May 02Saving Affordable Housing
Source: Wall Street Journal
An apartment complex in suburban Chicago was saved from the clutches of gentrification by a private real-estate investment trust formed to buy and protect affordable housing.
The property, serving a working-class section of Aurora, Ill., was acquired for $5.2 million by a Chicago unit of Denver-based Mercy Housing Inc. in a joint venture with Housing Partnership Equity Trust, a private REIT that was created by Mercy and 11 other housing-related nonprofits.
A newly formed REIT purchased this Chicago-area apartment community to keep the rents affordable.
Although the deal was small, it is significant in that it was the first acquisition made by a real-estate company owned and operated by nonprofits and illustrates how organizations with a social mission can use the for-profit structure to advance their goals.
Read the rest of the article here.
No related posts.
Stay Up To Date
Get news on Mercy Housing and inspiring stories of change delivered to your inbox.