AgStar Rural Capital Network Partners with USDA on New Cloquet Apartment Complex Using First-Ever Section 538 Financing in Minnesota
Grand opening of 14th Street Apartments set for Oct. 21
MANKATO, Minn. (October 19, 2009) – AgStar Rural Capital Network, part of AgStar Financial Services, has partnered with the U.S. Department of Agriculture (USDA) Rural Development to finance a new 18-unit, three-story apartment complex in Cloquet, Minn. The grand opening of the 14th Street Apartments, located at 2010 14th Street, is set for Oct. 21.
The financing is the first Rural Rental Housing Guaranteed loan made by USDA Rural Development in Minnesota and the first in the nation made through a Farm Credit System lender. The complex features one, two and three bedroom apartments for individuals and families at market rate, affordable rents starting at $649.
“The grand opening is a very significant, historical occasion celebrating the first closed deal in Minnesota on a USDA Section 538 financing,” said John Monson, vice president of AgStar Rural Capital Network. “More importantly, this financing effort is serving rural communities that need low to moderate multi-family housing. Our mission at Rural Capital Network is to build a capital network for rural investments and the Cloquet apartment complex is a great example of this.”
The developer for the apartment complex, which is located across from the community college in Cloquet, is Dave Chmielewski of Black Hoof Development. Residents began moving in during September and the building is already two-thirds full.
“There is very limited multi-family housing in Cloquet,” said Monson. “There are some apartments and only one other complex that has been built in the last 15 years. We are pleased to be able to add this facility to the housing mix in the community. This is just a good story all the way around and demonstrates how AgStar and USDA can work together to help rural communities.”
About AgStar:
AgStar Financial Services, ACA, headquartered in Mankato, Minn., employs more than 610 full-time team members. The company is part of the national Farm Credit System and has a public mission to serve 69 counties in Minnesota and northwest Wisconsin. The company has expertise in the corn, soybean, swine, dairy and bio-energy industries. AgStar has developed successful programs in loans, leases, crop insurance, tax services, accounting, consulting and rural home mortgages. Visit www.AgStar.com for more information.
Contact: Heather Leiferman
507-529-2087
Heather.Leiferman@AgStar.com
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