Kraus-Anderson Announces $105M Apartment Project in Downtown Minneapolis
Kraus-Anderson, a family-owned and managed construction firm based in Minneapolis, is slated to begin construction on a 105-million-dollar luxury apartment building. The project will feature a 16-story building, named the Larking, just across the street from Kraus-Anderson’s new mixed-use headquarters in downtown Minneapolis. While the project originally called for a 6-story building, neighborhood organizers wanted more development.
But Minneapolis’ downtown rental market has become increasingly competitive in recent years. Last year alone, developers completed 1,286 units in downtown. Furthermore, a record number of completions are expected in 2020. With all the new development, downtown’s vacancy rate rose to 5.2% in first quarter, double last year’s first quarter rate.
Nonetheless, because of the recent influx of apartment buildings downtown, an executive at Kraus-Anderson is expecting developers to cancel some of the projects that have already been announced. The hope is that occupancy rates will increase with those cancellations by the time leasing begins at the Larking, which is anticipated for 2022.
Next up, community organizers hope to bring more development in the form of grocery stores and restaurants to the neighborhood.