Estrella at Kiest Affordable Housing Development by ZNE Capital and LeavenWealth closes on $3.0M Equity Investment from American South Fund Management
The acquisition and renovation of this 232-unit apartment community will help preserve the affordable housing stock in South Dallas
DALLAS, June 29, 2022 /PRNewswire/ -- Funding has closed on the acquisition/renovation of Estrella at Kiest, a 232-unit apartment community in Dallas, Texas. The $35.2M project will be owned and operated by ZNE Capital and LeavenWealth. This is the first multifamily investment in Dallas for American South Fund Management (ASFM), a partnership between SDS Capital Group and Vintage Realty Company. Post renovation, all 232 apartment units will be available at rental rates that are affordable to families at less than 80% of the Area Median Income (AMI) level, bringing critically-needed affordable housing to this community.
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.
"Estrella at Kiest continues ZNE Capital's mission of decarbonizing existing affordable housing communities," said Owen Barret, President of ZNE. "This project is living proof that you can decrease the carbon emissions from the built environment and preserve affordable housing."
The Dallas-Fort Worth Metropolitan Statistical Area (MSA) ranked second in the country for overall population growth within a metro area between July 2020 and July 2021.1 Accordingly, rents in Dallas have seen a steady increase of 18% over the past year.2
"ASFM is very pleased to finance this impactful project. Estrella at Kiest provides much needed affordable housing and directly aligns with our goal of making a difference for low-income residents and communities throughout the South," said Deborah La Franchi, ASFM Managing Partner.
"We are thrilled to continue to expand our Texas footprint to Dallas," said David Alexander, ASFM Managing Partner. "ZNE Capital is an excellent partner in the multifamily market and similarly prioritizes investing in projects that create significant impacts within socio-economically disadvantaged areas."
[1] https://www.axios.com/local/dallas/2022/03/31/dallas-fort-worth-2021-population-growth
CONTACT:
Sybil MacDonald
Marketing & Communications
[email protected]
Tel: 323.376.8961
SOURCE American South Real Estate Fund
Share this article