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:
Second Bottom Line:
Third Bottom Line:
Manager
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.
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.
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)
Our Team
Deborah La Franchi
Principal - Managing Partner
David Alexander
Principal - Managing Partner
Kip Hamilton
Managing Director
Kent Peters
Managing Director
Laura Baron
CFO (CPA)
Tyler Epps
Senior Vice President
Jimmy Backofen
Senior Advisor - Investments
Asteria Steinberger
Investment Committee Associate
Austin Ross
Vice President
Kate Querbes
Vice President Asset Management
News
- Press
- Investments
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
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
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.”
Elizabeth Property Group Investment In Six Low Income Texas Housing Properties
Elizabeth Property Group Investment in Six Low Income Texas Housing Properties
Wilmington NC Investment Life At Lakeside Villas
Multifamily Housing News 1.27.2023
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
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
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
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.