July 17, 2023
The EPG/ASFM properties acquisition is important news as Dallas and Houston face a critical shortage of affordable housing.
Willow Green at 8301 Willow Place Drive N in Houston was one of six apartment complexes included in the low-income housing portfolio acquired by Elizabeth Property Group. (CoStar)
By Parimal M. Rohit. CoStar News. Published July 17, 2023 | 2:14 P.M.
A developer of low-income housing across the United States has acquired a portfolio of 1,444 affordable housing units in several Texas cities.
Dallas-based Elizabeth Property Group closed a deal for six apartment properties in Houston, Dallas-Fort Worth, Beaumont, Bryan-College Station, Wichita Falls and Huntsville. The 1,444 units can accommodate as many as 3,000 tenants.
All the properties utilize the Low Income Housing Tax Credit program, which gives developers a tax break in exchange for building affordable rental units.
Financial terms of the deal were not disclosed. The seller or sellers were also not revealed.
Elizabeth Property Group acquired the properties with funds used from its partnership with American South Fund Management LLC.
The properties are expected to be renovated, including Willow Green in Houston (336 units); Woodglen Park I & II southwest of Dallas (232 units); Pine Club in Beaumont (232 units); Ridgewood West in Huntsville (232 units); Saddlewood Club in Bryan (232 units); and Tealwood Place in Wichita Falls (180 units).
“Preserving 1,444 affordable units for low-income Texans is the type of project that meets the core of our mission,” American South Fund Management Managing Parnter Deborah La Franchi said in a statement. “Our funds’ investment with EPG ensures that all of these units will be LIHTC for the next 20 years.”
All units in the six-property portfolio will be made available to renters who earn less than 60% of the area median income through 2043.
An Elizabeth Property Group spokesperson said 94% of the 1,444 units the company acquired are occupied and none of the tenants will be displaced during renovations.
Deferred maintenance, painting, new flooring and landscaping upgrades are among the planned renovations Elizabeth Property Group plans to make. The company did not reveal a budget or timeline for the renovations.
Elizabeth Property Group will also offer after-school community programs at each of the properties.
American South Fund Management provides capital for low-income housing projects or developments across the Southern United States. The company, according to Elizabeth Property Group, has invested $96 million into low-income housing projects across 22 projects in Alabama, Arkansas, Florida, Georgia, Louisiana, North Carolina, South Carolina and Texas.
