New York, NY (PRWEB) November 28, 2012
The Community Development Trust (CDT), the country’s only national community development financial institution (CDFI) and private real estate investment trust (REIT) with a focus on providing capital for the preservation of affordable housing, and Southport Financial Services, Inc. (Southport), a development and management company specializing in affordable housing preservation, today announced that they have partnered to purchase Steinbeck Commons in Salinas, CA. Steinbeck Commons is a 100-unit, age-restricted, 100% project-based Section 8 property, which also provides a variety of resident activities and assistance with social services. The property was purchased and rehabilitated with Low Income Housing Tax Credits and tax-exempt bonds by an affiliate of Southport in 1998. By replacing the tax credit limited partner, CDT has enabled Southport to recapitalize the property and maintain operating the property as high-quality affordable housing for seniors in Salinas.
The partnership will also allow CDT and Southport to make immediate capital improvements to the property, including exterior painting, and contribute $450 per unit of additional capital towards future replacements on an annual basis. Although CDT has purchased three other properties with Southport in Alabama, Oregon and Washington, the acquisition of Steinbeck Commons marks their first joint venture in purchasing a Section 8 property.
“Steinbeck Commons provides critical senior housing in close proximity to a variety of shops, restaurants, and services in Downtown Salinas,” said Brian Dowling, CDT’s Vice President of Community Investments. “Our investment in this property will ensure that low-income seniors have safe, high-quality affordable homes for many years to come. We are pleased that another CDT partnership with Southport will once again provide lasting benefits for a community with a growing need for affordable housing.”
The acquisition of Steinbeck Commons furthers CDT’s commitment to investing in affordable housing that makes a difference in people’s lives, and in their neighborhoods, for the long-term. Recently, in partnership with LINC Housing Corporation, CDT acquired Pleasant View Apartments, a 60-unit, 100 percent affordable development serving both seniors and low-income families in Fresno, CA. As a CDFI and private REIT with a social impact mission, CDT operates as a double bottom line organization by utilizing creative financial solutions to provide debt and equity capital to underserved real estate markets, all while seeking attractive returns for shareholders.
CDT is the country's only national CDFI and private real estate investment trust with a focus on providing capital for the preservation of affordable housing. Working with local and national partners, our organization makes long term equity investments in affordable housing and both originates and purchases long-term mortgages which supports the development and preservation of affordable housing. After more than twelve years of operations, CDT has provided over $850 million in debt and equity capital to properties in 42 states -- helping to preserve and create more than 32,000 units of affordable housing.
About Southport Financial Services, Inc.
Since 1997, Southport and its affiliates have established a successful track record of affordable housing development and preservation using Low Income Housing Tax Credits (LIHTC) and Tax Exempt Bonds. Southport’s portfolio has now grown to over 12,000 units including 31 Section 8 properties located in 11 states and the District of Columbia. Southport is especially proud of its record of extending affordability beyond the initial compliance periods for many of these communities.