Shovels are officially in the ground at the West End. On Sunday, St. Louis Park leaders and developers kicked off construction on Terasă, a six-story, 223-unit mixed-use project that will pair ground-floor commercial space with deeply affordable apartments.
Mayor Nadia Mohamed, Council Member Jim Engelking and Hempel Real Estate’s development team joined city staff at the ceremony, marking the formal start of a building the developer says will blend market-rate homes with units affordable to households at 50% and 30% of area median income. Terasă is also slated to pursue LEED Silver sustainability standards, aiming to land near the top of the city’s green-building expectations.
Project Details And Timeline
When finished, Terasă is planned to deliver 223 apartments and about 21,000 square feet of street-level retail, with room for everything from a coffee shop to a potential grocer, according to the City of St. Louis Park. The development is also lined up with a long list of resident perks; Hempel Real Estate highlights an outdoor terrace, pool, rooftop deck and spa-fitness suite among the planned amenities.
City planning records show the old office building at 5401 Gamble Drive was demolished in October 2025, with construction listed as beginning in early 2026. Hempel’s project page targets a Q4 2027 completion date, setting up a multi-year buildout before residents start moving in.
Affordability And Financing
According to the state’s legislative summary, the city has agreed to put $1 million from its Affordable Housing Trust Fund toward Terasă. That local commitment, combined with accumulated tax increment, is slated to deepen affordability at the site, including 45 income-restricted units.
The project also qualified for a housing TIF district to help close a financing gap, a key tool that helped move the deal forward, as reported by Finance & Commerce.
Green Building And Neighborhood Benefits
City staff say the redeveloper will “pursue LEED Silver certification” and build in features such as an energy-efficient building shell, LED lighting, a rooftop 40 kW solar array, electric vehicle charging and organic waste collection in order to meet St. Louis Park’s green building policy, according to the staff analysis from the City of St. Louis Park. The same report notes that Terasă’s design leans on nearby transit routes and nonmotorized connections as a way to cut down on vehicle miles traveled.
Officials And Reaction
At the groundbreaking, Mayor Nadia Mohamed and Council Member Jim Engelking flanked Hempel’s development team and city staff as they marked the start of vertical construction, an event shared publicly by the City of St. Louis Park. For Hempel, the project is as much a bet on the neighborhood as it is a new building.
Company representatives have said Terasă will boost activity in the Shops at West End and “continues our belief in the area,” a Hempel official told Finance & Commerce.
What This Means For The West End
City staff say Terasă would more than double the number of affordable apartments in the West End and deliver the area’s first 30% and 50% AMI units, putting homes closer to jobs, transit and shopping, according to the staff report from the City of St. Louis Park. Planners and the developer say that new residents should bring steady foot traffic, which in turn is expected to help support ground-floor retail at the Shops at West End and bolster nearby local businesses.
Work is already visible at the 5401 Gamble Drive site, and neighbors are being told to expect staged construction, traffic control and outreach from the city as activity ramps up. Both the city and Hempel say they will post updates on leasing, tenant announcements and move-in timing on their respective project pages as the development advances.
