Today Aeon, a nonprofit developer, owner, and manager of affordable homes, completed the purchase of a 220-apartment portfolio of properties with buildings in Minneapolis and Edina. Key partners in the acquisition include the City of Minneapolis, City of Edina, Greater Minnesota Housing Fund’s NOAH Impact Fund, NorthMarq, and Freddie Mac. This is a mixed-income acquisition, with more than half of the units affordable at or below 60% of area median income. Aeon will preserve the affordability of each of those units.
“This is the third time we have had the opportunity to partner with the NOAH Impact Fund and our second time partnering with NorthMarq to preserve a NOAH property,” said Aeon President & CEO Alan Arthur. “We’re thankful for their continued support and are also excited to partner with the City of Minneapolis and City of Edina on this deal. By supporting Aeon’s purchase of these 220 apartment homes, our partners were able to ensure the preservation of long-term affordability for hundreds of individuals and families.”
The portfolio is an example of naturally occurring affordable housing, or NOAH, properties that have aged into affordability. Aeon has purchased 1,795 NOAH apartment homes in the past several years, keeping rents affordable.
NOAH affordability is threatened in the Twin Cities’ strong estate market where a growing number of building sales are leading to increased rents, pricing out current residents. In Minneapolis alone, more than 1,800 NOAH apartment homes were lost in 2017 according to Minnesota Housing Partnership’s 2018 Market Watch report.
Preserving existing affordable homes benefits communities by keeping residents in their homes and children in their schools. It also ensures that aging properties remain long-term assets to the community.