Joint Venture Preserves 10,000 Affordable Apartment Homes

The acquisition includes 90 communities across eight states.

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More than 10,000 affordable apartments are being preserved thanks to a $1.2 billion acquisition. The Community Development Trust (CDT) along with The Michaels Organization and Goldman Sachs Urban Investment Group acquired 90 affordable housing communities. CDT now has more than 22,000 units under management.

“The preservation of high-quality, affordable housing has never been more important than it is today, and the acquisition of this portfolio allows us to do just that – and to do it at scale, with a real focus on promoting positive outcomes for the residents in these communities,” said Dan Alger, a Managing Director and Co-Head of the Urban Investment Group within Goldman Sachs Asset Management, in a release.

The portfolio, a joint venture known as the Essential Housing Impact Partnership (EHIP), has apartment homes in eight states—Florida, Illinois, Indiana, Kentucky, New York, South Carolina, Texas, and Wisconsin—that were built or rehabbed with a Low-Income Housing Tax Credit (LIHTC). The Michaels Organization will also lead the property management efforts for the portfolio.

“By partnering with like-minded organizations in Michaels and UIG, we were able to assemble the critical resources needed to complete this major preservation transaction,” said Joseph F. Reilly, President and Chief Executive Officer of CDT, in the release. “Through this partnership, these properties will remain viable affordable communities – providing over 30,000 residents with quality affordable housing – for the long term.”