Minneapolis – Today Aeon purchased Huntington Place Apartments from Dominium. Aeon is a nonprofit developer and manager of affordable apartment homes. Aeon will also manage the 834-apartment property in Brooklyn Park.
The City of Brooklyn Park, the Twin Cities Local Initiatives Support Corporation (LISC), and National Equity Fund (NEF, a LISC affiliate) are key partners in the project. This is the second acquisition NEF and Aeon have worked on together.
“Aeon has been a remarkable leader in housing preservation. They are improving aging rental developments to ensure they are affordable to families and seniors. Without this work, these residents might not be able to find decent housing within their means,” said Matthew Reilein, President and CEO of NEF. “We are grateful for the opportunity to support Huntington Place through our housing preservation fund, along with our partners at Morgan Stanley. And to help Aeon build up this strong, vital community in Brooklyn Park.”
“Our partnership with Aeon on this and other projects is essential to address the affordable housing crisis in our region,” said LISC Executive Director Peter McLaughlin. LISC and NEF combined $76.6MM of local and national resources to enable Aeon’s preservation of the Huntington Place Apartments, the second largest affordable housing property in the state of MN.
Dominium’s founding partners, now both deceased, acquired Huntington Place in 1996. Dominium recently completed more than $8 million in renovations to the property. Dominium and Aeon are partnering closely to ensure a seamless transition for residents. Aeon expects to spend three years investing in the property so that it is a strong community asset.
“Decent, affordable housing is scarce. Aeon will pick up the work Dominium started to ensure we improve and save these homes. And, most importantly, keep them affordable,” said Aeon President & CEO Alan Arthur. “The entire community will be part of the continued re-investment in Huntington Place. Together, we will make it a home its more than 1,000 residents are proud of. I am grateful for the critical partnership of the City, Twin Cities LISC and the NEF Preservation Fund to make this possible.”
“We are so impressed by Aeon’s ability to partner with local and national supporters to finalize this transaction,” said Paul Sween, Managing Partner of Dominium. “Their ability to close a transaction of this magnitude, in this time frame, is matched by few and speaks to the professionalism they bring to the affordable housing community.”
All 834 apartments at Huntington Place will be affordable at or below 60% of the area median income.
“The City is glad Aeon has a plan for improving Huntington Place. Our community will grow even stronger with increased and thoughtful investment in this property,” said Mayor Jeffrey Lunde.
Aeon has acquired more than 2,000 similar apartment homes since 2017. Huntington and properties like it are known as naturally occurring affordable housing (NOAH).
Unless saved, NOAH properties are at risk of increased rents that displace residents. When displaced, residents with low incomes have few options for decent housing. The loss of existing affordable homes worsens a growing homelessness problem in Minnesota. According to Wilder Research, homelessness grew by 10% from 2015 to 2018.
A broader community development approach is necessary for NOAH preservation to succeed. And with its success, the tens of thousands of residents affected have the ability to thrive.
Aeon believes that home is at the center of everything. With a home, people succeed, families thrive, and our region remains strong. At Aeon, we act boldly to create and preserve quality, affordable homes for those who need them most. We develop and manage affordable homes that serve more than 9,000 people in the Twin Cities. For more information, visit aeon.org or follow us on Twitter and Facebook.
About Brooklyn Park
With a population of more than 80,000 people, Brooklyn Park is the sixth-largest city in Minnesota and the fourth largest in the metropolitan area. We are a community that believes our residents are our strongest asset and the key to making Brooklyn Park thrive and prosper.
About National Equity Fund
National Equity Fund, Inc. (NEF) is a non-profit, Chicago-based affiliate of Local Initiatives Support Corporation (LISC) and leading national Low Income Housing Tax Credit (LIHTC) syndicator. Since 1987, NEF has invested $16.75 billion in nearly 2,800 LIHTC developments that have built and preserved about 187,000 affordable homes for low-income families and individuals. For more information, visit nefinc.org or lisc.org.
About Twin Cities LISC
With residents and partners, LISC forges resilient and inclusive communities of opportunity–great places to live, work, visit, do business and raise families. Since 1988, Twin Cities LISC has invested $734 million to build or rehab 17,404 affordable homes and apartments, develop 2.4 million square feet of retail, community and educational space, and serve over 7,500 families at Financial Opportunity Centers. To learn more, visit tclisc.org.