McGough is pleased to announce it has completed construction on and opened the first 260-units of The Fenley, a 402-unit, high-end multifamily rental residential development at Bloomington Central Station, McGough’s multi-phase 50-acre master planned development site. (All units will be completed and open for move-in on September 1st). As developer, McGough has led the execution on more than $300 million in project value on the Bloomington Central Station site alone.
The Fenley is a unique residential opportunity providing residents with not only top-of-the-market amenities, but with convenient access to freeways and proximity to regional amenities, that include: Mall of America; Minneapolis-St. Paul International Airport; Blue Line of Metro Transit’s Light Rail Transit System; Minnesota Valley National Wildlife Refuge; a full-service Hyatt Regency hotel; and high-design two-acre park.
The Fenley is the first ground-up development project to commence construction in Minnesota, and one of the first nationally under the new Opportunity Zone tax program established by the Tax Cuts and Jobs Act of 2017. The incentive program encourages the investment of unrealized capital gains into historically under-invested areas to catalyze economic development, job creation, new business starts, development and redevelopment projects. Project entitlements were approved, and a tax increment financing subsidy was approved jointly by the Bloomington Port Authority and City Council in October 2018. The project debt financing was provided by The Northwestern Mutual Life Company and closed in December 2018. In consideration for the public subsidy, The Fenley will include 10 percent of its units at 80 percent Area Median Income affordable rents with the remaining at a high-end market rate.
The project, designed by ESG Architecture and Design and constructed by McGough Construction Co., LLC., offers market-leading amenities including: grand courtyard entry drop-off, pool patio with grill stations, bocce court and lounge spaces; top floor sky lounge with viewing deck; fitness room with a yoga studio and sauna space; community and party room; work-from-home café lobby space; parking garage with tenant stalls matching the floor of their unit; and a park-side courtyard with supportive ground floor retail space.
The completion of The Fenley marks a milestone for McGough, creating 1,060 housing units within the company’s Bloomington Central Station development site, providing multiple housing opportunities within the City’s South Loop District including condominium homeownership, market rate rental and affordable units.
The project will be another successful product of a long-standing, 18-year-old partnership with the City of Bloomington, a collaboration that dates to the original acquisition of the Bloomington Central Station site and continued with master planning the 50-acre super block and the establishment of a redevelopment tax increment finance district to further catalyze the area’s redevelopment.
The transition from a dormant light industrial campus into a thriving mixed-use community and eastern anchor for the City of Bloomington’s South Loop District is well underway, with available development land for an additional 1.9 million square feet of potential commercial and a complement of related uses.