“The South Dallas project aligns perfectly with the company’s focus and partnership with American South Real Estate Fund because it will bring “lasting change,” to an area in need of economic development”

– Emmitt Smith
(Chairman – E Smith Communities)

“The workforce and affordable housing that has been constructed, coupled with the future community services to be provided, are directly aligned with ASREF’s mission to positively impact the communities in which we invest.”

– Deborah La Franchi
(ASREF Managing Partner)

AMERICAN SOUTH REAL ESTATE FUND

About ASREF

The American South Real Estate Fund (the “Fund” or “ASREF”) provides mezzanine debt, preferred equity, and equity financing for real estate projects located in emerging low- and moderate-income neighborhoods in ten southern states.

ASREF is an impact fund having a Triple Bottom Line (“TBL”) investment strategy:

First Bottom Line:

Target risk-adjusted market rates of return

Second Bottom Line:

Catalyze economic and community development that benefits, revitalizes, and stabilizes emerging low- and moderate-income communities

Third Bottom Line:

Invest in projects with a range of environmentally-sustainable attributes

Fund Capital


ASREF’s principal purpose is to provide funding in the types of general projects meeting the criteria listed below:

GEOGRAPHYAL, AR, FL, GA, LA, MS, NC, SC, TN and TX
PRODUCT TYPEDiversified across product type: Multi-family, mixed-use, industrial,
office, retail, hospitality, educational, medical and other.
TARGET PROJECT SIZE$8M - $100M (Total Project Cost)
TARGET INVESTMENT SIZE$2M to $15M, subject to certain investment restrictions
INVESTMENT STRUCTUREMezzanine debt, preferred equity or joint venture equity. ASREF is primarily a preferred equity/mezzanine fund but the available capital and financing can be structured to meet the needs of the sponsor. Returns are commensurate with the level of risk.
TARGET INVESTMENT PERIOD2-4 Years
COMMUNITY REINVESTMENT ACT (“CRA”)All investments are intended to achieve community and economic development impacts. The Fund seeks projects that could receive positive CRA consideration (in emerging low- to moderate-income census tracts or projects that benefit low- or moderate-income persons).
For inquiries about ASREF and the types of projects it supports, please contact ASREF’s lead originator: Tyler Epps (770) 575-9942

Manager


American South Fund Management, LLC (“ASFM“) is a joint venture between SDS Capital Group (“SDS”) and Vintage Realty Company (“Vintage”). ASREF couples SDS’ impact-fund investment platform with Vintage’s hands-on real estate development expertise, as follows:

SDS Capital Group (SDS)

SDS was founded in 2001 by Deborah La Franchi. SDS specializes in structuring and managing impact funds. These funds seek risk-adjusted market rates of return (the First Bottom Line), while also targeting positive economic and community development impacts (the Second Bottom Line) and environmental sustainability (the Third Bottom Line). SDS has over $1 billion of current and past impact assets under management, which includes its own portfolio of impact investments ($580 million) and those of third-party impact funds ($494 million) using SDS’ investment platform. For the fourth year in a row, SDS was named to Impact Assets 50, a select group of fund managers in the impact investing space.

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Vintage Realty Company (Vintage)

Vintage is a 150-person, full-service commercial real estate firm headquartered in Shreveport, Louisiana, with a regional presence in Louisiana, Arkansas, Texas and Mississippi. Vintage’s team manages the Fund’s originations, secures and structures all equity and debt, manages the construction process, and manages the assets. Vintage also has full-scale real estate brokerage and property management divisions. Vintage utilizes a comprehensive, integrated management approach that provides the opportunity to maximize value for its portfolio – as well as for its clients’ properties – throughout the asset lifecycle. Vintage has served as the developer for 3,811 multi-family units, with 2,914 units under its current management, and an additional 760 units currently under construction or in the development phase. Upon delivery of these new units, the Vintage portfolio will represent a market value of approximately $500 million. The integrity and vision of the founders has yielded the loyalty of employees, clients and investors. Vintage has been actively developing, managing and brokering real estate projects throughout the South since its inception in 1988.

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IMPACT METRICS


Minority Sponsors

%

Average Poverty Rate of Communities Invested In

%

Average Minority Population

%

Average African American Population

# Low-Income Affordable Housing Units (84% of Total Units)

SDS Capital Group is proud to have received the Impact Assets 50 designation for the fourth year in a row! This prestigious designation is given to the Top 50 impact managers in the U.S.

Our Team


Deborah La Franchi

Principal - Managing Partner

Ms. La Franchi has 22 years of investment experience and is the founder and CEO of SDS Capital Group — a national leader in impact investing with over $1 billion in assets under management. Each impact fund on SDS’s platform serves a different geography and employs a unique investment strategy, but they all generate positive impacts for low-income communities and people. Each fund either targets a risk-adjusted rate-of-return or provides capital at a below-market cost. Ms. La Franchi leads the structuring of each fund’s investment strategy, spearheads fundraising, oversees the senior managers of each fund and division, and participates on each fund’s investment committee. For four consecutive years, SDS has earned a spot on the ImpactAssets 50 (IA 50) list, which recognizes the leading impact fund managers in the world. Outside of her work with SDS, Ms. La Franchi is the founder and board chair of Sustainable Communities Fund, which provides capital for small and micro loans to low-income and diverse entrepreneurs. She co-authored the DBL (Double Bottom Line) Handbook sponsored by the Ford Foundation and speaks regularly at investment and impact conferences. Before founding SDS, she served as Los Angeles Mayor Richard Riordan’s Assistant Deputy Mayor for Economic Development; she then went on to serve as the first CEO of Genesis LA, which launched the Genesis Family of Funds. She is a former director for Big Brothers and Big Sisters of Greater L.A. and Secretary and Director of the National New Market Tax Credit Coalition. Ms. La Franchi earned a BA in Political Science and History from UCLA, an MBA from UCLA, and an MPP from Georgetown University. She also holds a Series 65 license.

David Alexander

Principal - Managing Partner

Mr. Alexander oversees operations and provides strategic direction for the Fund, particularly on the investment side.  Mr. Alexander sits on the Investment Committee. Mr. Alexander is co-founder/Managing Partner of Vintage Realty Company; he co-founded the firm in 1988. He has nearly 40 years of experience in commercial real estate and has directly structured equity and debt for more than $100M and $400M, respectively, for Vintage’s portfolio that has a current market value of approximately $600M. He has directed the growth of Vintage from a six -person management firm to more than 180 employees today, with expansive property management, investment and development divisions. He has led the development of numerous multifamily projects totaling 3,800 units throughout Louisiana and Arkansas, with another 1,050 units either under construction or in the development phase. Mr. Alexander is also co-developer of Provenance, a 377-acre Traditional Neighborhood Development (TND), as well as an 88-acre infill development with the Northwest Louisiana Community Development Fund I, which is Northwest Louisiana’s only Double Bottom Line Fund (“DBL”). Mr. Alexander is a member of the Shreveport and Bossier Chambers of Commerce, past Director of the Downtown Shreveport Development Corporation, and past Chairman of Shreveport’s Downtown Development Authority. Mr. Alexander graduated from Louisiana State University with a BS in Business Administration.

Kip Hamilton

Managing Director

Mr. Hamilton oversees the day-to-day operations of the Fund and leads the investment and asset management teams.  Mr. Hamilton sits on the Investment Committee. With over 23 years of experience in commercial real estate investment and development, Mr. Hamilton is responsible for the structuring, launch and management of SDS’ real estate funds. Prior to joining ASREF Mr. Hamilton was an industrial developer with Seventh Street Development, where he was responsible for acquisitions, financing, entitlements, leasing and asset management. Prior to Seventh Street, Mr. Hamilton served as Vice President with Shamrock Capital Advisors, where he helped manage the $85 million Genesis L.A. Real Estate Fund and the $104 million Genesis Real Estate Fund II.  The Genesis L.A. Real Estate Fund was one of the first DBL private equity funds in the United States. The Genesis Funds provided equity and mezzanine debt for developers working in low- and moderate-income neighborhoods in Southern California. Mr. Hamilton is a graduate of Columbia University where he majored in Economics and Japanese.

Kent Peters

Managing Director

Mr. Peters serves as the day-to-day in-house point person at Vintage for ASREF and is responsible for piloting originations, due diligence, underwriting, structuring, transaction negotiations and closings for Fund investments. Mr. Peters brings over 23 years of real estate investment banking, capital markets, and structured finance experience to the role. Prior to joining ASREF, Mr. Peters was a principal at a boutique real estate firm and a Senior Vice President at CBRE with responsibilities for the evaluation, due diligence, underwriting, structuring, negotiation and closing of debt and equity placements on complex institutional assets across all product types including office, retail, mixed-use, multi-family, hotel, industrial, and corporate sale-leaseback. Mr. Peters has been involved in over $8 Billion in acquisition, disposition, and debt/equity capital market transactions on behalf of real estate investment trusts (“REITs”), institutions, equity funds, private capital, and developers primarily in the Southeast and Southwestern United States.  Mr. Peters earned undergraduate and graduate degrees from Texas A&M University with a Masters degree in Real Estate Finance with a specialization in Land Economics and Real Estate.

Laura Baron

CFO (CPA)

Ms. Baron oversees the Fund’s financial management and sits on the Investment Committee. Ms. Baron is engaged in all aspects of the SDS financial management process, including software applications, project analysis, capital deployment, and ensuring strict guidelines are followed for regulatory alignment and investor transparency. She developed the proprietary operational infrastructure that effectively manages SDS sponsored funds and SDS NMTC Advantage Services, which manages $396M for third-party fund clients. She currently manages assets in excess of $600M across the nation, actively monitoring the construction progress, financial performance and overall business health for each project under management. Prior to joining SDS, Ms. Baron spent 12 years in upper management roles and was involved in several funds with sizeable investment pipelines.  As Director of Operations at Wilshire Associates, Ms. Baron built and managed the trading and compliance infrastructure for a $500M leveraged hedge fund. Ms. Baron earned a BA in economics from UCLA in addition to a MBA from the University of Southern California.

Tyler Epps

Senior Vice President

Mr. Epps, who works out of the Fund’s Atlanta office, leads ASREF’s originations and also assists in underwriting and asset management. Mr. Epps is responsible for the origination of middle market mezzanine debt and preferred equity investments on commercial real estate across all product types. Prior to joining ASREF, Mr. Epps spent three years at Rialto Capital and two years at Trimont Real Estate Advisors, overseeing more than $1B of commercial real estate across the United States in various investment funds. His responsibilities included the underwriting and asset management of all product types including hotels, retail, multi-family, industrial, and office properties. During his time at Rialto Capital, Mr. Epps also underwrote more than $3.5B of commercial real estate across all product types, from senior loans to direct equity investments. Mr. Epps earned an undergraduate degree from Georgia State University and a Masters of Business Administration from Georgia Tech.

Jimmy Backofen

Senior Advisor - Investments

Mr. Backofen participates in the investment and asset management activities of the Fund and sits on the Investment Committee. Mr. Backofen, who has been with Vintage since 1994, has been instrumental in the company’s growth from less than 20 to the more than 150 employees. He is responsible for all finance and accounting activities, overseeing cash management, cost accounting, financial reporting and employee payroll/benefits. Mr. Backofen is the Director of Asset/Property Management for the $328M Vintage-owned multi-family, office and retail portfolio, as well as Vintage’s third-party client assets. He assisted on two acquisitions and one development for the Northwest Louisiana Community Development Fund I, a DBL fund, and currently oversees the asset/property management services. He is heavily involved with all Vintage acquisitions and developments, assisting in operating agreement ownership structure designs/modifications, proforma underwriting and construction/permanent financing. He has provided financial and operational oversight on 11 ground-up developments consisting of 2,539 multi-family units, with a total construction value in excess of $250M. Mr. Backofen has a BS in Finance from Louisiana Tech University as well as a BS in Accounting from Louisiana State University Shreveport.

Asteria Steinberger

Investment Committee Associate

Ms. Steinberger sits on the ASREF II Investment Committee. Ms. Steinberger’s experience in real estate centers on underwriting, asset management, and continued compliance with legal and regulatory requirements. She manages all asset management for SDS’s National New Markets Fund. She is tapped for the ASREF II Investment Committee given her deep real estate and investment experience. Prior to joining SDS in 2015, Ms. Steinberger was a Senior Investment Associate and Portfolio Manager at Breakwater Investment Management, LLC, a private investment firm that provides growth capital to small businesses. She previously worked as an Investment Banking Summer Associate at Credit Suisse. Ms. Steinberger started her career at KPMG LLP’s Economic & Valuation Services and Deloitte Tax LLP’s Property Tax Services. Ms. Steinberger graduated magna cum laude from Whittier College and earned an MBA from The Wharton School at the University of Pennsylvania. She is a recipient of the Joseph Wharton Fellowship for students with an outstanding record of academic, personal and professional achievements.

Austin Ross

Vice President

Mr. Ross is responsible for underwriting, origination and asset management support on behalf of ASREF. Prior to joining Vintage Realty Company, Mr. Ross was a Capital Markets analyst at Jones Lang LaSalle (previously Holliday Fenoglio Fowler) in Dallas, TX. While there he was responsible for the underwriting, investment sales pitch/marketing material prep and due diligence/closing process coordination of institutional commercial property transactions throughout the country. Mr. Ross has underwritten over $3.4 billion and assisted in the closing of more than $630 million of commercial real estate assets across multiple property types. Prior to JLL, he played professional baseball for the Milwaukee Brewers, Cincinnati Reds and Arizona Diamondbacks. Austin graduated from Louisiana State University with a Bachelor of Science in Petroleum Engineering. While there Austin was a member of the 2009 National Champion LSU baseball team.  

Kate Querbes

Vice President Asset Management

Kate Querbes is Vice President of Asset Management for the American South Real Estate Fund (“ASREF”); she has been with the firm since 2024. With over 9 years of real estate development and asset management experience, Ms. Querbes is responsible for overseeing and maximizing the value of the fund’s assets through executing asset management strategies encompassing property leasing, capital expenditures, and third-party manager relationships. Prior to joining ASREF, Kate was Director of Development at Forum Real Estate Group in Denver, Colorado where she oversaw $300 million in multifamily ground-up development projects in the Nevada and Texas markets. Ms. Querbes has been involved in the development, re-development, and asset management of over $2B of multifamily real estate across the country. Kate holds a Bachelor of Science in Marketing from the University of Mississippi, an MBA, and an MS in Real Estate & Construction Management from the University of Denver – Daniels College of Business.

News


Urban Land Article Access To Capital: Solutions For Black Developers To Overcome Funding Challenges

January 2024 By Carisa Chappell

View online at Urbanland.uli.org

Download PDF

La Franchi’s firm has money available to smaller developers. For example, SDS Capital provided New Orleans–based developer VPG with $2.7 million of preferred equity for a project whose cost was just under $20 million. “That was [small, even] for us, frankly,” she says. “But it was a really talented team [whose founders] all came out of Tuskegee University with engineering degrees and wanted to have their own company. We hope to keep funding them year after year to help them grow.”

Urban Land Article Access to Capital: Solutions for Black Developers to Overcome Funding Challenges

January 2024 By Carisa Chappell

View online at Urbanland.uli.org

Download PDF

La Franchi’s firm has money available to smaller developers. For example, SDS Capital provided New Orleans–based developer VPG with $2.7 million of preferred equity for a project whose cost was just under $20 million. “That was [small, even] for us, frankly,” she says. “But it was a really talented team [whose founders] all came out of Tuskegee University with engineering degrees and wanted to have their own company. We hope to keep funding them year after year to help them grow.”

Wilmington NC Investment Life At Lakeside Villas

Multifamily Housing News 1.27.2023

Real Estate Weekly 1.14.2023

ASREF partners with Olive Tree on purchase of 429-unit affordable housing townhome community. Located in Wilmington, North Carolina, “The Life at Lakeside Villas,” is the latest joint venture between ASREF and Olive Tree Holdings. This $29M purchase marks their fifth project partnership of impact investments in affordable housing in the South.

Wilmington NC Investment Life at Lakeside Villas

Multifamily Housing News 1.27.2023

Real Estate Weekly 1.14.2023

ASREF partners with Olive Tree on purchase of 429-unit affordable housing townhome community. Located in Wilmington, North Carolina, “The Life at Lakeside Villas,” is the latest joint venture between ASREF and Olive Tree Holdings. This $29M purchase marks their fifth project partnership of impact investments in affordable housing in the South.

12hundred Studios Ribbon Cutting In Atlanta Hunter Hills

Press Release 10.17.2022

Photo Gallery

Tenth Street Ventures And Partners Celebrate Ribbon Cutting With Atlanta Mayor Andre On 12hundred Studios On Mobile St In Atlanta’s Hunter Hills The 40-unit apartment complex has been revamped with attainable rents at 60% AMI; American South Fund Management impact fund supports affordable housing developments for low-income residents throughout the South.

 

12hundred Studios Ribbon Cutting In Atlanta Hunter Hills

Press Release 10.17.2022

Photo Gallery

Tenth Street Ventures And Partners Celebrate Ribbon Cutting With Atlanta Mayor Andre On 12hundred Studios On Mobile St In Atlanta’s Hunter Hills The 40-unit apartment complex has been revamped with attainable rents at 60% AMI; American South Fund Management impact fund supports affordable housing developments for low-income residents throughout the South.

 

SIX-PROPERTY LOW INCOME PORTFOLIO (LIHTC) – TEXAS

SIX-PROPERTY LOW INCOME PORTFOLIO (LIHTC) – TEXAS

Elizabeth Property Group Closes on Investment in Six-Property Portfolio of Texas Low Income Housing Tax Credit (LIHTC) Projects; Financing Provided by Funds Affiliated with American South Fund Management, LLC. Investment finances the acquisition/renovation of 1,444 affordable units throughout Texas.

PRESERVE AT FLAGLER BEACH – FLORIDA

PRESERVE AT FLAGLER BEACH – FLORIDA

With total development costs projected at $57 million, The Preserve at Flagler Beach is the first investment in Florida for ASFM impact funds. All 240 one, two and three-bedroom apartment units will be rented at rates affordable at 115% Area Median Income (AMI) or less, bringing critically-needed workforce housing to this community.

LIFE AT LAKESIDE VILLAS – WILMINGTON, NC

LIFE AT LAKESIDE VILLAS – WILMINGTON, NC

Olive Tree Affordable Housing, the affordable housing subsidiary of Olive Tree Holdings, a private real estate-focused private investment firm, today announced the acquisition of The Life at Lakeside Villas, a 429-unit affordable multi-family development at the 1519 Lake turnoff in Wilmington, North Carolina. With equity provided by the American South Fund Management Team, Olive Tree has announced a capital improvement program to begin in the second quarter of 2023 to improve the quality of life for residents.

ESTRELLA AT KIEST – DALLAS, TX


ESTRELLA AT KIEST – DALLAS, TX

Estrella at Kiest Affordable Housing Development by ZNE Capital and LeavenWealth closes on $3.0M Equity Investment from American South Fund Management

 The acquisition and renovation of this 232-unit apartment community will help preserve the affordable housing stock in South Dallas   

Dallas, TX – June XX, 2022 – Funding has closed on the acquisition/renovation of Estrella at Kiest, a 232-unit apartment community in Dallas, Texas. The $35.2M project will be owned and operated by ZNE Capital and LeavenWealth. This is the first multifamily investment in Dallas for American South Fund Management (ASFM), a partnership between SDS Capital Group and Vintage Realty Company. Post renovation, all 232 apartment units will be available at rental rates that are affordable to families at less than 80% of the Area Median Income (AMI) level, bringing critically-needed affordable housing to this community.

ZNE Capital and LeavenWealth are already underway on building renovations including repairs to 25 units damaged by the 2021 Cold Wave in Texas and an additional 24 units damaged in a 2021 fire. ZNE’s renovation and business model focuses on green-focused upgrades with the installation of roof-mounted solar panels, low flow water fixtures, and electrical upgrades to increase energy efficiency and promote savings at the project as well as costs to tenants. Transitioning the development to a green, sustainable projects is central to ZNE’s business philosophy.

“Estrella at Kiest continues ZNE Capital’s mission of decarbonizing existing affordable housing communities,” said Owen Barret, President of ZNE. “This project is living proof that you can decrease the carbon emissions from the built environment and preserve affordable housing.”

The Dallas-Fort Worth Metropolitan Statistical Area (MSA) ranked second in the country for overall population growth within a metro area between July 2020 and July 2021.[1] Accordingly, rents in Dallas have seen a steady increase of 18% over the past year.[2] The Estrella at Kiest renovation is comprised of 16 two-story buildings located on a 10.5-acre site. The property offers quality multifamily housing including one, two and three-bedroom unit options.

“ASFM is very pleased to finance this impactful project. Estrella at Kiest provides much needed affordable housing and directly aligns with our goal of making a difference for low-income residents and communities throughout the South,” said Deborah La Franchi, ASFM Managing Partner. “In a tight housing market like Dallas, it is crucial to preserve and renovate more affordable housing.”

“We are thrilled to continue to expand our Texas footprint to Dallas,” said David Alexander, ASFM Managing Partner. “ZNE Capital is an excellent partner in the multifamily market and similarly prioritizes investing in projects that create significant impacts within socio-economically disadvantaged areas.”

Impact funds managed by ASFM target their impact investments into distressed communities of color within a 10-state footprint across the South. Since 2018, impact funds managed by ASFM have made 18 investments in Texas, Georgia, Alabama, North Carolina, South Carolina, Louisiana and Arkansas totaling $80.0 million and over $446 million of project costs to date.

Press Release

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Elizabeth Property Group Investment in Six Low Income Housing Properties in Texas

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