed on the National Register of Historic Places and contains two first floor and sub -level commercial spaces which are being marketed to top -rate national and local retailers. • Historic Acquisition and Rehabilitation • 6,700 square feet retail - Ground Floor • 134 affordable apartments Floors 2 -17 • Project Value: $33.3 Million • Financing: State and Federal Low Income Housing Tax Credits, State and Federal Historic Tax Credits, HUD Insured Mortgage, MHDC TCAP Soft Loan, Kansas City CDBG Loan Role: Developer, General Partner Completed: December 2010 rasherman 6 ASSOCIATES DEVELOPER PROFILE If November, 201 I 11 SELECTED EXPERIENCE Syndicate Trust Building St Louis, Missouri The Syndicate Trust Building is a prominent historic property located at 10th and Olive Streets in the heart of downtown St. Louis. Built in 1907, the 16 -story building is comprised of approximately 450,000 square feet and originally was used for office and retail space. The building is listed in the National Register of Historic Places because of its notable architecture. Retail will return to the Syndicate Trust Building with top -rate national and local retailers located in the street level space. Loft condominiums, located on floors 9 through 16, and rental apartments, located on floors 4 through 8, will provide residents with the convenience, features and amenities associated with urban living. • 20,000 square feet retail - Ground Floor 28 affordable apartments - Floors 4 -5 • 42 market -rate apartments - Floors 6 -8 • 102 condominiums - Floors 9 -17 • Project Value: $81 Million • Financing: City of St. Louis, 4% LIH Tax Credits, New Markets Tax Credits, Federal Historic Tax Credits, Missouri State Historic Tax Credits, Missouri State LIH Tax Credits, Brownfield Redevelopment Grant Role: Developer, General Partner Completed: December 2008 Selected Awards: • 2008 Development of the Year .a r r&sherman 7 A S S O C I A T E S DEVELOPER PROFILE / November, 2011 M ■ SELECTED EXPERIENCE aloft Minneapolis Hotel / Zenith Condominiums Minneapolis, MN ' In 2008, Sherman Associates opened the new 155 -room aloft Hotel along Washington Avenue South in downtown Minneapolis. The hotel is five stories with guest rooms on two through five; the ground level includes approximately 4,000 square feet of retail space and the hotel's public facilities. y w �S Adjacent to the project is the first phase of Zenith Condominiums. Located in the prestigious Mill District, the project provides an opportunity for contemporary living in a dynamic downtown neighborhood. Next to the exciting new Guthrie Theater, just blocks from the heart of downtown, Zenith offers dramatic views of the Minenapolis skyline and the Mississippi River. With shops, river trails and light rail service all within walking distance, this project provides high -end housing in the downtown market. • 155 -room Hotel 64 Condominiums • 4,000 square feet of retail in aloft • 7,800 square feet of retail in the Zenith • Project Value: $61 Million • Financing: New Market Tax Credits, Environmental Grant Role: Developer, Owner Completed: August/November 2008 Selected Awards • 2008 Finalist in Hospitality Development / Redevelopment by Minneapolis / St. Paul Business journal • 2010 Honor Award for Excellence in Concrete Design & Construction SELECTED EXPERIENCE Greysolon Plaza, Sheraton Duluth Hotel and 31 1 Superior Duluth, Minnesota In 2006, Sherman Associates acquired and rehabilitated the historic Greysolon Plaza building in downtown Duluth, Minnesota. Built in 1910 as the Hotel Duluth, Greysolon Plaza's guests have included several former US presidents. The building was converted to affordable senior housing in the 1990s. As part of the redevelopment plan, Sherman Associates will preserve the affordable housing. Across the street, Sherman Associates has built a new building that includes the Sheraton Duluth Hotel and is soon to be connected to the historic ballroom of the Greysolon Plaza by skyway. Five floors of luxury condominiums have been constructed on top of the six -story, full- service hotel. The renovation and construction of the two buildings are part of a multi - project redevelopment of the historic "Old Downtown" area of Duluth. • Historic acquisition and rehabilitation • 150 affordable senior apartments • 147 guest rooms and suites hotel • 33 condominiums • Project Value: $55 Million • Financing: Federal Historic Tax Credits, 4% LIH Tax Credits, Minnesota Housing Finance Agency Soft Debt, Section 8, New Market Tax Credits, Tax Increment Financing rasherman 1 9 A 5 5 0 C I AT E s DEVELOPER PROFILE / November, 2011 II 11 II II 11 1 SELECTED EXPERIENCE Midtown Exchange Apartments and The Chicago Lofts Minneapolis, MN In 2004, a collaboration between housing developer Sherman Associates and commercial developer Ryan Companies transformed the mammoth 1.2 million square -foot historic Sears, Roebuck building in South Minneapolis into a mixed -use masterpiece featuring 88 loft and penthouse condo units, 219 rental units (including affordable units), the headquarters of Allina Health Systems and a global food market. The food market features small businesses started by local entrepreneurs. • Historic Rehabilitation and Mixed -Use Conversion Development 41 market -rate apartments 178 affordable apartments • 88 condominiums • Project Value: $77 Million • Financing: 4% LIH Tax Credits, Federal Historic Tax Credits, US Bank first mortgage (Housing Revenue Bonds), Minnesota Housing Finance Agency, City of Minneapolis, Hennepin County, Tax Increment, Metropolitan Council Role: Developer, General Partner, Property Manager Completed: December 2005 1 Selected Awards: 2009 Best of the Decade by Minneapolis /St. Paul Business journal 1 2007 Affordable Housing Finance Magazine: Best Historic Rehabilitation 2006 National Trust/HUD Secretary's Award for Excellence in Historic Preservation 1 2006 Project of the Year: Adaptive Reuse by Multifamily Executive Magazine 2005 Best in American Living by Professional Builder Magazine 2005 Trillium Award by Builders Association of the Twin Cities 2004 Best in Real Estate: Best Overall by Minneapolis /St. Paul Business journal rasherman ASSOCIATES DEVELOPER PROFILE I November, 2011 1 10 . iii m� •,. r •Ei�� �` 1 Selected Awards: 2009 Best of the Decade by Minneapolis /St. Paul Business journal 1 2007 Affordable Housing Finance Magazine: Best Historic Rehabilitation 2006 National Trust/HUD Secretary's Award for Excellence in Historic Preservation 1 2006 Project of the Year: Adaptive Reuse by Multifamily Executive Magazine 2005 Best in American Living by Professional Builder Magazine 2005 Trillium Award by Builders Association of the Twin Cities 2004 Best in Real Estate: Best Overall by Minneapolis /St. Paul Business journal rasherman ASSOCIATES DEVELOPER PROFILE I November, 2011 1 10 f w a a a r Y SELECTED EXPERIENCE Vine Street Lofts and Water Street Brownstones Des Moines, Iowa Completed in 2004, Vine Street Lofts and its sister condominium project, Water Street Brownstones, was the first significant new construction residential project in Des Moines in over 20 years. Located on a prime site overlooking the Des Moines River, the parcel had been a surface parking lot for decades. Selected through a competitive request for proposal project, Sherman Associates and partner Lander Urban Development introduced a model that was untried in Des Moines high -end home- ownership opportunities, market -rate rental units and affordable rental units on the same block sharing the same underground parking system. The completed project is a resounding success and is considered the project that jump started the downtown housing market. • 65 market -rate apartments • 44 affordable apartments • 32 condominiums • Project Value: $15 Million • Financing: HUD, Fannie Mae, City of Des Moines, Polk County Housing Trust Fund, Neighborhood Finance Corporation, Tax Credit, Tax Abatement Role: Developer, General Partner, Property Manager Completed: September 2004 fasherman I I ASSOCIATES DEVELOPER PROFILE / November. 2011 SELECTED EXPERIENCE Wacouta Commons Saint Poui, Minnesota Multi -phase redevelopment of blighted industrial space and surface parking lots, including mixed - income rental and ownership housing along with ground floor rental space revitalizing the northeast quadrant of downtown Saint Paul. Development Components: • Retail Space / Approximately 14,000 sq ft • Dakota on the Park / 38 Units - For Sale Housing • Essex on the Park / 38 Units - For Sale Housing • Sibley Park Apartments / 113 Units - Rental Housing • Sibley Court Apartments / 121 Units - Rental Housing • 9th Street Lofts / 49 Units - For Sale Housing • Printer's Row / 48 Units - For Sale Housing • Lyons Court/ 60 Units - Senior Rent Project Value: $96.2 Million Role: Developer, General Partner, Property Manager Completed: 2001 through 2006 Selected Awards: • 2001 Best in Real Estate by Minneapolis / St. Paul Business Journal rasherman ASSOCIATES 12 SELECTED EXPERIENCE Burnsville Heart of the City Burnsville, Minnesota In 1999, the City of Burnsville adopted the 54 -acre "Heart of the City" framework to create a mixed -use, pedestrian - friendly downtown area and developers implemented the vision over several years. Sherman Associates led the way with Grande Market Place and Grande Market Square, a comprehensive mixed -use and mixed - income town square center. • 113 affordable apartments • 45,000 square feet retail and commercial space • Project Value: $37 Million • Financing: HUD, Minnesota Housing Finance Agency, City of Burnsville, Family Housing Fund, Dakota County, Tax Increment, 4% LIH Tax Credits Y Role: Developer, General Partner, Property Manager ICompleted: 2004 ' Selected Awards: 2002 Best in Real Estate by Minneapolis /St. Paul Business journal a %sherman ' 3 ASSOCIATES DEVELOPER PROFILE / November, 201 COMPLETED PROJECTS .. . .. . . .. ... . . .... . . ... ... . . . .... . . .. .... . . . . ..... .. . ..... . . ..... .. ......... . tx et gt••g ._• . .. ........... . . 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Q H P N a n u Q N P V1 � p O S 0 0 0 0 0 0 0 0 o0 0o 0 0 0 0� N m N'i 6� C5 Y N 0 (N O� N b O O O O O S O O O O O O O O O P P P ry N N N ry N N N N N N N N N N- Z Z o Z Z Z Z Z Z Z Z Z Z Z Z Z Z Z 0 C . 0 � O a EU,n� m,n0 m gym' �OYn .n LOO �. �+ 1 V Z ^S 3 p Da mn33y' O0 m m Iv 6 F? m( 2 N .i Y u y J 0 9 N; U 0 „ v a „Y 0 SU S 3~ >= w a°5 msi �.c'a s 6ty'pa Y ?o c c$ tC C A u S= u m N^ U i R N Z4 m K V V> UFO a-i F ry O U 5 i u a A DEVELOPER PROFILE / November, 2011 1 16 COMPANY BIOGRAPHIES Principal George Sherman George Sherman has planned and delivered multi- and single - family housing for more than 30 years. As principal in developing more than 7,000 rental units and more than 1,200 for -sale housing units, the total value of properties for which he has developed exceeds $5 billion. Mr. Sherman earned a Bachelor of Science in Biochemistry in 1976 and an MBA in 1977 from the University of Minnesota. Legal Susan Fauver Susan Fauver is a Minnesota State Chair of the American Bar Association's Forum on Affordable Housing and Community Development Law. joining Sherman Associates in 2001, Sue focuses on real estate development with an emphasis in affordable housing finance. Past experiences include practice in the United States Senate Office of the Legislative Counsel and partnership in Minneapolis' Faegre & Benson LLP. Sue received her law degree from Northwestern University School of Law in 1988. ' Anne Stephenson Anne Stephenson joined Sherman Associates in May of 2008. Anne focuses on residential and commercial real estate development. Prior to joining Sherman Associates, she practiced law at Best & ' Flanagan, LLP. Anne received her Bachelor of Arts from Miami University of Ohio and her law degree from the University of Minnesota Law School. Lisa Merk Lisa Merk came to Sherman Associates in 2006 with nearly 20 years of commercial, asset -based leasing and lending experience. Lisa's previous work history includes Vice President of Administration for Allegiance Financial Group, Inc. in St Paul, Minnesota, and Portfolio Manager for the Technology Group of Cargill Leasing Corporation in Minnetonka, Minnesota. ' rasherman 17 A 5 5 0 C I A T E 5 DEVELOPER PROFILE / November, 2011 t r COMPANY BIOGRAPHIES Development and Project Management Jackie Nickolaus Jackie Nickolaus has a 10 -year history of downtown redevelopment practice, including long -term planning and project implementation. Before joining Sherman Associates in 2005, she was an Economic Development Coordinator for the City of Des Moines. Jackie earned a University of Iowa Bachelor of Arts Degree and a Master of Arts from the University of Minnesota's Humphrey Institute of Public Affairs. Chris Sherman Chris Sherman joined the Sherman Associates development team in July 2008. His primary focus has been historic and affordable housing tax credit transactions. Chris graduated from The Pennsylvania State University with a BA in Management from the Smeal College of Business and a minor in Law from the College of the Liberal Arts. Anthony Kuechle Anthony Kuechle is an accomplished real estate professional with over 17 years of experience in real estate development, acquisitions and asset management. Prior to joining Sherman Associates in 2010, Anthony worked as a Vice President of Development and Acquisitions for Hempel Properties and a Project Manager for United Properties. He has a Bachelor of Science in Real Estate and Finance from St. Cloud State University. Paul Keenan Paul Keenan joined the Sherman Associates development team in 2010. Paul has over five years of experience in affordable housing management, accounting and development. Paul holds a Bachelor of Arts from the University of Saint Thomas and a Masters of Business Administration from the Hamline School of Business. r&sherman ASSOCIATES DEVELOPER PROFILE / November, 2011 1 COMPANY BIOGRAPHIES Residential Sales and Marketing Brad Goering Brad Goering joined Sherman Associates in May 2006 to manage the residential sales division. His more than 25 years of sales /marketing and division management experience includes employment with three of Minnesota's largest residential real estate development companies. In addition to a Minnesota, California and Wisconsin real estate license, Brad has earned numerous industry designations and graduated from a four -year building trade's apprenticeship program in 1984. Residential Property Management Pam Schmidt Pam Schmidt helps to assist in the daily operations of residential property management. With over 20 years of experience in the field of property management, Pam has held director -level positions at several nationally- recognized Minneapolis -based property management companies. Formerly, Pam was Director of Property Management at CommonBond Communities, Vice - President of Property Management at Welsh Companies and Operations Manager of The Shelard Group. She has extensive experience in the supervision of a variety of property types that include conventional, new construction lease -ups, and affordable tax- credit communities. Shiva Anderson Shiva Anderson is recognized as one of the country's most highly regarded compliance professionals with several designations and certifications to her credit. Previously with CommonBond Communities, she developed an essential model for the management of site compliance with local and federal affordable housing regulations. With nearly 20 years' experience in the compliance field, Shiva has directed Sherman Associates' compliance department operations since September of 2009. r&sherman 1 9 A s s 0 c I A T E 5 DEVELOPER PROFILE / November, 2011 I COMPANY BIOGRAPHIES 11 Commercial Leasing and Property Management ' Rob Kost Rob Kest has leased or sold more than 3 million square feet of commercial space over his 25 -year career. Joining Sherman Associates in July of 2005, Rob, a past NorthMarq and Frauenshuh Companies ' employee, serves on the CCIM Minnesota - Dakotas Chapter and the St. Joseph's School of Music boards. Rob earned a bachelor's degree from St. John's University and completed the Executive Real ' Estate Program through Harvard Business School. 1 Construction Management F1 Richard Kiemen Richard Kiemen has more than 25 years' experience in general contracting and project management. Working with Sherman Associates since 2005, he has been involved with multi - family, residential, public and private construction projects throughout the Midwest. Richard received a bachelor's degree in Architectural Engineering from Milwaukee School of Engineering and holds a Minnesota residential contractor's license. Ron Wagner Ron Wagner has 13 years of experience in estimating and project management with general contractors and developers in the Minneapolis /St. Paul metro area. Ron has experience in multi - family housing in both the private and public sectors. He received a degree in Architectural Technology for Dakota County Vo -Tech. _ rasherman I 20 ASSOCIATES DEVELOPER PROFILE/ November, 2011 i IN COMPANY BIOGRAPHIES Accounting Larry Kelly Larry Kelly has more than 20 years' experience in real estate development and property management. Prior to joining Sherman Associates, he was the Controller for John. B. Goodman Limited Partnership, a developer of senior housing projects. Larry earned a double major in Accounting and Economics from the University of Toronto and is a member of the Canadian Institute of Certified General Accountants. Deanna Somvong Deanna Somvong has worked in corporate accounting with a focus on financial reporting, internal controls and Sarbanes Oxley documentation, and in public accounting with a focus on real estate audits. With more than 10 years of experience, Deanna earned a Bachelor of Arts degree in accounting from the University of St. Thomas and is a member of the Minnesota Society of CPAs. Hotel operations Adam Herbranson, aloft Minneapolis Adam Herbranson has more than 17 years of hotel experience starting with Sheraton ITT, Canada and later joining Hilton as Executive Housekeeper for Double Tree Hotels in Bloomington and St. Louis Park. His extensive work experience also includes work with Embassy Suites in Bloomington ' and Minneapolis as Assistant General Manager, then becoming General Manager of Comfort Suites Minneapolis. Troy Whelan, aloft Minneapolis Troy Whelan has worked in the Minneapolis hotel market for over 12 years. Prior to joining ' Sherman Associates, Troy held Director of Operations and Sales and Marketing Director positions with the Marriot Residence Inn City Center and the Embassy Suites Hotel by Hilton. In addition to this experience, Troy has over 10 years of experience in individual condominium management and leasing. Troy holds a Minnesota MLS license, is a Meet Minneapolis CVB member, and a member of the Warehouse Business District Association. r s -s rasherman 2 ASSOCIATES DEVELOPER PROFILE/ November, 2011 11 11 11 I' I' I' COMPANY BIOGRAPHIES Karen Pionk, Sheraton Duluth Hotel Karen Pionk joined Sherman Associates in March of 2007. She has more than 15 years of industry experience. Karen serves on the Visit Duluth Board and is a member of Skyline Rotary Club. A native of Omaha, Nebraska, she holds a degree in Marketing and Advertising from the College of St. Mary. r&sherman 1 22 A s s 0 c i A e s DEVELOPER PROFILE / November, 2011 SELECTED AWARDS w Selected Awards 2010 Property Excellence Award - Affordable Housing 101 +Units by Minnesota Multi Housing Association: Midtown Exchange 2009 Best of the Decade by Minneapolis /St. Paul Business journal: Midtown Exchange and The Chicago Lofts ' 2008 Development of the Year: Syndicate Trust Building, St. Louis 2007 Affordable Housing Finance Magazine: Best Historic Rehabilitation: Midtown Exchange and The Chicago Lofts ' 2006 National Trust/HUD Secretary's Award for Excellence in Historic Preservation: Midtown Exchange and The Chicago Lofts ' 2006 Project of the Year: Adaptive Reuse by Multifamily Executive Magazine: Midtown Exchange and The Chicago Lofts 2005 Best in American Living by Professional Builder Magazine: Midtown Exchange and The Chicago Lofts 2005 Trillium Award by Builders Association of the Twin Cities: Midtown Exchange and The Chicago Lofts 2004 Best in Real Estate: Best Overall by Minneapolis /St. Paul Business journal: Midtown Exchange and The Chicago Lofts 2003 Best in Real Estate by Minneapolis /St. Paul Business journal: Falcon Heights Town Square ' 2002 Best in Real Estate by Minneapolis /St. Paul Business journal: Burnsville Heart of the City 2001 Best in Real Estate by Minneapolis /St. Paul Business journal: Wacouta Commons M K fasherman 23 ASSOCIATES DEVELOPER PROFILE / November, 2011 PRESS The following is a selection of articles which highlight Sherman Associates accomplishments: • "Lifetime Achievement Award" Minneapolis St. Paul Business Journal, April, 201 1 • " "Hit Parade" - Minneapolis St Paul Magazine, September, 2010 • "Grand Living" - The Tax Credit Advisor, February, 2010 - Page 30 • "The Aloft Minneapolis" - Minneapolis St. Paul Business Journal, April, 2008 • "Sheraton Duluth Hotel / 311 Superior" - Finance and Commerce, April, 2008 • "Sears Tower Returns to Life" - Star Tribune, March, 2006 • A Quiet Approach" - Finance and Commerce, March, 2006 r&sherman 24 ASSOCIATES DEVELOPER PROFILE / November, 2011 AN Special Repor! e.�wWflerrsmM.r,� iiaL LIFETIME ACHIEVEMENT AWARD George Sherman "" "iw da Vb3 hnd4pnnr} '.Mwn 4mm ry ka D h m hh akec brS nm EuM IM dnmE.. 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M'�.Yn dnrrarfp baen Y MiMnWl maw!CMwm hcBd t�Ir HF m CiFC,:� UrawJrydmrFSlgy b�ivd - IvmeHemee++BE (19]iladalM8611R1) rm.IremFY reermanEr 117F�YpYI}iYKe YI{ t'adWldrnrspe aFYleFebn aFepe I{SGm EMW Dees Mladom umwaareartrlE..xare mPlf eeae�rElbFep EeaF{ ' F&sherman 25 ASSOCIATES DEVELOPER PROFILE / November, 2011 IlelebE n adMiwn Anmm dilate ,em n �trtre ana,lc on dedlbrd wn em tllb aOf 'lbrtl a IImlPflzn - II.FnR I (E. ♦fv^n+41n.,tp arlr+l iY`rkSnfnt Mail a pmtact+d� mn lummt am m�Flyd I.he tartan. tMa .. mn� uxl na nm m at dn.r Fl umI r.» I`lee�lar x9m mCyaCndiFn_It+.naivE rxvtaik 1�- d.s mFl tlWrrbq rnleFnrtxrbpl dr F� Ja. �ablPtn�anrTnaFnifg.armpm r eam®m �t<emN:ry ^un a4 ua:.hul.»nlnF ME mapury "- .:drd>,•e:hr: aNnMtEx okaNe��;lttl MEt>0 UMSE SROMAN tmep SUSmn Awev�awen 14arlFdla rw IFk 16x1 i.re fcs Loki +x 1N da+pv. M'�.Yn dnrrarfp baen Y MiMnWl maw!CMwm hcBd t�Ir HF m CiFC,:� UrawJrydmrFSlgy b�ivd - IvmeHemee++BE (19]iladalM8611R1) rm.IremFY reermanEr 117F�YpYI}iYKe YI{ t'adWldrnrspe aFYleFebn aFepe I{SGm EMW Dees Mladom umwaareartrlE..xare mPlf eeae�rElbFep EeaF{ ' F&sherman 25 ASSOCIATES DEVELOPER PROFILE / November, 2011 E \ \ � H }0 \( \ {)} }})()\ ] \!� } § \) }\ \ \ \\ \\ ! §#;] \, ;� ;I{. �!! :¥l2 :peG2: / {22/ \/ ) /2l2GD\89 ; %Q! _FgbaQeb § /Q9 /!\ E HM El /| /i)Q ; R ;6, & / / / / asema 62 A0 C A DEVELOPER PROFILE iNovember, 2011 I 1 I, Or ®r 4 Grand Boulevard Lofts Source and Uses Summary SOURCES Federal /State Housing Tax Credit Equity ...... $8,039,105 Federal /State Historic Tax Credit Equity ....... $8,879,041 HUD Sect. 221(d)(4) First Mortgage ...............$8,875,000 MHDC TCAP Soft Loan .............. .....................$6,850,000 Kansas City CDBG Loan .............. .......................$190,000 Deferred Developer Fee ............. .......................$471,438 Total Sources ..................... .................. $33.304.584 USES............................................ ............................... Construction Costs .................... ....................$18,787,738 Acquisition Costs ........................ .....................$5,030,008 Architect/Engineering Fees, Survey ..................$666,000 Developer's Fee .......................... .....................$2,750,000 Miscellaneous Fees & Costs/Reserves ........... $6,070,838 Total Uses ......................... ....................$33.304.584 • ing Iwer is using L Grand Bo levard Lofts, Kan as City, (vl"soun Rendering Suzanne Re ier, of Roseman & Ard"tects, P ., Kansas City, issouri Fasherman 27 ASSOCIATES DEVELOPER PROFILE / April, 2010 Kerman Associates, Inc. had a vision for downtown Kansas City: They intended to convert a 17 -story office building that had been a blight for ten years into the Grand Boulevard Lofts, an affordable housing project. Closing on the 134 -unit apartment project was originally scheduled for late 2006. But the financial crisis that rocked the affordable housing market made that impossible and delayed the job. But Sherman didn't give up. An intense, year -long effort by the Minneapolis developer to shore up the financing for the $33 million low- income housing tax credit project, including a soft loan of federal Tax Credit Assistance Program (TCAP) funds from the Missouri Housing Development Commission, has enabled the project to move forward. Ryan Sailer, Vice President of Development for Sherman Associates, said the deal was the second most difficult financing in his firm's 30 -year history, due to the complex mixture of affordable housing programs. "We closed financing literally the week before Christmas. I think we made a lot of people's Christmas," he noted. "People have been working in the building since about December 15th or 16th." Completion By Year -End Sailer said that environmental abatement for the project is about halfway complete and that the layout of the frame for the top floors has begun. The project is expected to be completed by December 31st. Once finished, the building will be occupied by residents living in affordable housing convenient to local jobs. Grand Boulevard Lofts will include 64 one - bedroom apartments, with monthly net rents from $566 to $620; and 70 two- bedroom apartments, with monthly net rents from $670 to $775. Five units will have rents affordable to households at 50% or less of the area median income (AMP, while the rest will have rents affordable to tenants at or below 60% of AMI. Sixty percent of AMI for a four - person household in the Kansas City area is approxi- mately $41,040. Like many major metro areas, Kansas City has a need for housing of all types, but especially affordable housing in the downtown area, says Janell Thome, Director of Rental Production for the Missouri Housing Development Commission. MHDC approved the Grand www. h o u s i n go n l i n e. co m rasherman ASSOCIATES Low- Income Housing Tax Credit Boulevard project for LIHTC financing because the devel- opment fit into Kansas City's effort to revitalize its downtown with retail, entertain- ment, and employ- ment opportunities, she noted. Architects were ready to pull the building permits for the project about a year ago just as the housing credit equi- ty market was head- ing south, said local architect Donald Rosemann, of local firm Rosemann & Associates, P.C., Architects, which designed the project. LIHTC pricing dropped about 30 cents per dollar of credit and Sherman Associates was forced to seek TCAP funding from MHDC. The financing package had to be reworked to meet different regulatory requirements. For example, the pro forma had to be revised to provide for payment of federal Davis -Bacon prevailing wages, a Current ice Building, Kansas City, Missouri requirement under the TCAP program. Financing Package The ultimate financing package for the $33 million project is multi - layered. It includes equity generated by the syndication of federal and state low- income housing tax credits and historic tax credits, a HUD - insured Section 221(d)(4) mortgage loan (5.67% interest, 39 years), a TCAP subor- dinated soft loan (0%, 40 years), a small soft loan from the city capitalized from federal Community Development Block Grant funds (0 %, 40 years), and a deferred developer's fee. The project, which is funded in part by tax - exempt bond proceeds, will also receive local tax abatement. The syndicator of the federal tax credits was Stratford Capital Group; for the state tax credits, Sugar Creek Realty. Sailer said that because the deal included the HUD loans, other debt had to be structured as surplus cash Grand Boulevard, continued on page B February 2010 I Tax Credit Advisor 7 0 v a 0 o: s 0 a M a 0 t; DEVELOPER PROFILE/ November, 2011 �8 ILow - Income Housing Tax Credit I CJ I I L_J I I I I I I Grand Boulevard, continued from page 7 loans in a second position. To accomplish this, Sherman Associates had to get the blessing of city officials for the CDBG loan and state officials for the TCAP funding. "We made lots of calls to HUD in Washington to get guidance," Sailer said. "It takes a lot of back and forth. We worked with lots of great people from the city to the state to the federal government." Building History, Issues Grand Boulevard Lofts will represent the productive resurrection of a structure originally constructed in 1909 with five stories called The Gates Building. Additions over the next 20 years expanded the structure to 17 sto- ries. Overtime it has also been known as the Home Savings Association Building, Dierks Building, and 1006 Grand Building. The roughly 175,000 square -foot, steel - frame, brick -clad office building, which had been vacant for the past 10 years, is listed on the National Register of Historic Places. Rosemann said his firm's design for the residential use of the building was complicated because the first eight floors were constructed in a rectilinear shape and the remaining nine floors were built in a U- shaped con- figuration with lots of light. Converting the office space into functional apart- ment layouts, and retaining the historic character of the hallways where residents will exit elevators, was very challenging. The building's most impressive feature will be the renovated lobby entrance, Rosemann indicated. "When you first enter into this building, it's going to be an eye - opening experience. So much stuff had been covered up. So many things had been totally destroyed and we're restoring them back to their original character." The building will also have an exercise room, com- munity room, storage space, and nearby secure off -site parking for residents. EM - Stephen K. Cooper %sherman 29 ASSOCIATES DEVELOPER PROFILE / November, 2011 I I I I tas Asia r r to MINNEAPOLIS 11 PAUL USINESS JOURNAL HOSPITALITY D EVELOPMENT I RED L k I IA) V %ItNI The Aloft Minneapolis BY BRIGITT MARTIN CONTRIBUTING WRITER When d upcns nor July. deoclope, George Shcraan of Shenttwt Assocttes is h:ak-mg on his new Aloft i imscapsli+ hotel bectnninc'tle hip Plane wt Fn" m downtown hfiuncapslt" lmndy Mill District. Ltcate,i in oaal Whshlnytun Ave. S., The Aloh'. ev fun will oerkvthencn Imy elmrnaTlealml +ucwl and plasv (made. and lose toarl'v green spay will Iv a Demotes;+ continuation of the bodwaping in Gold Medal Purk.ln fact,Shrrmon himlihepark'slandxape design thin. Oshind anJAssmiulaof %]wintapulitjua rn enWR• Ile avmlinuily. "Fro use ctirtsn, we uwd loom of an ani•tuc metal p,sel cotnpuulian that .. has an a.M,,y, urron Ind. We aho uwd a knot gnu +a wt pPSkJrIaM1a aw1J see inside," said David Graham. principal of Oness Sarnwm Gorham ArthnM +Ire m Mmrlcap his. -We wamed to create vibrancy m reinfmve that of th fkalwW+." Sheeran sad. But ii sshe inside ufthe S:9 nalllon, 99,0110,+yuare fssnl bistro lot will lmly define its coulnmos factor anti appeal In the i¢ to Jyyrardd, NyJulift -Wvinp )moms• trawler whu Shnntwt istargi tg. He dcs. ,bcv she Alch'x brdty es "inn M a hotel Idd+) low, a Incly mwmmrem. bar and olialiang area." The mom floor. which includes J SOtawpare feel of cnnnncrcial space for lease, fcamrcs she %aye bar and refuel revtaumrd Sherman said de howl" high -loch features Stan here. "yam can brecrc Stern through the lobby w mlhowl shtppsng ai Ili, fnmt Je+k ro check in or pet ruff key. Everythlnp can tr door eksmonLally." On she four clones uM+r. Aloof's 155 ptrsrs nwms carry Mrisctonhvsspran' ticacn andhighIcshthrmr. Each noon femarms a J :Bich plasma televmm" linked to a plug -aal -play connectivity seiner that manage+ guc,os Personal digital asvisumi•, cell phones- MP? player, and luprp coonPmen. Of course, Sherman', µconey, Io IM AF.di+ grand opening in July has been nv complicated as the tangle of cables brl iml his computer. iW a housing Je,clop- were specialist. Slrmwn was inleresud in punch smg a !dock u[W'asltingwn Awnwe's %erred •arfxc park- ing lots to (wild condominiums. 11r block thin the .!loft ut ( necupics was ovivad by Hennepin Cousn) and A manufmturing company. After about five yarn nil ner abou" Sherman bought the block and lien negotiated with ibe city of Minneapolis W rcsolw the Issue of mineral nghls urclor \Vashmogtwt Avraue By the line he lad cleaned up the site and was ready to begin developing the blosk in hour 2dt17, sh hN dnw'rilrm'n cooknniniuni mmrkel Iuul cooled considexably. %, to lake adynnluge of the nearby m.WMITA. Sestmmram+, olu eLeo, park, std lighl roil rasherman ASSOCIATES train tile. Sherman skcided to create a mised-u•e (Slats) deltlnpncat that included due 7tnith cradnmiaimn+ Value, Sin mihos and Aloft Min e4ro i+. in partnership -not Smrwtosi Locatkim 9W Wasbrapon Ave. S.. Mnneapois Hurts aid Rmw,tl: W Hulmis. Toe Iwo protest, Size: Usoil sgwre feel (IM goes, roans) art connected by undetmrwm l parking and f cemral Ground breaklnip June 21)77 c wmvard. Expected completlom Augur 2M "It's very important to fill in the street front along Washington Avenue by developing the old street lots, even now that the condominium market is slowing down." Carol Lansing Special Counsel, Faegre & Benson; Best in Real Estate judge `It's v y Impin:In1 to ml to she +trorifroul Au it \\S•hingtun Avenue by devvloping de told street lees. eves nos, ifal the snndmmrin um market is •towing down." said Bel it Real E•wse judl+r Carol Lancing, special ewnwl with Faegre R Beason of Minoeap+- lii "And as a plus, tlr load iv ehssr to ninny de lilu- hsnr spins" Brigftt Martin i9 a freelralm writer, (Players] Tonne: P:naap Tenant broker: United Pmcpenies Lessor. Feb Kosl Lessor broker Sheman Assacates Inc. Developer. Sherman Associates Inc General contractor: Baron Ca1SInlrital Architect: Dress Samson Graham Alelitects kv: Design archilectt Diess Saxmson Graham Ndtdetu Ire Landscape, architect: O;NM AM ASSWaleS Structural "gin"" Mgt Vic_ Civil englrteerfnge AlIi v Design build mechenloal; Doody klachanical Design build Noctricalt Colims Elecheal Leasing agent: Rob Kest, Sheeran Associates Tonard agenh United PrWedles Legal representation: Leonard. Streef and Oevad Faegre d Benson Fhtanee provident Park Nalmo(W Bank ate New MackeI Tar Credds z1voup ULIZI: of Debot Laker, Title company: Gamsnnnal Partners TO Interior design anchHech Gees Edge Architects Franchisee;: i -hood Hotels ate Resorts Hospitality consultant: Wsmerrnann PAMEIM Foodsarvlco constaltanb stwege Other key partio uCay of kinneapohi Hennepin Gomry i ailmad, klel Ca A DEVELOPER PROFILE I November, 2011 30 1 1 1 1 1 1 1 1 1 SHERATON DULUTH HOTEL 311 SUPERIOR rasherman 31 A S S O C I A T E S DEVELOPER PROFILE / November, 2011 11 I ondominium owners at the new 311 Superior enjoy their granite countertops, stainless steel appliances, oversized bathtubs and other upscale amenities. But what they really love are the boats, says Richard Hicks with Sherman Associates, developer of the Sheraton Duluth Hotel / 311 Superior project. "Some of the buyers have said they can look out their windows, see an oar boat going by on the lake and feel they can reach out and touch it." Overlooking Lake Superior, the new development includes a 147 -room Sheraton Hotel, which occupies the first six floors, and 33 condo units on floors seven through 11. It's one of the first hotel -condo projects completed in Minnesota, and part of a hot national trend. A skyway connects the building to nearby St. Mary's Duluth Clinic. >> SHERATON DuLuTH Ho ai, /311 SUPERIOR Location: Duluth Developer: Sherman Associates General Contractor: Oscar J. Boldt Construction Architect: Elness Swenson Graham Architects Size: 189,000 square feet Cost: $55 million r&sherman ASSOCIATES DEVELOPER PROFILE/ November. 2011 1 32 Other developers have passed on projects at the site, but George Sherman's company became interested when the clinic announced a 200,000 - square -foot expansion to its First Street Building. Another appealing aspect was a planned skyway linking the medical facility to Duluth Technology Village – a mixed -use office building. Sherman also acquired the historic Greysolon Plaza — formerly Hotel Duluth — across the street from 311 Superior. The lobby and grand ballroom inside the mid -1920s hotel have been refurbished to serve as part of Sheraton's meeting and conference space. When they designed 311 Superior, one of the top priorities was giving every condo a view, says Brian Ivers, a senior associate with Elness Swenson Graham Architects. The one -, two- and three - bedroom units range in size from 1,120 to 2,660 square feet. In the Twin Ports real estate market, views of lake Superior are solid gold. But because the hotel -condo facility was situated on ancient rock cliffs above the lake, site preparation posed some unique challenges for the designers and builders, Ivers says. "The new building footprint required that additional rock be removed and the central footings and foundations embedded into the rock formations," Ivers says. That required considerable dynamite blasting to carve out enough space. As with most downtown condo projects, convenience is a big part of the appeal. With the Sheraton Duluth Hotel linked to the skyway system, hotel guests and condo owners have easy access to the Greysolon Plaza across the street, along with parking in a city ramp and the SMDC Health System campus. The hotel also provides a menu of services to condo owners including catering, housecleaning, laundry and dry cleaning. They also enjoy access to the swimming pool, fitness center, restaurant and bar. — Dan Emerson rasherman 33 ASSOCIATES DEVELOPER PROFILE / November, 2011 HOMES ONLINE FiMAOrvs.bmLY.YFAmwtgagnkArroo wa mme a,tamanm.mm/mmn STARTS I LURE COM /HCALS -SATURDAY, MARCH 11. 2o96 -SECTION H After $189 million and a decade of work, the massive Minneapolis redevelopment called the Midtown Exchange is ready for residents. . .Squvelaol tondomlmum GGLE, ]1h11om olth,.", DAts sold LET 1925 N]. Ithvpawnml, News of THEM RndwlMwx 34DCH 1 It wee hoM the Sears mteetank. Sears tower returns to life I.St000l - It IF THE MIDTOWN EXCNANGE PROTECT HAS MIS FOR SALE AND OMITS FOR RENT Imnio.er drn.mmRR an,mlamxlAmi OnTwe eSALE HOUSING oMmrsdn:wyepl¢, $24C.OA: 13om bedewmS1tNO bMerom aM\Nttt -1 ngea1Y20J puveteetAVVWSPaeeNgrunP�^ Ih\` m+ ielaeass .NVdesaeelapptianeeagrw \e oun\ertop US,.m12aw1CWTH \fah Ii 1C and IMICamen.STsew,8w,esmhemL. SY,M4maesma Me PACGHAamllle_ H`FT.Fneeswaleange(mm S89.SW Ia S239.9W,uvhutingwashn ana tlt,es ,pan \e uMeeglwnd HOUSIN TOFIm NET LEN rs y,aaYrcaamtlbil]9om Mdmam Be MOteGmmantlsv:eRlumryYmeNns %sob 95pISEUSTA . l'e^ent @theurv[sarenrtmnrbasM WXdaak MUArig�AweN4vmLL -N tlasNinWetlttWngx, nspelaMad Wwaahex MFT:T SOME NEW RPbMENT5OF THE MID}OWN EECHANGIES CMCAGO LOFTS . NELOsK SS.NNAGQM WaMaat I1W 0 CIA— To- .demur plus 1EFUGA wstFULS xThfiFFO e.IM1 da1Ygn41e Mfr- dxoltleaery Nek Nanoqunllu .bSG,SIUS'FMngesurynx- i, µJy. thelMr�g ewmublggnMee,antl\hetitrhmu fight yeaneWer.soneryWngkahadeaX ILntixx myNePlaee bW nol my gartlenaMtlavers�lwvtlta aeewlul eLa \I�nelsdo \owl[M1mYePa•ed^e. Th— ]CHIlse¢ell.12.M1 F,otimltyto\he �M 1NO OG,I of aM22 IEYES toIMH�nll Dw.io geltowarn hale Ne OUT wloaeGH hoM am,, pek up the Isain aM xIp to Pe alrysKlluts M1uge. AeNm. ewalm„rs ESE, eaxuat, DAYSEE SHIMI gLalown e W nw The Po %R M1as matle home values ma,m,nelghmmmawnn mmmm+eaprse,tYxu. XDPe RXOtos:GOto Lweawi/homesR BUYING H3 a SELLING Nis • BUILDING H6 • RENTING HS %sherman ASSOCIATES H10 • RENNSTMNARNEY H12 DEVELOPER PROFILE / November, 2011 34 I I I SATURDAY, MARCH 11, 2006 • STAR TR[BUNE • H13 Sears tower returns as a place to work and live 4 MIDTOWN FROM Hl The project is in the heart of a community that has one of the highest concentrations of poverty and new Americans in Minneapolis. While the Midtown Exchange has clearly been a boon for the neigh- borhood, rising property values in the area have created challenges for many of those who are being priced out of the housing market or are fac- ing rising property-tax bills. "The only downside," Schiff said, "is [that] the area has come back so quickly it has given whiplash to the residents who have stuck it out." Organizers of the project want- ed low- income people who already live in the neighborhood to have an opportunity to live in the building, so the project includes condomini- utns and apartments for people who must meet income guidelines. "I'm pleased we were able to put more affordable housing into the Midtown Exchange Project than a typical city project — an entire 10 percent more," Schiff said. Those converted living spac- es have industrial loft sensibilities including oversized windows, tall ceilings and exposed concrete col- umns that reflect the building's past. "I'm convinced this is the best con- version in the city," Coldwell Bank- er Burnet sales agent Linda Mes- senger said. "People come into the building and really respond to the historic proportions and the ameni- %sherman ASSOCIATES ties like the 360- degree view party room [at the top of the tower]." She said more than half the units have been sold. Barb Duthler, another Coldwell Banker Burnet sales agent who is marketing the project, said that buyers include a mix of business executives, first -time home buyers and even suburban and rural Min- nesotans who have come to live in this former retail landmark "It's a range of people and they've already starting to form community among themselves," she said. DEVELOPER PROFILE/ November, 2011 35 M 4 RESIDENTS FROM H1 i embrace the mixed- income/ mixed-use model, Othercities have done it with great success and it is al- ways a gamble. The security standards are so high here. and with Allina's involvement and what the city has invested, they are not going to let this go belly up. They won't settle for any thing less than success. Bill Heisley, 56, pastor, Mount Olive Lutheran church at 31st Street and Oucago Avenue The way I found out, since my parish is two blocks away, was the sign for Chicago loft sales trailer. I was prepared to be very skeptical. walked in and the floor plans were really wonderful- They had a kitchen display in the trailer with standard granite countertop finishes available. l thought.-Maybe I should think about this:' This is the first time in my life that I've lived in the place I've really wanted. Heretofore, it had been:'This is what I can afford." I've really con- nected with the 12 -foot ceilings, indus- trial concrete,and columns thatactu- ally hold up the building.1t's a feeling of spaciousness and a different sort of fight. I had lots of trees before and 1 was worried aboutbeing 12 stories Above the trees instead of one below there, but it's flooded with light 1 feel I'm on the cutting edge of something. DY. Crystal khlosse, 42, surgeon with Allina Hospital I had just started at Abbott and was living in Stillwater.I wanted some place to stay overnight if someone was sick, looking at it as a place loc rash Then I started to contemplate walk- ing two blocks to work vs.two to three bows of windshield time every day- r&sherman A550CIATES H14 • S I A K IKIUUNt • JAI UK DAY, MAKI.H 11, ZOOO cm+msr• Im�tee®.:.mauaa.. Sh[9ev.V/a4]mHelfkympaM WO�1, YASgincfeelmlNOminivmfl ,4efhioroldlsmeec)] Hewiasb work What it came down to: I loved my house in the country, but there is a t)ade-off of how I wanted to spend my lime. Now I have two extra hours and Pm less stressed, knowing 1 don't have that long drive ahead of me. l'm planning on taking piano lessons and going back to yoga class, which I had dropped from my schedule. I just fee) excited to be part of that change - the positive effects on the community and the whole city. I'm a bit of evangelist. I'm excited to have the market downs lairs and have at. cess to ethnic fresh food. I'm not sure if I'D ever need my car, and that's great for the environment. When 1 would drive into Minneapolis, FU see that brown (smog) line hanging over the city. I'm not going to contribute to that as much as 1 did before. Andrew Williams, 30, security guard, Midtown Exchange I work security right here at the building and there was a posting on a bulletin board during the construction. It's the best deal,price-wim. I pay 5620 (rent( for a one - bedroom plus a den. You don't find that in Minneapolis too much anymore.lrs a nicer space than what I had by the VA hospital and it's SSS cheaper because its based on a percentage of income. And I have a seventh-floor view ofthe whole metro. My ma was worried because of the history of the area, but once she ca me to see itshe has different opinion, It's so much better than it was 10 years ago. And now 1 come straight down the elevator and I'm at work. I don't have to deal with the cold and snow. It's real convenient. Bruce Brown, 46, drreetor of technol- ogy, COS publishing I'm from Chicago and need to be in Minneapolis one or two weeks a month for work. The reason we came to see the Chicago Lofts was the whole Sears connection. With my travel, l can land, lake the fight rail, a short bus ride and I'm here. it's been really interesting. My boss said that he wouldn't go in that area. but it's nothing like what I've expert - enced in Chicago. Based on this devel opment,l can see the whole area up- graded, uplifted I see how lake Si Feet has changed even since I signed to buy it just a year ago. DEVELOPER PROFILE I November. 2011 36 .... ,... A quiet approach By Burl Gilyard, F &C Real Estate Writer May 25, 2006 Thousands of people drive by the headquarters of Sherman Associate every day without even knowing it. That's just fine with George Sherman, president of the Minneapolis -based multi - family housing developer and owner. Even as he has built his company into large player in local development circles and beyond, Sherman prefers to stay behind the scenes, below the radar. You won't see Sherman rubbing elbows or slapping back at local real estate trade association meetings. That's not his style. Sherman figures that his track record is his calling card. "Do a good job, let your product speak for itself and let your reputation speak for itself," Sherman said in a recent interview in his office. r ' %sherman 3 7 ASSOCIATES DEVELOPER PROFILE / November, 201 Sherman says Sherman Associates develops $250 million to $300 million in projects every year, including 400 to 500 units of for -sale housing and 400 to 500 rental units. Sherman Associates owns 5,000 apartment units in the upper ' Midwest; Sherman developed approximately half of those units. The firm employs 130 people, including 20 who work in development. Sherman, 52, is the sole owner of the company. tSherman's track record is increasingly prolific. His firm has no shortage of work in the pipeline, with 25 projects in various stages of development. ' "We do everything from affordable housing to million - dollar, for -sale condos," Sherman said. "Our projects are all different. None of them are cookie - cutter." ' Locally, the list includes the Zenith condominium project near the new Guthrie Theater, which will combine 150 to 160 condo units with a new150 -room hotel. Near Uptown, Sherman has plans to redevelop a portion of the Bennett Lumber site for 150 to 170 condo units. r ' %sherman 3 7 ASSOCIATES DEVELOPER PROFILE / November, 201 In New Brighton, Sherman will build 200 condos and executive townhomes as part of The Landings at Long Lake in New Brighton, where Sherman is the co- developer with the Rottlund Co. The planned Central Avenue Lofts at 24th Street and Central Avenue in northeast Minneapolis will combine a new U.S. Bank branch and other commercial space with 70 apartments, both market - rate and affordable units. At the former Sears site in south Minneapolis - now known as Midtown Exchange - Sherman Associates recently completed 221 apartments and 88 condominium units as part of the mixed -use project. "That's been a tremendously successful project for everyone involved," Sherman ' said. A formal grand opening for the project is scheduled for Saturday, June 3. ' In recent years, Sherman has branched beyond the Twin Cities. The firm has ' current development projects in Milwaukee, St. Louis, Kansas City, Des Moines, Duluth, LaCrosse, Wis., and Palm Springs, Calif. Y In St. Louis, the firm has partnered with a St. Louis firm on the $85 million redevelopment of the historic Syndicate Trust Building into 175 units of for -sale condos and rental apartments. In Duluth, Sherman Associates is developing 311 Superior, which combines a 147 -room Sheraton hotel with 33 luxury condominium - units. In Kansas City, Sherman is part of a development team that will redevelop a 12 -block area,adding nearly 1,200 housing units. Not bad for a guy with a biochemistry degree from the University of Minnesota. Sherman worked as a biochemist for a few years after college, until he heeded the advice of a college friend to pursue real estate. At first blush, there would appear to be no natural connection between the discipline of biochemistry and the intricacies of the real estate business, but Sherman notes that both require attention to numbers and detail. "Real estate, at least in my world, is a lot of numerical, financial analysis. Biochemistry includes a strong understanding of mathematics," said Sherman, adding that both fields also require an ability to track numerous elements simultaneously. "In biochemistry you may have 10 or 20 things going on at once. I think you have to be able to keep track of numerous components at one time." %Sherman ASSOCIATES DEVELOPER PROFILE / November, 2011 • Sherman believes that one of his firm's fortes is its knack for working through complex financial deals that involve myriad sources of public and private financing. He cites the Sears project and the St. Louis redevelopment as two examples. "It involves very, very complicated tax credit and tax increment financing. I think it's one of the things that sets us apart," Sherman said. "Every development company has to have some sort of a niche. You do what you can do." w Sherman began his real estate career quietly. ' In 1978, he bought a 14 -unit apartment building at 27th Street and Humboldt Avenue South near Uptown in south Minneapolis. A year and a half later, Sherman converted the building into condos. It was kind of the heyday of the first condominium rush in the Twin Cities," Sherman recalled. "Back then, condominiums were selling for $35,000 to $40,000. Back in those days, I was doing the work myself." ' The units sold, and Sherman found himself with a new career. "We were always involved in urban development," Sherman said, recalling his earliest work in the Lake of the Isles area and on the north side of Minneapolis. Since he first got into the business, Sherman says that construction costs have tripled. "We could actually build a townhome in the'80s for $70,000 and make a little bit of money," Sherman said. Throughout the 1980s, Sherman and partner Nick Boosalis ran the firm Sherman - Boosalis. They parted ways and Sherman launched Sherman Associates in 1991. "I think we wanted to go in different directions," Sherman said. "Partnerships are not the easiest things. You either have to agree on everything or nothing." In the apartment business, Sherman hasn't sold a building since the mid-1 980s, taking a long -term view of the market. He sees the rental market rebounding after several years in the doldrums. But even in recent years, Sherman kept up the pace of developing about 500 rental units annually. r&sherman 1 39 h 5 5 O C 1 A T E E DEVELOPER PROFILE / November, 2011 1 a "It tends to be counter - cyclical to the for -sale market," Sherman said. "It's improving." Through a joint venture with Minneapolis -based Lander Group - Lander Sherman Urban Development - Sherman has developed the Midtown Lofts in Minneapolis and more than 450 units in various projects such as Printer's Row in the emerging Wacouta Commons area of St. Paul. "I think it's kind of winding down," Sherman said of the joint venture. "It's always been on a case -by -case basis." Michael Lander, president of the Lander Group, says the joint venture has been a good fit. "It's gone great, it's a tremendous partnership," Lander said. "I think that the market is changing here. We are separate companies. As we made a plan at Lander Group about where we're going, I do imagine we'll be doing a lot less things with them." Lander says Sherman has a knack for the financial intricacies of complex deals. "His forte is in the nexus of public - private development. He's willing to go into development situations that require public support," Lander said. "He's taught multiple cities how to do this stuff and use the various tools. He goes where others will not." Sherman's aforementioned headquarters? The firm is based on the second floor of the building best known as home to The Old Spaghetti Factory restaurant at 233 Park Ave. S. The building sits within blocks of the new Guthrie Theater and an explosion of new condominium development, including his firm's own Zenith project. Sherman bought the 55,000- square -foot building, which dates to 1906, in 2001 for $1.95 million and later bought the adjacent parking lot. "It was a very classic building, and our staff very much wanted to be downtown," Sherman said. Sherman praises his staff as talented and hard - working. "This is not a golfing crowd," Sherman said. Sherman Associates owns more than 500,000 square feet of commercial buildings. rasherman 40 A S S O C I A T E S DEVELOPER PROFILE / November, 201 1 II "It's less than 10 percent of our business," said Sherman, but he predicts doing more commercial property in the future. "I think we're getting more experience with it, and it is fitting into more of our mixed -use projects. Our portfolio is growing. More and more cities are asking us to do commercial as part of our development," Sherman said. As the condo market shifts and slows down, Sherman has some advice for would -be developers. "Don't go out there thinking you can sell anything," Sherman said. "Number one is go with location in today's adjusted market." "I think there's going to be a number of projects that don't happen. There needs to be and will be a slowdown," Sherman said. r&sherman ASSOCIATES ry DEVELOPER PROFILE / November. 2011 41 a REFERENCES CHUCKLUTZ Deputy Director City of Minneapolis Community Planning and Economic Development 105 Fifth Avenue South #200 Minneapolis, Minnesota 55401 SUSAN GEHRZ Mayor (retired) City of Falcon Heights 2077 W. Larpenteur Falcon Heights, MN 55113 (651) 641 -1229 (612) 673 -5196 KEN DAYTON MMA Financial CECILE BEDOR 2177 Youngman Avenue Director of Planning and Economic St. Paul, MN 55116 Development (65 1) 603 -5056 City of Saint Paul 25 West Fourth Street KYLE HENSON St. Paul, MN 55102 Michael Raarup (651) 266 -6628 US Bankcorp RICHARD CLARK City Manager City of Des Moines 400 Robert D. Ray Drive Des Moines, IA 50309 (515) 283 -4141 ROBERT ODMAN Minnesota Housing Financing Agency 400 Sibley Street #300 St. Paul, Minnesota 55101 (651) 296 -9821 r&sherman ASSOCIATES Mail Code: BC- MN -H03A 800 Nicollet Mall, 3rd Floor Minneapolis, MN 55402 (612) 303 -3586 MARK JOHNSON M &IBank 651 Nicollet Mall Minneapolis, Minnesota 55402 (612) 798 -3883 PETER NOONAN Senior Vice President Commerce Bank 800 Forsyth Boulevard Saint Louis, Missouri 63105 (3 14) 746 -3223 JIM WEICHERT Deloitte & Touche, LLP 4300 Norwest Tower Minneapolis, Minnesota 55402 (612) 397 -4010 ANGELA CHRISTY Faegre & Benson, LLP 2200 Wells Fargo Center 90 South Seventh Street Minneapolis, Minnesota 55402 (612) 336 -3261 DAN MYER RAU Constuction 9101 West I IOth Street, #150 Corporate Woods Building #35 Overland Park, KS 66210 (913) 642 -6000 CARLA POPE Affordable Rental Production Director 2015 Grand Avenue Des Moines, IA 50312 (5 IS) 725 -4901 DEVELOPER PROFILE / November. 2011 1 42 CONTACT INFORMATION MAILING ADDRESS: Sherman Associates, Inc. 233 Park Avenue South, Suite 201 Minneapolis, MN 55415 MAIN PHONE: 612- 332 -3000 FAX: 612- 332 -8119 WEB: www.sherman-associates.com %sherman ASSOCIATES DEVELOPER PROFILE/ November. 201 I 43 fasherman ASSOCIATES www.sherman - associates.com