The AssociationSummit Homes Association, constructed in the late 1960s, is a 298-unit high-rise condominium community located in Loring Park. In 2016, the board of directors and FirstService Residential began planning for a major restoration project, including complete replacement of the mechanical penthouses, mechanical risers, in-unit fan coil (and surrounding cabinetry) replacement and several major structural repairs to the roofs and parking garages. The project demanded extensive planning for three years and carried a price tag of $21.8M.
The SolutionFunding the project was a challenge that took close partnership with the board and FirstService Residential. After receiving approval of over 84% of homeowners to move forward with Housing Improvement Area (HIA) financing through the City of Minneapolis, the community used a combination of HIA funds, a permanent loan and reserve funding for the project. The HIA financing option allows the owners to benefit from a 20-year fixed interest rate at a lower interest rate than conventional financing, saving each homeowner approximately $8,000 in interest over the life of the loan, which equates to $2.37M in savings for the entire community! FirstService Financial partnered with the community to place the construction loan and permanent loan.
The ResultsThe project timeline was extended a few months to accommodate new COVID-19 protocols and was completed in June 2021. The project was the most extensive and complicated renovation the community has ever experienced. Still, it resulted in highly efficient mechanical systems, increased structural integrity of the buildings, and aesthetically pleasing additions to amenities.
The FirstService team would like to give special thanks to all who contributed to the success of this project: The Board of Directors and all homeowners, the city of Minneapolis, the FirstService Residential sited team, Doug Strandness, John Stelten from CPMI, Questions & Solutions Engineering, Meyer, Borgman Johnson, Encompass, Gilbert Mechanical, Gittleman Construction, and LS Black Construction.