Twain Financial Partners Provides Construction Financing for Downtown Minneapolis Hotel

Haley Beth OrganUncategorized

Twain Financial Partners is pleased to announce the financial closing of a historic renovation project in Minneapolis, Minnesota. Twain’s participation includes federal and state historic tax credit equity, Commercial-PACE financing, and a sale/leaseback, which takes the place of a traditional construction loan and includes an option to repurchase.

The future Hotel Indigo is a renovation of the former Crowne Plaza located in the Northstar campus in downtown Minneapolis. Upon completion, the property will feature a 218-room boutique hotel flagged as a Hotel Indigo and various amenities including a full-service restaurant and bar, café, lounge areas, and fitness center.

The project is being co-developed by Kothe Real Estate Partners, KP Property Development, and Great Lakes Management Group. The development team brings deep experience and expertise in structured finance, tax credits, and public incentives to carefully selected developments throughout the Midwest, with a particular focus on hotels and historic redevelopments.

“We are especially proud to have financed this renovation of a hotel at a very challenging time,” said Kevin Page, principal at KP Property Development. “We’re especially grateful to our various financing partners including Twain, Lincoln Savings Bank, IHG, and the City of Minneapolis for taking the time to understand and believe in our proposal.”

“The deeply layered source financing is a testament to the talent of the developer,” said Erik Lintvedt, Business Development Officer for Twain. “This particular mix of sources presented a very high level of complexity to an already challenging transaction. Hats off to the Kothe team, who did a terrific job piecing it all together. It was a sincere pleasure to partner with such a high-caliber group.”

“Twain has also enjoyed the challenge of deploying all of our standard products in addition to a sale/leaseback of the property in one development,” Lintvedt continued. “The structure has allowed us to bring more of the project capital stack than ever before.”

Twain Financial Partners is an investment management firm located in St. Louis, Missouri with over $4 billion in assets under management within the public-private partnership sector. The firm works with a variety of investment types, specializing in tax credit, structured debt, and real estate transactions. Twain works with financial institutions and corporations to structure and manage investments that offer attractive economic return and social benefits.

Learn more about Twain’s federal and state historic tax credit equity, Commercial-PACE financing, and sale/leaseback programs here.