$150 Million SDS Supportive Housing Fund Invests $10 million in first Northern California Permanent Supportive Housing Development

News provided by

Mar 29, 2022, 09:00 ET

SDS Capital Group's Impact Fund to Finance RMG Housing Construction of 75 Units for Individuals Experiencing Homelessness; Expanding Reach Beyond Los Angeles Region

CONCORD, Calif., March 29, 2022 /PRNewswire/ -- The $150 million SDS Supportive Housing Fund (SHF or Fund)— a first-of-its-kind private-equity impact fund that finances new, financially-sustainable permanent supportive housing (PSH) for individuals experiencing homelessness – has closed $10 million in funding to develop modular housing in Concord, California. The project site at 1325-1335 Galindo St., Concord will soon to be transformed into 72 one-bedroom and three two-bedroom units. The Galindo complex is the Fund's first Bay Area project and second project to utilize modular units as a key component of the building's construction plan.

Rendering of the 75-unit PSH development at 1325-1335 Galindo St. in Concord, CA.

Managed by Los Angeles-based SDS Capital Group, the Fund is usually the sole source of capital for PSH projects developed by RMG Housing – providing as much as 97% of the total acquisition and construction capital. The Fund's "one-stop" model significantly reduces underwriting and closing time for typical PSH projects from an average of 5-7 years to approximately 24 months from initial underwriting to tenant move-in.

All SHF projects are expected to be financially sustainable over the long term. This requires that the SHF Fund's individual cost per PSH unit in the Bay Area to cost no more than $300,000 - as compared to the $500,000 average in the current California market.

To further reduce development costs, the Galindo development will utilize a modular construction design, significantly reducing the length of time to build the project.

"This is SHF's first investment in the Bay Area," said Deborah La Franchi, Founder & CEO of Los Angeles-based SDS Capital Group. "We're committed to be expanding the Fund's geographic focus across California to support local communities struggling with increasing homelessness. It's imperative we find solutions to help these members of our community find a home."

The SDS Supportive Housing Fund will finance a total of 1,800 units of permanent supportive housing, mostly in the Los Angeles area. With the Galindo development, the Fund has now financed a total of seven PSH projects (six in Los Angeles and one in the Bay Area) for a combined total of 385 newly constructed units of PSH.

Full press release

Media downloads