American South Real Estate Fund
In 2013, Vintage Realty Company teamed up with SDS Group out of Los Angeles, CA to start the American South Real Estate Fund (ASREF). The American South Real Estate Fund provides mezzanine debt, preferred equity, and equity for real estate projects located in emerging low- and moderate-income neighborhoods in 10 southern states.
ASREF is an impact fund having a Triple Bottom Line investment strategy:
- 1st Bottom Line: Target risk-adjusted market rates of return
- 2nd Bottom Line: Catalyze economic and community development that benefits, revitalizes, and stabilizes emerging low- and moderate-income communities
- 3rd Bottom Line: Invest in projects with a range of environmentally-sustainable attributes
Recent News / Investments
Wilmington NC Investment Life At Lakeside Villas
Olive Tree Affordable Housing, the affordable housing affiliate of Olive Tree Holdings, a mission driven private investment company with a focus on real estate, today announced the acquisition of The Life at Lakeside Villas, a 429-unit, affordable multifamily community located at 1519 Lake Branch Drive in Wilmington, North Carolina.
The Life at Lakeside Villas is Olive Tree’s fifth partnership with American South Fund Management (ASFM), a partnership between SDS Capital Group and Vintage Realty Company. The funding provided by ASFM will support the significant renovations that will directly improve the quality of life for residents.
“We are proud that with this new investment with Olive Tree, ASFM has now funded over 2,600 units of affordable housing throughout the South,” said David Alexander, ASFM Managing Partner.
12Hundred Studios Ribbon Cutting – Atlanta, GA
Tenth Street Ventures And Partners Celebrate Ribbon Cutting With Atlanta Mayor Andre On 12hundred Studios On Mobile St In Atlanta’s Hunter Hills
The 40-unit apartment complex has been revamped with attainable rents at 60% AMI; American South Fund Management impact fund supports affordable housing developments for low-income residents throughout the South
ATLANTA (Oct. 17, 2022) – Tenth Street Ventures along with partners Miles Alexander III at Alexander Goshen and Richard Taylor with ARRC Capital Partners with Atlanta Mayor Andre Dickens and other officials celebrated the ribbon cutting of 12Hundred, at 1200 Mobile St., a 40-unit, garden-style apartment complex in the Hunter Hills neighborhood just West of downtown Atlanta. Atlanta Affordable Housing Fund (AAHF) provided the senior loan for the project, while American South Fund Management (ASFM) provided equity.
The team converted the vacant property into 40 studio apartments, all of which are fully furnished and available for attainable rents at 60 percent of Area Median Income (AMI). In addition, 25% of units are reserved for individuals either currently experiencing or exiting homelessness through partnerships with Open Doors and HomeFirst. The team closed on the project April 19, 2021 and used no subsidies to create this attainable housing. 12Hundred Studios won CoStar’s 2022 Impact Award for Best New Multifamily Development in Atlanta.
Estrella at Kiest Press Release
$3M Equity Investment by ZNE Cpaital and LeavenWealth
Funding has been closed on the acquisition and renovation of Estrella at Kiest, a 232-unit apartment community in Dallas, Texas.
Dallas, TX – June 29, 2022 – ZNE Capital and LeavenWealth are already underway on building renovations including repairs to 25 units damaged by the 2021 Cold Wave in Texas and an additional 24 units damaged in a 2021 fire. ZNE’s renovation and business model focuses on green-focused upgrades with the installation of roof-mounted solar panels, low flow water fixtures, and electrical upgrades to increase energy efficiency and promote savings at the project as well as costs to tenants.
The Preserve at Flagler Beach – Flagler Beach, FL
$12.5 Million To Develop Workforce Housing In Flagler Beach Florida
Funding has been secured to develop The Preserve at Flagler Beach, a 240-unit workforce apartment community located in Flagler Beach, Florida.
Flagler Beach, FL – June 15, 2022 – The 240-unit apartment community project will be developed through a joint venture between Portage Real Estate and Piedmont Private Equity. This is Portage Real Estate’s second partnership with impact real estate funds managed by American South Fund Management (ASFM), a partnership between SDS Capital Group and Vintage Realty Company. With total development costs projected at $57 million, The Preserve at Flagler Beach is the first investment in Florida for ASFM impact funds. All 240 one, two and three-bedroom apartment units will be rented at rates affordable at 115% Area Median Income (AMI) or less, bringing critically-needed workforce housing to this community.
Life at Elmwood Grove – Springdale, AR
Olive Tree Holdings and American South Real Estate Fund II Announce $23M Investment Partnership Supporting Affordable Housing
The Life at Elmwood Grove Development to Renovate 192 Affordable Multifamily Housing Units in Springdale, AR
Springdale, AR – November 23, 2021 – Funding has been secured to acquire and begin the renovation of The Life at Elwood Grove (formerly known as Springdale Ridge Apartments,) a 192-unit affordable multifamily apartment community in Springdale, Arkansas. The 16-building garden style project is being rehabilitated by Olive Tree Holdings (“Olive Tree”). Life at Elwood Grove is Olive Tree’s 40th multifamily acquisition. This is Olive Tree’s fourth partnership with American South Real Estate Fund (ASREF) I and II, managed American South Fund Management (ASFM), a partnership between SDS Capital Group and Vintage Realty Company. All 192 units will be rented at rates affordable to low-income families.
“Olive Tree’s mission has centered on finding and improving existing assets or new projects that can provide quality housing to workforce households and families across the country. With The Life at Elmwood Grove, we now manage over 8,000 units of affordable housing nationally, meeting a critical need within underserved communities. The financial partnership between Olive Tree and American South Real Estate Fund II , enables us to quickly acquire and initiate project construction. This expedites our pursuit of quality developments that offer affordable rents,” said Ian Bel, Principal, Olive Tree.
Life at Sterling Woods – Houston, TX
ASREF II ANNOUNCES FIRST INVESTMENT IN HOUSTON
Olive Tree Holdings and American South Real Estate Fund II Announce Third Investment Partnership Supporting Affordable Housing
Villas on Winkler Redevelopment to Preserve 234 Senior/ Affordable Multifamily Housing Units in Houston, TX – $4.8 Million American South Real Estate Fund II Investment by Impact Fund Managed by SDS Capital Group and Vintage Realty Company
Houston, TX – August 4, 2021 – Funding has been secured to acquire and begin the improvement of The Life at Sterling Woods (formerly known as Villas on Winkler) complex into a 234-unit senior/ affordable multifamily apartment community in Houston, Texas. The project is being rehabilitated by Olive Tree Holdings and will be managed by their affiliate property management and construction management company, The Life Properties, which oversees the day-to-day operation and business plan execution exclusively for Olive Tree Holdings’ multifamily portfolio. The Life at Sterling Woods is Olive Tree Holdings’ 34th multifamily acquisition and the 13th in the Houston market.
“Olive Tree Holdings’ mission has centered on finding and improving existing assets that can provide quality housing to workforce households and families across the country. With The Life at Sterling Woods, we now manage over 7,000 units of affordable housing nationally, meeting a critical need in these economically challenged communities. The financial partnership between Olive Tree Holdings and the American South Real Estate Fund (ASREF), enables us to quickly acquire and initiate project construction. This expedites our pursuit of developments that are making a difference in the lives of the seniors and families in need,” said Ian Bel, Managing Member, Olive Tree Holdings.
Friedrich Lofts – San Antonio, TX
Press Release by CoStar News By Candace Carlisle
IMPACT FUND CLOSES ITS LARGEST DEAL WITH PLANS FOR TEXAS AFFORDABLE HOUSING
The site of a former Texas manufacturing plant that’s been vacant for three decades is expected to be transformed with capital from an impact fund’s largest deal to date, the latest example of a high-pro le U.S. development aimed at rejuvenating an area near a large commercial district.
American South Real Estate Fund, a real estate impact fund that backs transformative projects throughout the Southern United States, is providing $10.6 million for a partnership to build a $68 million project on an entire city block in San Antonio to bring more workforce housing within close proximity of the city’s downtown.
San Antonio, the seventh-most populous city in America, has been the site of four investments by American South that are aimed at boosting development in overlooked areas in regions from Dallas, Texas, to Selma, Alabama. Development potential in San Antonio is relatively high on the basis of its ranking among the top three cities in the United States in population growth over the past decade, right behind Phoenix and Houston, according to federal census data.
The site of an aging manufacturing plant at 1617 E. Commerce St. that once housed a commercial refrigeration business will be developed into 347 apartment units called the Friedrich Lofts as part of a public-private partnership between American South Real Estate Fund, Provident Realty Advisors, a Dallas-based real estate rm, and the San Antonio Housing Trust.
About half the apartments will be devoted to low- or moderate-income residents making considerably less than the area’s median income, which is $72,000 for a family of four, according to the U.S. Department of Housing and Urban Development.
Affordable Multifamily – Houston, TX
Press Release by American South Real Estate Fund
ASREF DEPLOYS IMPACT CAPITAL TO PRESERVE AND IMPROVE AFFORDABLE HOUSING
Houston, TX – The American South Real Estate Fund has provided preferred equity capital to finance the acquisition and renovation of a 309–unit affordable multifamily community located in southeast Houston. ASREF’s investment will preserve the availability of affordable housing for residents in this LMI area and improve an asset that has not had a major renovation in over two decades. The capital plan includes cost-efficient exterior, interior, and common area amenity improvements that will benefit the quality of life for residents and families.
The community is subject to a Land Use Restriction Agreement (LURA) beyond the term of ASREF’s investment that mandates 100% of the units be leased to individuals and families whose income is 60% or less of area median income. The median income for residents is only 28% of the Houston MSA. The community is located in a predominately minority area (82%) with 32% below the poverty line.
ASREF partnered with a value-add investor with significant holdings in Atlanta and Houston that focuses on improving the quality of Class B and C properties typically in low and moderate-income neighborhoods.
Selma, Alabama Hotel Redevelopment
Article by Candace Carlisle with CoStar
“With this redevelopment, we will give people in Selma the ability to witness and experience the history,” said Tyler Epps, a senior associate at American South Real Estate Fund, which helped underwrite the project.
American South Real Estate Fund, which recently funded a project in South Dallas for E Smith Communities, funded the $3.4 million acquisition loan for the hotel. The St. James Hotel LLC, an entity led by managing partner and Birmingham, Alabama-based developer Jim Lewis, purchased the hotel from the city of Selma. Lewis is chief executive officer of Birmingham-based Rhaglan Hospitality, which is the manager of the hotel and redevelopment project.
The deal, which the developer told CoStar News was completed Monday with a wire transfer, also puts one of Selma’s vacant properties back into action after sitting closed for more than a year and will employ more than 40 full-time workers. The $5 million redevelopment is slated to be complete by the end of the year.”
Dallas, Texas Community Hub Revitalization
Press Release by Coushatta Fuller with E Smith Communities
“A long‐dormant former community hub in South Dallas’ Lancaster Corridor has been acquired by E Smith Communities with financing by impact investor American South Real Estate Fund (ASREF).
The 30,000 square‐foot, 2.9‐acre project will add much‐needed office space to the area, which connects downtown Dallas and the growing International Inland Port of Dallas. The site at the corner of South Lancaster Road and Ann Arbor Avenue (near the DART rail station and regional VA Medical Center) is in a designated Opportunity Zone with high poverty and significant need for economic development and job creation. Such projects are a high priority for E Smith Communities to support the Grow South Initiative.
Newly‐elected Dallas Councilperson Carolyn King Arnold said, “It is great to see E Smith Communities and ASREF walk the walk and bring impact capital focused on economic development to South Dallas and invest in future growth. I am confident they are committed to reinvesting to inspire residents to thrive in an environment they can take pride in. This project will bring quality jobs and services to the community, all while honoring the tenacity off its residents and the spirit of much‐needed revitalization.“
Winston-Salem, NC Chatham Mill Revitalization
Press Release by American South Real Estate Fund
“Financing has closed and construction is underway on Phase II redevelopment of the former Chatham Mill in Winston‐Salem. Phase II continues revitalization of the mill’s long‐abandoned buildings.
New meeting and gathering space will be added, along with office space to support a range of community services provided by the new tenant. These services will be in addition to the workforce and affordable housing that was created in Phase I.
The three‐phase community development project is proving to be transformative for the north and northwest wards of Winston‐Salem, as formerly obsolete structures on the nine‐acre site are restored and put back into use by Chatham Mill Ventures.
“The Chatham Mill complex continues to transform a forgotten industrial site into a vibrant place to attract our next generation of Winston‐Salem residents,” said Northwest Ward Council member Jeff Macintosh. “This is the type of project that puts us in the race for high‐quality jobs as we compete for talent and innovation.”“