Southern Minnesota Affordable Community Sells for $13M
The buyer financed the 144-unit acquisition with a $10.1 million Fannie Mae loan.
FelFam has acquired a 144-unit affordable housing community in Faribault, Minn., for $12.5 million. Bellwether Enterprise financed the purchase of Four Seasons Apartments with a $10.1 million Fannie Mae acquisition loan.
The financing, provided through the GSE’s Sponsor-Initiated Affordability program, ensures that a minimum of 20 percent of the units are available to residents earning at or less than 80 percent of the area median income during the 12-year loan term.
The four-building property is located at 1250 Autumn Drive. The community was built in different phases during the 1970s on a nearly 8-acre site.
The previous owner had renovated the property during the past five years, and the buyer intends to move forward with additional work. Planned upgrades include green improvements such as energy-efficient lighting as well as updates to unit interiors.
Four Seasons Apartments, located a short distance from Interstate 35, is some 50 miles south of downtown Minneapolis. The property is 2 miles south of the Fourth Street retail corridor and 3 miles from the 743-acre River Bend Nature Center.
FelFam plans to continue growing its Minnesota portfolio, pointing to the state’s relatively stable economy. According to Yardi Matrix’s latest multifamily report on the nearby Twin Cities market, the area is beginning to show signs of recovery, with rent growth set to pick up through the year.