Monarch Buys Civic Center Drive Land for $4.5M

Monarch Commercial Real Estate bought 2.33 acres in Rochester after an affordable housing project on the site fell through.

Updated on Nov. 3, 2026 in Commercial

Photograph of a weedy vacant urban lot with thin survey stakes in the grass under overcast skies, with a pale apartment block in the distance. — Monarch Commercial Real Estate bought 2.33 acres on Civic Center Drive in Rochester for $4.5 million after state tax credits sank an affordable housing project planned for the site. AI Illustration. Upload story photo >

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Do you think new market-rate apartments will make housing more affordable in Rochester?

Monarch Commercial Real Estate purchased 2.33 acres on Civic Center Drive in Rochester for $4.5 million, with the purchase closing Oct. 26. The seller, Onward Investors of Minnetonka, had planned a 282-unit affordable housing complex called The Loom on the site before state tax credits did not come through.

Why it matters

The sale shows how the loss of state tax credits can derail affordable housing plans and shift a site toward market-rate development in Rochester. Monarch's interest suggests investor demand for the parcel remains despite the collapsed project.

Monarch paid $4.5 million for the 2.33-acre parcel on the south side of Civic Center Drive between Fourth and Sixth avenues. Onward Investors paid the city $460,000 on Oct. 21 as part of a land swap and sale tied to the original project.

The players

Monarch Commercial Real Estate

Monarch Commercial Real Estate is a developer that recently opened The Winn, a 303-unit luxury apartment complex in Golden Valley, Minnesota.

Onward Investors

Onward Investors is a Minnetonka-based investment firm that had planned The Loom affordable housing project on the Civic Center Drive site.

Sentinel Management Co.

Sentinel Management Co. is a property management company that Monarch partners with on projects like this one.

The details

Onward Investors had planned The Loom, a 282-unit affordable housing complex, but the project fell through when state tax credits did not come through. Monarch, which partners with Sentinel Management Co. on such projects, bought the land to develop market-rate apartments and is eager to build in Rochester.

Oct. 21: Land swap and sale closed, with Onward paying $460,000 to the city.
Oct. 26: Monarch completed its purchase of 2.33 acres on Civic Center Drive.

Market Landscape

The loss of state low-income housing tax credits halted The Loom, a 282-unit affordable project, and turned the Civic Center Drive parcel toward market-rate use. Developers like Monarch are now acquiring such sites in Rochester where financing for subsidized housing has stalled.

Rochester residents may see market-rate apartments replace the planned affordable housing on Civic Center Drive, affecting rental options. The site's future use will depend on Monarch's development plans, which have not been announced.

The takeaway

Rochester's affordable housing pipeline depends heavily on state tax credits, and their absence can quickly change how valuable downtown land is used. Watch for Monarch's development announcement to see how the site is repurposed.