Financing Secured for $136.5M Rochester Riverfront Project

Rochester, MN (KROC-AM News) - Financing is now in place for a major housing project in downtown Rochester.

Financing Secured for $136.5 Million Project

Sherman Associates today announced the financial closing for its $136.5 million Riverfront project along the west side of the Zumbro River just north of the Mayo Civic Center. The project, which was first proposed in 2022, calls for a 15-story tower with 273 market-rate apartment units adjacent to a 76-unit affordable senior housing building and an enclosed parking ramp with 350 parking spaces.

Major Downtown Housing Development

“This is an exciting milestone for a project that has been years in the making,” said Rochester Mayor Kim Norton. “By bringing both market-rate apartments and affordable senior housing to the heart of downtown, this development will provide more housing options while creating new opportunities for people to live, work and stay connected to our community. We are pleased to see this important site moving forward through a strong public-private partnership.”

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New Riverfront Walking Path Planned

According to a news release, the project will also feature a new publicly accessible riverfront walking path along the Zumbro River. Sherman Associates says both apartment buildings are expected to be ready by spring 2028.

Project Uses Former City Parking Lot

The development utilizes city-owned land that was previously used for surface parking. The City of Rochester recently closed the City Center North parking lot to make way for the project.

Rochester Approved Millions in Public Funding

The Rochester City Council and the Destination Medical Center Board earlier approved $13.5 million in tax increment financing for the project and $3 million in Destination Medical Center funds.

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