Key financing has been secured for the rehabilitation of a 65-unit public housing community in Chesapeake, Virginia.
Fairstead announced the closing of a nearly $10 million investment—$150,000 per unit—in the Peaceful Village Apartments. The national real estate company is partnering with the Chesapeake Redevelopment and Housing Authority (CRHA) on the deal.
The transaction marks CRHA’s first conversion under the Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) and Section 18 program and Fairstead’s first RAD transaction outside New York City.
The revitalization of Peaceful Village is the first in a wave of Fairstead-led deals set to close over the next year across Virginia, reinforcing the firm’s commitment to the area. By the end of 2025, the company estimates its regional footprint will exceed 1,300 residences. Fairstead’s national footprint exceeds 25,000 units across 28 states.
“As a national, purpose-driven company, Fairstead is proud to bring our expertise and long-term commitment to communities across the country, especially here in Virginia,” said Estelle Chan, senior director, development, at Fairstead.
Originally built in 1995, Peaceful Village comprises 25 two-story buildings with a mix of three- and four-bedroom townhomes. The community will provide quality housing for families with incomes up to 60% of the area median income.
The planned upgrades include an overhaul of all residential units as well as the common areas and building exteriors. All homes will benefit from energy-efficient upgrades, such as Energy Star stainless steel appliances designed to elevate both form and function, LED lighting, and water-conserving fixtures that have been WaterSense-certified. These energy-efficiency upgrades directly benefit residents by lowering their monthly utility bills.
Exterior improvements will include the installation of new siding, while the interiors will be updated with new flooring, contemporary light fixtures, USB charging ports in every room, and fully renovated kitchens. Enhancements within kitchen spaces will include new cabinetry and quartz countertops. Similarly, bathrooms will be refreshed with new vanities, bathtubs, toilets, and bath accessories to deliver a clean, modern aesthetic, said the development team.
The rehab efforts also feature the ground-up construction of a new 2,500-square-foot community center. Located at the entrance of the community, this building will serve as an important connection hub and will include a resident community room, a computer lab, a laundry room, and a property leasing office. Outdoor improvements include the addition of a new playground and enhanced landscaping.
“As CRHA’s first RAD/Section 18 conversion, this project marks a significant milestone in our efforts to modernize and strengthen our housing portfolio,” said CRHA executive director John Kownack. “This revitalization is part of our broader strategy to invest in the future of our neighborhoods by upgrading aging housing stock, expanding access to critical services and ensuring that our residents feel safe and can thrive. Partnerships like this are vital to meeting the increasing demand for stable, sustainable housing.”
Financial partners for Peaceful Village include Berkadia and Freddie Mac, which provided debt financing, and equity partner U.S. Bancorp Impact Finance, the community development financing subsidiary of U.S. Bank. Woodforest Bank provided bridge financing for the project. CRHA will continue to serve as the property manager for the community.
