Purchase by First Homes will ensure Center Street Village apartments remain affordable

It’s a rare case near downtown Rochester: an apartment complex with naturally-occurring affordable housing. 

One such example will be changing hands in 2020.

First Homes, a subsidiary of the Rochester Area Foundation, announced Monday it has signed an agreement to purchase the Center Street Village apartment complex. The property, located just east of the Zumbro River on Center Street, contains 36 two-bedroom units. 

The transaction will ensure the units remain affordable for the foreseeable future. Jennifer Woodford, president of Rochester Area Foundation and First Homes, said the idea of Center Street Village changing hands between private owners would have been bad news for the current renters.

“Indications were that if a private developer were able to purchase the property, then rates would go up significantly, meaning potentially all of those renters would be looking for affordable housing units, which we already don’t have enough of in Rochester,” Woodford said.

Center Street Village is currently managed by Rochester’s Paramark Real Estate Services. A link on their website lists rent between $900 and $1,100 per month. Woodford said First Homes, while functioning as the owner, will keep rents “well within what is considered affordable.”

“Housing is such a critical need. You need food and you need shelter. When you don’t have those two things, the rest of the pieces of your life become harder to fall in place. There’s nothing more critical to a family, to a child, than having a stable place to live — and one you can afford,” Woodford said.

Woodford declined to comment on the final sale amount, but said those numbers will be made public once the sale closes next month.

According to First Homes, the transaction represents one of the largest local projects to date involving naturally-occurring affordable housing. Such housing is defined as residential properties that are affordable without any direct subsidies from the federal government.

Isaac Jahns is a Rochester native and a 2019 graduate of the Missouri School of Journalism. He reports on politics, business and music for Med City Beat.