Aeon acquires 74-unit property in Maplewood to preserve affordability

MINNEAPOLIS – Aeon, a nonprofit developer, owner and manager of affordable homes, has purchased Cobblestone Court Apartments in Maplewood. The purchase will keep all 74 homes affordable at or below 60 percent of the area median income.

”Preserving affordable homes is more economical and faster than building new affordable homes,” said Sarah Harris, Executive Vice President of Strategy, Partnerships and Production at Aeon. “Having a home is core to our community’s health and stability now more than ever. We are pleased to be helping 74 families remain in homes they can afford.”

The equity for the purchase was provided by a Community Development Corporation created by Sunrise Banks earlier this year. Sunrise Banks, together with the Minneapolis Foundation, the Saint Paul & Minnesota Foundation, and Frey Foundation, pooled funds to assist Aeon in preserving affordable homes. Other key financial support for the acquisition was provided by the City of Maplewood, Ramsey County, Northmarq, and Freddie Mac.

“The need for affordable housing continues to grow, especially given the economic hardship COVID-19 has caused for so many families in the Twin Cities and beyond,” said Sunrise Banks CEO David Reiling. “Sunrise is extremely proud to be part of this project and excited to see Cobblestone Court Apartments purchased and kept at an affordable rate for local residents.”

Cobblestone Court and properties like it are known as naturally occurring affordable homes (NOAH). Unless acquired intentionally by organizations like Aeon, NOAH properties are at risk of acquisition by national investment funds interested in increased rents that result in hundreds of displaced residents. Preserving existing affordable homes benefits communities by keeping residents in their homes and children in their schools. It also helps ensure that aging properties can be renovated and remain long-term assets in their communities.

Aeon has acquired more than 3,000 older apartment homes since 2017 to keep rents affordable. Even so, there remains a vast shortage of affordable housing in the Twin Cities area.