Local developer Sherman Associates has finished transforming nearly an entire block in the Mill District.

This week, Sherman Associates celebrated its $161 million redevelopment of 1.75-acres at Washington and Portland avenues, where the company built two apartment towers with a total of 330 units and a new Minneapolis fire station. O2 Luxury Tower was completed in September, Ladder 260 was completed in May, and Minneapolis Fire Station 1 was completed in 2022.

O2 features 240 market-rate units and 5,500 square feet of ground-floor commercial space. Amenities include a relaxation spa with a sauna, a golf simulator, an outdoor pool, and two fitness studios.

Justin Sutherland was initially tapped for O2’s two restaurant spaces, where he planned to revive Pearl & the Thief and add a third Big E sandwich shop. But a Sherman Associates spokesperson confirmed that Sutherland is no longer involved following allegations that he assaulted his girlfriend. New plans haven’t yet been announced by Restore Restaurant Holdings, owner of EaTo and Chloe by Vincent,  

In May, residents started moving into Ladder 260, a 90-unit housing development with affordable studio, one-bedroom, and two-bedroom apartments. Most units are reserved for people whose household incomes are 30-60% of the area median income. The building is currently about 70% leased.

The project was made possible through a public-private partnership between the City and Sherman Associates, which allowed the developer to secure tax increment financing (TIF) for Ladder 260 and utilize a special allocation of TIF from O2. Kraus-Anderson was the general contractor and ESG Architecture & Design was the architect on all three phases of development. 

Sherman Associates’ other downtown Minneapolis projects include Moment in Elliot Park, East End in the Mill DIstrict, and the Groove Lofts at Northstar Center in Downtown West. Sherman Associates is headquartered in the J.I. Case Building, where the company recently completed a $35 million historic renovation.