Sherman Associates announced the financial closing on its multifamily development at the Civic Center North Lot site in downtown Rochester, located at 217 East Center Street. The $136.5 million multi-phase development will deliver a 273-unit market-rate residential tower and a 76-unit affordable senior housing building, connected by a shared 350-stall enclosed parking structure. The project represents a significant public-private partnership among Sherman Associates, the City of Rochester, and the Destination Medical Center (DMC), and marks Sherman's entry into the Rochester market.
The market-rate tower will offer 221 traditional apartment homes and 52 fully furnished short-term and month-to-month residences. The flexible housing units are designed to meet the needs of healthcare professionals, visiting medical staff, patient families, and others seeking temporary accommodation near Mayo Clinic and downtown Rochester. The affordable senior housing community will provide 76 affordable homes for older adults. Construction is being led by Frana Companies as the general contractor, with ESG Architecture & Design serving as architect. Construction is underway, with both buildings expected to open in spring 2028.
The project supports the community's vision of transforming Rochester into a vibrant destination city through mixed-use development that integrates housing, healthcare, employment, hospitality, entertainment, and public spaces. Rochester Mayor Kim Norton said the development will "provide more housing options while creating new opportunities for people to live, work and stay connected to our community." DMC Executive Director Patrick Seeb said Sherman Associates' investment will "bring hundreds of new residents to the heart of Rochester, create more housing choices across ages and incomes, and reconnect an important downtown site to the Zumbro River." The project will also feature a new publicly accessible riverfront walking path along the Zumbro River, and sustainability certifications are being pursued for both buildings.
The announcement does not specify the exact financing structure beyond noting that Sherman secured tax increment financing (TIF) that supported both projects. The source does not disclose the total project cost breakdown between the market-rate tower and the affordable senior housing building, nor does it identify lenders or equity partners. The timing of the financial closing relative to the start of construction is also not detailed. Because the evidence comes from a single secondary source, the full scope of the financing and any conditions attached to the TIF remain unknown.