Strategic Partnership Focused on Affordable Housing Expansion

Strategic Partnership for Affordable Housing

Infinity Real Estate Partners has secured a substantial $18.75 million investment from American South Capital Partners (ASCP), a collaboration between SDS Capital Group and Vintage Realty Company. This funding is earmarked for acquiring and renovating a significant 1,068-unit affordable housing portfolio. The properties span across multiple states, presenting a timely opportunity to enhance housing options in underserved communities.

Understanding the Project Scope

The newly acquired portfolio comprises seven communities with ages ranging from the late 1960s to early 1970s. Notably, 95% of these units are part of the U.S. Department of Housing and Urban Development's Housing Assistance Program, reinforcing the initiative's commitment to maintaining affordability. Each community offers a unique mix of unit sizes, creating a diverse range of options for low-income families.

Addressing Housing Affordability Challenges

Recent studies highlight that nearly 25% of renters in these markets experience severe rent burdens, dedicating up to half of their income to housing. This partnership aims to alleviate these financial pressures while ensuring that quality living standards improve. Gregory B. Jones, Chief Investment Officer at Infinity Real Estate Management, expressed enthusiasm about acquiring this portfolio as it marks a significant milestone in their mission to preserve affordable housing over the next two decades.

Enhancing Living Conditions for Tenants

Infinity's plans post-acquisition include critical renovations. The investment will enhance both the interiors and exteriors of the properties, incorporating modern appliances, cabinetry, and flooring. These upgrades will occur without displacing tenants, respecting their right to remain in their homes during the improvement process. Further assistance includes the installation of new security systems and addressing essential maintenance issues such as roof, plumbing, and air conditioning repairs.

Long-term Vision for Sustainable Housing

After renovations, all units will cater to individuals and families earning 60% or less of the area median income. This qualifies the project for 100% Community Reinvestment Act Credit, marking a significant achievement in fulfilling housing needs. Additionally, each property will benefit from a community coordinator through a partnership with Mercy Housing, offering residents invaluable services like after-school care, financial literacy classes, and resume workshops.

Investment in Southern Housing Markets

ASCP actively invests in affordable housing projects across ten Southern states, demonstrating a commitment to bringing quality housing solutions to diverse populations. Their portfolio exemplifies dedication, with past commitments exceeding $176 million, making housing accessible for over 7,025 units — a substantial percentage expressly designated for families below the 80% area median income threshold.

Impact on Communities

Deborah La Franchi, ASCP Managing Partner and CEO of SDS Capital Group, emphasized that maintaining affordable housing and improving quality was crucial. This endeavor not only strives to enhance the living conditions of families but also hopes to expand the positive impact across more communities in the South.

About American South Capital Partners

American South Capital Partners focuses on real estate impact investments across the Southern U.S., managing a range of funds aimed at transformative projects. Their collaboration with Infinity Real Estate Partners marks a pivotal step in their ongoing mission.

About Infinity Real Estate Partners

Infinity is a well-established, privately held investment manager based in Atlanta. Since its inception in 2002, Infinity has broadened its investment strategies to incorporate various alternative investment options, showcasing their expertise in enhancing and managing real estate investments.

Frequently Asked Questions

What is the goal of the partnership between ASCP and Infinity?

The partnership aims to acquire and renovate over 1,000 units of affordable housing, enhancing living conditions for low-income families.

Which states are involved in this affordable housing initiative?

The investment encompasses properties located in North Carolina and South Carolina.

How will the renovations affect current tenants?

Renovations will be conducted while tenants occupy their units to minimize disruption, ensuring that they can remain in their homes during improvements.

What kind of services will be provided to the residents?

A community coordinator will be available at each property, collaborating with local organizations to offer supplemental services like childcare and financial education.

What is the long-term vision for these housing units?

Every completed unit will remain affordable for individuals and families earning 60% or less of the area median income, contributing to community stability and economic growth.

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