CREA, Lument, Woodforest Provide $26M to Acquire Houston Housing Acquisition – Commercial Observer

Fairsteadnational social housing developer, raised $26 million to finance purchase Yale Village Apartmentsa 250-apartment complex on the outskirts of Houston that will undergo a $20 million renovation this year, Commercial Observer has learned.

Rainbow Housing Texas AND Houston Housing Finance Corporation are development partners of the project.

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The $26 million in funding was split between three sources: CREATIONaffordable housing investment company, provided equity; mortgage lender Light provided permanent debt; and Woodforest National Bank provided bridge financing.

Neala MartinCREA senior vice president, said the partnership with Fairstead to revitalize Yale Village will help support “community growth and sustainability.”

“We are grateful to be part of the larger community success story because it also opens the door to job creation, economic growth and revitalization in the Houston area,” Martin said in a statement.

Yale Village Apartments opened in 1970 in Houston’s Northside neighborhood, about a 20-minute drive from downtown. The 34-building, two-story apartment complex features one- to five-bedroom units. The units in the complex are expected to remain affordable, with rents capped at 30 percent of a resident’s income and income-based rents capped at 60 percent of the area median income.

Fairstead and its partners are planning an extensive $20 million renovation of the property, including renovating the interiors of the units and common areas, installing new energy-efficient appliances and building a new playground. In addition, Fairstead plans to oversee the community services on site, working with a nonprofit company Rainbow to give residents the opportunity to benefit from extra-curricular activities for their young children.

With this acquisition, Fairstead’s Texas portfolio now exceeds 1,000 affordable housing units.

“The addition of Yale Village to the Fairstead portfolio will continue to provide high-quality, affordable housing to the Houston area,” said Allan IzzoSenior Director of Development at Fairstead. “We look forward to continuing to expand Fairstead’s presence in Texas and deepening our focus on building communities that serve our residents.”

Brian Pascus can be contacted at [email protected]