NEW YORK, NY - The Community Development Trust (“CDT”), which provides long-term debt and equity capital for the creation and preservation of affordable housing and charter school facilities, today announced a $70 million joint venture to purchase a 452-unit apartment complex in Austin, Texas.
CDT’s partners in the acquisition of The Bridge at Asher Apartments in southwest Austin – located in one of the nation’s tightest rental housing markets – include the Housing Authority of the City of Austin (“HACA”) and its nonprofit affiliate, the Austin Affordable Housing Corp. (“AAHC”).
In addition, the effort is supported by the National Housing Trust (“NHT”) and The Kresge Foundation through their High Opportunity Partner Engagement (HOPE) program aimed at increasing access to affordable housing in areas of high opportunity with strong public schools.
“We are thrilled to bring this team together and create long-term stability for families in an area of Austin where affordable units represent a critical unmet need,” said Joseph F. Reilly, CDT president and CEO.
Austin is now the most expensive rental market in Texas, recent studies show. CDT’s joint venture for The Bridge at Asher Apartments aligns with Austin government leaders’ vision to integrate affordable workforce housing around market-rate properties throughout the state’s capital, a strategy that’s earning national acclaim for innovation.
“Wonderful to hear we’re providing additional, much-needed affordable housing,” said Austin Mayor Steve Adler. “Special thanks to CDT, AAHC, NHT and The Kresge Foundation for investments that make this happen. Proud to see another HACA-involved project.”
Built in 2003, The Bridge at Asher Apartments complex recently underwent substantial renovations to the community facilities. The property is located along the eastern side of Interstate 35 approximately 12 miles southwest of downtown Austin.
As a wholly owned subsidiary of the Housing Authority of the City of Austin, AAHC was created in 2003 to ensure and preserve quality, affordable housing opportunities for low- to moderate-income families in Austin as well as provide financial literacy and homeownership opportunities. AAHC owns and operates a portfolio of approximately 2,700 units of affordable housing throughout Austin.
The Bridge at Asher Apartments purchase is CDT’s fourth investment with AAHC/HACA. CDT and AAHC now jointly own 1,716 units in Austin and have created affordability for at least 858 households through these joint ventures.
“CDT is the perfect partner for AAHC – their long-term view and mission aligns with our focus and goals,” said HACA President and CEO Michael Gerber. “We’re excited to expand our relationship with CDT and begin a new partnership with the National Housing Trust and The Kresge Foundation.”
Highlighting the CDT-AAHC investment in Asher Apartments is an alliance with the NHT’s HOPE Fund, which is financed by The Kresge Foundation. The HOPE Fund supports the acquisition of unrestricted properties in high-opportunity communities with above-average public schools. Research illustrates that low-income children whose families live in higher-income neighborhoods experience higher college attendance, greater health benefits, larger earning gains as adults and improvements in other indicators of economic mobility. The HOPE Fund is providing $4 million in funding to the CDT-AAHC joint venture.
“Austin is one of the fastest-growing, most economically diverse metropolitan areas in the country, and it’s imperative that industry leaders such as ourselves ensure smart growth and thoughtful development,” said NHT President Priya Jayachandran. “Asher Apartments is an exciting opportunity that will help preserve Austin’s diversity and provide all families, regardless of income, with access to good schools.”
As a community development financial institution (CDFI) and private real estate investment trust (REIT) with a social impact mission, CDT operates as a double-bottom-line company. CDT provides long-term debt and equity capital for affordable housing throughout the United States, while seeking attractive returns for shareholders.
During the past 20 years, CDT has invested more than $1.8 billion in debt and equity capital in properties in 44 states and regions – helping to preserve and create over 48,000 units of affordable housing that provide homes for more than 120,000 residents. CDT has also made substantial progress in building its charter school lending activities with nearly $41 million of new commitments and closings, which affect nearly 2,500 low-income students.
About CDT: The Community Development Trust (“CDT”) is a national investor that provides long-term capital for the preservation and creation of affordable housing and charter school facilities. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 21 years, CDT has invested over $1.8 billion in debt and equity capital for properties in 44 states and regions – helping to preserve and create over 48,000 units of affordable housing that have provided homes for more than 120,000 residents. CDT is a private real estate investment trust (REIT) and a certified community development financial institution (CDFI).