Sherman Associates Started Rochester Housing Project

Construction has officially begun on a $136.5 million residential development project located in Rochester.

Updated on Sept. 29, 2026 in Construction

Isometric editorial illustration of a construction crane and a steel building frame, representing a large-scale residential development project. — Sherman Associates and Aeon have officially begun construction on a $136.5 million residential development project in Rochester, aimed at expanding local housing stock. AI Illustration. Upload story photo >

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Sherman Associates has commenced work on a new residential development in Rochester. The project is a collaborative effort between Sherman Associates and Aeon designed to address local housing needs.

Why it matters

The development aims to alleviate the shortage of housing options for people living and working in the Rochester community. By providing new residential space, the project addresses a critical demand for expanded living capacity in the area.

The development features a 273-unit residential tower and includes 76 units dedicated specifically to affordable senior housing. The total investment for the construction project is valued at $136.5 million.

The players

Sherman Associates

This is a real estate development firm known for managing large-scale residential and commercial property projects.

Aeon

Aeon is a non-profit developer that focuses on creating and preserving affordable housing options for low- and moderate-income individuals.

The details

The project represents a strategic partnership between Sherman Associates and Aeon to expand the housing stock in Rochester. This construction initiative focuses on integrating senior-specific units alongside a broader residential tower to diversify living options for the local population.

Construction on the project has officially commenced.
Sherman Associates completed the Landmark Towers project in 2025.
The first phase of the development is scheduled to open in fall 2026.

Market Landscape

This project aligns with the broader regional push to increase residential capacity across the Twin Cities to match growing population demands. By partnering with Aeon, Sherman Associates is positioning itself to capture demand in both the affordable senior housing and market-rate segments.

Residents can anticipate more housing availability, including dedicated options for seniors, once the site opens in fall 2026. The project is expected to provide increased long-term housing stability for those currently living and working in Rochester.

The takeaway

Large-scale developments like this project reflect a significant effort to bridge the gap between regional housing supply and employment-driven demand. Local stakeholders should monitor the fall 2026 opening to see how the increased unit count affects area market dynamics.