Tredway, a US affordable and mixed-income real estate developer, has acquired a 16-property portfolio in Texas, totalling more than 1,200 apartments for $65.5m (€56.9m).
The transaction involves the acquisition and recapitalisation of existing properties to preserve and extend long-term affordability for all residents.
Tredway has committed to invest more than $10m in capital improvements across the portfolio, including unit interior upgrades, exterior repairs and deferred maintenance. At many of the properties, Tredway will upgrade the heating, ventilation, and air conditioning (HVAC) and electrical systems, replacing the outdated evaporative coolers.
The properties are located in Alamo, Amarillo, Brownsville, Copperas Cove, El Paso, Fort Worth, Lampasas, Lubbock, Odessa, San Juan, Santa Rosa and Victoria.
Tredway is partnering with Housing Services Incorporated, a non-profit organisation that will provide social services across the portfolio. Asset Living will property manage the portfolio with a mandate to improve site-level operations.
A combination of bridge and Fannie Mae loans arranged by Berkadia makes up the acquisition loan financing.
The acquisition comes as Tredway continues to expand its presence and impact in the southern US, including the recent acquisition and revitalisation of more than 750 affordable homes in North and South Carolina, in addition to its 350-unit portfolio in West Virginia and Tennessee.
“Amid an urgent housing crisis, we are proud to step up in a meaningful way – keeping homes affordable, investing in critical improvements and delivering a higher quality of life so that residents can live a healthier, more inspired lifestyle,” said William Blodgett, CEO and founder of Tredway.
“By providing stable housing for thousands of people, we aim to create a strong foundation for families to pursue upward social and economic mobility and look forward to revitalising these communities across Texas.”
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