ASREF II's $26.8M preferred equity investment funded the renovation of this 6-property 1,444-unit affordable housing portfolio in six different Texas cities.
ASREF’s $26.8M investment enabled Elizabeth Property Group (“EPG”), a Women-Owned Business, to acquire and renovate the 1,444-unit Texas LIHTC Portfolio project, which at full capacity houses approximately 3,000 tenants. This multifamily, affordable housing portfolio consists of six locations across Texas and is mandated to maintain affordability at less than 60% of Area Median Income (“AMI”) through 2042.
The Portfolio was originally developed in 1996 as a LIHTC deal by Concord. The Portfolio was purchased and re-syndicated into the LIHTC program by Dalcor (Seller) in 2012.
The six investment properties located in the Dallas and Houston regions are: Willow Green in Houston (336 units); Woodglen Park I & II in Duncanville (232 units); Pine Club in Beaumont (232 units); Ridgewood West in Huntsville (232 units); Saddlewood Club in Bryan (232 units); and Tealwood Place in Wichita (180 units).
All units will continue to be affordable for renters at incomes less than 60% of the Area Median Income (AMI) through 2042 and 2043. Each of the developments is located in a low- or moderate-income area with an average poverty rate of 36% and an average census tract minority population of 75%. Renovations include deferred maintenance, painting, replacing flooring within units, exterior and landscaping upgrades, and additional offerings of after-school community programs within the complexes.
| Asset Type | Multi-Family Residential |
| Development Type | Renovation |
| Previous Use | Multi-Family Residential |
| Investment Closing Date | April 24, 2023 |
| Total Development Area | 1,413,676 SF |
| Construction Timeframe | Start: Spring 2023; Finish: 2025 |
$64.4M
$64.4M
$26.8M
$2.4M
$29.2M
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.
ELIZABETH PROPERTY GROUP (“EPG”) is a Texas-based affordable multifamily owner/operator focused on affordable acquisition/rehab properties. EPG targets affordable investments that require a physical or operational repositioning, and that have regulatory complexity and/or a scale that serve as barriers to larger institutional operators.
| Location | 8301 Willow Place Dr N, Houston, TX, 77070; 6800 S Cockrell Hill Rd, Duncanville, TX, 75236; 5015 Pine St, Beaumont, TX, 77703; 2830 Lake Rd, Hunstville, TX, 77340; 3625 Wellborn Rd, Bryan, TX, 77801; 5300 Professional Dr, Wichita Falls, TX, 76302 |
| Area | Houston; Dallas; Beaumont; Huntsville; Bryan-College Station; Wichita Falls |
| LMI Community Status | Low & Moderate |
| Unemployment Rate | 15% |
| Poverty Rate | 36% |
| % Minority | 75% (54% African American) |
The six Texas LIHTC Portfolio buildings are located in Houston, Dallas-Fort Worth, Beaumont, Huntsville, Bryan-College Station and Wichita Falls Metropolitan Statistical Areas (MSAs), all located in Texas. The developments are all located in low- or moderate income census tracts with an average poverty rate of 35.6% and average tract minority population of 75.4%.
While Texas leads the US in population growth, housing development has not kept pace. The average increase in rent between 2020 and 2021 was 30% statewide, reflecting demand and housing shortages. Over the past year, rents have risen 11% in Houston and 16% in Dallas. Meanwhile, salaries for private industry workers have risen only 3.5% in Houston and 5.2% in Dallas, increasing demand for affordable housing.
SDS reports on Elizabeth Property Group (EPG) closing the acquisition of a portfolio of six Low Income Housing Tax Credit (LIHTC) apartment properties located in the Texas cities of Houston, Dallas-Fort Worth, Beaumont, Huntsville, Bryan-College Station, and Wichita Falls, TX.
Parimal M. Rohit reports on Dallas-based Elizabeth Property Group’s deal for six apartment properties to be renovated into 1,444 affordable housing units for low-income Texans.
Jackson Chen reports on ASREF II’s investments involving just under 5,000 multifamily units, and interviews Deborah La Franchi, Managing Partner at ASREF.
Steve Brown reports on the acquisition of more than 1,400 units in multiple Texas markets.
The Real Deal reports on the acquisition of more than 1,400 units across six properties around Dallas-Fort Worth, Houston regions.
ReBusiness Online reports on the six properties acquired by Elizabeth Property Group and their plans for renovation.
Donna Kimura reports on the acquisition of more than 1,400 units in multiple Texas markets.
Mike Boyd reports on the acquisition of more than 1,400 units in multiple Texas markets with the capacity to house an estimated 3,000 tenants.
ASREF II’s $26.8 million preferred equity investment in The Texas LIHTC Portfolio will preserve the availability of quality affordable housing. The LIHTC program will ensure long-term affordability.
