How Land Bank Twin Cities turned a complex industrial site into 160 affordable homes.
MINNEAPOLIS, Minn. (2026) — A former industrial site in Northeast Minneapolis is now the foundation for more than 160 affordable homes, demonstrating what can happen when land, capital, and timing align.
At 2301 California St. NE, a 2.63-acre site once occupied by grain silos sat at the center of a rapidly changing corridor near Lowry Avenue and Marshall Street. Located in the Bottineau neighborhood and adjacent to the California Arts Building, the property was positioned at the intersection of industrial history and a growing arts and residential district.
But the site came with significant challenges.
A large, contaminated silo structure made redevelopment costly and uncertain. While the Minneapolis 2040 Plan had identified the area for higher-density, mixed-use development, the physical condition of the site and the cost of remediation created a barrier that limited who could realistically take it on.
In 2018, Land Bank Twin Cities stepped in to acquire the property for $744,000, securing a large, contiguous parcel at risk of being lost in a competitive and rapidly evolving market .
To make the deal possible, Land Bank used its balance sheet to take on early risk. By offering a significant non-refundable deposit tied to the demolition of the silos, the organization was able to negotiate a reduced purchase price while removing a major impediment to future development.
The intervention created time.
Over the next five years, Land Bank held the property, maintaining low carrying costs and managing the site while development concepts were explored. Early proposals included a mix of ownership housing and rental units, reflecting demand for both housing types in Northeast Minneapolis as the neighborhood continued to grow .
As plans evolved, so did the opportunity.
The site’s size, location, and updated zoning made it well-suited for a larger, more impactful development. When LS Black Development emerged with a plan to deliver a fully affordable housing project, the alignment was clear.
“This is a clear example of how we use our balance sheet to step in early and hold land long enough for the right project to take shape,” said Eddie Landenberger, Vice President and Director of Strategic Acquisition. “By reducing risk and passing along value, we can help partners deliver projects that align with community needs.”
In 2023, Land Bank sold the property to LS Black Development for approximately $1.8 million, below its estimated market value of roughly $2.3 million. That decision was intentional, supporting a development program focused on affordability and long-term community benefit.
Today, that vision is being realized.
The site is now home to a 100 percent affordable housing development with approximately 164 units and more than 13,000 square feet of production space designed to support artists and small businesses . The project includes a mix of unit sizes, with a strong emphasis on family housing, addressing a critical need in the local market.
What was once a vacant and contaminated industrial site is now a fully occupied community asset, reflecting strong demand for affordable housing in Northeast Minneapolis .
The project also contributes to the continued evolution of the Lowry Avenue corridor, aligning with long-term planning efforts and reinforcing the area’s role as both a residential and creative hub.
This is the role Land Bank Twin Cities plays.
Acquiring land others cannot.
Holding it through uncertainty.
And aligning it with partners who can deliver lasting outcomes.
A site once defined by barriers is now defined by opportunity.
2.63 acres | $744K acquisition | 164 units delivered | $1.8M mission-driven sale
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