ASREF II's $4.8M preferred equity investment assisted in the renovation of 234 units at The Life at Sterling Woods in Houston, Texas. The Life at Sterling Woods is a LIHTC senior and affordable housing community in southeast Houston with a LURA requiring all units be affordable to residents earning below 60% AMI, including additional age and income restrictions.
The Life at Sterling Woods (formerly known as the Villas on Winkler) is a 234-unit LIHTC property located in Harris County, Texas. Built in 2005, this residential senior/ affordable multifamily complex is in a working-class suburb in southeast Houston close to the Houston Ship Channel, petroleum refineries, and processing facilities. The apartment complex currently has a Land Use Restrictive Agreement (LURA) that requires that 100% of the units be affordable to individuals making less than 60% AMI, with additional stipulations that 50% of the units be affordable to individuals at less than 50% AMI and that 80% of the units be leased to at least one individual aged 55 or older. The complex is comprised of four three-story buildings.
Olive Tree Holdings acquired and redeveloped the building. They made significant value-add and curb appeal improvements to the property, preserving the availability of affordable housing for seniors in this LMI area. ASREF exited the project on November 21, 2022, through an equity recapitalization, introducing new equity into the project.
| Asset Type | Multi-Family Residential |
| Development Type | Renovation |
| Previous Use | Multi-Family Residential |
| Investment Closing Date | July 17, 2021 |
| Total Development Area | 6.9 acres (238,138 SF) |
| Construction Timeframe | Start: July 2021; Finish: Oct 2022 |
$12.2M
$12.2M
$4.8M
$1.4M
$6.2M
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 of each.
| Location | 8625 Winkler Dr, Pasadena, Harris County, TX, 77502 |
| Area | Houston Metropolitan Statistical Area |
| LMI Community Status | Moderate |
| Unemployment Rate | 12% |
| Poverty Rate | 19% |
| % Minority | 91% (3% African American) |
The Life at Sterling Woods is in Pasadena, a working class suburb close to the metropolitan city of Houston. It is a predominately minority area (91%) with 19% poverty, higher than the state’s poverty rate of 15%. The apartment complex is located within a Moderate Income census tract. The property is situated off the Gulf Freeway with convenient linkages to local employment drivers and lifestyle amenities.
SDS Capital Group & Vintage Realty Company announce $4.8 million investment in 234-unit affordable housing for seniors/families.
ASREF II’s $4.8 million preferred equity investment in The Life at Sterling Woods Apartments will preserve the availability of quality affordable housing in an LMI area. The redevelopment improved the quality of the asset, 95% of which is currently leased to individuals age 55 or greater.
