Standard Communities Makes 2nd Foray into Minnesota
The company has acquired an affordable housing community.
Standard Communities has acquired Lenox Place Apartments, a 152-unit affordable housing community in Duluth, Minn., in a deal capitalized at about $37.14 million. Built in 1980, the property has 143 one-bedroom units and nine two-bedroom units for seniors and individuals with disabilities.
Standard will extend the affordability of Lenox Place, located at 701 W. Superior St., for 30 years, with resident income restricted to 60 percent of the Area Median Income, currently about $38,100 per household, according to U.S. Census Bureau data. The company also plans to renovate the 14-story property at a cost of about $12 million.
Residents will not be relocated during renovations, according to Standard. The work will include extending the building’s sprinkler system into units, installing new carpeting and flooring, and painting unit interiors. Lighting will be replaced in bathrooms, which will also receive new supply lines and low-flow toilets.
The renovation will involve the installation of new roofing, the connection of a new standby emergency generator, railing repair and the replacement of smoke and CO detectors.
A fitness center, business center and storage lockers will be created as new common amenities and other improvements will be made to the structure’s flooring, façades and exterior lighting.
Low Income Housing Tax Credits for the acquisition were secured through the Minnesota Housing Finance Agency. The Housing Redevelopment Authority of Duluth issued tax exempt bonds for the deal. Huntington Bank provided tax equity.
Standard seeks more Minnesota assets
The move is the company’s second investment in Minnesota within a short period. In a deal capitalized at $27.8 million in July, Standard acquired Rivertown Commons, a 96-unit affordable senior housing community in Stillwater, Minn. The property is subject to Section 42 LIHTC provisions and is rent restricted through 2037.
The company will continue to seek additional affordable housing investments in Minnesota, according to Robert Koerner, Standard’s chief investment officer.
Standard’s holdings include more than 20,000 units in more than 130 communities in 17 states and Washington, D.C. Based in New York and Los Angeles, the company has completed more than $4 billion of affordable housing acquisitions and rehabilitations nationwide.
