By JV Group Staff
In a joint venture, the Community Development Trust and Southport Financial Services have acquired, and will improve, five apartment complexes in California’s Central Valley that comprise a total of 484 units purchased for $37 million.
“Our JV will preserve these projects as high-quality affordable housing for the long run, specifically in these rental markets in California’s Central Valley region where the restricted affordability is meaningful compared to market-rate properties,” says CDT Senior Vice President and Head of Acquisitions, Michael Lear.
All of the acquired properties serve low-income residents in tight rental markets and will continue to rent to residents at 50-60% of area median rent/income levels through 2050.
CDT provides long-term debt and equity capital for the creation and preservation of affordable housing and charter school facilities. Southport is a longtime CDT operating partner with over 16,000 units of affordable housing under ownership throughout the West Coast, Midwest and East Coast.
The two companies embarked on a $16 million joint venture in 2017 to purchase three affordable California housing apartment complexes in Kings County, San Bernardino County and Yuba County.
“CDT has considered properties located in Opportunity Zones and will continue to do so if and when such an investment makes sense strategically and financially,” says Lear.
CDT and Southport’s latest joint venture is highlighted by a capital plan allocating approximately $6 million toward capital improvements and reserves. They will preserve and maintain the properties with Trillium Housing Services, a nonprofit housing and service provider.
“Together with CDT, we are helping to build better communities by providing families with quality affordable housing and amenities that will help parents and their children to thrive and for the elderly to live with dignity and peace of mind,” said Paul Fortino, Senior Vice President of Southport Financial Services, in a statement.
Image attributed to Community Development Trust