A grand opening of Paravel Apartments on Thursday, Aug. 17, serves as a reminder of how new apartments continue to dominate home construction in Eden Prairie.
Last year the city issued building permits for 28 single-family homes compared to 271 multi-family homes, mostly apartments.
The Paravel ribbon cutting held by developer Timberland Partners this week signals the addition of 246 luxury apartment units at 8300 Commonwealth Drive, next to the Flagstone senior living complex and near new commercial such as Chick-fil-A restaurant and a Bank of America branch.
Together, all of that redevelopment where Castle Ridge Care Center and Broadmoor Apartments once stood has added $135 million in new tax base, according to the City of Eden Prairie. Paravel Apartments alone has a property value of $73.8 million for taxes payable in 2024, according to Hennepin County tax rolls.
The five- and seven-story Paravel buildings include commanding views of nearby Purgatory Creek Recreation Area, and amenities include a pool, fitness center, game room, lounge with a golf simulator, and co-working space. Units vary from a $2,085-a-month studio apartment of 550 square feet to a $6,608-a-month penthouse of 1,894 square feet, according to the Paravel website.
Of the 246 apartment units, 62 are set aside for income-qualified renters, under an Inclusionary Housing Policy enacted by the city and a 26-year tax-increment financing district set up specifically for Paravel in order to create more affordable housing. Those 62 units will have lower-than-market rental rates.
Market forces and the economy – both locally and nationally – are factors in the construction of apartments in Eden Prairie and elsewhere. The average long-term U.S. mortgage rate this week climbed past 7% to its highest level in more than 20 years, news outlets reported, and listings of Twin Cities-area single-family homes for sale are down from last year.
It’s probably no surprise, therefore, that Timberland Vice President of Real Estate Development Ryan Sailer says they’ve leased more Paravel units than they expected to at this time.
“The apartment market is good, because people right now aren’t selling their homes,” he said. “So there’s not a lot of inventory to move into. Right now, people are just choosing rental as a lifestyle. And frankly, I think Eden Prairie was a little under-served.”
Paravel is Timberland Partners’ second apartment project in Eden Prairie – the first was Elevate at SouthWest Station. While TImberland doesn’t currently have plans for a third project, Sailer says Eden Prairie is still likely to see more apartment construction.
“I know there’s more on the drawing boards,” he said.
A few others are already past the drawing-board stage.
One project that’s under construction is The Ellie, a United Properties project involving 239 apartments north of Smith Coffee & Café along Eden Prairie Road.
Another project – approved by the city but not yet underway – is Blue Stem North, a Greco Properties LLC plan for a two-phase project totaling 425 apartments at 6901 Flying Cloud Drive. It would be near the Golden Triangle LRT station, which is part of the Metro Council’s Green Line Extension.
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