Twain Financial Partners Provides Construction Financing for Downtown Minneapolis Hotel

February 22, 2022

In November 2021, Twain successfully closed on $38 million of financing for the Hotel Indigo historic renovation project in downtown Minneapolis, Minnesota. Twain provided sale-leaseback financing, a commercial-PACE loan, and federal and state historic tax credit equity. The sale-leaseback financing is the first of its kind in the historic tax credit space and takes the place of a traditional construction loan. Unlike traditional sale-leaseback products, the Twain sale-leaseback provides sponsorship the option to repurchase the land and improvements from Twain at a later date and at a pre-determined price.

The future Hotel Indigo is a renovation of the former Crowne Plaza hotel located in the Northstar
campus in downtown Minneapolis. Upon completion, the property will feature a 218-room boutique hotel 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.