The property at 1 River Bend Place, Chaska, MN, presents a rare opportunity to acquire a riverfront hospitality asset with strong redevelopment potential. Located on the Minnesota River in downtown Chaska, the site offers walkable access to Firemen’s Park, the nationally recognized Chaska Curling Center, restaurants, and cultural amenities.
Chaska is a growing community within the southwest Minneapolis–St. Paul metro, with a population of ~29,000 and rising household incomes. Recent infrastructure investments — including the Highway 41/CSAH 61 improvements and upgrades to Highway 212 — are fueling traffic, visibility, and long-term growth.
Minnesota’s hospitality market continues to outperform national trends, with RevPAR and occupancy growth exceeding many U.S. markets. This resilience provides a favorable backdrop for repositioning the property, whether as an upscale hotel or multifamily redevelopment, in alignment with Chaska’s vision for a vibrant riverfront district.
Redevelopment Opportunity
The property at 1 River Bend Place, Chaska, MN represents one of the most compelling redevelopment opportunities in the southwest Twin Cities metro. While it currently operates as a hospitality asset, the true value lies in its prime riverfront location, downtown connectivity, and flexible future use potential.
Riverfront Site in the Path of Growth
Directly on the Minnesota River, offering rare water views and immediate trail access.
• Walkable to Firemen’s Park and the nationally known Chaska Curling Center, which serve as year-round community gathering points and event destinations.
• Embedded in downtown Chaska’s revitalization corridor, benefitting from new restaurants, retail, and city-backed infrastructure improvements.
City and Community Alignment
The City of Chaska has expressed support for a new vision for the site. Local leadership recognizes the property’s potential as a catalyst project to enhance downtown’s identity. A transition in ownership provides a “clean slate” to reset community perception, eliminate the legacy of past management, and reposition the asset into a premier riverfront destination.
Two Redevelopment Pathways
1. Upscale Flagship Hotel
Rehabilitate and reposition the property as a branded upscale hotel, capitalizing on Chaska’s growing population, rising incomes, and the demand created by regional attractions such as Hazeltine National Golf Club, the Minnesota Landscape Arboretum, and Canterbury Park.
• Opportunity to leverage the riverfront setting, walkability to Firemen’s Park and the Curling Center, and new restaurant connection to create a unique hospitality experience.
• Few upscale lodging options exist in this submarket, positioning the property to capture unmet demand.
2. Multifamily / Mixed-Use Redevelopment
Redevelop the site into a riverfront apartment complex (market-rate or mixed-use) to meet the strong demand for high-quality residential housing in Chaska.
• Leverage the property’s scenic views, direct trail connections, and downtown proximity to attract residents seeking an urban lifestyle in a suburban setting.
• Multifamily development would align with Chaska’s population growth (˜29,000 and rising), its high median income (~$110,000), and limited supply of upscale rental housing.
Value-Add Catalyst
Whichever path is chosen, the redevelopment potential of 1 River Bend Place is undeniable:
• Rare riverfront land position with visibility and access.
• Supportive municipal vision encouraging new ownership to redevelop the site into a property that strengthens downtown Chaska’s identity.
• Upside beyond current use, with flexibility for investors to pursue either a hospitality repositioning or a transformative multifamily project.
Conclusion
This is not just an acquisition of an underperforming asset — it is a chance to reshape one of the most visible properties in downtown Chaska and capture long-term value in a growing market.
Chaska & Carver County Infrastructure Investments
Introduction
The City of Chaska and Carver County are investing heavily in transportation and community infrastructure, with multiple projects underway or scheduled through 2025. These improvements enhance accessibility, walkability, and quality of life—directly increasing the attractiveness of riverfront redevelopment opportunities like 1 River Bend Place. Public investment of this scale underscores strong confidence in Chaska’s growth trajectory and aligns seamlessly with the site’s redevelopment potential.
Chaska Street Overlay (2025)
Overview: Resurfacing multiple neighborhood streets, including Hundertmark Road and Isabella Parkway.
Impact: Signals reinvestment in core infrastructure, elevating neighborhood appeal and supporting a stable residential base for future multifamily or hospitality demand.
Creek Road Sewer & Trail Conversion (2024–2025)
Overview: Installation of a main sanitary sewer line with Creek Road converted into a paved recreational trail.
Impact: Provides essential utility support for future southwest Chaska development while adding new lifestyle amenities—strengthening appeal for both hotel guests and residents.
Minnesota River Bluffs Regional Trail – Chaska Connection (Completion Spring 2025)
Overview: A two-mile paved segment linking downtown Chaska to the regional levee trail network.
Impact: Enhances downtown connectivity and increases foot and bike traffic, directly benefitting riverfront properties positioned for redevelopment.
Savanna Way Roadway Extension (2024–2025)
Overview: Extension of Savanna Way to Creek Road via a new roundabout; final paving in 2025.
Impact: Improves circulation and downtown access, supporting stronger visitor and resident mobility.
82nd Street Reconstruction (Spring 2025)
Overview: Conversion of 82nd Street from gravel to a paved two-lane road with turn lanes, connecting Bavaria Road to Lyman Boulevard.
Impact: Expands capacity for regional traffic and development, improving access to Chaska from growing surrounding neighborhoods.
Engler Boulevard / Highway 41 Reconstruction (Spring 2025)
Overview: Reconstruction of Engler Boulevard with four roundabouts, pedestrian tunnels, resurfacing, and trail extensions.
Impact: Improves safety, reduces congestion, and enhances connectivity between key corridors and downtown Chaska.
Pioneer Trail / Highway 11 Roundabout (Spring 2025)
Overview: Installation of a modern roundabout at Pioneer Trail and Highway 11.
Impact: Facilitates smoother traffic flow into downtown, strengthening access to riverfront destinations.
Conclusion
Together, these infrastructure projects demonstrate a coordinated commitment to Chaska’s long-term growth. They improve mobility, expand trail systems, and enhance the livability of the downtown riverfront. For 1 River Bend Place, the timing could not be better: these investments directly increase the property’s redevelopment appeal, ensuring that either a flagship hotel repositioning or a multifamily conversion will be supported by strong infrastructure, rising traffic, and sustained community growth.
City of Chaska & Infrastructure Growth
Chaska is a thriving city in Carver County and part of the fast-growing southwest Twin Cities metro. With steady population growth and household income levels above the state average, the community offers a strong base for both business and leisure demand. The city has also seen significant infrastructure investment designed to support continued growth:
Highway 41/CSAH 61 Reconstruction (Completed 2023): A $32 million project improving traffic flow, safety, and downtown access.
Highway 212 Enhancements: Multi-phase projects upgrading connectivity to Minneapolis and western Carver County, expanding regional access.
Downtown Connections: Roadway improvements linking Highway 212 directly into Chaska’s downtown with roundabouts, ramp connections, and pedestrian pathways.
Hotel Location Summary
The property is ideally positioned along the Minnesota Riverfront in Chaska’s historic downtown. Guests enjoy scenic views, riverfront trails, and walkable access to nearby parks, restaurants, and retail.
Riverfront Setting: Direct access to the Minnesota River Valley Regional Trail system for biking and walking
Community Amenities: Steps from Firemen’s Park and the Chaska Curling Center, which offers dining, recreation, and event space.
On-Site Features: Patio with grilling stations and seating, heated underground parking, surface parking, and an attached Thai restaurant.
Hotel Demand & Market Trajectory
Minnesota Defies National Softness with Record Occupancy and Revenue Growth
Overview
While U.S. hotel markets have broadly plateaued in 2024–2025, Minnesota’s lodging sector continues to outperform national trends, posting year-over-year gains in occupancy, revenue, and room demand.
Two recent performance benchmarks highlight the state’s resilience:
Statewide (July 2025): Occupancy reached 67.4%, up 2.3% YoY, with RevPAR at $102.03 and ADR at $151.38 (Hospitality Minnesota/STR).
• Minneapolis Core (Summer 2024): Hotels recorded nearly 680,000 rooms sold between Memorial Day and Labor Day, an 8% increase over 2023, generating a record $131.8 million in revenue (Meet Minneapolis/STR).
These results demonstrate that Minnesota’s leisure and event-driven demand base remains on a growth trajectory even as national markets contend with slowing tourism and muted corporate travel.
Minneapolis Core (Summer 2024): Hotels recorded nearly 680,000 rooms sold between Memorial Day and Labor Day, an 8% increase over 2023, generating a record $131.8 million in revenue (Meet Minneapolis/STR).
These results demonstrate that Minnesota’s leisure and event-driven demand base remains on a growth trajectory even as national markets contend with slowing tourism and muted corporate travel.
These projects reflect the city and state’s commitment to growth and connectivity, enhancing traffic flow and investment into downtown Chaska. Combined with the site’s riverfront setting, local lifestyle appeal, and regional accessibility, this property is ideally positioned for either hospitality or residential redevelopment
Record-Setting Minneapolis Summer 2024
Revenue surge: Summer 2024 room revenue climbed 18% YoY to $131.8 million, surpassing even pre-pandemic 2019 levels by nearly 8%.
• Occupancy momentum: Citywide summer occupancy averaged 68.1%, up from 62.8% in 2023; August 2024 occupancy hit 70.2%, the highest since 2019.
• Event-driven peaks: Major concerts, sports, and trade shows produced multiple nights of 95%+ occupancy, including a record 97.5% on August 24, 2024.
• Convention activity: Nearly 50 events drew 116,000 attendees to the Minneapolis Convention Center, showcasing the city’s ability to capture large-scale group demand.
Minnesota Statewide Growth Continues into 2025
Statewide occupancy up: 67.4% in July 2025 vs. 65.1% in July 2024, demonstrating sustained momentum into the current year.
• RevPAR expansion: $102.03 RevPAR (+$5.59 YoY) reflects both rate and demand strength.
• ADR pricing power: Average daily rates increased to $151.38, enabling operators to offset rising labor and operating costs.
Investor Takeaways
Timing advantage: State and city demand growth coincide with Chaska’s ongoing infrastructure upgrades (Highway 41/Engler Blvd., River Bluffs Trail), offering investors a window to capitalize on rising regional visitation.
• Premium positioning potential: With Minnesota ADRs climbing above $150 and Minneapolis recording record summer revenues, an upscale riverfront hotel can target above-market ADRs with unique amenities and views.
• Underwriting confidence: Continued YoY occupancy and RevPAR gains provide a stronger base case for stabilized income projections compared to many national markets facing flat or declining metrics.
Conclusion
Minnesota’s hotel sector is entering a period of measurable, sustained growth.
For investors evaluating a redevelopment or new hospitality concept at 1 River Bend Place, these trends provide a compelling backdrop of demand resilience, rate strength, and event-driven upside that supports capital deployment despite broader national headwinds.
(Sources: Hospitality Minnesota / STR, Aug 25 2025; Meet Minneapolis / STR, Sept 18 2024)
