Financial Troubles Halt South Minneapolis Modular Apartment Development

Last fall, Thor Cos., one of Minneapolis’ largest construction firms, broke ground on a highly-anticipated four-story, 44-unit apartment building in South Minneapolis. It was a monumental project for the company as it began the multifamily development, demonstrating to naysayers in the Twin Cities that modular construction could be used to construct apartment buildings and in half the time of traditional construction.

However, the fate of the project is now up in the air, as Thor’s Edina-based co-developer, McGlynn Partners, has halted construction due to Thor’s financial troubles, which include a $3-million-dollar lawsuit from its lender Sunrise Banks, who also seeks to place Thor under a court-appointed receivership.

In response to the lawsuit and its growing financial troubles, Thor’s CEO Ravi Norman has departed the company. Thor has called on Manchester Cos. to assist them in restructuring and planning its next steps.

Meanwhile, the South Minneapolis project sits idle. The site is near ready for the modular units to be installed; however, Patrick McGlynn, principal of McGlynn Partners, declined to comment on whether the order for modular units has been placed or whether they have been built. McGlynn did state that the half-complete project is not at risk of damage due to its pause in construction.

It’s important to note that neither Thor nor McGlynn Partners have an ownership stake in the project. According to McGlynn, the main reason for the pause in the project is due to Thor’s status as a general contractor and relationships with the modular home supplier. While the project may not be at risk of damage, issues with contractors, such as this one, can cause many problems for the property owners.

Originally published at: https://www.bizjournals.com/twincities/news/2019/01/31/thor-hires-turnaround-specialist-to-plan.html