JV Lands $40M Twin Cities Affordable Community
Aeon and The Community Development Trust purchased Seasons Park Apartments, a 422-unit community in Richfield, Minn. The transaction marks Aeon’s largest acquisition and the second-largest investment for CDT.
By Laura Calugar
Aeon and The Community Development Trust completed the $40 million purchase of Seasons Park Apartments, a 422-unit affordable community in Richfield, Minn. The transaction marks Aeon’s largest acquisition and the second-largest investment for CDT. The deal will ensure that the units remain affordable for more than 400 low-income families, including some 200 preschool children and 250 school-age students. The transaction includes an estimated $4 million in planned renovations.
Located at 951 E. 77th St., Seasons Park is minutes away from Interstate 494, as well as several shopping and dining options. The unit mix includes 105 one- and 317 two-bedroom apartments, ranging in size from 600 to 1,031 square feet, according to Yardi Matrix data. A fitness club, clubhouse, playground, two swimming pools, spa, volleyball court and 506 parking spaces are among the common area amenities offered.
Critical affordable housing need
While the Twin Cities is experiencing an apartment construction boom, only 10 percent of new units will be available for low-income renters, according to the 2017 “State of the State’s Housing Report, Twin Cities Region,” released by the Minnesota Housing Partnership,. Affordable housing stock is also being purchased and renovated into higher-rent housing. In 2016, just 1,050 new units of affordable housing units were created in the entirety of Minnesota. Nearly 30 percent of all Minnesotans lack quality, affordable housing, the report noted. Since 2000, the number of Minnesotans considered cost-burdened by housing has increased 69 percent, according to Aeon President & CEO Alan Arthur.
“We feared the sale of this property to another potential buyer would have forced the displacement of virtually all the current residents, including approximately 250 students who attend our schools. Their departure would have been devastating to the Richfield Public Schools system,” said Richfield Public Schools Superintendent Steven Unowsky, in a prepared statement.
In addition to Aeon and CDT’s participation, the City of Richfield Housing and Redevelopment Authority allocated $150,000 to help finalize the purchase. Officials with Hennepin County, Minnesota Housing Finance Agency and the Federal Home Loan Bank are also considering requests to provide further funding related to the acquisition.
Image courtesy of Yardi Matrix