Donaldson Impact Investments, in partnership with New York Life Investment Management and nonprofit developer Housing Initiative Partnership (HIP), recently acquired a 326-unit development in Silver Spring, Maryland.
Yorkshire Apartments will transition from market-rate housing to a mixed-income community in a move aimed at providing long-term housing stability for residents facing increasing housing costs in Montgomery County.
Under the new structure, half of the apartments will be designated as affordable to households earning up to 60% of the area median income, while the other half will remain market-rate units.
"This acquisition demonstrates how progressive public-private partnerships can create meaningful, lasting impact for residents and the community at large while safeguarding quality housing in high-demand markets," said Kevin H. Smith, managing partner for Donaldson Impact Investments. "Yorkshire Apartments allows us to provide families with access to larger apartment homes at attainable rates. At a time when rising development costs, constrained investment activity, and recent rent control measures in Montgomery County are limiting housing supply, preserving communities like Yorkshire is paramount."
New York Life Investment Management is the majority investor in the $79.4 million transaction that will widen access to high-quality affordable housing.
The deal was made possible through Montgomery County's by-right payment in lieu of taxes (PILOT) program, which provides long-term tax abatements that support housing affordability. The project is capitalized through a combination of the PILOT structure, market-rate equity provided by New York Life Investment Management and Donaldson Impact Investments, and financing through J.P. Morgan. JLL served as the selling broker and also assisted in securing debt for Donaldson.
The acquisition is the second investment by Donaldson Impact Investments, which is working to preserve long-term workforce housing stability and create positive economic and social outcomes in communities throughout the region.
HIP is the nonprofit partner and resident services provider. The partnership will introduce enhanced on-site resident support services aimed at improving quality of life and long-term economic mobility.