CommonBond Communities closed on the acquisition of Stonehouse Square Apartments, 215 Broadway St. NE. on September 30. The long-expected sale should bring a feeling of relief for residents of the 71-unit apartment building. Nineteen of the units were classified as Section 8 housing, and that designation was due to expire at the end of this year.
CommonBond purchased the former Little Sisters of the Poor building from Jon and Amy Dickerson for $11 million, using funds from Bridgewater Bank and CommonBond’s Capital Magnet Fund award. Dickerson bought the former residence for the elderly from the Minneapolis Community Development Agency in 1977 and renovated it to create the 71 apartments. The historic property was built in 1895.
CommonBond is seeking funding for a comprehensive renovation of the property including masonry work, new mechanicals and enhancements to individual apartment homes. CommonBond will also renew the Section 8 contract, making sure affordable housing remains in the building.
Jon Dickerson, who grew up in Northeast, said he was pleased CommonBond had won the bidding process. “I have always felt like neighbors and the community appreciated our efforts to make this building an asset rather than an eyesore. I am sure CommonBond will do a good job.”
Cecile Bedor, CommonBond’s executive vice president of real estate said, “CommonBond is excited to preserve this historic building in the heart of the Northeast neighborhood of Minneapolis. It will provide affordable housing long into the future in a highly desirable neighborhood that is quickly gentrifying.”
Dickerson’s company, Diversified Equities, sold its Holmes-Greenway housing project in July. “I am getting out of the housing business,” said Dickerson. “I have been doing this for 50 years. It’s time to let someone else do it.” He said he is moving equity money into commercial property that doesn’t require management responsibilities.
Bedor said, “CommonBond Communities will partner with the residents to ensure Stonehouse Square continues to be a warm, inviting place to call home.”
Marcus and Millichap brokered the deal.
Below: The iconic apartment building was originally owned by the Little Sisters of the Poor, most recently Jon and Amy Dickerson. It will remain affordable housing. (Photo by Mark Peterson)