A New York City group has purchased an affordable, senior apartment building in Stillwater for $14 million, according to a certificate of real estate value made public Monday.
The building, dubbed the Rivertown Commons Apartments, was sold by Dominium in a deal that took place last week. According to Dominium Minneapolis’ Communications Director Mike Voss, the buyer was Standard Communities.
There are 96 units within the seven-story apartment building, which is only two blocks away from the St. Croix River and, consequently, less than a mile from the Wisconsin border.
According to a Catylist listing of the property, it was built in 1980. Washington County tax records estimate the building was worth around $12.3 million in 2024. It is located at 212 Second St. N. in Stillwater.
Voss said in an interview that Dominium purchased the property in 2007, enrolled it in the Low-Income Housing Tax Credit/Section 8 program and used that money to renovate it. The property is in the compliance period for the tax credit program until 2038, he said.
“Therefore, the buyer does intend to keep the property in the affordable housing program for that period of time,” Voss said.
According to a listing on Apartments.com, the property offers one- and two-bedroom apartments for seniors at or above the age of 62 years old.
Matt Mullins, vice president of Maxfield Research, said Stillwater overall is deficient when it comes to rental properties, which he said gives them tight occupancy.
“Land is tough to come by in Stillwater, so the rental market is very tight in Stillwater, it’s one of the tightest in the metro area,” Mullins said. The lack of land for development in turn drives down vacancies, which brings up rent.
According to the Apartment.com listing, there are three apartments available making it over 96% occupied.
Mullins said it is unusual for an out-of-state firm to purchase an affordable senior apartment building. Normally, he said, it is at least a regional buyer that works with senior housing.
“Historically, it has been a more Midwest type buyer and seller for most senior projects,” he said. “However, you have seen a few deals trade recently that have been outside the Midwest, so it is a little bit of an uptick in that but it’s not like the general occupancy market where you have East Coast West Coast money flowing in.”
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