CREA, Lument, Woodforest Provide $26M for Houston Housing Acquisition
Fairstead and its partners will renovate the 250-unit affordable housing community
By Brian Pascus July 8, 2024 12:50 pm
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Fairstead, a national affordable housing developer, has secured $26 million in acquisition financing to purchase Yale Village Apartments, a 250-unit complex outside Houston that will undergo a $20 million renovation beginning this year, Commercial Observer has learned.
Rainbow Housing Texas and Houston Housing Finance Corporation are development partners on the project.
The $26 million in financing was split among three sources: CREA, an affordable housing investment firm, provided equity; mortgage lender Lument provided the permanent debt; and Woodforest National Bank provided bridge financing.
Neala Martin, senior vice president at CREA, said the partnership with Fairstead to rehabilitate Yale Village will help foster “community growth and sustainable development.”
“We are grateful to be a part of the larger community outcome, as it also opens the door for job creation, economic growth and revitalization in the Houston area,” said Martin in a statement.
Yale Village Apartments opened in 1970 in Houston’s Northside neighborhood, about a 20-minute drive from the city’s downtown. Consisting of 34 two-story buildings, the apartment complex ranges from one-bedroom to five-bedroom units. Units at the complex are expected to remain affordable, with rents capped at 30 percent of a resident’s income, and income-restricted rents limited to no more than 60 percent of the area median income.
Fairstead and its partners plan an extensive $20 million renovation of the property, including refurbishing unit interiors and common areas, installing new energy-efficient appliances, and building a new playground. Moreover, Fairstead plans to oversee on-site social services while partnering with nonprofit firm Rainbow to give residents the option of after school programming for their young children.
The acquisition brings Fairstead’s Texas portfolio past 1,000 affordable housing units.
“Bringing Yale Village into the Fairstead portfolio will allow for the continued preservation of high-quality, affordable housing in the Houston area,” said Allan Izzo, senior director of development at Fairstead. “We look forward to continuing to expand Fairstead’s presence in Texas and deepening our focus on community building in service of our residents.”
Brian Pascus can be reached at bpascus@commercialobserver.com
