ASREF II’s $5.7M preferred equity investment funded the renovation of this 192-unit affordable apartment complex in Springdale, Arkansas.
ASREF II provided $5.7M of preferred equity to Olive Tree Property Holdings, LLC for the acquisition and renovation of the 192-unit multifamily apartment community, Life at Elmwood Grove (formerly known as Springdale Ridge), located in Springdale, Arkansas (Fayetteville MSA).
This former LIHTC property will preserve affordable housing in a low-income area of an upper-income census tract that has seen an increase in single-family home prices driven by high-income earners, where the average renter income of the subject property is $29,612. ASREF has mandated that 100% of units maintain affordability at less than 80% of the Area Median Income ("AMI") with a sponsor that has a track record of maintaining affordability. ASREF’s investment in the Life at Elmwood Grove will help preserve the availability of affordable housing for LMI residents in this area, per the City of Fayetteville City Plan 2040.
The Life at Elmwood Grove, built in 2001, is a 16-building
garden-style multifamily community.
| Asset Type | Multi-Family Residential |
| Development Type | Renovation |
| Previous Use | Multi-Family Residential |
| Investment Closing Date | November 11, 2021 |
| Total Development Area | 10.03 acres (147,278 SF) |
| Construction Timeframe | Start: Nov 2021; Finish: Apr 2023 |
$16.8M
$16.8M
$5.7M
$1.4M
$7.1M
American South Capital Partners collects each project's census tract income level at the time of close as part of CRA reporting guidelines. Source: Federal Financial Institutions Examination Council Geocoder.
OLIVE TREE HOLDINGS is a New York based multifamily owner that targets blighted properties in highly impoverished neighborhoods and implements a business plan across its portfolio to help increase occupancy and retention and reduce crime. The current portfolio consists of 29 properties (approximately 10,000 units) in Houston, Dallas, Northwest Arkansas, and the Midwest. Olive Tree’s disciplined approach focuses on uncovering undervalued investment typically due to poor management, deferred maintenance, market mispricing or a combination.
| Location | 770 40th St, Springdale, Washington County, AR, 72762 |
| Area | Fayetteville Metropolitan Statistical Area |
| LMI Community Status | Upper |
| Unemployment Rate | 8% |
| Poverty Rate | 9% |
| % Minority | 23% (0.5% African American) |
The Life at Elmwood Grove is located in Springdale, Arkansas, the fourth largest city in the state. The property is located in a low-income area of an upper-income census tract that has seen an increase in single family home prices driven by highincome earners. The average renter income of the subject property is $29,612, compared to the tract median family income of $90,488.
The Northwest Arkansas Democrat-Gazette covered The Life at Elmwood Grove 192-Unit development. This is the 4th collaboration between ASREF and Olive Tree Holdings to build quality affordable multifamily units in the South.
SDS reports on The Life at Elmwood Grove development which will renovate 192 affordable multifamily housing units in Springdale, AR.
ASREF II’s $5.7 million preferred equity investment in the Life at Elmwood Grove redevelopment is revitalizing and stabilizing an underserved Middle-Income census tract by providing accessible housing to its community. The project redeveloped 192 high-quality affordable housing units with rents capped at 80% AMI.
