Fairstead Named 2025 Freddie Mac Multifamily Impact Sponsor
In partnership with the Chesapeake Redevelopment and Housing Authority, leading national affordable housing developer deepens Virginia roots through the acquisition and renovation of 65-unit community
Selected as a premier partner to oversee comprehensive renovations, Fairstead’s plans include significant in-unit improvements, as well as the ground-up construction of a 2,500-square-foot community center, leasing office and playground
CHESAPEAKE, Va. (April 24, 2025) — National vertically integrated real estate company Fairstead today announced the closing of a near $10 million investment – $150,000 per unit – in Peaceful Village Apartments in Chesapeake, Va., in partnership with Chesapeake Redevelopment and Housing Authority (CRHA). Through the federal Rental Assistance Demonstration (RAD) program, the comprehensive renovation of the 65-unit affordable, public housing community will deliver critical housing improvements and upgraded amenities to local families in Campostella Square.
The revitalization of Peaceful Village is the first in a wave of Fairstead-led deals set to close over the next year across Virginia, reinforcing the firm’s commitment to the area. By the end of 2025, the company estimates its regional footprint will exceed 1,300 residences. Fairstead’s national footprint exceeds 25,000 units across 28 states.
The transaction marks CRHA’s first conversion under the U.S. Department of Housing and Urban Development’s (HUD) RAD/Section 18 program and Fairstead’s first RAD transaction outside New York City, with a strong pipeline of public housing conversions set to close over the next year.
“As a national, purpose-driven company, Fairstead is proud to bring our expertise and long-term commitment to communities across the country, especially here in Virginia,” said Estelle Chan, Senior Director, Development at Fairstead. “We are immensely grateful for the opportunity to embark on public-private partnerships that meaningfully improve the lives of the residents we serve and are proud to partner with CRHA and its Executive Director, Mr. John Kownack, a long-time champion and advocate of equitable housing access, on this crucial revitalization project.”
Located at 3000 Welcome Road, Peaceful Village comprises 25 two-story buildings with a mix of three- and four-bedroom townhomes. Tenants will continue to pay rents based on their income, which will provide quality housing for families with incomes ranging from extremely low (below $31,950 for a family of four) to 60% of the Area Median Income (AMI) or $63,900 for a family of four.
Originally built in 1995, the planned upgrades include an overhaul of all 65 residential units, including common areas and building exteriors. All homes will benefit from energy-efficient upgrades, such as Energy Star stainless steel appliances designed to elevate both form and function, LED lighting, and water-conserving fixtures that have been WaterSense-certified. These energy efficiency upgrades directly benefit residents by lowering their monthly utility bills.
Exterior improvements will include the installation of new siding, while the interiors will be updated with new flooring, contemporary light fixtures, USB charging ports in every room, and fully renovated kitchens. Enhancements within kitchen spaces will include new cabinetry and quartz countertops. Similarly, bathrooms will be refreshed with new vanities, bathtubs, toilets and bath accessories to deliver a clean, modern aesthetic.
The rehab efforts also feature the ground-up construction of a new 2,500-square-foot community center. Located at the entrance of the community, this building will serve as an important connection hub and will include a resident community room, computer lab, ADA-accessible laundry room and property leasing office. Outdoor improvements include improved landscaping and the addition of a brand-new playground, promoting family-friendly recreation and neighborhood engagement.
“We are proud to partner with Fairstead on the revitalization of this community, which builds on CRHA’s longstanding commitment to preserving and improving quality housing for all in the City of Chesapeake,” said John Kownack, Executive Director of the Chesapeake Redevelopment and Housing Authority. “As CRHA’s first RAD/Section 18 conversion, this project marks a significant milestone in our efforts to modernize and strengthen our housing portfolio. This revitalization is part of our broader strategy to invest in the future of our neighborhoods by upgrading aging housing stock, expanding access to critical services and ensuring that our residents feel safe and can thrive. Partnerships like this are vital to meeting the increasing demand for stable, sustainable housing.”
Financial partners for Peaceful Village include Berkadia and Freddie Mac, which provided debt financing, and equity partner U.S. Bancorp Impact Finance, the community development financing subsidiary of U.S. Bank. Woodforest Bank provided bridge financing for the project. CRHA will continue to serve as the property manager for the community.
“We’re grateful for the continued partnership with Fairstead, Freddie Mac, and the many partners who played a vital part in making this possible,” said Matthew Napoleon, Senior Managing Director, Berkadia. “This deal exemplifies Fairstead’s creative and thoughtful approach to affordable housing.”
“We believe everyone deserves a place to call home and are proud to help finance Fairstead’s renovation of Peaceful Village,” said Lisa Gutierrez, Impact Finance’s Affordable Housing business development director. “Our financing not only helps increase the availability of affordable housing but helps build a foundation of financial stability for individuals and families nationwide.”
Fairstead’s prior activity in the region includes the recent completion and $18 million renovation of Atlantis Apartments, a 208-unit complex in Virginia Beach. To commemorate the milestone, Fairstead partnered with Virginia Beach native and renowned singer-songwriter Pharrell Williams to host a resident event and LEGO giveaway to honor and give back to the community.
Renovations at Peaceful Village Apartments are soon to be underway, with completion targeted for the fall of 2026.
