MINNEAPOLIS (June 22, 2018) – NorthMarq Capital’s Mike Padilla, in collaboration with the company’s Freddie Mac team, arranged the financing of The Provinces, a 118-unit apartment property in Little Canada that will preserve the affordability of the apartment homes. Nonprofit investor Aeon and the NOAH Impact Fund of Greater Minnesota Housing Fund (GMHF) acquired the property from Dominium. The acquisition also received grant funding from the Ramsey County Housing and Redevelopment Authority.
NOAH—naturally occurring affordable housing—has been disappearing as investors acquire older properties and remodel or demolish them, raising rents and forcing existing tenants to leave. Aeon, a nonprofit developer, owner and manager of affordable homes has purchased 1,447 NOAH apartment homes in recent years to preserve their affordability.
“NorthMarq Capital appreciates the opportunity to work with Aeon and Freddie Mac, in preserving affordable housing in our market,” said Padilla, vice president in NorthMarq’s Minneapolis production office.
“We are grateful for the strong relationships we have with our local multifamily housing partners,” said Blake Hopkins, vice president of Housing Development at Aeon.
The purchase is Aeon’s second partnership with GMHF with funding provided by its recently formed NOAH Impact Fund. This is a $25 million equity fund established to preserve NOAH properties in Minnesota.
The Twin Cities is in the middle of an apartment construction boom, but just 10 percent of new units will be available for low-income renters, according to the 2017 report “State of the State’s Housing Report, Twin Cities Region,” released by the Minnesota Housing Partnership (MHP).