US-based commercial real estate advisory firm Newmark Knight Frank (NKF) has arranged a $77.2m construction loan for Block 9, a new $125m mixed-use development in downtown Fargo, North Dakota, US.
Block 9 is located in the heart of downtown Fargo at the corner of Broadway and Second Avenue North. The 48,000ft² surface-level parking lot will be transformed into an 18-storey, mixed-use tower.
The project broke ground in September 2018. It includes RD Offutt headquarters, ground floor retail, a boutique hotel that will be managed by Chicago-based Aparium Hotel Group, a restaurant and residential condominiums.
NKF Chicago Capital Markets group executive managing director Ben Greazel originated the construction/mini-perm loan on behalf of the borrower, which is a joint venture between Kilbourne Group and RD Offutt.
Greazel secured the financing with a syndicate of banks led by First National Bank of Omaha.
Greazel said: “We are fortunate to assist Kilbourne Group and R.D. Offutt Company with a solution to their financing needs.
“Block 9 is a first-class, dynamic project that will serve as the focal point of the current transformation underway in downtown Fargo.”
Previously, NKF has advised New York State’s Empire State Development (ESD) on its successful bid for Amazon’s East Coast HQ2 operations, which is the largest state development project in state history.
As advisor, NKF helped ESD understand Amazon’s selection criteria and how to position itself for the deal.
The NKF’s location strategy and site selection specialty practice has provided expertise in several areas, including large headquarters’ case study site selection, labour analytics, competitive assessment and benchmarking, financial modelling and experiential advice on targeted aspects of the combined ESD and City of New York proposal bid package.
NKF vice chairman of global corporate services Robert Hess said: “We are proud of our team, which leveraged years of experience to give the best possible advice to ESD.
“We worked with ESD as a trusted advisor, helping to showcase the scale, infrastructure and young, highly-skilled talent pool that New York City offers Amazon.
“We are pleased to have helped ESD develop the right mindset and approach to deliver on this economic opportunity for the city, state and entire region.”
Image: A rendering of Block 9, a mixed-use development in downtown Fargo, North Dakota, US. Photo: Courtesy of Newmark & Company Real Estate, Inc.