Workforce Housing: Axle Apartments Shows the Power of Smart, Sustainable Housing

One of Roers Companies’  largest multifamily projects completed to-date, Axle Apartments, welcomed residents to its 262-unit community in Spring 2022. A northern suburb of Minneapolis, Fridley is a well-established and well-connected community, which made this site an attractive opportunity for Roers Cos. Axle Apartments is a workforce development that targets the underserved “middle” tier of renters earning approximately 80% of the area median income (AMI). 

The multifamily project replaced an aging retail strip mall that had become an eyesore at a bustling intersection in the heart of the suburban city. The city of Fridley was longing to find a better use for this property and Roers Cos. was eager to introduce high-quality, brand-new housing for residents in the area.

 The site contains one four-story building with underground parking and numerous indoor and outdoor amenities. With a commuter rail stop, close highway access, and numerous trails the project site in Fridley allows for easy transportation around the Twin Cities metro area. The site is located directly on University Avenue with high visibility. Within a mile to the north or south, there are abundant retail, grocery, commercial, and restaurant options, as well as parks and trails.

These amenities enhanced the property and offered desirable features for residents. For example, incorporating a kids’ playroom into the spacious fitness center enables parents to focus on wellness while keeping children close by and safe. The community room includes gaming opportunities for older children, such as a board game wall and arcade machine. A rooftop deck and second ground-floor patio provides ample outdoor space for residents to enjoy the warm, sunny days of Minnesota summers.

Axle was completed in April 2022 at a cost of $51.5 million. The property opened its doors with an astounding 95% of units pre-leased. Construction was completed more than two months early, and our team completed the lease-up 14 months ahead of our proforma budget — making Axle Roers Cos.’ most successful project to date. 

This project was a true partnership between the City of Fridley and Roers Cos. The site where Axle now sits was the City of Fridley’s top redevelopment priority. With redevelopment tax increment financing (TIF), we were able to set rent rates at around 80% AMI to appeal to the Fridley workforce. The construction loan, in the amount of $29,664,500, was provided by Premier Bank. Additionally, the $10,018,040 of equity for the project was raised internally by Roers Cos. with our private investor network.       

Project Completion: April 2022

% Leased at Opening: 95%

Stabilization: Full occupancy achieved after 3 months

Project Cost: $51.5M

Cost/Unit: $196,565

As one of Roers Cos.’ largest and most successful projects, Axle Apartments demonstrates the viability of building workforce housing in hub communities like Fridley, paving the way for future similar developments. This property filled a crucial gap in Fridley’s housing market — offering quality, affordable living for residents with convenient access to amenities and transportation. 

If you have questions about what’s happening in the market or current investment opportunities with Roers Cos., please contact our investor relations team.

Disclaimer:
NO OFFER OF SECURITIES; DISCLOSURE OF INTERESTS: Under no circumstances should any material or information contained herein be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any investment. Any such offer or solicitation will be made only by means of a confidential offering memorandum relating to the particular investment. Access to information about investments with projects undertaken by Roers Companies LLC, Roers Companies Project Holdings LLC, or any of their respective affiliates is limited to investors who qualify as accredited investors within the meaning of the Securities Act of 1933, as amended.

No actual business relationship between Roers Cos. and the City of Fridley. I.e.: “References to “partnership” in this article are intended to describe the collaborative relationship between Roers Cos. and the City of Fridley, not a business relationship of any kind.