Marcus & Millichap Secures $89.6M Construction Financing for Minnesota Luxury Apartments

Marcus & Millichap Capital Corporation Arranges $89.6 Million Construction Financing for Two Minnesota Multifamily Projects

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01/29/2025 - 08:57 PM

CHANHASSEN, Minn.--(BUSINESS WIRE)-- Marcus & Millichap Capital Corporation (MMCC), a leading provider of commercial real estate capital markets financing solutions, arranged $89.6 million in financing for the construction of Bennett Apartments and Harlow Apartments, two adjacent multifamily projects located 15 miles southwest of Minneapolis in Chanhassen, Minnesota.

Gary Sefcik in MMCC’s Manhattan office secured the financing. Kayne Anderson provided $77.5 million in senior proceeds and SteepRock Capital provided $12.1 million in mezzanine financing for the sponsor, Minnesota-based Roers Companies.

“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.

The Bennett Apartments, located at 591 West 78th St., plan to feature 184 units and 11,853 square feet of prime retail space. The Harlow Apartments, at 570 Market St., plan to offer 126 units and 3,029 square feet of retail space. The projects are expected to be completed in 2026 and provide future residents with luxury finishes and amenities.

About Marcus & Millichap Capital Corporation

Marcus & Millichap Capital Corporation (MMCC) is a subsidiary of Marcus & Millichap (NYSE:MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada. MMCC provides commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, sponsor equity, loan sales and consultative and due diligence services. In 2023, MMCC closed 1,076 transactions totaling $6.73 billion. To learn more, please visit: marcusmillichap.com/financing.

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

Marcus & Millichap, Inc. is a leading national brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services. As of December 31, 2023, the Company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The Company also offers market research, consulting and advisory services to our clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.