Standard Communities, a leading national multifamily housing investor and developer, has made its first investment in Minnesota, acquiring Rivertown Commons, a 96-unit 100% affordable community for seniors and individuals with disabilities in Stillwater.
The transaction is capitalized at $27.8 million.
Standard completed the acquisition in partnership with the Washington County Community Development Agency and the Minnesota Housing Finance Agency (MHFA). Huntington Bank provided the tax credit equity.
Standard will preserve and extend the affordability of Rivertown Commons, with resident income restricted to 60% of the Area Medium Income.
Located at 212 2nd Street North in Stillwater, the affordable senior community was built in 1978 and previously renovated in 2007. It features one and two-bedroom units.
“Half of all renters in Minnesota are cost burdened, and rents continue to rise. We are excited to combine our experience as owners in 17 states and Washington, D.C. with Minnesota's best practices to address the pressing need for affordable housing,” said Jeffrey Jaeger, Co-Founder and Principal of Standard Communities.
“For seniors living on fixed incomes, it has become increasingly difficult to afford a quality home. With our investment in Rivertown Commons, we are protecting a critical resource for seniors. We are committed to long-term ownership that supports the residents and the community,” Jaeger added.
Standard plans a nearly $9 million renovation of Rivertown Commons, which includes adding a second elevator and upgrading and modernizing various building systems. A 100-kW solar panel system will be added that will generate 112.5 MWh of clean energy annually, lowering the property's carbon footprint by 86.6 tons of CO2e each year. Standard will also add a Resident Services Coordinator at the property who will design and implement a comprehensive suite of resident services and programs.
“There is a strong demand for senior affordable housing in Washington County,” said Robert Koerner, Standard’s Chief Investment Officer. “Partnering with state and county agencies in this transaction exemplifies the vital role of public-private partnerships in addressing the affordable housing crisis, and encourages Standard to seek additional investments in Minnesota,” he added.
"We are pleased to work with the City of Stillwater, Washington County Community Development Agency and the Minnesota Housing Finance Agency (MHFA) to maintain and extend the affordability of Rivertown Commons, an essential component of Stillwater's affordable housing," said Thomas Marro, Vice President of Acquisitions & Redevelopment at Standard Communities.
Based in New York and Los Angeles, Standard has a portfolio of over 20,000 apartment units and $4.4B in assets under management across 17 states and Washington, DC. With expertise in development, acquisitions, renovations and construction, Standard Communities strives to cultivate long-term public and private partnerships to produce and preserve high-quality, affordable and environmentally sustainable housing.
