PNC Deploys $202M for Houston Affordable Housing Acquisition

Fairstead has landed a $202 million financing package to acquire and rehabilitate a Houston affordable housing asset, Commercial Observer can first report..

PNC Multifamily Capital supplied $120 million of debt and $82 million of equity for Fairstead’s $242 million acquisition of Haverstock Hills Apartments in Houston’s East Aldine neighborhood from Equality Community Housing. Fairstead purchased the 700-unit complex, which is supported by Section 8 contracts in partnership with Harris County Housing Financing Corporation. 

Noah Hale, managing director at Fairstead, said the Haverstock Hills Apartments has plenty of history — having been built in 1975 — and stands out given its size and scale.

“This is a 100 percent fully subsidized property that has a high concentration of extremely vulnerable family households, large bedroom sizes and multiple buildings,” Hale told CO. “It’s like a mini city.” 

Located at 5619 Aldine Bender Road 15 miles north of Downtown Houston, Haverstock Hills consists of 44 two- and three-story buildings spread over 22 acres. All units are set aside for residents earning no more than 60 percent of the area median income.  

As part of the acquisition, Fairstead plans renovations that include exterior upgrades and improvements to common areas along with new security measures such as added lighting and cameras. Hale said the property hasn’t seen a meaningful renovation in about two decades, and Fairstead plans to complete the project by early 2028.  

Fairstead is also partnering with Rainbow Housing Assistance Corporation, which will provide on-site social services including after-school programs for students in kindergarten through 12th grade, financial literacy classes, career training and health initiatives. 

The Haverstock Hills acquisition adds to Fairstead’s Houston affordable housing footprint, which now exceeds 2,000 apartments. Its national portfolio is now at 27,000 units across 28 states.

“Houston continues to experience strong in-migration population growth and economic resiliency,” Allan Izzo, senior director, development at Fairstead, said in a statement. “We look forward to our ongoing collaboration with city officials and community partners to identify pathways to narrow the housing affordability gap for essential workers and growing families in the area.” 

PNC did not immediately return a request for comment. 

Andrew Coen can be reached at acoen@commercialobserver.com.