Rural Minnesota affordable housing portfolio trades hands
JLL Capital Markets orchestrates sale of Braham Meadows and Sandy Pines communities, preserving essential affordable housing options
MINNEAPOLIS, Jan. 6, 2025 – JLL Capital Markets announced today that it has arranged the sale of two affordable housing communities in rural Minnesota, Braham Meadows in Braham and Sandy Pines in Sandstone.
JLL represented the seller in both transactions, Gaughan Companies as part of a larger affordable portfolio consisting of five assets totaling 256 homes. The buyer was a local Twin Cities company that specializes in acquisition rehabs to maintain long-term viability of apartment communities.
Braham Meadows is located at 106-108 5th St NW in Braham, approximately 60 miles north of Minneapolis. The property, built between 1978 and 1980, offers 42 homes across 262,144 square feet, with an average unit size of 1,024 square feet.
Sandy Pines is situated at 709 Old Military Rd. S in Sandstone. Established in 1979, it features 42 units across 47,400 square feet of rentable space on three acres of land.
Both properties maintain an 88% occupancy rate and offer two- and three-bedroom apartments with essential amenities such as air conditioning, heating and kitchen appliances. Community features include on-site laundry facilities, controlled access and high-speed internet access.
Crucially, both Braham Meadows and Sandy Pines operate under Project-Based Housing Assistance Payments (HAP) contracts, ensuring long-term affordability for residents in these rural Minnesota communities.
"These transactions represent unique opportunities to acquire quality affordable housing assets in rural Minnesota," said Talberg. "The strong investor interest we've seen reflects the growing demand for affordable housing options and the stability offered by HAP contracts in today's market. These sales contribute significantly to preserving essential affordable housing in the region."
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Gaughan Companies
Gaughan is a full-service commercial real estate company with multiple specified divisions. Founded by Patrick Gaughan in 1969, the company is committed to serving local commercial and municipal facilities, multi-unit complexes and other public and private properties in the Twin Cities metro area with honesty, integrity, positivity and quality. Gaughan doesn't make promises it can't keep and it doesn't cut corners. Gaughan is passionate about the Twin Cities region and the culture of the area; it is always excited to help its clients discover new real estate opportunities, enhance their properties and improve the community. For more information, please visit gaughancompanies.com.
About METIS Investments
METIS Investments is a property ownership company specializing in apartment communities within the Twin Cities and surrounding areas, leveraging over 57 years of combined experience to create solid returns for investors through strategic multi-family property acquisitions. With a focus on best practices and quality rental community development, METIS is well-positioned to capitalize on market opportunities swiftly thanks to its extensive industry knowledge and access to capital.