On Thursday Chicago-based Magellan Development Group started construction on the 36-story mixed-use high-rise located at 1369 Spruce Place in Minneapolis. The building is part of a residential tower boom which is attempting to supply the shortage of apartments in the Twin Cities.
The $100 million building will include 354 rental apartments, as well as retail space, according to local media.
Developers and realtors in the Twin Cities are seeing a rapid increase in high-rise apartment sales.
"During the past month, builders were issued 409 permits to build 1,312 units, a 42 percent increase in permits and a 247 percent increase in units, mostly new rental apartments," according to the Builders Association of the Twin Cities.
Throughout Minnesota, the number of new listings on the market decreased more than 10 percent, Minnesota Association of Realtors reported. The shortage of rental housing and a dwindling supply of for-sale listings have spurred developers into action. Five apartment towers received permits from the city during the month October.