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Fairstead Acquires Yale Village Apartments

Press Release | 07/08/24

Fairstead Acquires Yale Village Apartments, a 250-Unit Affordable Housing Property in Houston, Texas

Fairstead will assume the role of property manager, and planned renovations will begin in Summer 2024

HOUSTON (June 28, 2024) – Fairstead, a purpose-driven, vertically integrated real estate company committed to sustainable development and the preservation of high-quality affordable housing, today announced the acquisition of Yale Village Apartments, an affordable housing community in Houston, Texas.

Built in 1970, Yale Village Apartments consists of 250 units spread across 34 two-story buildings. The buildings sit in the Northwest neighborhood of Houston on Yale Street and encompass a unit mix ranging from one-bedroom to five-bedrooms. The units at Yale Village will remain affordable, with rents capped at 30% of a residents income, and are set aside as income restricted at 50-60% of the Area Median Income (AMI).

With the completion of the acquisition, Fairstead will now assume the role of property manager of the community. The acquisition will be followed by a comprehensive rehabilitation project totaling almost $20 million, which is expected to commence in Summer of 2024.

Yale Village is located roughly three miles south of Coppertree Village Apartments, which is owned and operated by Fairstead, and is already in the process of an extensive $25 million renovation.

The addition of the 250 units at Yale Village brings Fairstead’s total number of units under ownership to more than 25,000. Since 2021, Fairstead has grown to nearly 1,000 units in the state of Texas, demonstrating its deep focus in the market and its commitment to preserving affordable housing throughout the Lonestar state.

“Bringing Yale Village into the Fairstead portfolio will allow for the continued preservation of high-quality, affordable housing in the Houston area,” said Allan Izzo, Senior Director of Development at Fairstead. “We look forward to continuing to expand Fairstead’s presence in Texas and deepening our focus on community building in service of our residents.”

“Through our partnership with Fairstead, we are committed to ensuring stable housing and fostering upward mobility for all residents of Yale Village,” said Flynann Janisse, President and Chairman of Rainbow Housing Texas Inc. and the Executive Director of Rainbow Housing Assistance Corporation.  “Together, we aspire to strengthen the foundation of those we collectively serve.”

“Partnering with Fairstead in the rehabilitation of Yale Village is a testament to our mutual commitment to fostering community growth and sustainable development.” said Neala Martin, Senior Vice President at CREA. “We are grateful to be a part of the larger community outcome, as it also opens the door for job creation, economic growth and revitalization in the Houston area.”

“We are proud to partner once again with Fairstead as they continue to preserve and improve the quality of affordable housing,” said Suzanne Cope, Managing Director at Lument.

The rehabilitation project encompasses upgrades and improvements to unit interiors and common areas, including kitchen upgrades such as new energy efficient appliances and countertops, as well as new flooring, cabinetry, and lighting. The investment will also allow for new amenities, such as a new playground on site, to support Yale’s residents. Fairstead will also be maintaining on-site social services, to be provided by trusted non-profit, Rainbow, with a focus on after school programming for youth.

In addition to Rainbow, Houston Housing Finance Corporation is a partner in the acquisition, CREA provided equity, Lument provided debt financing, and Woodforest provided a bridge loan on the deal. Each of the partners are integral to the critical improvements that will be made at Yale Village Apartments.

Press Release|Fairstead Acquires Yale Village Apartments|07/08/24