Tredway, an affordable and mixed-income real estate developer and owner, has acquired 630 affordable apartments for families and seniors in North Carolina.
The 12-property portfolio was acquired for $33 million and marks the company’s first acquisition in the state.
As a result of the acquisition, Tredway, its North Carolina-based nonprofit partner Affordable Housing Institute, and The Federation Cos. will extend the Section 8 contracts covering all 630 units thereby preserving affordability for at least the next 20 years. The new owners said they will undertake immediate work to address critically needed repairs across the portfolio, including energy-efficiency and accessibility improvements.
Acquisition loan financing was provided by Freddie Mac and originated by Berkadia, according to officials.
“We’re pleased to bring affordable housing opportunities to North Carolina while launching Tredway’s new partnership with Affordable Housing Institute and The Federation Cos.,” said Will Blodgett, founder and CEO of Tredway in a statement. “The issues North Carolinians are facing, including yearslong waits for affordable apartments and the loss of units to market pressures, are emblematic of a larger crisis that touches every community across the country. Together, we can make a tangible difference by preserving and improving existing affordable properties and ensuring residents’ needs are met.”
The properties are in Clayton, Elizabeth City, Enfield, Fairmont, Franklinton, Fuquay-Varina, Hamlet, Laurinburg, Mebane, Mount Airy, Statesville, and Yanceyville.
“Affordable Housing Institute is excited for our partnership with Tredway while we look to continue providing affordable housing across North Carolina and beyond,” added Bryan Hartnett, president of the Affordable Housing Institute. “As we all know, affordable housing is a major issue facing North Carolinians and families everywhere. We look forward to improving the communities we are serving and preserving their affordability for years to come.”
“As a born-and-bred North Carolinian, I’ve witnessed rapid growth as influential corporations have chosen to put down roots in our beautiful cities,” said AJ Casavant, managing principal at The Federation Cos. “Although this exciting boom has brought new opportunities to our state, it’s also ushered in the conversion of critical affordable housing units to market-rate. Economic progress should not come at the expense of working families or result in their displacement.”