Goldman Sachs JV Pays $1.2B for Affordable Housing Portfolio

The eight-state collection ranges from the East Coast to the Midwest.

Image courtesy of The Michaels Organization

Image courtesy of The Michaels Organization

The Essential Housing Impact Partnership has acquired 90 affordable housing communities in a $1.2 billion deal.

The joint venture is formed by The Michaels Organization, the Urban Investment Group within Goldman Sachs Asset Management and the Community Development Trust.

The properties are located in Illinois, Florida, New York, Kentucky, Wisconsin, Indiana, South Carolina and Texas.

The seller of the affordable housing portfolio, previously managed by Greystone Property Management Corp., was Harmony Housing. The properties will now be  managed by Michaels.

The partnership had been working on the deal since 2022 and assumed Fannie Mae long-term fixed-rate financing for the acquisition. The portfolio comprises properties developed and rehabilitated with federal Low-Income Housing Tax Credits, of which several are at the end of their affordable initial compliance period. The acquisition ensures the long-term reinvestment and preservation of more than 10,000 units designated for seniors and families with low and moderate incomes.

Michael’s Vice Presidents Cristhian Codorniu and Kunal Chothani, CDT’s Chief Business Development Officer Michael Lear and Goldman Sachs’ Vice President Alan Sage led the Harmony Housing portfolio transaction.

In a separate deal, non-profit organization Foresight has acquired 31 properties totaling 1,923 affordable housing units in North Carolina from Harmony Housing. The Michaels Organization will manage the communities.

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