Purchase Will Preserve Over 375 Units of Affordable Housing in Southfield, Michigan and Holland, Michigan
NEW YORK, NY -- (Marketwired) -- The Community Development Trust (CDT), which provides capital for the preservation of affordable housing, and Peak Capital Partners, a company that owns and manages conventional, affordable, and student apartment assets across the country, today announced their partnership in acquiring two properties, Pebble Creek Apartments in Southfield, Michigan and Traditions of Holland in Holland, Michigan. The two properties total over 375 units of affordable housing, available to lower-income families in each community.
Pebble Creek Apartments was acquired for $16.9 million and included a $3.3 million investment from CDT. Built in 1996, Pebble Creek Apartments consists of 256 units of affordable housing. Traditions of Holland was acquired for $7.2 million, with a $1.8 million investment from CDT. Built in 1996, Traditions of Holland consists of 120 units of affordable housing. 100% of the units at both properties are affordable to families with household earnings below 60% of the area median income.
"Our investment in Pebble Creek Apartments and Traditions of Holland will ensure that lower-income families in these communities will continue to have access to quality, safe, and affordable housing," said Joseph F. Reilly, president and CEO of CDT. "We are grateful to our partners on this project, Peak Capital Partners, and we look forward to the opportunity to work together again."
As a part of CDT's equity program, current plans for the two properties include a combined $1.5 million of capital improvements over the next four to five years which will include parking lot improvements, full roof and gutter replacements, and various energy and water/sewer efficiency improvements, including installation of low-flow toilets, shower and faucet aerators, and LED lighting fixtures.
The acquisition of Pebble Creek Apartments and Traditions of Holland furthers CDT's commitment to investing in affordable housing and working with partners that share their mission of making a positive difference in residents' lives and neighborhoods, for the long-term. As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
The Community Development Trust (CDT) is a national investor in affordable housing. Working with local, regional, and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its fifteen years, CDT has invested $1 billion in debt and equity capital to properties in 42 states and regions -- helping to preserve and create nearly 35,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender, and a member of the Federal Home Loan Bank of New York (FHLBNY).
About Peak Capital Partners
Peak Capital Partners and its affiliates own and manage conventional, affordable, and student apartment communities in growth markets in the United States. With an asset portfolio valued at nearly $1 billion, the firm owns 75 apartment communities housing nearly 13,000 families. Visit www.peakcapitalpartners.com.
CONTACT: Zigis Switzer 212.784.5705 [email protected]