Northern Rockies Regional Center, LLC

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.

www.oldsawmilldistrict.com

Old SAwmill District Phase 1:

SOlD out - 16 Investors Approved!

Project Update:

 The Northern Rockies Regional Center (NRRC) is happy to report that OSD Building #1, LLC has completed 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 include a shared party kitchen and dining room, conference rooms, high-speed internet, an outdoor water feature, seating, fire pits and other features.

Currently 100% of the commercial portion of the building has been leased. The interiors of the commercial office areas have been 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 2018.  This company was recently acquired by Cognizant, a Fortune 500 company, improving the credit value of this lease dramatically.   March 13, 2019, ATG held 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 2018 and occupied their completed office in April 2019.   

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 since January 2019.   

The project recently was appraised by an independent certified appraiser resulting in a $29M current value when leased as projected.

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 trail system, parks, and the Clark Fork River.

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 has been completed.  For more information, please also visit the project website at CambiumPlace.com.

 Old Sawmill District phase II:

Sold out - All Investors Approved!

Project Update:

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 have been completed.   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. 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.   Boxcar Bistro, a new restaurant, opened in the pace behind the Dog & Bicycle Bakery in April 2021.

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.

The Sawyer Student Living apartments reached substantial completion on schedule late June 2019. We are very happy with the construction. Renters began to move in on August 15, 2020. Currently we’re projecting all 218 units will be leased by August 2021.

The project has 57 two-, three- and four-bedroom pod-style apartments. Each bedroom has 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 is a neighborhood fitness center in another building nearby.

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.