Exodus will provide permanent homes with supportive services for individuals facing homelessness
Aeon and its partners have begun construction on Exodus, a project that includes a comprehensive rehabilitation and addition to an existing eight-story building adjacent to St. Olaf Catholic Church at the corner of 2nd Avenue S. and S. 9th Street in downtown Minneapolis. Once completed, the project will provide 72 studio units of deeply affordable housing, designed to support individuals experiencing homelessness and housing instability. Residents will be referred through Hennepin County’s Coordinated Entry and Behavioral Health Systems and will be provided with comprehensive supportive services on site by Touchstone Mental Health.
Exodus is the result of a years-long partnership between Aeon and St. Olaf Catholic Church, who have stewarded the existing building for many years. Through a long-term ground lease Aeon will be the new owner and operator of the building. This partnership will provide affordable housing in our community for decades to come. Built in the 1950s, the building was originally designed to provide dorm-style housing for young professional women working downtown. Over time, the building transitioned to providing temporary shelter for unhoused individuals downtown through Catholic Charities and Hennepin County, before becoming completely vacant. “We are so pleased to be working alongside Aeon to make this new endeavor possible. It has been a long road but worth the many hours knowing that Exodus will provide stable housing for an underserved population in Hennepin County. We are grateful for the many partners we have encountered and look forward to accompanying the residents for decades to come,” Bishop Kevin Kenney, Pastor of Saint Olaf Catholic Church.”
The renovation will include over $24 million in improvements to the building. Urbanworks Architecture and Kraus Anderson Construction will serve as the architect and general contractor. Through the substantial rehabilitation of the building’s interior and connecting a newly built eight-story addition adjacent to the original, Exodus will now provide full studio units with individual kitchens and bathrooms, as well as community spaces, a fitness center, and outdoor green space to all residents. This includes completely new mechanical systems, higher levels of energy efficiency, and central heating and cooling.
The rehab will also introduce spaces for Touchstone, including permanent offices, meeting rooms, a nurse’s office, and security infrastructure. Touchstone’s program establishes a secure foundation for vulnerable populations by combining long-term housing stability with holistic physical and mental health support. By building this safety net, it will empower residents to achieve lasting independence through fostering deep community connections and providing essential pathways to economic and personal growth. This project carries on the legacy of the building’s original purpose, with a design that will enable a permanent supportive housing model proven to help residents find stability, opportunity, and a sense of home.
Aeon has been an active developer, owner, and property manager of affordable housing in downtown Minneapolis since 1986, when it was founded as Central Community Housing Trust. Over the next four decades, Aeon expanded its footprint both in Minneapolis and throughout the Twin Cities metro and currently operates about 60 affordable properties that collectively serve thousands of residents. Exodus will be Aeon’s latest contribution of permanent supportive housing in the Twin Cities, joining its sister project Mary Hall in downtown St. Paul. Exodus will have access to unparalleled support in the form of counseling, community-building, and access to opportunities that downtown Minneapolis provides.
“This project is true to Aeon’s roots serving people facing extreme challenges obtaining stable housing in downtown Minneapolis. Through holistic services in partnership with Touchstone, we can truly change lives at Exodus, said Laura Russ, Chief Real Estate Officer, Aeon.
Developing deeply affordable supportive housing takes a village, and Aeon is thankful for the financial and logistical support provided by various partners. This includes nearly $17 million in equity from Low-Income Housing Tax Credits provided by R4 Capital, $7.8 million in Housing Infrastructure Appropriations from Minnesota Housing, over $3.1 million from the City of Minneapolis’ Affordable Housing Trust Fund, $467,000 from Minneapolis and the Metropolitan Council to remove asbestos and other hazards from the existing structure, $3.15 million from Hennepin County’s Supportive Housing program, a generous contribution of $1.12 million from nearby Westminster Presbyterian Church, and $1.5 million in resources directly from Aeon. The project also benefits from contributions made to Minnesota’s State Housing Tax Credit program, and a $12 million construction loan is being provided by MinnWest Bank. Rental subsidy on each of the 72 units will be provided by the Minneapolis Public Housing Authority, the U.S. Department of Housing and Urban Development, and Hennepin County’s Housing Support program. The project would not have been possible without St. Olaf Catholic Church’s profound commitment to affordable housing. Their generous contribution through the existing structure and land was instrumental in ensuring the project’s viability.
Construction is scheduled to last approximately thirteen months with residents expected to start moving in shortly after.
