Turning vacancy into permanent supportive housing in the heart of downtown Minneapolis.
MINNEAPOLIS, Minn. (2026) - In the heart of downtown Minneapolis, a long-vacant office building is now becoming home.
At 700 10th Ave. S., a four-story former medical office building sat empty, its future uncertain in a shifting downtown market. Located near Hennepin County Medical Center, the property was once part of a functioning healthcare corridor. But as office demand declined, the building became another example of underutilized space in the urban core.
At the same time, the need for deeply affordable housing, especially for people exiting homelessness, continued to grow.
Alliance Housing saw the opportunity.
The vision was clear: convert the vacant building into 59 deeply affordable homes, all serving residents who have experienced homelessness, with 24/7 supportive services provided by Touchstone Mental Health.
The timeline was not.
Alliance had secured key public funding commitments but lacked the ability to move quickly enough to acquire the property and hold it while the full capital stack came together. Without intervention, the site was at risk of being sold for an alternative use, potentially closing the door on a housing solution altogether.
Land Bank Twin Cities stepped in.
In June 2023, Land Bank acquired the property for $2.25 million, using its balance sheet to secure the site and create the time needed to stabilize the project and align partners.
The intervention created time.
During the hold period, Land Bank managed the property and carried the risk, ensuring the site remained available for its intended use while Alliance worked to close remaining funding gaps, finalize design, and prepare for construction. This role, often unseen, is critical in complex projects where timing and capital rarely align on their own.
“This work sits at the center of our model,” said Aarica Coleman, President and CEO of Land Bank Twin Cities. “We step in when timing is the barrier, secure properties that might otherwise be lost, and create the time needed for partners to bring the right solution together. In this case, that meant turning a vacant building into permanent housing and support for people who need it most.”
With site control secured, the project advanced.
In 2024, partners broke ground on a $25 million redevelopment that will convert the building into 28 one-bedroom units and 31 studio apartments, all deeply affordable and supported by on-site services. The project is designed to provide not just housing, but stability, with services tailored to help residents maintain long-term housing and improve health outcomes.
By late 2025, residents began moving in and services were underway, transforming a long-vacant property into a place of stability, dignity, and support in the center of downtown Minneapolis.
Land Bank Twin Cities steps in where timing and risk would otherwise stall a project, creating the space needed to align land, capital, and partners and move projects toward lasting outcomes.
A once-empty building is now home.
0.65 acres | $2.25M acquisition | 59 deeply affordable homes | $25M redevelopment
