A Minneapolis-based design-build firm plans to construct a seven-story apartment building on Water Street, not far from St. Paul’s Harriet Island Regional Park.

Kyle Brasser, a developer with Reuter Walton Cos., said the building at 84 Water St. will fill an empty lot and consist of 136 units of market-rate housing, ranging from studios to one-bedroom and two-bedroom units.

The building will include parking on the ground level and second floor, next to amenities such as a fitness room and tenant community room. Brasser said a high water table would prevent construction of underground parking.

The developer has applied to the St. Paul Planning Commission for a variance to the four-story height limit, as well as front-yard setbacks. He expects to appear before the commission’s zoning committee in June. Construction could begin in late summer.

Rents, he said, will start at $1,000 for studios and $1,100 for one-bedroom apartments.

“This is not a subsidized, affordable-housing project,” Brasser said. Nevertheless, “we expect the majority of our units to be affordable to renters at 80 percent of area median income.”

Reuter Walton’s portfolio includes the Grove, a mixed-use building under construction at 246 S. Snelling Ave. in Macalester-Groveland, and a 93-unit residential building that will be built at 241 E. Kellogg Blvd. in Lowertown, the site of Kelly’s Bar, in partnership with TJL Development. Related Articles St. Paul City Council approves $600,000 charge for downtown improvement district

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Recent projects include 1125 Lagoon, which is under construction at the former location of an Arby’s restaurant in the Uptown neighborhood of Minneapolis; the Laguna boutique apartments in Uptown; the University of Minnesota DoubleTree by Hilton; and the N&E, market-rate housing in northeast Minneapolis.