Tenth Street Ventures and Partners’ New Project Creates 40 Fully Furnished, Attainable Rent Apartments in Atlanta’s Hunter Hills
The American South Real Estate Fund is a lead investor in renovating the 20-unit garden style apartments into 40 studio apartments with attainable rents at 60% AMI
ATLANTA (April 2021) – Tenth Street Ventures along with partners Miles Alexander III at Alexander Goshen and Richard Taylor with ARRC Capital Partners have purchased 1200 Mobile St., a 20-unit, garden-style apartment complex in the Hunter Hills neighborhood just West of downtown Atlanta. Atlanta Affordable Housing Fund (AAHF) provided the senior loan for the project, while The American South Real Estate Fund (ASREF) provided equity.
The team plans to convert the property into 40 studio apartments, which will be fully furnished, all of which will be offered for attainable rents at 60 percent of Area Median Income (AMI). The team closed on the project April 19, 2021, and are using no subsidies to create this attainable housing.
“We will be making people proud of where they live, incorporating a substantial amount of art and design into the apartment homes,” said Brian McCarthy, a principal at TSV. “Drastically reducing the costs of moving in and moving out through fully furnishing the homes, which is one of the hardest and most costly parts of moving. We are working to make comfortable high-quality living more attainable for our future tenants with our Affordable Lifestyle Living or A.L.L. Where lifestyle living isn’t just for those that can afford luxury living.”
Miles Alexander III, principal at Alexander Goshen, added, “We want to bring a creative edge to affordable living in the city of Atlanta. Through the use of art and design, we’re creating a new standard of affordable living.”
ASREF Managing Partner Deborah La Franchi underscored, “We’re incredibly excited about this new partnership with Tenth Street Ventures. We hope it’s the first of many future efforts together. As an impact fund, we seek transformative outcomes for communities and people at the lower end of the income scale. The 40, high-quality housing units being financed are a great, innovative new model for creating housing at a cost that is attainable. This vacant, underutilized real estate asset is transitioning into a community asset that will serve and benefit the neighborhood while at the same time helping tackle the shortage of lower-cost housing in Atlanta.”
ASREF, a joint venture between Strategic Development Solutions and Vintage Realty Company, is an impact fund that seeks to finance projects that positively impact low-income and moderate-income communities in need of economic and community development. ASREF is focused on 10 states across the Southern U.S. and provides equity, preferred equity and mezzanine debt for third-party real estate developers.
Built in 1960, 1200 Mobile St. consists of two apartment buildings totaling 11,848 square feet in Hunter Hills, a neighborhood that came to life in the 1940s and 1950s as one of the few planned Black communities of its time, attracting both blue- and white-collar home owners to its traditional cottages and ranch style houses.
Future residents of 1200 Mobile will live on the planned Westside expansion of the Atlanta BeltLine, and will be close to MARTA’s West Lake station, nearby interstates, the Quarry Yards development and several planned parks.
Patty Brubaker from Keller Williams’ The Property Guys of Atlanta team was the realtor and Yakhin Israel from Twin Pillar Capital arranged the financing.
Ashani O’Mard, executive director of AAHF, also a social impact fund, said, “We’re excited about how this team is bringing innovative solutions to Atlanta’s housing crisis.”
AAHF’s mission is to raise and deploy $25 million in low-cost capital while generating a modest return to its investors. The fund offers a mix of debt and preferred equity to qualified developers and sponsors who are creating or preserving affordable housing that might not otherwise be developed. The fund has raised $13.1 million from foundations, organizations and individuals to date, of which about $6.5 million has been committed to nonprofit and mission-driven developers.
Added Richard Taylor, managing partner of ARRC Capital Partners: “We’re absolutely thrilled to be a part of this project and to team with American South Real Estate Fund and Atlanta Affordable Housing Fund. Their values and dedication to building communities that are inclusive and affordable align completely with our own, and we look forward to the impact we can create on the Hunter Hills neighborhood.”
ARRC is a real estate investment firm focused on small- to mid-sized apartments in metro Atlanta, run by a native Atlantan uniquely positioned to understand and address the needs of burgeoning communities, employing a boots-on-the-ground approach to investing.
###
About Tenth St. Ventures
Tenth Street Ventures (TSV) is a full-service real estate group specializing in acquiring and enhancing intown real estate assets in highly desirable locations. Each investment is tailored to capture the unique energy of the surrounding neighborhood. TSV employs a two-pronged approach: First, to capitalize on up-and-coming submarkets in the path of development, and second, to breathe new life into established neighborhoods with imaginative, ahead-of-the-curve projects. The TSV team is a curated partnership of professionals, spanning a variety of industries, who share a common vision. The team’s background includes accounting, financial structuring, asset and property management, acquisitions and dispositions, deal structuring, development planning, construction management, brokerage, investor relations, architecture, design and marketing. The combined expertise and the team’s past success is the foundation on which future, successful ventures are built. For more information, visit https://tenthsv.com/
Media Contact: Rachel Tobin, TobinInk., [email protected], (404) 276-5930
