The Community Development Trust and nonprofit affordable housing developer Aeon announced the $42.5 million refinancing of Seasons Park Apartments last week.
The 422-unit property in Richfield is a few miles from the Mall of America and the Minneapolis-St. Paul International Airport. The new plan will help preserve long-term affordability for more than 1,200 residents at a time when developers are increasingly buying these properties to convert them into market-rate housing.
Aeon and the Community Development Trust initially partnered on the acquisition of Seasons Park in September 2017. The transaction required swift action to prevent the acquisition of the property by a market-rate investor and the potential displacement of hundreds of families. The partnering organizations assumed the existing financing placed on the property by the prior owner, with the understanding that, to provide quality affordable homes for the long term, Seasons Park needed an infusion of capital.
Now, after two years of work with the state housing agency, the team has closed on a $42.5 million refinancing plan from Minnesota Housing. The financing consists of a 35-year first mortgage of $34.5 million from the Low to Moderate Income Rental program and $8 million in subordinate financing from the agency’s Flexible Financing for Capital Costs program.
The refinancing announcement was hailed by longtime Seasons Park residents for providing them with the peace of mind that they can continue to afford to remain in at the complex for the foreseeable future. The 1,200 Seasons Park residents are now protected from significant rent increases.
Improvements at the property began in August and will continue for three years. Work will include new roofs and landscaping, updates in laundry rooms and apartments (before new residents move in), and an updated playground area for the hundreds of children that call Seasons Park home.
Richfield Mayor Maria Regan Gonzalez praised Aeon’s persistence in finding resources to make physical improvements to the apartment community, which had years of deferred maintenance to address.
“The city values Aeon’s willingness to partner in helping to preserve and improve the Seasons Park community for our residents,” Gonzalez said.
“The families who live here, and the entire Richfield community, will benefit greatly for having a safe, affordable and quality place to live.”
The headline of this article originally misstated the amount of the refinancing, and has since been corrected.