Old SAwmill District
The Old Sawmill District is a 45 acre former sawmill in the heart of Missoula, Montana, USA. The redevelopment of this property, the last major parcel of developable real estate in central Missoula, will transform a historically industrial and formerly blighted area into a modern, vibrant neighborhood that will consist of single and multi-family residences, retail space, and commercial offices.
Old SAwmill District Phase 1:
SOlD out - 16 Investors Approved!
The Northern Rockies Regional Center (NRRC) is happy to report that OSD Building #1, LLC is making good progress on its project, called Cambium Place. As a former lumber mill, this name describes the new era, the next generation of the land. The cambium is the layer of new cells, the new growth each year, of a tree just under the bark of the tree.
Preliminary design and engineering began late in 2014, and the land was purchased in July 2015. The land was cleared of asphalt and concrete from the prior industrial buildings. Architectural designs and engineering were completed early June 2016, and a city building permit was approved. Construction started late July 2016.
March 6, 2019 the Project celebrated its Grand Opening! Over 200 guests attended for a large event. Two City Council members and the Advanced Technology Group CEO were the speakers, providing very positive statements about the economic development and contribution of this very nice building for the city.
The residential space is targeting for-rent apartment homes for those willing to pay more for a very nice home. Amenities will include a shared party kitchen and dining room, conference rooms, high-speed internet, an outdoor water feature, seating, fire pits and other features.
Currently about 85% of the commercial portion of the building has been leased. This is ahead of schedule. The interiors of the commercial office areas are being completed as directed by the new commercial tenants. Two full floors of the 4 floors are leased by Advanced Technology Group, a technology company. ATG signed a 10-year lease for almost 16,000 sf, about 50% of the commercial space and began paying rent on December 1. This company was recently acquired by Cognizant, a Fortune 500 company, improving the credit value of this lease dramatically. Today, March 13, 2019, ATG is holding a “ribbon-cutting” Grand Opening Celebration with the City of Missoula Mayor, Montana Governor, and global executives from Cognizant attending.
Another smaller space is leased to a national investment advisor. They began paying rent and working on tenant improvements in December. They expect to occupy their completed office in April. Another smaller space is leased to a Physical Therapist who held her Grand Opening just last week.
The C3 WorkLounge, a shared co-working space, and Brio Fitness, a neighborhood fitness center, are both owned by the Project. Both have been in operation and making lease payments since January 1. Only a small 1,200 square foot office space and about 2,800 square foot reserved for a neighborhood market or restaurant are remaining to be leased. Several prospects are interested. Overall, we are pleased with the amount of space under lease at this time.
The project recently was appraised by an independent certified appraiser resulting in a $29M current value when leased as projected. $25.4M has been invested.
Missoula was recently named in the top ten in the entire United States for The Best Cities for an Active Retirement in 2016. (https://smartasset.com/retirement/best-cities-for-active-retirement) The ranking was based on overall retirement-friendliness, tax rates, number of doctors, concentration of fitness business and golf courses, and the Walk Score of each city. This underscores the desirability of the project, and in particular its location near the Missoula
company, OSD Property Management, was formed for property management and housekeeping services, to create more direct new jobs and provide better local service.
Statements about plans, expectations, and projections are ‘forward looking statements’, and may not be achieved as presented. Conditions, plans and projections are always subject to change, and the project is subject to negative impacts from weather, cost increases, new competition, labor and materials availability, the uncertainty of timing and number of USCIS approvals, availability and cost/terms of other capital, regulatory approvals, environmental conditions and other important factors. Initial project plans anticipated much earlier USCIS approvals and funding from the EB5 program. Management reserves the right to make changes, which it feels are in the best interest of the project and its investors.
In summary, the project is making good progress. Updated project renderings and current construction pictures are shown below. For more information, please also visit the project website at CambiumPlace.com.
Old Sawmill District phase II:
Sold out - 30 Investors Approved, 1 pending!
This report is intended to provide a general summary of project progress to NRRC, the manager of the lender to OSD Phase II, the Job Creating Entity. OSD Phase II, LLC’s projects are making good progress. The Polleys Square name is derived to honor the first owner and operator of the former Polleys Lumber Mill, a family-owned company producing lumber on the site for almost 50 years. The Sawyer is a student apartment project, named for the manager of the hardworking laborers in a sawmill.
An updated economic report was prepared in September 2017. It stated that at that time 237.5 jobs had been created and 660 total jobs (377 direct plus 283 indirect) are expected to be created. Our 30 investors need 300 jobs created, so this appears to be very positive.
The investor owned entity, NRRC Millsite Investors Phase II, LP, (Partnership or EB-5 Lender), is managed by its General Partner, which is NRRC. To date, the Partnership has 31 Limited Partners (all EB-5 investors) providing $15.5 M in project funding, which has all been loaned to the Job Creating Entity.
The investment funds will stay invested in these and other subsequent projects over the next several years. OSD Phase II, LLC continues to own the Dog & Bicycle café, a small neighborhood coffee shop and bakery in the Polleys Square A building. Funds were loaned to help finance construction of the C3 WorkLounge, a neighborhood co-working space, and to Brio Fitness, a neighborhood fitness center. These are both in the building adjacent to the Polleys Square Condominium Buildings and the Sawyer Student Living apartments. These are essential amenities for the marketing and sale or leasing of the Polleys and Sawyer projects. We decided it was better to support these than construct duplicate facilities. They are operational and doing as planned in their development stages. The Sawmill Grille, a new restaurant, is being designed.
The Polleys Square A Condominium Building is complete. In this 4-story building 19 of the 20 condominium homes have been sold. The $5.3M Polleys A bank loan has been paid off in full.
The Polleys Square B Condominium Building was completed in January 2017. Fourteen of the 17 units are sold. The bank loan has been paid off and all funds and any profits will be reinvested as planned.
Architecture, engineering and then construction of the Polleys C Condominium Building began in August 2016. The building was substantially completed April 2018. The remaining senior bank loan was paid.
Construction of the Polleys D Condominium Building broke ground on June 1, 2017. Completion of the building was expected September 2018, but finally occurred in November. The initial bank construction loans have been paid.
Plans and permits for the “boutique” student resident project were finalized and construction began in June 2017. The projected cost is approximately $20.5M, using approximately $8M of EB-5 funds, plus bank loans, and reinvested profit. Additional townhouse-style units were contemplated, but about $600,000 of cost increases for the primary building have forced us to postpone construction of the townhomes, so the townhomes may be constructed when possible in the future.
A competing project was scheduled to be completed for students last year. This project has experienced significant construction problems and delays. While this doesn’t impact us directly, their bad reputation must be overcome when leasing our project.
The project will have 57 two-, three- and four-bedroom pod-style apartments. Each bedroom will have their own private bath. Other features will include secure access, underground parking, in-unit washer and dryer, a large courtyard with BBQ grills, academic business center, and study spaces. There will be a neighborhood fitness center in another building nearby. This project construction is set to be completed Summer 2019 and apartments rented for the 2019-2020 school year. The construction schedule appears to be good. We are beginning to lease this very nice building now for students to move in about August 15. Send your students here!
Old Saw Mill District Phase III:
Phase III features the Old Sawmill Active Living Learning Project.
Thoughtful features and amenities to a targeted 55+ age group in a mixed use village.
Residential units, for sale and for rent, constructed in several phases and buildings, with lecture halls and the newest technology for educational and cultural events.
Approximately 150-200 units.
Commercial space for related Ancillary Services: Food Service restaurant, Personal Care, Home Health Care, Housekeeping, Physical Rehabilitation and Medical Office facilities.
The Neighborhood Inn, Hotel, for family and guests needing a little extra space in a friendly home-like atmosphere.