Cove Apartments Planning to Open Phase 2 Building in Downtown Duluth this Fall

Construction is already underway on the corner of Lake Avenue and First Street.

DULUTH, Minn.- Phase 2 of the Cove Apartments looking to open this Fall, as officials hope it provides a big boost to Downtown Duluth.

Phase 1 of the Cove Apartments saw almost all of its 48 units filled before doors even opened back in late 2020.

“So the goal with these historic rehabs is to try to be able to deliver a product that preserves the historic nature of the building without making the rents unaffordable,” said Andy Bollig with Roers Companies out of the Twin Cities.

So developers and Downtown Duluth officials hope the success continues and attracts more people to live and boost the economy of Downtown Duluth.

Phase 2 of the Cove Apartments will feature 38 units with rent ranging from less than a thousand dollars to around $2,000 for 2 bedroom apartments.

“We wanted to be able to target the more workforce demographic because there is that missing middle demographic between true affordable housing and then the top of the line market rate housing,” Bollig said.

Amenities inside include a club room, game room, and fitness center with bike and ski repair.

It’s hoped the Cove Apartment’s 2nd building on the corner of 1st Street and Lake Avenue right across from phase 1 brings more life to that part of downtown.

“I think anytime you bring more residents it spurs more demand for different things whether that’s retail whether it’s services whether it’s just even more activity so that feeling of safety is also a component that comes with that when you have more activity in your downtown,” said Kristri Stokes, President of the Greater Downtown Council.

Representatives with Roers Companies said they’re excited to get in on the market.

“It’s hard to get deals to work up there just construction pricing’s a lot higher so we’re constantly looking for opportunities like this to take advantage of the strong market,” Bollig said.

With Phase 2 construction expected already started, they hope it can attract more development Downtown.

“We’re actually looking at another project a few blocks south of this for some affordable housing, and I know there’s lots of other developers currently looking up and down Lake Street and 1st just for more revitalization opportunities,” said Bollig.

Only one business, Zero Hour Escape Rooms was forced to move out to make space for the latest project.

According to Bollig, they’re letting them stay rent-free temporarily until they can get a new location.

Throughout construction, the Duluth Chamber of Commerce, which is right underneath the new apartments will remain open.