ASCP American South Capital Partners

AFIRE Summit Journal: Affordable Housing as an Investment Vehicle

ASREF — Wed, 04 Mar 2026 01:52:00 +0000

ASCP Co-Managing Partner Deborah La Franchi authors an article in the AFIRE Summit Issue 20 on how institutional investors should see affordable housing as an investment vehicle

Click to View Article

The post AFIRE Summit Journal: Affordable Housing as an Investment Vehicle appeared first on ASCP American South Capital Partners.

The Atlantic Companies Secures $24 Million Investment from American South Capital for Chattanooga Riverfront Multifamily Development

ASREF — Thu, 11 Dec 2025 15:00:09 +0000

FOR IMMEDIATE RELEASE
The Atlantic Companies Secures $24 Million Investment from American South Capital for Chattanooga Riverfront Multifamily Development
New 278-Unit Project to Deliver Workforce Housing in High-Demand Urban Core

Chattanooga, Tenn (Dec. 11, 2025) — The Atlantic Companies has received a $24 million equity investment from American South Capital Partners (“ASCP”), for the development of 702 Manufacturers Road, a 278-unit multifamily community located on the Tennessee River in the Northshore area of downtown Chattanooga, Tenn.

Slated for final completion in the 4th quarter of 2027, 702 Manufacturers Road will offer studio, one-, and two-bedroom apartment homes. It will be the only multifamily community directly on the Tennessee River within Chattanooga’s Northshore neighborhood, providing residents with direct access to a newly built multi-use path, downtown employers and a wide range of retail and recreational amenities. The property will also feature a river launch pad for paddleboards and kayaks, enhancing access to outdoor activities.

This partnership between The Atlantic Companies and ASCP reflects their commitment to supporting high-quality, purpose-driven workforce housing within rent-burdened communities across the Southern United States. Ameris Bank provided the construction financing.

The development is one of the first to benefit from Chattanooga’s new tax abatement program, which incentivizes the inclusion of affordable units in upscale projects. In exchange for tax savings, the Sponsor has committed to designating 42 units as affordable — serving Chattanooga’s “missing middle,” including teachers, nurses, and first responders.

“Unlike traditional tax abatement programs, Chattanooga’s PILOT initiative is pioneering in its focus on integrating affordable housing into market rate developments,” said The Atlantic Companies Development Principal Frank Reese. “With this program, the city is focused on placing affordable housing not 30 minutes outside of town, but right in the heart of the city—close to jobs and amenities.”

According to recent data, nearly 70% of Chattanooga renters are either rent-burdened or severely rent-burdened, underscoring the urgent need for more affordable housing options according to Chattanooga mayor Tim Kelly.

“To address our city’s growth and affordable housing needs, Chattanooga made cutting-edge housing policy reforms,” Mayor Kelly said. “American South Capital Partners is an investor we’re proud to have in our market. We look forward to this mixed-income housing project breaking ground and more to come across the Scenic City.”

ASCP’s commitment includes $12 million from its recently launched American South Real Estate Fund III that closed its first round at $60 million. Through its family of funds, ASCP, a joint venture of SDS Capital Group and Vintage Realty Company, provides preferred equity and equity to real estate sponsors for the development and preservation of affordable and workforce housing across 10 Southern states (Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas). To date The American South Real Estate Funds I, II and III has committed approximately $217.4 million to 29 projects, supporting the development of 7,836 housing units—81% of which are affordable for families earning less than 80% of the area median income.

“The greater Chattanooga area has experienced phenomenal growth over the last 30 years,” said Tyler Epps, ASCP Executive Vice President, Originations. “This vibrant community is the first project built on the riverfront and it is the type of project that both ASCP and The Atlantic Companies aspire to do more of moving forward. It represents the type of changes that the City of Chattanooga has been striving to have created as a way to continue to uplift the community.”

About American South Capital Partners American South Capital Partners manages a family of real estate impact funds focused on investing in transformative projects in 10 states across the Southern U.S. American South Capital Partners, is a joint venture between Los Angeles-based impact fund manager SDS Capital Group (www.sds.capital) and Vintage Realty Company, a Shreveport, Louisiana-based property developer/manager (www.vintagerealty.com).

About The Atlantic Companies The Atlantic Companies (“TAC”) is a privately held, full-service real estate operating company providing development, acquisition, leasing, property and asset management services owned by TAC’s principals and their investment partners. Headquartered in Atlanta and operating across the Southeast, TAC’s properties include residential, industrial, office, lab and supporting retail and parking. TAC’s ability to execute challenging, sophisticated projects is derived from the seven principals’ compatible experience in development management, acquisitions, financing structures, leasing/management, and the strength of its capital partners and lenders. Led by industry veterans Jim Meyer and Mack Reese, TAC was created in 2021 through a merger of Atlantic Capital Properties (Meyer) and Gateway Ventures (Reese).

Ameris Bank A subsidiary of Ameris Bancorp (NYSE: ABCB), Ameris Bank offers a full range of financial services, including traditional banking and lending products, treasury and cash management, wealth management, insurance premium financing, and mortgage and refinancing solutions. Ameris Bank is headquartered in Atlanta, GA, has 200 locations across the southeast and over $27 billion of total assets.

The post The Atlantic Companies Secures $24 Million Investment from American South Capital for Chattanooga Riverfront Multifamily Development appeared first on ASCP American South Capital Partners.

American South Capital Partners Announces $60M First Close of its Third Affordable Housing Fund

ASREF — Wed, 12 Nov 2025 12:00:39 +0000

FOR IMMEDIATE RELEASE

Los Angeles, CA and Shreveport, LA (November 12, 2025) — Real Estate Fund Manager American South Capital Partners (“ASCP”), a joint venture between SDS Capital Group and Vintage Realty Company, has successfully completed the first closing of its newest affordable housing investment vehicle, American South Real Estate Fund III (“ASREF III”), securing $60 million in initial capital commitments toward its $500 million target.

ASREF III builds on the strong momentum of its predecessor, ASREF II, which closed in February 2024 with $174 million in equity commitments, including the Fund’s first pension capital investment through funds managed by GCM Grosvenor. Investor commitments in ASCP’s mission-driven platform, which focuses on the preservation and development of affordable and workforce housing throughout the Southeastern United States, continues to accelerate. All of the ASREF III first close commitments are from investors who previously backed ASCP’s earlier funds, underscoring the platform’s strong performance and credibility.

Notably, GCM Grosvenor is committing capital on behalf of funds where it counts several large public pension plans as investors; the firm intends to grow this allocation throughout the fundraise.

“American South Capital Partners continues to deliver for our institutional clients while generating measurable social outcomes that closely align with their values,” said Peter Braffman, Managing Director at GCM Grosvenor.

ASCP specializes in providing equity financing to owners and developers of affordable and workforce housing projects across 10 Southern states: Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. Across its family of funds, ASCP has committed $199 million to 29 projects, supporting the development of 7,632 housing units, with 81% designated as affordable for families earning less than 80% of the area median income.

With ASREF II nearly fully invested, the timely close of ASREF III will allow ASCP to continue providing equity to its extensive pipeline of affordable housing projects across the Southeastern United States.

“The affordable housing crisis in the U.S., while a moral imperative for society – presents a compelling investment opportunity,” said Deborah La Franchi, ASCP Managing Partner and CEO of SDS Capital Group. “The seven-million-unit shortage of affordable housing across the US should shock us all. It is devastating for society to have this many families under such substantial financial strain. Institutional capital has a vital role in correcting this historic imbalance, and it can do so while generating the level of risk-adjusted-returns these investors expect.”

“We’re deeply grateful for the continued trust and enthusiasm from our investor community,” added David Alexander, ASCP’s Managing Partner and CEO of Vintage Realty Company. “Their support affirms our disciplined, outcome-oriented approach to real estate investing.”

About American South Capital Partners
American South Capital Partners manages a family of real estate impact funds focused on investing in transformative projects in 10 states across the Southern U.S. American South Capital Partners, is a joint venture between Los Angeles-based impact fund manager SDS Capital Group (www.sds.capital) and Vintage Realty Company (www.vintagerealty.com), a Shreveport, Louisiana-based property developer/manager.

About GCM Grosvenor
GCM Grosvenor (Nasdaq: GCMG) is a global alternative asset management solutions provider with approximately $86 billion in assets under management across private equity, infrastructure, real estate, credit, and absolute return investment strategies. The firm has specialized in alternatives for more than 50 years and is dedicated to delivering value for clients by leveraging its cross-asset class and flexible investment platform.

GCM Grosvenor’s experienced team of approximately 550 professionals serves a global client base of institutional and individual investors. The firm is headquartered in Chicago, with offices in New York, Toronto, London, Frankfurt, Tokyo, Hong Kong, Seoul and Sydney. For more information, visit: gcmgrosvenor.com.

Media Contact:
Bruce Beck/DB&R Marketing Communications, Inc.
bruce@dbrpr.com

The post American South Capital Partners Announces $60M First Close of its Third Affordable Housing Fund appeared first on ASCP American South Capital Partners.

Deborah La Franchi for P&I: Why You Should Invest in Affordable Housing

ASREF — Thu, 30 Oct 2025 17:55:00 +0000

Commentary: Why invest in affordable housing? Why now?
Pensions & Investments magazine publishes SDS Founder & CEO Deborah La Franchi’s thought piece on affordable housing as an investment strategy

****

“Don’t invest in affordable housing because it is good for communities – invest because it’s good for your portfolio.”

This has long been my response to skeptical institutional investors who have dismissed affordable housing as a socially-motivated endeavor that has little standing as a fiduciary-worthy investment. The perception that an investment in affordable housing could not generate alpha for their portfolios has long been held. However, over the past 24 months, that perception has begun to change, driven by powerful economic and demographic forces that have turned a social challenge into a compelling financial opportunity.

Performance and resilience of affordable housing is driven by a historic shortage of units

Unless you have failed to visit any urban American city over the past five years, this fact will be of no surprise: There is an estimated shortage of seven million affordable and available housing units across the U.S. today. This gap continues to widen.ⁱThe consequences have been severe: housing instability, rising homelessness and families burdened by high rents.

The affordable housing crisis is not just spilling into housing policy debates; it is routinely becoming the centerpiece of politics – as we are now witnessing in the current New York mayoral election. In Los Angeles, where I live, I can drive a quarter mile in any direction and find myself confronted by a dystopic and tragic homeless encampment that cries out for new solutions. This situation is a wake-up call for what happens when communities achieve crisis levels of unaffordability. In Los Angeles County, the affordable housing crisis has become one of the key contributors to the current 72,000ⁱⁱ + people living on the streets.

Regrettably, this shortage is worsening as housing production slows. Higher interest rates and inflation have made new development far more expensive. Construction lending rates have jumped over the past few years from ~4.5%-5.5% (2018) to as high as~ 7.5%-8.0%, while the cost of materials such as concrete and steel has surged by more than 28% and 65%, respectively.

These financial pressures have pushed developers to migrate towards higher income multifamily projects where elevated rents can more effectively offset higher construction costs. A recent snapshot, which compares projections for the next three years, illustrates what is occurring. Between 2022 and present day, roughly two million units of multifamily housing have been built nationwide with 25% of those units (500,000) being affordable to families earning less than 80% of area median income (“AMI”).ⁱⁱ For reference, 80% of the nationwide median income is just over $67,000^iv – in line with earnings for teachers, therapists, flight attendants, construction and building inspectors, property managers and industrial mechanics.^v Those past few years stand in great contrast to what is expected to occur over the next three years due to increasing costs. From 2024 to 2027, just one million new units are projected to come online (half of the prior three-year period), and in 2029 a full 98% of constructed units are expected to be high-income apartments.ⁱⁱⁱ This scenario sets the stage for a dramatic reduction in the production of affordable housing.

These shortages, coupled with the steep slowdown in affordable housing production, are major contributors to over 50% of U.S. renter households being cost burdenedⁱⁱⁱ – spending more than 30%

of their income on housing. In most communities, the low inventory of lower cost housing alternatives, coupled with the limited number of new units being built, adds to this crisis.

This precipitous drop in housing affordability has resulted in a market dislocation that, conversely, creates a significant market opportunity for institutional investors to benefit their portfolios – as well as communities.

The opportunity – and the performance data behind it

Over decades, financing for affordable housing has predominantly fallen within the purview of government agencies, nonprofits, and foundations. This reality helped cement the misconception that financing affordable housing was misaligned with the needs of institutional portfolios. More recently, affordable housing has begun to attract serious attention from institutional investors as they consider fund managers that focus on this niche investment strategy. The data on the performance and resilience of this asset class, as well as the growing number of managers executing in this space, have been key catalysts behind this growing interest.

A range of recent studies from the National Bureau of Economic Research, RCLCO, Nuveen, and the National Council of Real Estate Fiduciaries (NCREIF) have aligned findings, often centering on how affordable housing assets exhibit lower vacancy and tenant turnover rates and have a lower correlation to macroeconomic swings compared to multifamily housing targeting higher income tenants.

A 2024 study by the Pension Real Estate Association (PREA) found that over a 16-year period (Q1 2008 – Q1 2024), the unlevered average annual return of the most affordable properties serving households at or below 80% AMI outperformed those serving households above 120% AMI by 239 basis points.^viThe primary reason cited for this is lower vacancy rates due to more limited tenant turnover.

Performance of most affordable housing vs. least affordable

Compound average annual return – Ql 2008 to Ql 2024

Our investment experience at American South Capital Partners mirrors these findings. In cost burdened communities, where over 30% of households spend more than 30% of their income on housing, the demand-supply gap is glaringly obvious. Newly constructed units lease up rapidly, often with waitlists forming before construction is complete. Once leased, tenants are much less likely to leave, given the scarcity of alternatives at similar price points.

Unlike many real estate asset classes, our team regularly witnesses how market demand for affordable housing increases with macroeconomic uncertainty. Families tighten budgets, seeking stability and lower rents, which contributes to the resilience of affordable housing as a niche investment opportunity.

A niche market with a growing track record

Twenty years ago, there were few investment vehicles within this space for institutional investors to consider. Early pioneers – such as the Genesis Workforce Housing Fund, which I helped launch – were testing unproven theses. Since then, the landscape has dramatically changed. A growing cohort of specialized managers who have launched affordable housing platforms now have a track record of more than a decade within this space, providing investors with the performance data they need to evaluate these options.

Peter Braffman, managing director on the real estate investments team at GCM Grosvenor, and one of our most recent investors and strategic partners, has pointed out how his own perception of affordable housing has changed over time: “Before the global financial crisis, we didn’t view this strategy as compatible with traditional institutional investing, whether from a return standpoint or in terms of providing sufficient liquidity for shorter-duration vehicles. Today, we see it very differently – and far more positively.”

Over the past decade, sponsors acquiring and rehabilitating affordable housing – as well as those constructing new projects (collectively referred to below as “developers”) – have increasingly utilized private-sector debt and equity. More developers perceive the pace of public-sector investment at the federal level as slowing substantially over the years – or being eliminated – and have opted to tap into private capital.

Properly structured, private capital is faster and more flexible than government or nonprofit funding sources. Securing public sector, foundation and nonprofit financing can often take four to seven years while private capital can move into projects within a matter of weeks or a few months. Affordable housing developers value the speed, flexibility, and scalability that private equity real estate investment platforms can provide. They also appreciate having equity partners that deeply understand the ecosystem of affordable housing – given the many nuances and complexities involved to make a capital stack work.

While many developers have recently been shying away from federal subsidies, we see a growing number of local and state incentive programs being created to mitigate housing affordability challenges. Developers interested in taking advantage of these programs are finding that these incentives can be quite accretive to their project bottom line. Utilizing private equity real estate funds enables these developers to move quickly once they leverage into these more straightforward local and state programs (compared to complex federal programs).

The most successful developers in this space are those who are adept at pivoting as the market shifts. Many have refined replicable construction models for greater cost and time frame efficiency, built

specialized contractor and subcontractor relationships, or deployed new technology that reduces both development and operating costs. Such innovative development strategies are most successful because they seek out opportunities even in uncertain markets.

Why now?

Investing in affordable housing, due to the range of factors noted above, is increasingly viewed as a solid and strategic option for sponsors seeking more conservative, resilient, and niche strategies that are less correlated to the macro economy. And, for investors who might be overexposed to high income housing, affordable housing offers a diversifying opportunity.

Affordable housing is not just a moral imperative for society. It’s also an investment opportunity hiding in plain sight.

Deborah La Franchi is CEO and founder of SDS Capital Group and managing partner of American South Capital Partners. This content represents the views of the author. It was submitted and edited under Pensions & Investments guidelines but is not a product of P&l’s editorial team.

Spacer text
Spacer text second line.

View Article

The post Deborah La Franchi for P&I: Why You Should Invest in Affordable Housing appeared first on ASCP American South Capital Partners.