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
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.”“