AIC CEI-Boulos Opportunity Fund Invests $12 Million in SoLa Impact's 43rd and Vermont Affordable Housing Project, Developing 188 Apartments Using Model/Z Modular Units

The project will increase the City's supply of critically needed affordable housing, aiding Los Angeles in its recovery efforts following the wildfires.

LOS ANGELES, March 31, 2025 /PRNewswire/ -- The AIC CEI-Boulos Opportunity Fund, a joint venture between Allivate Impact Capital®, a subsidiary of Woodforest Financial Group, Inc., and CEI-Boulos Capital Management, announced an equity investment in SoLa Impact's 43rd and Vermont Affordable Housing Project. The fund's $12 million investment in the $63 million project, located in an Opportunity Zone at 43rd and Vermont Avenue in the Vermont Square neighborhood of Los Angeles, will create 188 new units of affordable housing for families and individuals serving families who have experienced homelessness. The project is transit-oriented and focused on environmental sustainability. The project also secured $35 million of construction financing from Acore Capital, facilitated by Walker Dunlop.

The project is led and developed by SoLa Impact, one of the largest minority-owned and operated development firms in the US. Founded by Martin Muoto, SoLa Impact is dedicated to making a positive social impact by focusing on affordable housing, economic development, and educational access. SoLa Impact currently owns and manages a portfolio of approximately 2,500 units in Southern California and has a pipeline of another 2,000 units in development and construction. The project will increase the City's supply of critically needed affordable housing, aiding Los Angeles in its recovery efforts following the wildfires.

Residents of the project will be provided supportive services by SoLa Impact's nonprofit affiliate, the SoLa Foundation, and other nonprofit partners, including workforce development, job placement services, financial education, and other educational programs.

The Vermont Square neighborhood, which is designated as a "High Housing Need Area" by the Department of Treasury's CDFI Fund, is a historically Black neighborhood. The current demographics of the project census tract are 65.4% Hispanic, 19.8% Black, and 8.7% Native American. The poverty rate is 35.23%.

The project will prioritize renting to neighborhood residents who have experienced homelessness, utilizing Section 8 vouchers to ensure residents pay no more than 30% of their income on rent. In addition, eighty percent of units will be restricted to those earning 80% of the area median income (AMI) or less under the U.S. Department of Housing and Urban Development (HUD) definition of AMI. The remaining units will be restricted to those earning 110% or less under the California Department of Housing and Community Development's definition of AMI (which is about the equivalent of the HUD's 80% AMI). These affordability covenants will be in place for a term of 55 years.

The project will use prefabricated modular units built by Model/Z, a separate operating company founded by Gray Lusk and Martin Muoto from SoLa Impact and engineers formerly at SpaceX. Model/Z operates a modular construction factory that produces 2.5 standardized and proprietary modular units per day in the nearby Watts neighborhood of South Los Angeles. These units were designed by SoLa and Model/Z specifically for the US affordable housing market. This modular approach is expected to dramatically reduce the time to complete the project and result in 35% less material waste and embodied carbon emissions generated during construction. Model/Z employs over 150 factory workers recruited primarily from the Watts neighborhood, where employees make above the living wage in Los Angeles.

New HUD Secretary Scott Turner recently visited the Model/Z Modular facility in Watts last week and remarked: "The thoughtfulness that has gone into Model/Z from the people that you hired, the expertise, and then the precision by which these are produced. I'm just amazed. And the speed to market because you understand the issue that we have in housing affordability. Thank you for being part of the solution."

Noelle St.Clair Lentz, CEO and Managing Director of Allivate Impact Capital®, said, "SoLa Impact's 43rd and Vermont project will bring much needed affordable housing with wrap-around services for tenants, all while creating quality jobs through this innovative modular building approach. This project aligns with our mission of elevating communities and alleviating poverty."

"The need for affordable housing to address Los Angeles's homelessness and housing crisis is more critical than ever before, and the innovative modular construction of the 43rd and Vermont Project will help bring new quality housing online in less time than traditional building methods," said Sam Spencer, CEO and Managing Director of CEI-Boulos Capital Management. "The AIC CEI-Boulos Opportunity Fund is proud to be partnering with SoLa Impact, a truly community-focused development company that understands the needs of South Los Angeles, to support this innovative and impactful project."

SoLa CEO Martin Muoto added, "At SoLa Impact, we are committed to developing high-quality, affordable housing in underserved communities. By leveraging Model/Z modular units, we can do this faster, more cost-effectively, and much more sustainably. Our partnership with the AIC CEI-Boulos Opportunity Fund allows us to access mission-aligned equity to scale our innovative modular approach. This collaboration underscores the power of impact-driven investment in Opportunity Zones to create lasting change, ensuring that all Angelenos have access to dignified housing."

About Allivate Impact Capital®: Allivate Impact Capital is an impact investing firm with the goal of delivering attractive risk-adjusted returns from investments while creating measurable positive social impact. The company manages capital across asset classes in responsive ways to meet the needs of communities lacking access to funds needed to bring underutilized assets to their full potential. As a subsidiary of Woodforest Financial Group, Allivate Impact Capital leverages a global award-winning, and industry leading Community Development Team to achieve their goals. Learn more at https://allivate.com

About CEI-Boulos Capital Management: CEI-Boulos Capital Management is a real estate investment fund management company focused on delivering both competitive financial returns and social impact. The company serves banks, family offices, and other institutional investors and has a national scope. Areas of the company's specialization include Opportunity Zones and the Community Reinvestment Act (CRA). Learn more at www.ceiboulos.com

About SoLa Impact: SoLa Impact is a family of social impact real estate funds with a double-bottom line strategy focused on preserving, refreshing, and creating high-quality, affordable housing in low-income communities. The company's proven track record leverages data-driven social impact strategies to deliver superior financial returns. Learn more at https://solaimpact.com/

About Model/Z: Model/Z's mission is to address the crisis of affordable housing and homelessness in America. Designed and led by former SpaceX engineers and automotive executives, Model/Z uses AI and volumetric modular manufacturing to deliver affordable housing at significantly lower cost, reduced time, and minimal waste. Model/Z's flagship facility in the Watts community of Los Angeles has created hundreds of local living wage jobs as well as worker training and upskilling through the Model/Z Vocational School. Learn more at https://model-z.com/.

SOURCE SoLa Impact