Partnering to Preserve Affordability
Atlanta is losing its status as an affordable city. Insight from the Federal Reserve Bank of Atlanta and Enterprise Community Partners have shown that our region lost more than 5,000 low-cost rental units from 2010 to 2014 and that we are poised to lose tens of thousands more due to expiring subsidies. With two recently financed projects, the ANDP Loan Fund and Reinvestment Fund are partnering to address the issue by preserving affordable rentals.
In East Point, Reinvestment Fund and ANDP are providing $3 million in financing to 33 Holdings LLC for the acquisition and renovation of Prosper Point Homes, an affordable rental community. The development rests on a six-acre site and consists of 14 buildings with 68 two-bedroom and 40 three-bedroom townhome-style apartments. Previously known as Wyncove Apartments, Prosper Point is currently underway with comprehensive renovations of multiple buildings.
Built in 1974, Prosper Point is within five miles of Hartsfield-Jackson International Airport and within one mile of distribution centers for Amazon, Dick’s Sporting Goods, FedEx and more. Given its proximity to employment, the property is invaluable to service-sector employees who desire to live close to work.
“We could have gone to a bank, but for this project, we were looking for a financial partner who fully understood our mission to do more than provide housing. ANDP and Reinvestment Fund have similar missions- to improve communities for low income people,” said Sanjay Raghavaraju, 33 Holdings LLC CEO and founder. “They care about more than just the bottom line while working with upcoming borrowers to help structure the deals beyond just the financial aspects of a deal.”
Raghavaraju, an Indian immigrant and former tech executive, has been engaged in real estate investing since 2012. 33 Holdings LLC is a growing rental owner with approximately 50 small rental properties under management.
In Atlanta’s Ashview Heights neighborhood, ANDP and Reinvestment Fund are providing nearly $1.6 million in financing for preservation and redevelopment of a 26-unit multifamily property by Civitas Communities LLC. Once complete, the extensive renovation will result in six one-bedroom and 20 two-bedroom apartments.
Civitas partners Derrick Barker, Charles Cole and Ryan Williams met as Harvard classmates and have worked on a number of residential ventures since 2006, with the driving purpose of investing to develop inclusive urban communities.
“It was an absolute pleasure working with ANDP and the Reinvestment Fund. They worked diligently and professionally to get this project to the closing table, and their work will definitely have a deep impact on the community,” said Barker.
Upon completion of renovations, the East Point and Ashview Heights properties will target renter households at 65 and 60 percent area median income respectively – providing much needed quality, affordable rental options.
“It is critical that low-income families have affordable housing options near job centers. Unfortunately, these families are being forced to move further and further out of the city center to find affordability,” said John O’Callaghan, ANDP President and CEO. “We are excited to be partnering with Reinvestment Fund to preserve these affordable units, and give low- and moderate-income families affordable housing options.”