SDS Capital Group Launches SDS Impact Debt - An Asset Backed Financing Business Line that will Provide Debt to Affordable Housing Developers Across the United States

SDS Impact Debt is expected to close on $1 billion in debt for affordable housing development through 2026

LOS ANGELES, March 19, 2025 /PRNewswire/ -- Los Angeles-based impact fund manager SDS Capital Group has launched SDS Impact Debt ('SDSID'). This new capital platform provides below-market permanent and construction financing for the preservation and development of affordable housing throughout the United States. SDSID is expected to finance more than $1 billion of new housing units over the next 18 months. SDSID, is currently focused on closing six financings for 1,427 units of multifamily housing, 54% affordable to families at 80% of area median income or less ("AMI").

Under Jason Riffe's direction, managing director of SDSID, this new product line will complement SDS's current $1.7 billion of assets under management through its five impact funds and its other third-party investment support services. To date, SDS has invested in more than 8,000 housing units across the United States - 72% of them affordable to families making less than 80% of AMI or are permanent supportive housing units for the unhoused.

"Jason is bringing his financial talent and passion for impact to SDS," said SDS Founder and CEO Deborah La Franchi. "This exciting new expansion will enable SDS to have an amplified impact on our country's lowest-income communities."

This innovative impact capital strategy will utilize a variety of private asset-based products to offer financing for a single or pool of assets with terms ranging from three to 40 years, priced at 150-250 bps below current retail debt offerings with an LTV up to 90%.

"We are launching a whole new one-stop program in which affordable housing developers can obtain both their debt and equity under one-roof in states in which SDS is active," explains Riffe. "This eliminates the traditional and time-consuming process of applying for grants and other public funding that can take years to obtain. By offering a single source of financing with equity options and competitively priced debt, SDS is supplying the two key components of the capital stack, helping to dramatically reduce time and cost to bring an affordable housing project to market."

About SDS Capital Group

SDS Capital Group is recognized as a trailblazer in impact investing, being awarded as one of the top 50 global impact fund managers seven straight years by ImpactAssets 50. SDS manages investments funds that provide capital to transformative affordable housing, permanent supportive housing, and job-creating projects in low-income communities while seeking to generate risk-adjusted market rates-of-return for its institutional investors. Launched in 2001, SDS's manages five impact funds with $1.7 million of current AUM. Four funds focus mostly on affordable housing or permanent supportive housing ("PSH"): the Develop Michigan Real Estate Fund, the American South Real Estate Fund I and II, and the SDS Supportive Housing Fund. The National New Markets Fund invests into manufacturing companies, helping them grow and remain in the US. Visit us on LinkedIn

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SOURCE SDS Capital Group