New Owner of Greysolon Plaza Says Much Will Remain the Same
Historic downtown building sold for $17.45 Million.
DULUTH, Minn. – The Greysolon Plaza located in downtown Duluth has been sold to Orbach Affordable Housing Solutions for a reported $17.45 million.
JLL Capital Markets announced the sale on Monday between Sherman Associates and Orbach Affordable Housing Solutions, based out of New Jersey.
The Plaza currently offers 150 one-bedroom affordable housing apartments, along with the Greysolon Ballroom and Black Water Lounge (under construction). Officials with the project say all of that will stay the same.
“The Ballroom isn’t going anywhere. It’s too awesome to go anywhere,” said Mox Gunderson, Senior Director at JLL Capital Markets. “The only thing the tenants should expect is probably a refresh to the common areas and the interior.”
“What’s typical with any sort of low income tax credit rehab is new cabinets, new carpet, just an overall refresh. But as affordable housing goes the rents are fairly set,” he said.
“Orbach Affordable Housing Solutions is very proud of this project,” said Jay Reinhard, President of Orbach Affordable Housing Solutions. “It is our mission to ensure families have a safe, comfortable place to live and provide our tenants with the community they deserve.”
Orbach Affordable Housing Solutions says they had been looking to “plant a flag” in Duluth and Greysolon Plaza offered them a unique opportunity.
Gunderson added the sale allows Sherman Associates to look at building more affordable housing elsewhere in the city or state.
“It allows them to fuel further developments in the Affordable housing arena so it’s really a win/win for everybody,” he said. “Orbach can expand in Minnesota and Sherman can recycle capital to go build more affordable housing which is obviously much needed housing in our state.”
Over the next year, OAHS says they plan to acquire 2,000 additional units in “New York, New Jersey, Pennsylvania and Minnesota with another $300 million in total rehabilitation and development costs.”
The Greysolon Plaza is in a prime location downtown, with main bus lines right out front and the 3rd Avenue Transit Stop just down the street.
Built in 1924, it once even hosted President John F. Kennedy for an overnight stay.