The transaction is CDT's first equity investment in Missouri and its first acquisition with Millennia. Through their joint venture, CDT and Millennia will complete $580,000 of capital improvements that will ensure Kensington Heights Apartments is maintained as high-quality affordable housing for elderly and disabled residents. These improvements will include renovating all of the community areas in the 36-year-old building as well as installing new high-efficiency boilers.
"We are delighted to partner with Millennia, a group that we believe is well-aligned with our double-bottom-line philosophy here at CDT," said Brian Dowling, Senior Vice President of Community Investments at CDT. "Millennia is perennially recognized as among the nation's best-performing affordable housing developers, and we look forward to pursuing more acquisitions with them in 2017."
Kensington Heights Apartments is conveniently located near Interstate 70 and U.S. Highway 40, and is approximately ten minutes from downtown Kansas City. The complex serves residents who earn 60 percent of the area median income and benefits from a full-time service coordinator who helps residents access and navigate essential support services.
"Our mission is to provide the highest quality of standards in the management, operation and development of affordable and market rate rental housing, thereby striving to enrich the quality of life for our residents," said The Millennia Companies President and CEO Frank T. Sinito. "Teaming up with CDT to help preserve affordable housing in the Kansas City metro area reflects our commitment to serving low-income residents and the community's most vulnerable citizens."
In 2014, the Joint Center for Housing Studies of Harvard University calculated that 44 percent of renters in the Kansas City metro area, or approximately 126,000 renter households, were cost burdened. That designation means the households spend more than 30 percent of their income on housing costs. The report also shows 22 percent of those households were severely cost burdened, spending more than half of their income on housing costs.
Local government and civic leaders in Kansas City have embarked on an ambitious plan in 2017 toward taking meaningful actions that will address significant disparities in housing needs and access to opportunity.
"We applaud CDT and Millennia for their efforts to better serve our residents," said Kansas City Third District Councilman Jermaine Reed, who represents constituents in the Kensington Heights building. "Their accomplishment is a 'win-win' for everyone, by improving housing and providing residents with the peace of mind that their apartments will remain affordable for generations to come."
The Community Development Trust (CDT) is a national investor in affordable housing. Working with local, regional and national partners, CDT makes long-term equity investments and originates and acquires long-term mortgages. In its 18 years, CDT has invested over $1.25 billion in debt and equity capital to properties in 44 states and regions – helping to preserve and create over 40,000 units of affordable housing. CDT is a private real estate investment trust (REIT), a certified Community Development Financial Institution (CDFI), an approved Fannie Mae affordable housing lender and a member of the Federal Home Loan Bank of New York (FHLBNY). As a CDFI and private REIT with a social impact mission, CDT operates as a double-bottom-line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
About The Millennia Companies
The Millennia Companies® is a vertically integrated real estate company, based out of Cleveland, Ohio, comprising Millennia Housing Management (MHM), Millennia Housing Development (MHD), Millennia Housing Capital (MHC) and American Preservation Builders (APB). The Millennia Companies specializes in the acquisition, rehabilitation and management of affordable and market rate properties. The Millennia Companies was founded in 1995 by Frank T. Sinito, and has since become a multidimensional, diverse company that manages 20,000 units across 22 states. In 1985, Frank T. Sinito, the principal and CEO of the four companies, bought his first apartment community of only 14 units. By the time of the companies' founding in 1995, his portfolio had grown to about 1,000 units. Frank envisioned creating affordable housing communities that he could comfortably raise his own family in and proudly call home. Today, The Millennia Companies operates under that same vision and has over 30 years' experience in preserving, developing and managing multifamily housing for thousands of residents.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-community-development-trust-announces-new-joint-venture-with-the-millennia-companies-to-preserve-126-unit-affordable-housing-apartment-complex-that-serves-low-income-senior-citizens-and-disabled-residents-in-kansas-city-mo-300384734.html
SOURCE Community Development Trust